Rhode Island Schools Receive Low Marks On National Youth Personal Financial Education Report Card

National Survey Details State-by-State Personal Financial Education in Nation’s Schools

June 13th, 2007 (New York, NY) -  the National Council on Economic Education (NCEE) reported to the nation via live online press conference that Rhode Island is among states not currently requiring that financial literacy courses be taught in schools.

The NCEE report card revealed that 9 states require that personal financial courses be offered in their schools, while other states including Rhode Island do not.Specific state data is available at www.ncee.net.

According to a statement by the NCEE, “What isn't taught isn't learned. No longer is the question, should we take action on improving economic and financial literacy, but how shall we do it. The National Council on Economic Education (NCEE) will unveil Report Card – Survey of the States: Economic and Personal Finance Education in Our Nation’s Schools in 2007, sponsored by State Farm® at an online press conference on Wednesday, June 13. The unique "Report Card" provides the only national set of data that tracks the progress of economic and personal finance education via a breakdown, state by state, and attendant data.”

Jim Hedemark, Executive Director of the Rhode Island Jump$tart Coalition, states, “This report confirms what those concerned about youth financial education in Rhode Island already know, that we are graduating a vast majority of our high school students without any formal personal financial education.”  He continues, “Other than what they may or may not learn from their parents, our young adults are primarily left to learn personal financial lessons in the marketplace through the trial and error approach.  Unfortunately for them, the penalties for errors made early in life can be severe, potentially costing hundreds of thousands of dollars in increased interests rates, fees, and lost opportunities over a lifetime.”

Claudia Kerbel, President of the Rhode Island Jump$tart Coalition and Outreach Director for the URI Center for Personal Financial Education qualifies the NCEE report, “People should not misinterpret this report as suggesting that no personal financial education is being taught in Rhode Island Schools.Many educators in many disciplines including business, family consumer science, and math are offering courses in personal finance, however because the courses are elective, they only reach a very small portion of our students.”

General Treasurer Frank T. Caprio, a longtime promoter of the RI Jump$tart Coalition and advocate for personal financial literacy believes, “Too many Rhode Islanders have become compromised due to record-setting indebtedness and all-time low personal savings.Government, educators, businesses, parents and individuals all play important roles in reversing today’s alarming personal financial trends through increased financial literacy education.”

Working to address the need for increased personal financial education in Rhode Island schools, Senator Dan Issa, Chairman of the Senate Committee on Education and Representative Raymond Church have sponsored legislation (S 804, H 6235 repectively) to create a JOINT RESOLUTION CREATING A SPECIAL LEGISLATIVE COMMISSION TO STUDY YOUTH FINANCIAL EDUCATION that creates a 15 member special legislative commission whose purpose it would be to study the status and future of youth personal financial education in Rhode Island's middle and high schools.  These bills are expected to pass the legislature in the coming weeks.

“Financial literacy – which means more than just knowing how to balance a checkbook – is a vital step toward ensuring the well-being of our youth as they move into adulthood,” said Sen. Daniel J. Issa (D-Dist. 16, Central Falls, Cumberland, Pawtucket). “The consequences of inadequate financial literacy can be serious.  We all want our state’s students to receive the best education possible and achieve the best results they can.  While we are setting various educational goals, I believe we cannot overlook the need for our students to be financially literate.  At a time when credit card debt has skyrocketed and personal savings has plummeted, when identify theft is a common occurrence, we must make sure our young people have the proper financial education to serve them well in their years out of school.”

“The ability to handle one’s own money is a vital skill for all adults, but it seems that many young adults – and even not-so-young adults – don’t even know the basics.  If there’s any skill that every adult needs, it’s how to handle personal finances, so it’s worth exploring whether this is something that is being taught in schools, and what we can do to make more room for it in the curriculum,” said Representative Church, who represents District 48 in North Smithfield and Burrillville.

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