Oklahoma Senate
Sen. Lawler says bill is important to ensure that Oklahoma's students are taught financial responsibility to help prevent problems later in life.
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Senate Approves Financial Literacy Act Late Monday
In an effort to boost Oklahoma's economy, increase financial literacy and stop the growing crisis of credit card debt and bankruptcy in Oklahoma, the State Senate passed a measure late Monday to ensure Oklahoma's students are taught financial responsibility.
Senate Bill 378, authored by Senator Daisy Lawler, introduces a new required course to public schools called Personal Financial Economics. The class will provide students with the basic knowledge of personal finances necessary to be an independent, successful adult. The curriculum will enable students to manage savings, investments and checking accounts, as well as design and maintain a household budget and manage personal debt. It will also help students to understand consumer credit and finance, how to manage personal credit options and how to select among short-term and long-term investment options.
"Financial illiteracy is not only a problem for our youth but for all our citizens. Oklahoma is consistently ranking in the top two nationwide for bankruptcy per capita and we outpaced the nation as a whole in gains in bankruptcy filings last year," Lawler explained. "Oklahoma is also in the top ten in credit card debt per capita. And to top all that off, the savings rate has dropped, which means many people can't deal with financial emergencies much less retirement."
The bill calls for one semester of Personal Financial Economics beginning with the 2009-2010 school year. Lawler feels it is important that they obtain as much financial knowledge as possible before they attend college or enter the workforce.
"The average teenager in our country spends approximately $5400 each year. Shouldn't teens be taught how to invest, save and manage their dollars since they spend more than $172 billion each year," Lawler added. "And our college students are bombarded every day by credit card companies offering free merchandise in exchange for opening new accounts."
The Democrat from Comanche explained that college students are the only consumers that can apply for and obtain a credit card without a job or income.
"Research shows that people who are financially literate earn more, make better choices financially and are healthier due to less stress over finances. Statistics also show that 57% of divorces are caused by arguments over finances and Oklahoma is second nationally in the number of divorces," Lawler noted. "I believe educating our youth in high school or middle school is the most logical way to help solve the problem. To have a healthy economy in Oklahoma we must have educated and informed citizens; and we can do that in our public schools."
Various businesses, financial institutions and other citizens rallied at the State Capitol a few hours before the vote in support of the legislation. Lawler is hopeful given the tremendous amount of public support for her bill that it will be given serious consideration in the House of Representatives.
Contact info
Senate Communications Office - (405) 521-5774
