SB497

THE SENATE	S.B. NO.	497
THIRTY-THIRD LEGISLATURE, 2025
STATE OF HAWAII

A BILL FOR AN ACT

relating to education.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. The legislature finds that financial education is a lifelong learning process that empowers individuals to plan for their futures. Historically, the education system has assumed that students learn important financial skills from their families. However, not all students are taught the financial skills they will need to be successful later in life. Presently, the lack of financial literacy poses a significant barrier for individuals seeking to achieve financial prosperity and stability. Personal financial education is essential to ensure that the State's youth are prepared to manage money, credit, and debt, and to become responsible workers, heads of households, investors, entrepreneurs, business leaders, and citizens.

Nationwide, there is growing support for a personal finance course requirement for high school graduation. In a 2022 poll conducted by NORC at the University of Chicago, eighty-eight per cent of respondents supported a requirement of a semester- or year-long course focused on personal finance education for high school graduation. Eighty per cent of adults also responded that they wished they were required to complete a semester- or year-long course focused on personal finance during high school. Regarding selected topics to be taught, seventy-five per cent of respondents selected spending and budgeting; fifty-five per cent selected credit management; and forty-nine per cent selected savings. Increasing opportunities for financial literacy may alleviate growing uncertainty over financial preparedness and challenges faced by young adults.

The legislature also finds that in 2013 and 2017, the State received an "F" grade, meaning that schools did not offer any education on personal finances. In 2023, the State received a "D" grade in its ability to prepare students for financial literacy upon graduation from high school. While most Hawaii high schools require students to complete a personal transition plan before graduation, the requirements are self-directed, remain underfunded, and lack a clear framework for long-term financial success.

In 2015, the financial literacy task force issued its final report, noting that financial literacy is a subject that should be taught in schools. As certain community resources had restrictions that were limited to specific islands or areas, a coordinated state effort would provide greater equity for all students to engage with financial literacy topics. The task force noted that increasing partnerships between the department of education and community stakeholders to provide national and local financial literacy resources; identifying core financial literacy concepts; providing professional development opportunities for educators; integrating financial literacy into curriculum; and securing federal funding for financial literacy programs may address the implementation of a statewide program for all schools.

Therefore, the legislature further finds that it is of the utmost importance to educate Hawaii's youth in economic and financial matters to prepare them for financial independence through the development of fiscal responsibility and financial management skills.

Accordingly, the purpose of this Act is to require the department of education to include the teaching of financial literacy in the existing personal transition plan course requirement.

SECTION 2. Commencing with the 2026-2027 school year, the department of education shall require the teaching of financial literacy to be included in the existing personal transition plan requirement for each student. Schools may develop their financial literacy program based on the particular school's stakeholder input on the scope and sequence of its personal transition plan or provide financial literacy systemically in their school program.

For purposes of this section, "financial literacy" includes but is not limited to curriculum addressing financial skills, personal financial management, budgeting, debt, credit, and tax planning.

SECTION 3. This Act shall take effect upon its approval.

INTRODUCED BY:	_____________________________

Report Title:

DOE; Financial Literacy; Curriculum

Description:

Beginning with the 2026-2027 school year, requires the Department of Education to require the teaching of financial literacy to be included in the existing personal transition plan requirement for each student.

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

SB 497: RELATING TO EDUCATION.

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