By State Treasurer Laura M. Montoya

Growing up in rural NM, the eldest of three, I had no choice but to grow up fast. I helped care for my siblings and in addition, worked my first jobs cleaning houses and babysitting. I gave the money I earned to my mama, and quickly learned the value of a dollar, the meaning of family unity, and teamwork.

Like many NM families, I grew up with humble beginnings and learned most of my life lessons regarding finances by trial and error, whether it was my own or someone I knew. Although I loved math and was in Calculus in high school, I had no clue as to how to balance a check book, know what a savings account was, or what a stock or CD were.

New Mexico lawmakers have an opportunity during the upcoming legislative session to benefit all the state's students as well as the economy by adding financial literacy to the high school graduation requirements.

Momentum is growing nationally for making financial literacy a graduation requirement. Four years ago, six states required students to take a standalone personal finance or financial literacy course. Today, twenty-five states have added financial literacy to their high school graduation requirements. Now, 53% of students nationwide are guaranteed to receive this education— Sadly, New Mexico students are not among them.

WalletHub ranks NM 49th for overall financial literacy. Requiring financial literacy for all students can strengthen our youth, some of whom will hopefully go on to serve as bank tellers, accountants, chief financial officers, board members, and other financial roles in both the public and private sectors that are so desperately needed in our communities. I always tell my godchildren, "No matter what career path you choose, finances will always need to be a part of it to be successful and whatever your passion is, it is always important to understand a budget because if you know where the money is, you can use it for what you are passionate about."

The New Mexico Legislative Finance Committee reported that after financial education was mandated in the states of Georgia, Idaho, and Texas, students who participated in the programs had higher credit scores and higher savings rates. Studies also find that when students increase their financial literacy, they often bring those lessons home to their parents and grandparents, benefiting the entire family.

Having financial education is essential to reduce poverty, decrease crime, improve opportunities for higher skilled positions that pay higher wages, and become financially independent. These changes will also positively impact gross receipts tax, property taxes and other funding sources that improve schools, hospitals, roads, senior services, etc. In turn, we will be reallocating funding so that our children and families will not need to depend on government services (SNAP, Medicaid, etc.).

I ran for office on the idea of bridging the gap of inequity and I know that financial literacy is a key component to breaking the cycle of financial instability. We should make it a common practice to discuss budgeting, a savings account, stocks, bonds, taxes, retirement, and investing. It also helps hold those in authority accountable, whether at your work, children's school, city councils or county commissions. We have an obligation to prepare our children for a better future than the one our parents prepared for us. We need to stop the cycle of living paycheck to paycheck and still not having enough no matter how hard you work or how many jobs you have at the same time.

I call on the Governor and the legislature to act during the 2024 legislative session and add financial literacy to the state's high school graduation requirements—I'd take it a step further and request financial literacy be in all levels of education. Knowledge is power, and financial literacy is the ultimate power to eliminate poverty and increase generational wealth for our NM families to live healthy, prosperous, and productive lives where they can contribute to our economy and live in whatever part of New Mexico they love.