BILL NUMBER: S4860

SPONSOR: COMRIE
 
TITLE OF BILL:

An act to amend the education law, in relation to requiring senior high
schools to provide a course in financial literacy and requiring students
to complete such course as a condition of graduation

 
PURPOSE OR GENERAL IDEA OF BILL:

To require high school students to take a pass a pass/fail course on
financial literacy as a requirement for graduation.

 
SUMMARY OF PROVISIONS:

Section 1 amends the Education Law by adding a new section 802-b that
directs the Commissioner of Education to provide and proscribe a course
on financial literacy for high school seniors. The course will be taught
on a pass or fail basis and shall not affect the student's grade point
average.

              

School authorities shall provide the needed facilities, times and place
for instruction and shall provide learning aids and curriculum resource
materials.

Students with a disability as defined in section 4401 of the Education
Law shall not be required to complete such course for graduation if it
is not specifically included as a requirement in the student's individ-
ual education plan recommended by the school district committee on the
handicapped.

Section 2 sets forth the effective date which is the first of July next
succeeding the date on which it shall have become a law.

 
JUSTIFICATION:

Currently, New York high school students are not required to take a
course in financial literacy in order to graduate. As a result, most
high school graduates are ill-equipped to evaluate and conduct many of
the basic financial transactions they will face in adult life.  Drawing
on data provided by the credit agency, Experion, a recent CNBC news
story reported that the average American carries $90,460 in debt. This
staggering figure is attributable to many factors, but financial illi-
teracy is part of the problem-and there's an easy fix.  Too many young
people take out loans to pay for college or buy a car or simply accrue
credit card debt without understanding the negative impact these can
have on their long-term financial futures. But it's not their fault, our
educational system neglects practical applications of reading and math,
including how to balance a checkbook, how to understand wages and taxes,
and how read a lease or rental agreement. Requiring a course in finan-
cial literacy can help our young adults avoid bad choices and risky
behavior-the consequences of which often snowball as they grow older.

This bill would require students to take a pass/fail course on financial
literacy topics including, but not limited to: personal budgeting, wages
and taxes, self-employment, savings and investments (stocks, bonds, and
mutual funds), debt management, checking accounts, credit cards, credit
scores, saving for education and retirement, insurance, rights and obli-
gations as a tenant, basic concepts on borrowing including the purchas-
ing of automobiles and homes, benefits and drawbacks of leasing and/or
purchasing of automobiles, and the benefits and drawbacks of renting
and/or purchasing of a home.

Graduating high school seniors should enter adulthood with a basic
understanding of personal finances. By requiring a class on financial
literacy in public high schools, New York can help ensure that every
student, regardless of their current socioeconomic status, is equipped
to make informed personal financial decisions. This is a small invest-
ment that will yield major dividends in the financial wellbeing of
future generations.

 
PRIOR LEGISLATIVE HISTORY:

2021-2022: A7220-A - Amend and recommit to Assembly Education Committee

S5827-B - Amend and recommit to Senate Education Committee

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

Minimal costs for school districts.

 
EFFECTIVE DATE:
This act shall take effect on the first of July next succeeding the date
on which it shall have become a law.