Financial literacy shapes a prosperous future

Delaware has taken a decisive step toward securing the financial well-being of its citizens by passing landmark legislation that mandates financial literacy education for all high school students.

House Substitute 1 for House Bill 203 (as amended) was recently passed with strong bipartisan support by the legislature. Beginning with the freshman class of 2026-27, Delaware will require a minimum half-credit in financial literacy education as a graduation requirement. This commitment sends a clear message to the next generation of leaders: the General Assembly is serious about equipping them with the essential skills needed to become responsible stewards of their financial futures as they navigate an increasingly complex and competitive global economy.

Comprehensive financial education will ensure that every high school graduate possesses practical knowledge in budgeting, saving, investing, understanding credit and debt, managing taxes and planning for retirement. The new curriculum will focus on interactive, pragmatic lessons such as comparing credit card offers, understanding the impact of interest rates, and participating in budgeting simulations. Robust curricula and "hands-on" experiences will make financial concepts immediately relevant, empowering students to reach their full potential by approaching future monetary decisions with confidence and independence.

The influence of this initiative will extend into Delaware's households. As students share their financial knowledge, many families will be better equipped to create structured budgets, avoid unnecessary debt, and plan for significant milestones, like purchasing a home, funding higher education, or preparing for retirement.

Research indicates that students who receive financial instruction share this knowledge with their parents, who experience improvements in their credit scores and a reduced risk of loan defaults. Financial literacy, spread from one generation to the next, contributes to long-term household stability and reduces financial stress and mental anxiety. Ultimately, these new insights should help Delaware close its ever-expanding income gap.

On a broader scale, this educational requirement holds the promise of advancing Delaware's workforce and economy. For business owners and aspiring entrepreneurs, these skills are critical for managing cash flow, seeking funding, and sustaining successful enterprises. A financially literate population is better equipped to make informed decisions, manage personal and professional finances, and respond resiliently to economic downturns. Employees who understand the importance of saving, investing, and responsible credit management are more likely to continue to add value to the workplace and will experience job satisfaction, increased productivity, and decreased absenteeism.

Understanding basic financial concepts can lead to increased citizen engagement in public policy creation. An informed population is better positioned to understand and engage with issues related to taxation and expenditures, fostering more interest in the working and spending habits of their government.

Teachers will play a central role in the successful implementation of this new education requirement. Delaware is committed to supporting them through professional development workshops, updated curriculum resources, and public-private partnerships.

I worked diligently with other supporters of this legislation and the Department of Education to understand the agency's criteria for academic excellence in financial literacy. This bill provides local superintendents, school boards, and educators with the flexibility to incorporate the financial literacy credit into existing Social Studies courses or to offer it as a standalone elective--ensuring that schools can tailor instruction to meet their needs. The University of Delaware's endorsement of personal finance courses as academic electives underscores the subject's importance and incentivizes student engagement and achievement.

Crucially, Delaware's legislation is distinguished by its proactive encouragement of collaborative partnerships. Through outstanding support from the UD Center for Economic Education and Entrepreneurship, Delaware State University's Charles Schwab Financial Literacy Institute, the Federal Reserve Bank of Philadelphia, NextGen Personal Finance, and banking, insurance, real estate, and financial professionals, our state’s financial literacy program will remain current, relevant, and sustainable. This inclusive, multi-stakeholder cooperative model demonstrates the level of commitment our state has for investing in the success of our students. Our approach may well serve as a national model.

Financial literacy is no longer optional instruction, but essential fundamental education. Our comprehensive approach will initiate a positive feedback loop throughout Delawarean society. Students equipped with critical life skills contribute to stronger, more stable families. These families will help build a more skilled and resilient workforce, driving economic growth and generating new opportunities. Economic expansion will enable capital creation and permit further investment in education and community initiatives. This legislation will reinforce the cycle of prosperity and limit the cycle of poverty for future generations. Students win, families win, businesses win, the economy wins, and Delaware wins!