New Financial Education Legislation Proposed in Kentucky

The Commonwealth of Kentucky’s House of Representatives have recently introduced two bills related to financial education within high schools. Both of the proposed bills would add a new section to the Kentucky Revised Statutes regarding the conduct of schools (KRS 158), and require the creation of the Kentucky Financial Literacy Program that all high school students would be required to complete before graduating.

Currently, Kentucky mandates that some financial education be incorporated into the existing curriculum, and schools have used a variety of programs to meet this mandate. Without a uniform program for financial instruction or an established means for assessing students’ performance, Kentucky has a “C” grade from Champlain College’s Center for Financial Literacy for our financial education efforts. Fortunately, this newly proposed legislation provides the opportunity to improve the state’s financial literacy. Both of these House bills would create a standard program to be used by all high schools, and might lead Kentucky to a ranking among the top states for financial education.

The first House bill introduced was HB 76, which would require the Department of Education to develop the Kentucky Financial Literacy Program. This program would then be used to teach a half-credit course that all 11^th or 12^th grade students would be required to pass before graduation.

The second House bill introduced was HB 77, which would require the Department of Education to develop the Kentucky Financial Literacy Program. The program would tend to integrated into existing courses that must be completed before graduation.

The two House bills sound very similar, but they actually have very different implications. If passed, HB 76 would create a statute requiring the creation of a new class. It would be mandatory course worth a half-credit toward a high school diploma. The course would be taught to 11^th or 12^th grade students using the Kentucky Financial Literacy Program. While HB 77 also would mandate the creation and teaching of the Kentucky Financial Literacy Program, passing this bill would not create a new mandatory financial literacy course. Instead, HB 77 would lead to 11^th or 12^th grade students having a financial literacy unit incorporated into an existing class. The unit would consist of an equivalent of 12 hours of financial literacy instruction during the duration of the existing course.

If you are concerned about financial education in your local schools, feel free to contact your district’s representative about these House bills. Whether you voice support for HB 76 or HB 77, it is up to you. Either way, the state legislature should know that you think that improving financial literacy is important to the citizens of Kentucky.

READERS, what do you think?

Which of these House bills do you think is the best idea? Why?

References:

Pelletier, J. (2013, Summer). National Report Card on State Efforts to Improve Financial Literacy in High Schools. The Center for Financial Literacy. Champlain College. Retrieved from http://www.champlain.edu/Documents/Centers-of-Excellence/Center-for-Financial-Literacy/Champlain-College-Center-for-Financial-Literacy-State-Report-Card_.pdf.

HB 76. (2014). Kentucky Legislature. 2014 Regular Session. Retrieved from

http://www.lrc.ky.gov/record/14RS/HB76.htm.

HB 77. (2014). Kentucky Legislature. 2014 Regular Session. Retrieved from

http://www.lrc.ky.gov/record/14RS/HB77.htm.