Column: Make financial literacy part of Hawaii high school education

The next generation of Hawaii high schoolers may soon be able to learn about money in classes rather than in the school of hard knocks.

In the last four years, the number of U.S. public high schools that guarantee at least one semester of personal finance has jumped from 1,300 schools to more than 2,700. The 2.4 million students at these schools have the opportunity to gain the knowledge and skills to manage their finances.

Hawaii high school students might soon have this opportunity, thanks to a resolution recently passed by the Hawaii Legislature. Senate Concurrent Resolution 152 urges the state Department of Education and the state Department of Commerce and Consumer Affairs to implement a half-credit financial literacy graduation requirement for all Hawaii high schoolers.

Lessons in money management are more critical than ever. My first lessons came when I started seeing the bills for my nearly $100,000 in high-interest private student loans. Fortunately, I slowly clawed myself out of debt. Along the way, I learned about budgeting, credit, saving and investing.

This real-world education made me passionate about helping young people learn about personal finance. Working now with the nonprofit Next Gen Personal Finance, I partner with educators in all 50 states who teach personal finance courses. We have a simple mission: Guarantee that every U.S. high school student takes a personal finance course before they cross the graduation stage.

When I testified in support of SCR 152 in Hawaii in April, I felt like monumental progress was possible, but I also knew that the goal wasn’t fully achieved with this resolution. The law doesn’t require a personal finance course. It only urges the DOE and DCCA to implement a graduation requirement, because the constitutional duties of the Legislature don’t include mandating courses.

The Department of Education wants to give schools latitude to implement financial literacy instruction in ways that work for them. What this usually means is that teachers are asked to embed personal finance instruction into other courses.

Flexibility for schools is understandable, and I believe the intention is positive. But Montana State University research shows that in the states that give schools this latitude with financial education, only 1 in 3 schools teach any financial literacy at all (papers.carlyurban.com/main_brief.pdf).

Existing courses are already jam-packed with standards. Adding content, no matter how useful, dilutes the subject matter, so it’s no wonder that two-thirds of high schools ignore flexible state requirements altogether.

Personal finance instruction has so many benefits when it is taught in a full semester course. A National Endowment for Financial Education report shows that graduates from states with stand-alone personal finance graduation requirements build higher credit scores, lower debt delinquency, practice smarter spending decisions, make smarter borrowing decisions, and establish more wealth.

Valdeane Odachi, an academic adviser with the TRIO Student Support Services Program at the University of Hawaii-Hilo, says students attending personal finance workshops are sadly surprised they didn’t learn these skills in high school.

“Many don’t know the difference between a credit score and a credit report,” she says. “Many have never even thought about investing vs. saving. And many have started to accumulate student debt rather than apply for scholarships or look for other opportunities to fund their post-secondary journeys.”

Hawaii DOE and DCCA can ensure personal finance is taught by endorsing the original intent of the resolution — guaranteeing a stand-alone semester course in financial literacy for all Hawaii high schoolers. There is outside support. For example, my organization has funded large school districts and entire states in implementing this crucial course, and we stand ready to partner with Hawaii.

Many thanks to state Sen. Michelle Kidani for sponsoring this important resolution. If we can revise the proposed legislation to require a full semester course, Hawaii will become the eighth state in the nation to guarantee a full semester personal finance course.

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Christian Sherrill is director of business development and advocacy at the nonprofit Next Gen Personal Finance.