While Hawaiʻi lags behind most states in teaching financial literacy, it is beginning to see improvement compared to previous years.
The Hawaiʻi Department of Education requires all high school students to complete a career plan before graduating. However, unlike in other states across the U.S., DOE schools are not required to provide financial education courses.
Hawaiʻi is one of four states that received a "D" grade on a national report card out of the Center for Financial Literacy and Champlain College in Vermont. Other states awarded "D" grades included Alaska, Montana and Wyoming.
The only seven states that earned an "A" grade included Alabama, Iowa, Mississippi, Missouri, Tennessee, Utah and Virginia.
States receiving "F" grades meant that schools didn't offer any education on personal finances, according to John Pelletier, the center's director.
"So the odds were very high that many people were graduating from high school without ever being required to take any personal finance educational content at all," he said in an interview. "To get a 'D' means you require that certain things (financial literacy) be taught."
Hawaiʻi received an "F" in 2017 and 2013. This is the first time the state has improved, due to implementing the Personal Transition Plan. It teaches some financial literacy, such as earning income, which Pelletier said is consistent with the national education standards.
However, Pelletier said the plan is self-directed and that he doesn't know how much classroom time is allocated to high school students.
The report predicted that 23 states will earn "A's" by 2028 as many state laws have been passed that require financial literacy to be taught as a course requirement upon graduation.
However, without a policy change in Hawaiʻi, its grade might remain the same.
Advocates have pushed for House Bill 936, which would have required the state DOE to include financial literacy in its Personal Transition Plan and fund a specified teaching position. The measure passed the House side and crossed over to the Senate, but it failed to get a hearing.
Pelletier said it's critical for high schoolers to understand loans, credit scores, savings, investments and other financial literacy.
"You've got kids who are graduating from high school, and we're asking them to make one of the most important decisions of their life," Pelletier said.
A 2022 poll by the National Endowment for Financial Education found that 88% of adults wanted their states to require a semester or year-long financial education course. And 8 in 10 adults wished they were required to take such a class in school.
Pearl City High graduate Danson Honda said he wished he learned about personal finances in school. Honda said he had to learn from YouTube and past financial mistakes.
He said as Hawaiʻi grapples with the high costs of living, a lack of knowledge of personal finances can be an added challenge.
"So not only are we, as a state, facing incredible financial challenges, but we're also not teaching our keiki the financial tools and skills they need to succeed here and continue to live here in Hawaiʻi," Honda said.
While Hawai'i public schools are not required to offer financial literacy as a graduation requirement, Honda said some schools have offered an elective class, such as Kohala High, Mililani High, Pahoa High, Waiʻanae High, Pearl City High and others.
Honda said public schools should teach students about personal finances as early as elementary school.
"Basic financial skills should be taught as early as elementary or middle school, and then when you get to high school, you can dive into more complex topics, such as investing and retirement planning," Honda said. "So only then will we be able to start learning about finances by high school. I think it's a little bit late, but Hawaiʻi being so behind is the start we need."
