There is a lot of debate over what should be taught in our public schools. Whether there is a greater push for the arts or STEM subjects to be taught, everyone can agree that every Colorado kid deserves a fair shot at a good education so they can be successful. If there is one subject every student should be well-versed in by the time they reach adulthood however, it’s financial literacy.
I believe that every student in Colorado should have the opportunity to learn about student loan debt and retirement planning before they find themselves in serious financial trouble. Across our state — and across our country even — far too many students graduate from high school or college without knowing fully how an education loan works, what the consequences of massive credit card debt can be, or even what an IRA is.
Today, the student debt in America has risen to over $1.2 trillion. That is more than the both US’s credit card debt and auto loan debt, and falls only second to the mortgage debt in America today. As of 2014, the average debt of graduates in Colorado is over $25,000. We face a similar crisis when it comes to retirement planning in the US. Today, millions of Americans are finding themselves unprepared for the costs of retirement. According to recent surveys, 68 percent of Americans do not participate in an employer-sponsored retirement plan and almost a third of American workers (28 percent) have less than $1,000 saved for their retirement.
When they enter adulthood, our students will be facing an increasingly complex economy and financial system. Not all of them have access to the home educational resources they would need to learn how to navigate these challenges. That’s not right. Every student in Colorado, no matter where they live or where they come from, should have access to the tools they need to succeed. One way to become a successful adult is to be financially literate.
That is why this year, Representative Brittany Pettersen and I are introducing a bill adding student debt planning and retirement planning to the Colorado Public School financial literacy curriculum. This bill, Senate Bill 16-045, ensures that students who are not taught the importance of financial literacy at home are given the chance to learn about it in their school, taught by a qualified educator. By adding retirement planning and student loan debt to the financial literacy curriculum, we can help students save thousands of dollars on their education and ensure that they are well invested in their futures.
As a former educator, I recognize that student debt is often unavoidable. As a member of Colorado’s Commission on Aging, I know that there is no such thing as a perfect retirement plan. I do, however, recognize that there are many ways a student can minimize his or her student debt and many pathways to creating an effective retirement plan.
All that student needs is the proper guidance to finding those resources.
Senator Nancy Todd is the State Senator for Senate District 28. The 28th District includes parts of Aurora and unincorporated Arapahoe County.