Finance

I’m not financially literate. Here’s how I could be. – The Boston Globe

Published

1 year ago

December 25, 2024

I’m not financially literate. Here’s how I could be. – The Boston Globe

If you asked me what the process for setting up a Roth IRA looked like, I doubt I could offer you a thorough response. The same goes for mortgages and loans and interest. When I had to fill out my first W-9 form, I was admittedly more than a bit confused.

In short, financial literacy isn’t my forte. And that’s because, like many Massachusetts public school students, I’ve never had to take any sort of personal finance class.

Indeed, throughout the debates over eliminating MCAS as a graduation requirement for high schoolers, we heard quite a bit about the state’s educational gold standard. So is it not the least bit shameful, or at least embarrassing, that our state does not require high school students to take a financial literacy class when a majority of states do?

Absolutely. And it needs to change.

Twenty-six states, including Rhode Island, New Hampshire, and Connecticut, have passed legislation making a personal finance course mandatory for high school students. Meanwhile, Massachusetts received an “F” from the Champlain College Center for Financial Literacy, which released a report card in 2023 evaluating how each “state delivers personal finance education in its public high schools.” In addition, a 2023 report card(link?) from the American Public Education Foundation gave the state a “C” for its financial literacy requirements — a score worse than or equal to all but six states.

Meanwhile, across the state, credit card and student loan debt have spiked to eye-popping levels. As of the second quarter of this year, the average Massachusetts resident had a credit card balance of $8,556 and $33,710.38 in student loan debt. The latter is particularly troubling for young people like myself. For the next four years, countless high school seniors throughout the Commonwealth will be attending college, paying tens of thousands of dollars on top of day-to-day expenses.

The need for personal finance courses in Massachusetts is tremendous — a need that, as per a 2021 report from the state’s Office of Economic Empowerment, is recognized almost universally among teachers and, importantly, students.

Yet, as a result of being taught next to nothing about personal finances, many of us are left ill-prepared for these new circumstances. Our understanding of credit cards is limited to, as State Treasurer Deb Goldberg so eloquently articulated to GBH, “The parent puts a plastic card into the wallet and boom: out comes money.” And so the cycle of taking out loans, accumulating massive debt, and working for years before being able to pay it off persists.

Why perpetuate the cycle when it is so clear that these classes work? According to a 2021 Ramsey Solutions survey, among the teenagers who have completed a personal finance class, nearly 80 percent said that they’ve created a monthly budget for themselves, 94 percent felt confident about saving money, and 87 percent understood how to pay income taxes. And, as noted in the OEE’s report, personal finance courses are tools that “increase social mobility for low-income or immigrant students.” Requiring such classes really couldn’t make much more sense.

At my own high school, Brookline High School, financial literacy is offered in the form of a popular elective, “The World of Money: Practical Studies in Finance and Investment,” which “integrates the basic principles of economics, money management, investing, and technology,” according to the course catalog. Every spring, as course selection rolls around, hundreds of students eye this semester-long course, but with only so many spots, most cannot take it — and, consequently, miss out on an opportunity to learn about financial literacy.

Recognizing the imminent need to educate ourselves on matters of taxes, loans, investments, and more, several members of Brookline High School’s Student Council, including myself, have proposed amendments to our student handbook that would incorporate a financial literacy component in our graduation requirements and incorporate personal finance lessons into our weekly advisory classes. Our work would ensure that such important life skills are accessible to all students, not merely for those lucky enough to find a place in the class.

But while such efforts are certainly a step in the right direction on this issue, they are not enough. Financial literacy should not be a privilege for schools with a proactive student body; it is a fundamental aspect of our lives, and our state’s education system must begin reflecting that. The state must require personal finance courses for graduation — it’s the smartest investment we can make.

Ravin Bhatia is a senior at Brookline High School.

Finance

Cornell Administrator Warren Petrofsky Named FAS Finance Dean | News | The Harvard Crimson

Published

4 hours ago

February 28, 2026

Press Room

Cornell Administrator Warren Petrofsky Named FAS Finance Dean | News | The Harvard Crimson

Cornell University administrator Warren Petrofsky will serve as the Faculty of Arts and Sciences’ new dean of administration and finance, charged with spearheading efforts to shore up the school’s finances as it faces a hefty budget deficit.

Petrofsky’s appointment, announced in a Friday email from FAS Dean Hopi E. Hoekstra to FAS affiliates, will begin April 20 — nearly a year after former FAS dean of administration and finance Scott A. Jordan stepped down. Petrofsky will replace interim dean Mary Ann Bradley, who helped shape the early stages of FAS cost-cutting initiatives.

Petrofsky currently serves as associate dean of administration at Cornell University’s College of Arts and Sciences.

As dean, he oversaw a budget cut of nearly $11 million to the institution’s College of Arts and Sciences after the federal government slashed at least $250 million in stop-work orders and frozen grants, according to the Cornell Daily Sun.

He also serves on a work group established in November 2025 to streamline the school’s administrative systems.

Earlier, at the University of Pennsylvania, Petrofsky managed capital initiatives and organizational redesigns in a number of administrative roles.

Petrofsky is poised to lead similar efforts at the FAS, which relaunched its Resources Committee in spring 2025 and created a committee to consolidate staff positions amid massive federal funding cuts.

As part of its planning process, the committee has quietly brought on external help. Over several months, consultants from McKinsey & Company have been interviewing dozens of administrators and staff across the FAS.

