Students need to learn basic financial skills early to navigate an increasingly complex financial world. Senate Bill 5080, prefiled by Sen. Javier Valdez and Sen.
Adrian Cortes, aims to make financial education available in every Washington school district by the 2029-30 school year. State Treasurer Mike Pellicciotti has been promoting this idea for several years. Last session, similar bills passed both the Senate and the House but didn’t make it through the reconciliation process.
One version made it a requirement for districts to offer the class, while the other would make it a requirement for students to pass the class. Pellicciotti said, “Financial matters impact us every day. Whether we’re just trying to make household budgets go a bit further, pay all our bills or applying for home, student, or car loans, being empowered with the knowledge to achieve those goals must be a part of our education system.
Basic financial knowledge is absolutely essential not only to aid Washingtonians in navigating increasingly complex financial systems, but also as a pathway to quality employment opportunities in accounting, banking, and financial services which exist in every corner of our state.”
Americans’ credit card debt reached a record $1.17 trillion in the third quarter of this year. That was before the typical U.S. consumer racked up another $1,181 on their credit cards this Christmas.
Washington prioritizes financial education mandate
Surveys show that two-thirds of millennials are not saving for retirement. Currently, Washington requires districts to offer students access to financial education, but it doesn’t specify what that means. Nor is taking the courses a requirement.
The state schools agency defines financial education as learning about spending, saving, credit, debt, employment, income, investing, risk management and financial decision-making. Last year, Pellicciotti successfully championed the Washington Saves program. Taking effect in 2027, it allows Washington workers without a work-based retirement plan to set up individual retirement accounts and contribute to them through payroll deductions.
Workers don’t have to contribute; it’s optional. And employers are not required to contribute, unlike a 401(k) retirement program. They just have to offer the payroll deduction.
Financial education doesn’t guarantee young people will make good decisions about money. But at least they’ll have the information to know before they make a bad decision.