Legislation would require finances classes

Susan Siler teaches classes on personal finance at Lawrence High School, to help students learn how to manage credit card debt, create budgets and save money before they graduate.

But the class was canceled this semester, because not enough students enrolled.

“That says that we’re in trouble, because the students don’t see it as an important, relevant issue,” Siler said.

It may soon become a much more pertinent topic in Kansas schools, as state lawmakers consider a measure that would essentially require students to be instructed about personal finance as soon as they enter kindergarten.

Under Senate Bill 84, passed unanimously by state senators, K-12 statewide assessments would include questions on personal finance topics, beginning in July 2012.

“Personal finance is an essential skill that every person needs,” said Rhonda Malcolm, Free State High School business computer teacher. “Hopefully students can avoid bankruptcy or they can avoid credit problems if they learn about those in the classroom.”

A survey last year found that many teenagers struggle with finance. High school seniors averaged correct answers on only 48 percent of personal finance and economic questions, according to the nationwide survey released last year by the Federal Reserve. That was down from 52 percent in the previous survey in 2006 and marked the worst score of six surveys conducted so far.

While the Kansas state board of education is already required by law to develop standards regarding personal financial literacy, it are not required to include questions on state tests. As teachers work to prepare their students for those tests, personal finance often gets placed on the back burner.

Under the current and revised version of the state bill, Kansas school districts also would be encouraged to pick textbooks that include personal finance provisions under the bill.

The Kansas National Education Association and Kansas Community Financial Services Association are opposed to the bill.

With the current budget crisis, Mark Desetti, KNEA director of legislative advocacy, said now is not the time to ensure every student receives full exposure to financial literacy standards.

“(By) putting in state assessments, every child has to get it, and that means you have an enormous cost for the school districts, and the state is not putting a dime toward those costs,” Desetti said.

He said acquiring materials and professional development for teachers would be too costly without an increase in state funding.

Despite the concerns, senators passed the bill on Feb. 19. The House Education Committee conducted a hearing on the bill Wednesday and has yet to take action.

Only three states — Utah, Missouri and Tennessee — now require students to take a one-semester personal finance class before graduating, according to the JumpStart Coalition, which tracks state laws on the subject. Another 17 states require finance skills to be covered in other subjects, such as economics, social studies or math.