James CallRep. Heather Fitzenhagen was flanked by bankers, financial advisors, educators and a representative of the Junior League when she explained support was growing daily for a proposal to mandate a one-semester financial literacy course for high school graduation. Then in walked Rep. Alan Williams to demonstrate bi-partisan support for a proposal by Fitzenhagen and Sen. Dorothy Hukill.
The idea is to equipped students with a better understanding of basic economics, basic finance and the benefits and risks associated with debt. The 11,000 member Junior League has made passage of the proposal its top priority for the 2015 Session of the Florida Legislature.
Fitzenhagen said Florida can’t afford not to make the investment to require a standalone financial literacy course in the high school curriculum – currently personal finance splits course time with economics, “so everyone loses,” remarked a spokesman for the Florida Council on Economic Education.
“It is critical we give them the tools they need to be successful rather than leave them adrift without the ability to understand personal finance,” said Fitzenhagen. “We spend so much money each and every day investing in our child’s education for us not to make the added investment so they know what to do when they get their first credit care solicitation or buy their first car or rent their first apartment.”
Fitzenhagen is sponsoring HB 29; Hukill is sponsoring SB 92; mandating a half credit course for all public high school students.
“This is an economic no brainer,” said Hukill. “Graduating seniors need to have a basic understanding of real world finance to be successful.”
The Florida Council on Economic Education is organizing support for mandating the course. Supporters have set up a website, Require the Course.
The Council cites studies by Annamarie Lusardi of George Washington University which found that the average college graduate has accumulated $30,000 debt – devoting nearly a third of income to debt payment.
Geoffrey Simon, representing the Council at Thursday’s news conference and said graduates are entering the workforce and having to devote nearly a third of income to debt payment. Simon said the need is obvious for the Fitzenhagen-Hukill proposal.
“If someone who gets a high school degree has a personal finance course through the course of their lifetime their net worth is likely to be 80 percent higher than someone who didn’t have a finance course – for a college graduate it is 60 percent,” said Simon. “It’s a simple thing – if you can increase your net worth in lifetime 60 to 80 percent would you take a one semester course to do that?”
Simon said financial literacy enables one to spot and avoid predatory loan practices.
“Would you take out a loan with a 400-percent annual interest rate? People do it every week with payday loans,” said Simon. “They don’t know any better.”
Both proposals have been assigned to their respective chambers K-12 Subcommittee.
