Legislation

January 2010

Subject: In support of HB 1383 - AN ACT requiring a course in business or financial literacy as a prerequisite to high school graduation.

Dear Representatives of the House Education Committee,

Last week, I was honored to provide testimony in support of this Bill that would make personal finance education a graduation requirement in the state of New Hampshire. My testimony was emotional and passionate, and an honest relecton of my beliefs.

During the hearing, we heard from educators, business professionals, and members of the Department of Education. The one voice that was not represented, however, was the students themselves. Please permit me to share with you some of what they have told me.

In the research I conducted that was provided to you in our information packet, we presented several findings. It is noteworthy that our findings were the result of a survey that was administered to several public high schools in the state, with the assistance of social studies teachers in those schools. In this survey, the overwhelming majority of students indcated they have a below average understanding of how to calculate interest payments, and that they are not confident in their own abilities to develop a personal financial plan.

These students will soon be bombarded with credit card offers and other opportunities to increase their debt burdens through careless spending. While this situation can be resolved with greater self discipline, there are also cases of people, much like myself, who will be borrowing the money necessary for college in order to pursue their version of the American dream. Once leaving college, which may find them carrying a six-figure debt, these young people will also find car loans and home mortgages adding to their debt encumbrance as a necessary means of attempting to live that dream.

Other states, such as Missouri in 2004, have made Personal Finance a part of their curriculum. Through partnerships with business leaders, non-profit organizations such as the National Endowment for Financial Education and the Jump$tart coalition, professional educators and political leaders, the leadership in Missouri sent a message: That preparing people for the realities of life, and the financial responsibilities that go with it, are important and the state's educational system has an obligation to help them be ready to manage it.

This afternoon at your Executive session, you have the opportunity to serve the people of the New Hampshire and send a similar message to all of those you represent. By passing this bill, New Hampshire will be stating that Personal Finance is not only important, but that it is important enough to carry with it the force of law. A message will be sent that no person should have to lose their home, or place undue burden upon the state's bankruptcy courts, simply because they did not know any better. Ignorance, in this case, is far from bliss.

The Bill requires this education to be in place by 2014 - four years from now. Within that time frame, the many interested parties will be able to gather and develop a curriculum tailored to the people of New Hampshire. In no way should this bill be defeated for a perceived need to follow bureaucratic process or to toe a party line. Failure to give this bill its due would not be the result of interested parties failing to follow a process, rather, it would be the result of that process failing us.

I urge you to give this Bill its fair consideration, and to do what is so sorely needed by many of those you represent.

Sincerely,

David M. Kasprzak
Litchfied, NH resident

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December 2, 2004

New Hampshire Dept. of Education
c/o Ms. Mary Mayo
101 Pleasant Street
Concord , NH 03301

Subject: New Hampshire Business Education Association Response to ED 306

To Whom It May Concern:

The New Hampshire Business Education Association (NHBEA) is a professional organization devoted exclusively to serving individuals and groups engaged in instruction, research, and dissemination of information for and about business. For over 80 years NHBEA has been a leading association devoted to the recognition that business education competencies are essential for all individuals in today’s fast-changing society.

The vision of NHBEA is to work collaboratively with government, community, business, and educational leaders at the national, state, and local levels to achieve universal acknowledgment that business knowledge is vital to the success of every individual and, therefore, is an essential component in all students’ education.

NHBEA applauds the time, effort and commitment that the Board of Education has dedicated to the developing and proposing of new public school standards. The major initiatives drafted including smaller class sizes, broader routes to alternative compliance and an increase of credits needed to graduate from high school are all welcome changes to the public school system.

NHBEA, after thoroughly reviewing creditable and reliable sources of current literature, have determined that an optimal learning environment for today’s high school students necessitates an understanding of financial principals and literacy taught by certified business educators. It is our goal to provide students with the knowledge, skills and education to enter society ready to handle all adult responsibilities, post secondary education and/or the work place. Our recommendation is that the 6 ½ elective units being proposed be changed to read that all students will complete one full unit of financial literacy upon graduation and complete 5 ½ units of elective choices.

Our recommendation is based on the following research:

  • The Jump$tart Coalition for Personal Financial Literacy’s 2004 survey of more than 4000 high school students found 65.5 percent of students failed the exam on financial management skills and education including knowledge about everyday financial matters including: managing a checking account, handling a credit card, taking out a car loan, and saving for retirement.

    Dara DuGuay, Executive Director of Jump$tart Coalition found the results of the survey alarming as participants failed at staggering rates: 68% earned failing scores.

    The survey also indicated that students required to take a required money management course in high school fared better than those not required to take such a course.

  • The Federal Financial Literacy and Education Commission has been created in order to focus its attention on financial literacy. Currently only 15% of our nation’s high school seniors graduate with any formal instruction in personal finance. This reality is compounded by the fact that the financial world has become increasingly complex. For those schools where finance is being taught it is within classes that are NOT required. Therefore, the vast majority of students never receive this instruction.

  • According to a Youth and Money survey, the majority of students, ages 16-22, have never taken a class in personal finance. Also, according to Teenage Research Unlimited, teenagers spent 175 billion dollars last year, an average of $104 per week. This spending comes without any financial literacy education, says ABA president and CEO, Donald G. Ogilvie.

  • The National Endowment for Financial Education (NEFE) recently reported that 42% of teens aged 18 & 19 already have a credit card in their name. Source: Teenage Resource Unlimited. In their lifetime, today’s young people will have access to a staggering amount of money-a resource that can go along way, if it is allocated properly. With the proper education, these youth will take greater personal responsibility for their future financial security. While it is never too early to learn how to make sound financial decisions, there may come a time in life when it is too late.

  • The 2004-2005 Occupational Outlook Handbook indicates that the professional and business service areas will increase by 30.4 percent and add nearly 5 million new jobs. This industry super sector includes some of the fastest growing industries in the U. S. economy. The number of jobs within agencies, brokerages, and other business related activities is expected to grow about 14.5 percent.

  • The Nashua Telegraph, Nov. 16, 2004 , reported on the college degrees in demand. Accountants and finance majors are again finding increased demand for their services along with investment banking, consulting firms. PriceWaterhouse Coopers plans to hire about 3,100 people off U.S. college campuses this year, up almost 19 percent from last year. Ernst & Young, another big accounting firm, plans to increase hiring by about 30 percent this year and bring on 4,000 new college grads.

  • Business Education Week magazine, September 3, 2004 reported that 15.9% of total entering college freshman will major in business, the highest in any of the 11 categories. The Chronicle Almanac Issue 2003-2004 reported that 120,785 Master’s degrees, 281,000 Bachelor’s degrees, 108,911 Associate degrees were issued for the 2001-2001 school year.

After reviewing the research provided, NHBEA is hopeful that you will consider our request to implement a required one unit in finance studies at the high school level.

If you have questions or concerns, please feel free to contact me at 603-437-5200 ext. 1173 or email me at beverlylannan@pinkertonacademy.org.

Sincerely,

Beverly S. Lannan

Beverly S. Lannan
NHBEA President

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