Washington bill would require high school students to receive financial education before graduating

Many states across the U.S. require financial education as a requirement for graduating high school. That doesn’t include Washington.

But a state Senate bill heard in committee Tuesday morning would change that.

Sponsored by state Sen. Javier Valdez, a Seattle Democrat, Senate Bill 5080 would require school districts across Washington to provide financial instruction for all high school students. Such youth would need to meet standards to graduate, beginning with the class of 2033 or sooner.

Valdez told the Senate Early Learning and K-12 Education Committee that today’s financial systems are more complex than ever. Some might benefit from opportunities for fiscal gain but too many others remain “vulnerable to exploitation,” Valdez said.

“I believe we must prioritize equipping our young people with the financial education necessary to navigate these financial systems to their benefit,” he said, “and avoid the mistakes which all too often become economic burdens and sometimes lifelong burdens.”

The bill would help create a foundation of personal finance know-how for every student, Valdez said. He noted that Washington State Treasurer Mike Pellicciotti asked him to usher the bill through this year’s legislative process.

Pellicciotti told the committee that in the state’s 39 counties, it’s rare to see consistent support for a bill across the political spectrum.

“I am absolutely confident this will be the type of legislation that the folks will look at in the session and say, ‘This is where we actually brought the state together and did something that people want,’” he said.

Charlotte Nemec, president and CEO of Canopy Credit Union in Spokane, spoke in support of SB 5080. She said providing financial counseling helps people learn how to avoid racking up debt and build generational wealth.

Washington collectively benefits when its residents can better manage their finances, said Nemec, who also chairs Washington Credit Union’s Governmental Affairs Committee. Making sure more students receive a financial education “will pay dividends for decades to come.”

Dakota Manley with the Washington State Young Republicans also spoke in support of the bill. At the same time that too few students are taught to manage a budget, far too many Americans are living paycheck to paycheck, he said.

Manley urged lawmakers to help provide future generations with much-needed financial knowledge so that they can have a “fair shot at the American dream.”

“Financial education is in critical need to be taught at our schools,” Manley said. “Many of my peers still share in the sentiment that our school system would rather teach them the components of a plant cell rather than how to budget for the future or maintain a healthy credit score.”

But Jeannie Magdua, a founding member of the grassroots organization Conservative Ladies of Washington, opposes the bill.

“Only 39.7% of Washington students meet math standards,” she said. “In light of that fact, it is ridiculous to add yet another graduation requirement that requires a base math knowledge.”

Senate Republican Leader John Braun said at a Tuesday media availability that in order to be successful long-term, kids need to make thoughtful and smart choices about finances. There is concern about tacking on more graduation requirements, though, he said, so it will take additional discussions but the right balance could be struck.

The Centralia Republican said broadly speaking, if the bill can get “lined up right,” his caucus would support it. That also depends on associated costs given the state’s challenging budget situation.

House Republican Leader Drew Stokesbary agreed. Although the Auburn Republican said he thinks his caucus would back the idea, they’d likely lend stronger support to legislation prefiled in the House.

Last session, a similar bill by state Rep. Skyler Rude sailed through the House before being “heavily watered down” in the Senate education committee, Stokesbary said.

“But we think it’s a great idea,” he said. “And in fact, studies show that things like this disproportionately benefit low-income, underrepresented minority children.”

Stokesbary added: “So if we want to talk about equity in education, this is definitely something we should be doing, and that’s why House Republicans have been talking about it for the last couple of years.”