Dear Editor,
Financial literacy lessons for many of us growing up looked like watching our parents balance the checkbook or dropping coins into our piggy banks. But today’s students are facing a much more complex world. From Apple Pay available at the tap of a finger to an allowance or paycheck that magically appears in a digital wallet, it’s important – now more than ever – that we equip youth with skills to help them navigate their personal financial fitness.
Research shows that students who complete a financial literacy course are more likely to save money, invest money, create budgets, and seek out lower-cost forms of credit. But with kids’ busy schedules and demands on parents’ time, these sometimes uncomfortable yet important conversations get put on the backburner.
Our schools can and should have parents’ backs. Many New Mexico districts already do. Unfortunately, Gallup-McKinley County Schools isn’t one of them.
While all New Mexico high schools must offer financial literacy as an elective class, 54 of 89 school districts (including Central Consolidated, Farmington, and Albuquerque) now require this class, guaranteeing that every one of their students will be equipped with essential financial skills that can help them realize their dream of college, trade school, opening a business, or saving for a home.
GMCS, which serves about 12,000 students, is one of the largest districts that doesn’t require students to take a financial literacy class, despite the fact that the county has the highest poverty rate in the state. Other nearby districts like Bloomfield and Cuba recognize the importance of personal finance education and ensure every student takes it.
In total, nearly 55% of New Mexico students are now required to complete a financial literacy course, and those who don’t will be at a significant disadvantage compared with their peers across the state and the country when it comes to financial planning and decision making.
Thirty states representing 75% of students nationwide require students to take a financial literacy course in high school, including our neighbors Colorado, Utah, and Texas. The New Mexico Legislative Finance Committee reported that after financial education was mandated in Georgia, Idaho, and Texas, students who participated in the programs had higher credit scores and higher savings rates.
Many students will share the knowledge they receive with family members and friends. Others will have the tools needed to break generational cycles of poverty. All who complete a course will be less vulnerable to financial scams and exploitation. And when students increase their financial literacy, they will be 21% less likely to carry a credit card balance.
Most important is that students want and need practical learning. A nationwide survey by Junior Achievement – the nation’s largest nonprofit dedicated to preparing students for future economic success – found that 73% of students want more financial education and 75% lack confidence in their financial knowledge. Meanwhile, 80% have never heard of a FICO credit score and 43% believe that an interest rate of 18% on debt is manageable.
We must reach students early about the importance of financial literacy, as their physical health and mental wellness down the road will depend on it.
If you want your children to enter adulthood with practical preparation for life after high school, please contact your school board members and encourage them to make financial literacy a high school graduation requirement. Every New Mexico student deserves a secure future that starts with giving them the right tools today.
Sincerely,
Mandi Torrez
Education Reform Director of Think New Mexico and the 2020 New Mexico Teacher of the Year
