Provides that juniors and seniors at secondary schools must take a financial literacy and personal finances course

Title of bill

An act to amend the education law, in relation to requiring secondary school students to complete a financial literacy and personal finances course

Purpose or general idea of bill

Provides that juniors and seniors at secondary schools must take a financial literacy and personal finances course or be given course materials in other already existing classes to better prepare themselves to prudently manage their finances in the future. Such information can be incorporated in already existing classes to reduce any burden placed on requiring additional mandates on the school day.

Summary of specific provisions

Section 1. Education Law Section 305 is amended by adding a new subdivision 55 to authorize the Commissioner of Education to develop a course or courses in financial literacy and personal finances. Such course in financial literacy can be completed by juniors or seniors in secondary schools. The course can include, but need not be limited to, instruction on obtaining and using checking, debit and savings accounts, understanding the use of credit and credit cards for both large and small purchases, investing, saving, and planning for retirement. In addition, the instruction of financial literacy, if not offered in one class, could be offered in an integrated manner in other already existing course work to minimize any burdens placed on adding additional required course work during the school day. This amendment made in 2016 was done to conform to Chapter Laws that were enacted in 2015.

Section 2: Effective Date

Justification

In certain instances, the lack of financial literacy and a working knowledge about personal finances may lead many unsuspecting individuals to enter into home or condo purchases, auto loans, mortgages, other financial arrangements, or to select investments or retirement plans that they were later to regret. The purpose of this bill is to increase the financial literacy of our students and to give them a better base of information to prudently manage their financial affairs and to save for the future for themselves and their families.

Prior legislative history

2010: S.6345 Referred to Education A.5506 Referred to Education 2012: S.1525 Referred to Education A.9802 (Heastie) Ref. to Education 2014: S.3040 Referred to Education A.4142 Referred to Education.

Fiscal implications for state and local governments

None.

Effective date

This act shall take effect September 1 the year after it shall have become law.