Rep. France Endorses Bill to Increase Financial Literacy in Connecticut Schools

HARTFORD – It looks like Ledyard Public Schools could become a model for school systems throughout the state. Rep. Mike France of Ledyard – a town that currently offers a financial literacy course – on June 1 praised the passage of Senate Bill 319, An Act Concerning Financial Literacy Education, a proposal to bring a similar comprehensive financial literacy curriculum to all Connecticut schools.

A recent study from the Federal Reserve Board titled, “State Mandated Financial Education and the Credit Behavior of Young Adults,” concluded that young adults who have received financial literacy training were observed to have “larger increases in credit scores and reductions in delinquency.” These students were more aware of their own credit history and were less likely to engage in risky spending and borrowing.

The Center for Financial Literacy, however, gave Connecticut an “F” in their “2013 National Report Card on State Efforts to Improve Financial Literacy in High Schools.” In addition, a new biennial Council for Economic Education study, “The Survey of the States: Economic and Personal Finance Education in Our Nation’s Schools,” also placed Connecticut at the bottom of a list of five states with no solid requirements for financial literacy.

“These statistics are rather disappointing. I’m surprised that more Connecticut schools haven’t already engaged their students in this kind of learning,” said Rep. France, co-sponsor of the bill. “These basic personal finance skills used to be part of every child’s education. They have become even more important today given that our retirement is dependent on smart money management and investing in Individual Retirement Accounts (IRAs) and 401(k)-type plans. We need to provide this common sense curriculum, which is vital to our young adults learning a basic life principle of living within ones means.”

In an effort to turn this reputation around, the Legislature advanced Senate Bill 319, An Act Concerning Financial Literacy Education that would allow educators around the state to access a financial literacy curriculum designed by the State Board of Education, Boards of Regents for Higher Education, and the University Of Connecticut Board Of Trustees. The bill would require the State Department of Education to expand the current personal financial management curriculum to include comprehensive financial literacy, adding banking, investing, savings and the handling of personal finance matters to the impact of using credit cards and debit cards in the current curriculum. The State Department of Education would also be required to assist local and regional boards of education to include this curriculum as part of the program of instruction for all Connecticut schools.

Dr. Jennifer Byars, Assistant Superintendent of Ledyard Public Schools, says that they already make it a priority to provide the financial literacy education young adults need to be independent.

“Our online Personal Finance course is currently offered to our 11th and 12th grade students. We have found this approach to be especially beneficial to students who may have a full academic schedule to fulfill during regular school hours.

“Through this independent-study curriculum, students learn basic life skills surrounding credit cards, loans and taxes so that they are prepared to make financial decisions based on a knowledge of how those decisions can impact them in their daily lives.

“We also provide an Advanced Personal Finance course, in which students study the connection between their personal financial decisions and the global market place. The decisions of a single consumer aren’t just about their immediate needs, or the U.S. economy as a lone entity. As students graduate and go off into the world, they must have a clear, broader understanding of their role as a member of an ever-growing global-scale economy.”

Another curriculum model that is already being implemented in high schools across the country was created by Dave Ramsey, host of The Dave Ramsey Radio Show and author of the Dave Says newspaper column. Foundations in Personal Finance is a dynamic lesson plan that teachers can access for a student-centered, competency-based approach to teaching students how to avoid debt, budget, invest and build wealth. With this resourceful tool, the State Department of Education has another template to draw from for proven teaching concepts in financial literacy.

“I was pleased to co-sponsor this bill to ensure that all students who graduate from Connecticut schools are comfortable managing a household budget, saving and investing for their future, and avoiding the pitfalls of credit card debt,” added Rep. France.

After passing the state House and Senate, the legislation now heads to the governor’s desk to be signed into law.