WHEREAS, forty per cent of Americans indicate that they live beyond their financial means, and approximately one-half of Americans live paycheck to paycheck; and

WHEREAS, outstanding credit card debt among households more than tripled from 1990 to 2000, personal bankruptcy filings continued to rise in 2003, up 7.4 per cent from 2002, and personal savings as a percentage of the gross domestic product decreased from 7.5 per cent in the early 1980s to 2.4 per cent in 2002; and

WHEREAS, a 2002 study found that high school seniors know even less about credit cards, retirement funds, insurance, and other personal finance basics than seniors knew five years ago; and

WHEREAS, although Hawaii requires that personal finance be included as part of its public school educational standards, it does not require that personal finance courses be offered or that students be tested on the subject; and

WHEREAS, a direct correlation exists between economic well-being and knowledge of personal financial management issues and skills; and

WHEREAS, lack of financial literacy poses a significant barrier for individuals seeking to achieve financial prosperity and stability; and

WHEREAS, personal financial education is essential to ensure that our youth are prepared to manage money, credit, and debt and to become responsible workers, heads of households, investors, entrepreneurs, business leaders, and citizens; and

WHEREAS, research indicates that as few as ten hours of personal financial education positively impacts students' spending and savings habits; and

WHEREAS, it is of the utmost importance to educate Hawaii's youth in economic and financial matters to prepare them for financial independence through the development of fiscal responsibility and financial management skills; now, therefore,

BE IT RESOLVED by the Senate of the Twenty-third Legislature of the State of Hawaii, Regular Session of 2005, that the Department of Education is requested to add a mandatory one semester course in economic and financial management literacy to the existing public high school curriculum; and

BE IT FURTHER RESOLVED that certified copies of this Resolution be transmitted to the Chairperson of the Board of Education and the Superintendent of Education.

Report Title:

Education; Curriculum; Economic and Financial Management literacy