Introduce financial literacy education early — this was the message reiterated by educators, financial experts, and social experts at a recent hearing of the Subcommittee on Children and Families.
Led by the chairwoman, Sen. Kay Hagan (D-N.C.), the hearing focused on the importance of implementing financial literacy in elementary schools and the challenges teachers face getting their students ready to make proper financial decisions.
“For our high school graduates, many of them are entering college or the workforce almost completely unarmed with the basic knowledge, the basic skills they need to manage their personal finances effectively,” Hagan said.
Notably, Hagan also announced that she reintroduced the Financial Literacy for All Students Act, which she said will authorize grants and incentivize states to integrate financial literacy education into elementary and secondary schools and provide professional development to teachers. Her two previous efforts, in 2009 and 2011, both died in committee.
In her home state of North Carolina, Hagan led the effort to require the state to offer financial literacy in schools.
Statistics from a survey conducted by Discover on 1,200 high schoolers between February and March showed that although 83 percent were interested in learning more about managing their personal finances, only 33 percent felt confident that they were capable of doing so.
Sen. Michael Enzi (R-Wyo.), the ranking GOP member on the committee, stated that today’s students need to be taught sound financial decision-making.
Enzi added, “The economic environment they are growing up in will require this knowledge, especially for retirement. We have to let the states continue their great work on improving financial literacy.”
Roughly 14 states have enacted laws or have resolutions in their state legislatures that require some form of financial-management education in schools, according to the National Conference of State Legislatures.
But Sen. Al Franken (D-Minn.) expressed interest in knowing effective ways to combine financial literacy with other courses already offered in schools.
“There are certain life skills that need to be taught and part of our question here is how to work this into the curriculum,” Franken asked. “What configurations of curricula do you see [and] how do you see this fitting into a curriculum [for] K through 12?”