There’s no question Delaware’s kids need to understand financial literacy, and the schools need support. The debate over House Bill 203 masks a much deeper problem, though.
A recent commentary supporting HB 203 noted that 60% of households live paycheck to paycheck, 40% of households have less than $300 savings, 33% of Americans have no retirement savings, and 95% of Americans have insufficient retirement savings. It’s suggested this data shows a link between financial literacy and poverty; hence, the need for another graduation requirement.
But the real picture is much bigger and more serious. The annual salary of a person making Delaware’s minimum wage is $27,560, or $2,297 per month. Yet, a Delaware comfortable living wage is estimated at $48,000 per year ($4,000 per month). The average household income in Sussex County was $47,611 in 2023. The median rent in Sussex County for a one-bedroom apartment is $1,088 per month. Now add the federal estimate of modest food cost per month ($372) and the average monthly cost of utilities in Delaware per month ($150 to $200), and an average person making minimum wage has only $687 per month ($172 a week) left for payroll taxes, medical coverage, clothing and transportation. This estimate is based on the current minimum wage of $13.25 per hour. Employees who receive cash tips, like wait staff, have a minimum wage of $2.23 per hour. If a waitress works 40 hours per week, 52 weeks per year, her base salary is $4,638.
Sussex has many retirees; their influx is helping shift the economy away from manufacturing and skilled jobs to minimum wage service employment at bars, restaurants and discount stores. Retirees are nudging up housing costs. This economic reality is the real driver of the lack of savings, which disproportionately impacts women and African Americans. People who are struggling financially would certainly prefer not to live paycheck to paycheck. Parents do not like having to decide between transportation or food. But this isn’t tied just to their financial literacy – it’s a much broader problem. Indeed, if there was a causal relationship between wealth and financial literacy, then the solution would be to have only poor children take financial literacy classes – but the ridiculousness of that suggestion only confirms the problem is much larger.
The commentary is correct in noting the purpose of education, as stated in the Delaware Constitution, is to “create a system of public schools that educates Delaware’s children.” It’s also noted that schools are growing rapidly in Sussex County and desperately need financial assistance to support infrastructure and programming. Solutions may be closer to home, as another article noted that Sussex County Council has yet to adopt a voluntary school assessment to allocate money for schools through a fee paid by developers to support school construction.
We all care about kids, education and the health of our community; they need our support, and an honest debate about what needs to be done to improve the quality of life of our neighbors here in the Cape district.
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