* WARNING: THIS IS AN UNOFFICIAL, INTRODUCTORY COPY OF THE BILL.
THE OFFICIAL COPY CONSIDERED BY THE CITY COUNCIL IS THE FIRST READER COPY.
INTRODUCTORY*
CITY OF BALTIMORE
COUNCIL BILL R
(Resolution)
Introduced by: Councilmember Holton
A RESOLUTION ENTITLED
A COUNCIL RESOLUTION concerning
title
Financial Literacy - Requirement for Graduation from Baltimore City Schools
FOR the purpose of requesting the New Board of School Commissioners and the CEO of Baltimore City Schools to examine the feasibility of requiring students to pass a course in financial literacy to graduate from Baltimore City schools.
body
Recitals
On March 2, 2007, the Maryland Coalition for Financial Literacy, a division of the Maryland Council on Economic Education, a non-profit with 50 years experience in teacher training in the field of economics, was successful in securing the adoption of a Senate Resolution: "We urge county boards of education to integrate the principles of basic personal finance into the curriculum and instruction established for their local school system and urge county boards of education to implement certain standards as part of a student's eligibility to graduate from a public high school and receive a high school diploma."
The evidence to support a financial literacy graduation requirement included:
· The majority of college students say they learn the most about personal finance from their parents, but less than ½ of students say their parents make a consistent, conscientious effort to teach them.
· Nearly 2/3rd (63%) of the parents surveyed say they definitely see personal finance education as their responsibility and consistently make the effort to teach their children about it, compared to only 41% of students who said their parents did.
· More than 3/4 of students (76%) wish they had more help preparing their financial future.
· Parents rank developing good personal financial skill and being able to handle their money (74%) ahead of both following the wrong crowd (58%) and drugs/alcohol use (56%) in terms of concerns parents have for their children's futures. Only personal safety ranked higher (89%).
· A recent Visa survey revealed that 91% of the respondents felt that financial education should be taught in every high school.
· Nearly 1/3rd (32%) of college students, when thinking about their freshman year, admit that they were "not at all" or "not very well prepared" for managing their money on campus. Only 1 in 5 (20%) students claims to have been "very well prepared" for managing their money on campus.
· Only 14% of American adults mentioned their company's 401(k) plan when asked about ways they save.
· Only 11% of workers under 35 indicate they are participating in their company's 401(k).
· More people declare bankruptcy each year than graduate from college.
· Nearly 2 /3rd (63%) of Americans acknowledge they don't save enough, and more than 1/3rd say they often (11%) or sometimes (25%) spend more than they can afford. More than one-in-three (36%) Americans also say they have at some point in their lives felt their financial situation was out of control.
The latest financial literacy test given by the not-for-profit Jump$tart Coalition for Personal Finance Literacy to 5,775 high school students in 305 schools across the country during December and January 2006, resulted in an overall score - on average students answered 52.4% of the questions correctly - of "F" in a typical grading score. The official who conducts Jump$tarts test found that most educators today recognize the need for students to learn the basics of managing money, including credit and insurance, by the time they leave high school, if not sooner.
In the Baltimore City Public School System, financial literacy is taught mostly in high school as part of other courses such as business, math, and social studies. Given the overwhelming evidence of the need for financial management education, it is the appropriate time to consider financial literacy as a requirement for graduation.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF BALTIMORE, That the New Board of School Commissioners and the CEO of Baltimore Public Schools are requested to examine the feasibility of requiring students to pass a course in financial literacy to graduate from Baltimore City schools.
AND BE IT FURTHER RESOLVED, That a copy of this Resolution be sent to the Mayor, the CEO of Baltimore City Schools, the President and Members of the New Board of School Commissioners, the Presidents of the Baltimore Council of PTAs and the Maryland PTA, and the Mayor's Legislative Liaison to the City Council.
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