Doug McCrory

State Senator Doug McCrory Leads Senate Passage Of Bill Adding Financial Literacy To Graduation Requirements

Today, state Senator Doug McCrory (D-Hartford), Senate Chair of the Education Committee, lead State Senate passage of a bill that will add personal financial management and financial literacy to the high school graduation requirements. These 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.

“I am thrilled all students in Connecticut will learn financial literacy regardless of which school district they live in, “said Sen. McCrory. “This levels the playing field for all students no matter their background and provides them all with the necessary resources they need to function in society. Learning about financial literacy can be beneficial from the time you are ten years old all the way until you retire.”

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.