New Report Shows Massachusetts Falling Behind in Financial Literacy

Report highlights the urgency of improving financial literacy education for commonwealth students 

BOSTON, April 25, 2022 /PRNewswire/ -- A new report released today by FitMoney shows the very real consequences that accompany low levels of financial literacy in the Commonwealth during times of rising inflation and a financial environment of growing complexity.  

The Massachusetts Financial Literacy Fitness Report also shows that the state is failing to ensure all students have access to instruction that would give them critical financial knowledge they'll need to succeed in life. According to the report, Massachusetts lags behind an increasing number of states taking needed steps to improve and expand financial literacy education for their youth.  

FitMoney's report also found: 

• More than half of American families can't cover a $1,000 emergency expense with savings.
• Average consumer debt in Massachusetts is highest among New England states - $115,671.
• Less than 5% of students in Massachusetts are guaranteed to take a personal finance course.
• Barely 1/4 of school districts in Massachusetts say they teach financial literacy in middle/ elementary school, yet experts say that kids' money habits form as early as 7 years old.

FitMoney sent a copy of the report to Governor Baker today, along with a letter urging him to shine a light on the issue and to support financial literacy measures being considered by the legislature.

"The stakes for the youth of Massachusetts are high and our state is frankly falling behind; the time to act is now," said FitMoney Executive Director, Jessica Pelletier. "While we are thankful for Governor Baker's leadership on this issue, we urge him and lawmakers on Beacon Hill to make financial literacy education not just an option, but a priority for all kids in the commonwealth."

There are currently five bills on financial literacy under consideration, as well as a $250,000 funding measure in the proposed 2023 budget. While financial literacy has been included in academic standards since a 2019 bill went into effect, Massachusetts does not require schools to teach a mandatory course or even to offer an optional one. Twenty-four others states do. 

Review the report here.

Read the letter here.

About FitMoney
FitMoney is a Newton-based nonprofit organization dedicated to improving financial literacy in Massachusetts and across the country. FitMoney provides free, unbiased financial literacy programs to help K-12 students develop life skills for a financially fit future.

SOURCE FitMoney