By State Sen. Chris Gebhard

Since entering the Pennsylvania Senate in 2021, one of my top priorities was to add a personal financial economics course to our high school curriculum to teach young people the basics of money management. According to recent estimates, there are more than 350 million American-owned credit card accounts, and, on average, credit card owners have about four cards apiece. This has contributed to astonishing levels of debt. In general, Americans are nearing about $1 trillion in credit card debt and more than $15 trillion in total debt.

It is imperative that younger generations learn that there are consequences for unabashed spending. Unfortunately, an alarming number of high school graduates are entering adulthood and the workforce without the appropriate knowledge of basic financial concepts such as credit scores, student loans, home mortgages, compounding interest, saving for retirement, or borrowing money for a large purchase. Too often, the financial decisions our younger generations make early in their lives lead to unintended consequences that put them at an economic disadvantage. The reality is a cycle of poor money management decisions burdens our citizens, the Commonwealth, and ultimately the taxpayer.

Many of us obtain financial insights from our parents and other family members, who teach us how to write a check or open a banking account. However, this informal teaching leaves glaring gaps in the necessary financial education needed to succeed. The importance of maintaining a good borrowing history, paying your bills in a timely fashion, and saving early for retirement are not easy concepts to grasp. Yet, things like a poor credit score can severely limit an individual’s opportunities later in life. These critical ideas need to be taught both at home and in our high schools.

One of the very first bills I introduced in my Senate career was geared toward correcting this education gap. My bill added a prerequisite to Pennsylvania’s high school graduation requirements: completion of a personal financial economics course. It was through this process that I learned that even the most innocuous of ideas can encounter the most peculiar roadblocks. I never once had anyone say this wasn’t a worthwhile idea, and the bill passed the Pennsylvania Senate in 2022 and 2023 in bipartisan fashion. However, it never received a hearing in the House Education Committee. For the past two years, I met with every stakeholder imaginable to address each concern in a diligent and meticulous fashion. Concessions were made on both sides to produce a final product, and, thankfully, on Dec. 13, 2024, both the Pennsylvania Senate and House passed an omnibus school code bill that included my Senate Bill 647 and that was signed by Gov. Josh Shapiro later that same day.

This new law addresses the financial literacy gap by creating a standalone half-credit class covering the importance of credit scores, annual percentage rate (APR) for student loans and home mortgages, budgeting, compounding interest, saving for retirement, calculating and filing taxes, and other basic financial concepts. From daily purchases to long-term financial planning, becoming proficient at money management is a critical skill all Pennsylvanians need.

Incorporating a financial literacy course into our basic education in Pennsylvania will empower our youth and ensure they have the skills to accomplish their personal life goals. This new graduation requirement is an investment in the Commonwealth’s financial future. By teaching high school students the financial basics, they will be able to make better decisions to position themselves for a lifetime of success and financial independence. I am extremely proud to have championed this practical, bipartisan, and commonsense measure that I am certain will make a real tangible difference in the lives of many Pennsylvanians.

State Sen. Chris Gebhard (R) represents Pennsylvania’s 48th District, which comprises all of Lebanon County and portions of Berks and Lancaster counties. He can be reached at cgebhard@pasen.gov.

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