Lawmakers in Florida have unanimously approved a new bill requiring high school students to complete financial literacy credits before they can graduate. If the governor signs this into law, the measure may be implemented this fall.
House Bill 1115 has passed the Florida House PreK-12 Appropriations Subcommittee and will soon go to deliberation on the House floor. Also named the "Dorothy L. Hukill Financial Literacy Act," after a former educator, lawyer, and legislator, the bill calls for a financial literacy class beginning in the ninth grade.
Topics that will cover the curriculum include opening and keeping bank accounts, types of bank accounts, and studying other services offered by financial institutions. The classes will also include checkbook balancing, loan application and interest rates, inheritance, insurance, income taxes, managing credit scores and debts, as well as smart use of credit or debit cards.
To Thrive Financially
Rep. Demi Busatta Cabrera, who sponsored the bill, said that high school students need to learn to "thrive financially" in society. This can start with learning the basic principles of managing money, credit, and debt in class in high school.
Rep. Felicia Robinson said that thousands of high school graduates in Florida don't know the first thing about balancing a checkbook. Rep. Robin Bartleman noted that a financial literacy class is better for his teenage daughter than a P.E. class.
Florida Chief Financial Officer Jimmy Patronis also supports the bill because he believes that financial literacy should provide the kids with a stronger future.
"These lessons are also critical to training future generations of Americans to appreciate America's capitalist system and grow our nation's pool of entrepreneurs," the state CFO said, per WFLA.
However, Rep. Matt Willhite, who also supports the bill, shared some of his reservations because high school students in Florida are only required to complete eight credits. The bill proposes that a half-credit should automatically go to the financial literacy curriculum, which will be a mandatory class. Willhite said that "forcing" the curriculum might not be the right way to go about it.
Before the lawmakers deliberate on the bill, it should have the House Education & Employment Committee approval. The Senate has a similar bill, which will be deliberated on the Senate floor in the coming weeks.
Teens Lack Financial Skills
A study from the PISA showed that 22 percent of teenagers in America are financially illiterate, meaning they lack skills in budgeting or handling money. About 74 percent of teenagers also said they do not feel confident about their knowledge of cash or credit. Nearly a quarter of the kids don't even know the difference between a credit and a debit card.
The lack of financial skills prompts some young adults to delay making major life decisions involving money or end up with overdrafts or extra charges. Kids who graduate and find a job also can't start building their emergency savings. In many cases, they do not have enough savings before starting their own family and having kids.
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