This month we celebrate Financial Literacy Month in an effort to bring attention to this important life skill and encourage all Americans to take charge of their financial health. We’re confronted with a variety of financial decisions throughout our lives. Whether saving for retirement, buying a home, financing an education or simply putting away money in an emergency fund, a solid financial education is vital to making smart and responsible decisions.
The importance of consumer sophistication on financial matters has never been more important than it is in today’s economy. Unfortunately, Americans receive a failing grade when it comes to the subject.
Financial illiteracy comes with a price.
As we work to prepare our students for the 21st century workplace, a consistent approach to financial education in our schools will help our students entering not only college, but also the workforce, be well-prepared and ready to make sound financial decisions.
Under current law, individual states are left to create and implement financial literacy education curriculum and courses in their districts and schools.
The Financial Literacy for Students Act will:
- Create incentive grants to states who agree to provide financial literacy education in Title I public elementary and secondary schools.
- Allow for significant flexibility, creativity and innovation in the integration of financial literacy and entrepreneurship education into existing curriculum.
- Encourage appropriate professional development for teachers for the teaching of financial literacy education.
- Encourage states to foster partnerships with community-based organizations, financial institutions and local businesses by securing a match to carry out the required activities.
Promoting a financial literacy curriculum in schools is an important piece of a larger strategy to ensure that all Americans are equipped with the tools to make sound financial decisions for themselves and their families.