NJ Assemblyman Carmelo Garcia to Introduce Expansive Financial Literacy Legislation for Young Students

In a sweeping effort to expand the financial literacy requirements already comprising a key part of New Jersey’s high school curriculum, Assemblyman Carmelo Garcia is moving aggressively to put forth legislation that would make practical money management topics part of the public schools’ financial education offerings. Under the proposed measure, essential topics such as saving, investing, credit and debt management, insurance and civic financial responsibility would be taught to students beginning in the sixth grade.

Financial literacy proponents have long held that starting financial literacy education in high school is often too late for students to begin learning about budgeting, saving and related concepts. In fact, they contend, many high school students are already working and earning money from jobs that will help them pay for their college education. But without a good understanding of how to budget, save or manage credit and debt, the earnings from jobs they have in high school often are spent on other items, leaving the working students with no savings.

Under the legislation to be introduced by Assemblyman Garcia, the New Jersey Department of Education would create and roll out initiatives focused on financial literacy for grades sixth through eighth. The educational curriculum also require the teaching of the rights and responsibilities of home ownership and renting, saving, investing and planning for retirement.

While many states are moving ahead with legislation to require high school students to take a financial education course in order to graduate, the New Jersey measure goes one step further by implementing in schools a financial literacy curriculum targeted at students in the sixth through eighth grades. Many financial literacy professionals are watching this development closely, as many believe it will spark similar legislative action in other states throughout the country in the months ahead.