Saud Anwar

State Senator Saud Anwar Joins Senate Passage Of Bill Adding Financial Literacy To Graduation Requirements

Today, State Senator Saud Anwar (D-South Windsor) joined the State Senate’s passage of a bill that will add personal financial management and financial literacy to high school graduation requirements in Connecticut. The courses will be required beginning with the graduating class of 2027.

Senate Bill 1165, ‘An Act Concerning Financial Literacy Instruction,” passed the State Senate with a vote of 35-1 and now heads to the House of Representatives.

“We owe it to our youth and our student populations to prepare them for the rigors of life post-graduation. Without providing them with information on how to handle their finances, we are not preparing them properly,” said Sen. Anwar. “This legislation makes sure students will learn real-world skills that will benefit them throughout their adult lives.”

Under Senate Bill 1165, a student will need a half of a credit of personal financial management and financial literacy in order to graduate High School. Currently, a student needs 25 total credits to graduate. Adding financial literacy to the list of credits needed does not increase the necessary credits for graduation. Adding a half credit will decrease 3 credits necessary for electives to 2.5.

Financial literacy includes banking, investing, savings, the handling of personal finance matters, and the impact of using credit cards and debit cards.

According to Forbes.com, over 60% of Americans live paycheck to paycheck and can’t set aside any money for short-term or long-term financial goals. It’s not just a problem affecting low-income families – 41% of Americans earning between $150,000 to $200,000 per year live paycheck to paycheck. Credit card and student loan debt are at an all-time high. And it begins with education. Financially literate individuals have an understanding of basic financial concepts and can apply those skills in their own life. The sooner students understand these concepts, the better, especially if they come from backgrounds without prioritizing financial literacy.

According to the Financial Industry Regulatory Authority (FINRA), 53% of individuals with a higher financial literacy spent less than their income, and 65% had set aside a three-month emergency fund. In comparison, 35% of individuals with lower financial literacy spent less than they earned, and 42% had a three-month emergency fund set aside. When you learn how money works at a young age, you have the necessary skills to make positive financial decisions as an adult.