Report Title:

Youth Financial Literacy Education; Board of Education; Appropriation

Description:

Authorizes the board of education to establish personal financial management education programs within the department of education for grades kindergarten through 12.

THE SENATE

S.B. NO.

11

TWENTY-THIRD LEGISLATURE, 2005

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

relating to education.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. The legislature finds that forty per cent of Americans indicate that they live beyond their financial means. Approximately one-half of Americans live paycheck to paycheck. Outstanding credit card debt among households more than tripled from 1990 to 2000, and personal savings as a percentage of the Gross Domestic Product decreased from 7.5 per cent in the early 1980s to 2.4 per cent in 2002.

A direct correlation exists between economic well-being and knowledge of personal financial management issues and skills. Lack of financial literacy poses a significant barrier for individuals seeking to achieve financial prosperity and stability. Research indicates that students receiving as few as ten hours of personal financial education positively impacted students' spending and savings habits. Additionally, a student who has attended a high school in a state that mandates personal finance education was able to achieve approximately one-year's worth additional net worth than those individuals attending schools with no such mandate.

Therefore, it is of the utmost importance to educate Hawaii's youth in financial matters to prepare them for financial independence through the development of fiscal responsibility and financial management skills.

The purpose of this Act is to authorize the establishment of financial education programs within the department of education with the goal of achieving financial literacy through the teaching of personal financial management skills, including the basic concepts of earning, spending, saving, and investing.

SECTION 2. Chapter 302A, Hawaii Revised Statutes, is amended by adding a new section to part II, to be appropriately designated and to read as follows:

"302A-   Youth financial education programs. (a) The board shall establish and make available to schools one or more youth financial education programs and develop the curriculum, materials, and guidelines for use in their implementation. A youth financial education program shall be:

(1) Designed to incorporate financial education into the curriculum for grades kindergarten through twelve;

(2) Based upon the concept of achieving financial literacy through the teaching of personal financial management skills and the basic principles involved with earning, spending, saving, and investing; and

(3) Integrated into an existing course of study.

(b) The board shall establish and maintain a clearinghouse for instructional materials and information regarding youth financial education programs and best practices.

(c) The board shall adopt rules in accordance with chapter 91 as may be necessary to carry out the purposes of this section."

SECTION 3. There is appropriated out of the general revenues of the State of Hawaii the sum of $          , or so much thereof as may be necessary for fiscal year 2005-2006, for the establishment of youth financial education programs as provided in this Act.

SECTION 4. The sum appropriated shall be expended by the department of education for the purposes of this Act.

SECTION 5. New statutory material is underscored.

SECTION 6. This Act shall take effect on July 1, 2005.

INTRODUCED BY:

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