Given our country's current economic situation we now recognize, more clearly than ever, the significance of teaching people about finances. There is a deep understanding that now is the time to educate Kansans on the importance of being good money managers and we must start with our children in the classroom. Educating our youth to make responsible financial decisions will leverage untold financial growth and healthier families well into the future.
Teaching kids about financial literacy has quickly become a national priority. The President's Advisory Council on Financial literacy approved a report on January 6, 2009 that provides recommendations to improve financial literacy among all Americans. The Council Chairman, Charles R. Schwab stated "There is no question that the lack of personal financial literacy has been a major contributing factor to the economic and financial crisis in the United States." With the Advisory Council's recommendations are calls for mandating financial education in schools for students in grades K-12. Chairman of the Federal Reserve, Ben Bernanke agrees, "In light of the problems that have arisen in the subprime mortgage market, we are reminded how critically important it is for individuals to become financially literate at an early age so they are better prepared to make decisions and navigate an increasingly complex financial marketplace."
Kansans understand that now is a critical time for us to address financial literacy in a meaningful way and legislation passed during the recently completed legislative session provides an important step. Senate Bill 41 enhances the current efforts by including financial literacy curriculum into standards for all grade levels. The legislation also directs school districts to utilize text books that include personal financial literacy components. Furthermore, this bill encourages the state board of education to review and rewrite assessments for mathematics and social studies to ensure that a greater understanding of financial responsibility is being taught at each education level.
Kansas has many wonderful financial literacy programs available for elementary, middle, and high school levels but we know that the best way to reach students is through progressive learning at all grade levels, K-12. It is very clear in the current state of our nation's economic crisis that financial literacy education is essential for the well-being of our youth. Teaching the core values of sound financial judgment can easily be incorporated in the curriculums for reading, writing, and arithmetic. I applaud the legislature for passing Senate Bill 41 and reinforcing the importance of financial literacy education for our children.
