Why Tennessee should follow Florida's lead on financial education | Opinion
In Florida, roughly 2.7 million students owe the state’s legislature a big "thank you." Why? Because when it passed SB 1054 on March 8, it made sure those students would get a sound education in financial literacy, a subject that is not only life-changing, but also world-changing.
So now, what about the 957,423 students enrolled in Tennessee's schools? Will their legislature grant them access to the same advantages? Florida is not the first state to require that students take a financial literacy course in order to graduate. Ten states preceded it. Now, Tennessee is in the process of making a similar decision.
A bill requiring students in Tennessee schools to take financial literacy classes passed the House recently and is now in the Senate. If HB2294/SB2174 — sponsored by Rep. Harold M. Love Jr. of Nashville and Sen. Raumesh Akbari of Memphis — passes the Senate, sixth- through eighth-grade students in public and charter schools will participate in mandatory, age-appropriate courses covering budgeting, saving, spending, investing, credit, debit and insurance during the next school year.
The size of Florida's public education system has a higher population than many developing countries, so the signing of this bill is making headlines across the country. I sincerely hope this press grabs the attention of Tennessee lawmakers.
Financial education can fix the wealth gap in the U.S.
It is not unusual to hear people complain that the top 1% of the global population possesses 99% of the world's wealth. While that is an exaggeration, there is some disturbing truth to the wealth gap. Figures released at the end of 2021 show that the top 1% percent of people in the U.S. hold 27% of the wealth. The entire middle class, which makes up 60% of U.S. households, holds only 26.6%. It does not need to be that way.
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Think about what would happen if, through financial literacy, we were able to grow the top 1% to be the top 2%. How would things change if the super-rich suddenly doubled in number? First of all, it would change all the headlines. It would show people that top-tier wealth is not a closed club. It would change people's beliefs about wealth, how it works and who can have it.
Second, it would provide massive positive economic impacts to communities because as individuals make more money, they have more money to give away. As more people become wealthy, it opens up opportunities for people to donate and create foundations, companies, businesses and jobs that help others become earners. As financial literacy empowers a larger number of people to become wealthy, it has the trickle-down effect of removing the systemic problems that keep communities unhealthy.
Financial education can create 'money celebrities'
The celebrities our kids look up to typically do not come from the world of finance (if that is who your kids look up to, I'd love to meet them). Rather, we have sports celebrities, music celebrities and movie celebrities. We do not have money celebrities, but we should.
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Financial education can introduce students of all ages to new heroes who changed themselves — and the world — by studying, learning and applying the ways in which money works. Imagine how the world would change if a new generation grew up wanting to be like Bob Proctor, Napoleon Hill, Earl Nightingale or Alan Watts. We need students to be studying people like these in all schools, everywhere, all over the world. Napoleon Bonaparte and Julius Caesar are cool and historically significant, but money celebrities offer more practical role models for the modern age.
As a dad, I cannot honestly say I look forward to helping my kids with their homework. I've spent too many hours watching YouTube videos trying to figure out the right way to do new math, but I cannot wait to help my kids with their financial literacy homework. Finally, they will be learning something that will not only educate but empower them. I cannot wait to help my kids understand that money will never be a problem for them if they learn where to find it and how to manage it.
Jerremy Alexander Newsome serves as the CEO of Nashville-based Real Life Trading.
This article originally appeared on Nashville Tennessean: Why Tennessee should follow Florida's lead on financial education
