 Financial Literacy
Published 2006
Overview
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As state legislators tackle pressing education issues such as funding, teacher quality, access to higher education and implementation of the No Child Left Behind Act, they also are struck by the reality that the nation is failing miserably in one subject: managing personal finances. The following statistics foretell a dismal financial future for our nation’s children.
Each year, more Americans continue to spend beyond their means and amass thousands of dollars in personal debt. However, research indicates that a greater understanding of economic issues leads to wiser economic activity and greater financial independence for individuals. In light of this, many state legislators are spearheading efforts to educate students and adults about personal finance. In 2004, 23 states introduced legislation that addressed personal finance education, and at least 30 states introduced similar legislation in 2005.
State and local policymakers are implementing various policies to ensure that students and adults learn how to manage personal finances. Policy options include requiring personal finance classes for graduation, funding teacher professional development, prohibiting a gift exchange for a student credit card application, creating adult financial literacy initiatives, and revamping consumer credit counseling. Education officials also are forming public-private partnerships to create curriculum, establish teacher training programs, and initiate student activities to foster personal finance education at the national, state and local levels. Such organizations include various banking and financial institutions, the Jump$tart Coalition, Junior Achievement, the National Academy of Finance, the National Council on Economics Education, and the National Endowment for Financial Education.
posted 3/10/2006
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