Assemblyman Roger Hernandez Pushes Financial Literacy for High Schoolers

Assemblyman Roger Hernandez' bill to bolster financial literacy instruction at high schools statewide is making progress.

The Assembly Education Committee recently approved the lawmaker's legislation with bi-partisan support.  The proposed Assembly Bill 166 goes to the Appropriations Committee next, according to a news release.

“The growing negative effects of financial illiteracy, such as the housing mortgage crisis and a low national savings rate, have spurred the need for financial literacy education," said Hernandez, D-West Covina, in a statement. "As of now, California does not have an official state policy or educational plan for the teaching of financial literacy.”

The Council for Economic Education discovered that students from states that require a course on financial literacy had the highest reported knowledge of the subject and were more likely to be fiscally responsible, according to a news release.

The students were more likely to save money and pay their credit card bills off in full each month, researchers reported.  They also were less likely to buy items compulsively, max out credit cards, or make late payments.

Nationwide, 46 states have finance standards in a variety of forms, but only 13 percent of those states have made personal finance instruction a graduation requirement, officials with Hernandez' office said.  California doesn't have financial education standards or a graduation requirement.

"Financial literacy is an issue of equity. Not everyone is given an opportunity at home to be financially literate," Hernandez said. "Teaching this topic at schools prepares our students to enter an increasingly competitive workforce and gives them the tools to help protect themselves against predatory lending, credit card fraud and other deceptive practices."

Should students take a financial literacy class in high school? Tell us in comments.