SPRINGFIELD, Ill. (WAND) — The first of the month is usually a smart time for people to look at their monthly budget. Most people have to think about their rent or mortgage payments, credit card bills, and groceries. Yet, many young people in Illinois don't know enough about finances.
State lawmakers want to require a personal finance course for high school students to help tackle this issue. Rep. Curtis Tarver II (D-Chicago) told the House School Curriculum & Policies Committee that all high school students should complete a course on financial literacy before they graduate. His proposal includes instruction of behavioral economics, banking, bills, investing, managing credit, and paying for college. Tarver would also like to see students learn about insurance, taxes, budgeting, home ownership, and financing for personal transportation.
"I think we'd have a lot less of the bills talking about predatory loans, payday loans, and things along those lines if children, or students I should say, knew earlier on about financial resources and had more financial literacy," Tarver said Wednesday morning.
The Illinois State Board of Education would be in charge of approving the personal finance education standards for the course. House Bill 1375 also states the curriculum could be updated every five years. ISBE is currently concerned that the legislation would be an unfunded mandate for school districts. Government Relations Director Hector Rodriguez said the board is also trying to negotiate with Tarver to change the proposed semester course to lessons spread out from 9th-12th grade.
"Currently, statute gives districts the flexibility to incorporate the consumer education requirement into their course work," Rodriguez said. "And, as drafted, House Bill 1375 would've created or would create a stand-alone course."
Rodriguez said ISBE would like to amend the proposal to help modernize the current state law. He noted that students should be able to understand the role of money in the economy and relationships between borrowers and lending companies.
Rep. Rita Mayfield (D-Waukegan) thanked Tarver for bringing his idea forward. Mayfield explained that her daughter didn't learn these skills before she started college.
"She has applied for three credit cards. She didn't know that I put a lock on her credit so that she couldn't do that," Mayfield stressed. "But had I not done that, she'd have three credit cards and be in debt. They don't understand credit at all. So, I think this is something that would be very beneficial to our students."
The current bill language states the financial literacy course would start for freshman in the 2024-25 school year. However, Tarver told the committee that he is willing to push back the effective date to ensure the state is prepared.
"I think it's rather aggressive to say we're going to start with freshman class of 2024-25," said Rep. Dan Swanson (R-Alpha). "I think there's a lot of wheels that need to turn before we can do that. But I appreciate your comment to acknowledge that."
House Bill 1375 passed unanimously and now heads to the House floor for second reading. Tarver promised to bring the proposal back to the committee with an amendment at a later date.
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