Petrofsky will also likely have a hand in other cost-cutting measures across the FAS, which is facing a $365 million budget deficit. The school has already announced it will keep spending flat for the 2026 fiscal year, and it has dramatically reduced Ph.D. admissions.

In her email, Hoekstra praised Petrofsky’s performance across his career.

“Warren has emphasized transparency, clarity in communication, and investment in staff development,” she wrote. “He approaches change with steadiness and purpose, and with deep respect for the mission that unites our faculty, researchers, staff, and students. I am confident that he will be a strong partner to me and to our community.”

—Staff writer Amann S. Mahajan can be reached at [email protected] and on Signal at amannsm.38. Follow her on X @amannmahajan.

Finance

Where in California are people feeling the most financial distress?

Published

16 hours ago

February 27, 2026

Press Room

Where in California are people feeling the most financial distress?

Inland California’s relative affordability cannot always relieve financial stress.

My spreadsheet reviewed a WalletHub ranking of financial distress for the residents of 100 U.S. cities, including 17 in California. The analysis compared local credit scores, late bill payments, bankruptcy filings and online searches for debt or loans to quantify where individuals had the largest money challenges.

When California cities were divided into three geographic regions – Southern California, the Bay Area, and anything inland – the most challenges were often found far from the coast.

The average national ranking of the six inland cities was 39th worst for distress, the most troubled grade among the state’s slices.

Bakersfield received the inland region’s worst score, ranking No. 24 highest nationally for financial distress. That was followed by Sacramento (30th), San Bernardino (39th), Stockton (43rd), Fresno (45th), and Riverside (52nd).

Southern California’s seven cities overall fared better, with an average national ranking of 56th largest financial problems.

However, Los Angeles had the state’s ugliest grade, ranking fifth-worst nationally for monetary distress. Then came San Diego at 22nd-worst, then Long Beach (48th), Irvine (70th), Anaheim (71st), Santa Ana (85th), and Chula Vista (89th).

Monetary challenges were limited in the Bay Area. Its four cities average rank was 69th worst nationally.

San Jose had the region’s most distressed finances, with a No. 50 worst ranking. That was followed by Oakland (69th), San Francisco (72nd), and Fremont (83rd).

The results remind us that inland California’s affordability – it’s home to the state’s cheapest housing, for example – doesn’t fully compensate for wages that typically decline the farther one works from the Pacific Ocean.

A peek inside the scorecard’s grades shows where trouble exists within California.

Credit scores were the lowest inland, with little difference elsewhere. Late payments were also more common inland. Tardy bills were most difficult to find in Northern California.

Bankruptcy problems also were bubbling inland, but grew the slowest in Southern California. And worrisome online searches were more frequent inland, while varying only slightly closer to the Pacific.

Note: Across the state’s 17 cities in the study, the No. 53 average rank is a middle-of-the-pack grade on the 100-city national scale for monetary woes.

Jonathan Lansner is the business columnist for the Southern California News Group. He can be reached at jlansner@scng.com

Finance

Why Chime Financial Stock Surged Nearly 14% Higher Today | The Motley Fool

Published

1 day ago

February 26, 2026

Press Room

Why Chime Financial Stock Surged Nearly 14% Higher Today | The Motley Fool

The up-and-coming fintech scored a pair of fourth-quarter beats.

Diversified fintech Chime Financial (CHYM +12.88%) was playing a satisfying tune to investors on Thursday. The company’s stock flew almost 14% higher that trading session, thanks mostly to a fourth quarter that featured notably higher-than-expected revenue guidance.

Sweet music

Chime published its fourth-quarter and full-year 2025 results just after market close on Wednesday. For the former period, the company’s revenue was $596 million, bettering the same quarter of 2024 by 25%. The company’s strongest revenue stream, payments, rose 17% to $396 million. Its take from platform-related activity rose more precipitously, advancing 47% to $200 million.

Image source: Getty Images.

Meanwhile, Chime’s net loss under generally accepted accounting principles (GAAP) more than doubled. It was $45 million, or $0.12 per share, compared with a fourth-quarter 2024 deficit of $19.6 million.

On average, analysts tracking the stock were modeling revenue below $578 million and a deeper bottom-line loss of $0.20 per share.

In its earnings release, Chime pointed to the take-up of its Chime Card as a particular catalyst for growth. Regarding the product, the company said, “Among new member cohorts, over half are adopting Chime Card, and those members are putting over 70% of their Chime spend on the product, which earns materially higher take rates compared to debit.”

Today’s Change

(12.88%) $2.72

Current Price

$23.83

Key Data Points

Market Cap

$7.9B

Day’s Range

$22.30 – $24.63

52wk Range

$16.17 – $44.94

Volume

562K

Avg Vol

3.3M

Gross Margin

86.34%

Double-digit growth expected

Chime management proffered revenue and non-GAAP (adjusted) earnings before interest, taxes, depreciation, and amortization (EBITDA) guidance for full-year 2026. The company expects to post a top line of $627 million to $637 million, which would represent at least 21% growth over the 2024 result. Adjusted EBITDA should be $380 million to $400 million. No net income forecasts were provided in the earnings release.

It isn’t easy to find a niche in the financial industry, which is crowded with companies offering every imaginable type of service to clients. Yet Chime seems to be achieving that, as the Chime Card is clearly a hit among the company’s target demographic of clientele underserved by mainstream banks. This growth stock is definitely worth considering as a buy.