SB2407

SECTION 1. The legislature finds that there is a gap in existing high school curricula surrounding personal finance education. Financial education is a lifelong learning process that empowers individuals to plan for their futures. Historically, the education system has assumed that students learn important financial skills from their families. However, not all students are taught the financial skills they will need to be successful later in life.

Presently, seven in ten adults in the State are considered "financially unhealthy". The lack of financial literacy poses a significant barrier for individuals seeking to achieve financial prosperity and stability. Personal financial education is essential to ensure that Hawaii's youth are prepared to manage money, credit, and debt, and to become responsible workers, heads of households, investors, entrepreneurs, business leaders, and citizens. 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.

Accordingly, the purpose of this Act is to require the department of education to include the teaching of financial literacy for grades nine through twelve.

SECTION 2. Chapter 302A, Hawaii Revised Statutes, is amended by adding a new section to part II, subpart B, to be appropriately designated and to read as follows:

"§302A- Financial literacy; curricula plan; public schools. (a) The department shall develop and implement a statewide financial literacy curricula plan for public school students in grades nine through twelve. The department shall review and determine into which courses personal financial literacy shall be integrated.

(b) Beginning with the 2025-2026 school year, instruction shall be provided in financial literacy in all public schools for students in grades nine through twelve. All students in grades nine through twelve shall be required to complete one course in financial literacy and a passing grade in the course shall be required for graduation. The curriculum shall include, at a minimum, standards established by the second edition of the Voluntary National Content Standards in Economics and the 2013 Standards for Financial Literacy, as developed by the council for economic education. Curriculum shall include but is not limited to the following:

(1) Basic budgeting and financial planning;

(2) Saving, financial investments, and career management;

(3) Banking and financial services, including online banking services and balancing a checkbook or bank account;

(4) Federal, state, and local taxes;

(5) Borrowing money for a home mortgage, automobile, or other large purchase;

(6) Loans, including interest, credit card debt, predatory lending, and payday loans;

(7) Rights and responsibilities of renting or buying a home;

(8) Retirement planning;

(9) Credit scoring and credit reports;

(10) Insurance;

(11) Charitable giving;

(12) Bankruptcy;

(13) Identity theft and fraud;

(14) Negative financial consequences of gambling;

(15) Planning and paying for postsecondary education;

(16) Economic principles; and

(17) Other relevant financial literacy issues.

(c) The board shall provide teachers with professional development to teach financial literacy courses. The board shall determine a list of approved courses and providers who offer professional development in financial literacy. Teachers shall complete financial literacy professional development before teaching financial literacy courses in public schools.

In addition to professional development courses, the board may offer to teachers:

(1) A statewide learning community for financial and economic literacy;

(2) Summer workshops; and

(3) Online videos of experts in the field of financial literacy education.

(d) The board may consult with other public agencies and private or nonprofit organizations to:

(1) Identify online resources for financial and economic literacy education, including interactive activities and curriculum readily available for teachers;

(2) Coordinate the use of existing financial literacy education resources;

(3) Develop simple, clear, and consistent messaging to reinforce and utilize existing financial literacy resources; and

(4) Coordinate the efforts of the department, public agencies, and private or nonprofit organizations to implement methods of appropriate grade-level communication to students, teachers, and parents on financial literacy.

(e) The board shall adopt rules in accordance with chapter 91 for the purposes of integrating financial literacy education into curriculum plans for department schools. The board shall review, and make any necessary adjustments to, the financial literacy curricula plan at least once every three years."

SECTION 3. New statutory material is underscored.

SECTION 4. This Act shall take effect upon its approval.

INTRODUCED BY:	_____________________________

Report Title:

BOE; DOE; Financial Literacy; Curriculum; 9-12 Coursework; Professional Development; Rules

Description:

Beginning with the 2025-2026 school year, requires the Department of Education to include the teaching of financial literacy in grades nine through twelve. Requires students in grades nine through twelve to complete one course in financial literacy before graduation. Requires the Board of Education to provide professional development to teachers who are teaching financial literacy courses. Requires the Board of Education to adopt administrative rules to implement financial literacy education curriculum and regularly review the financial literacy curricula plan. Authorizes the Board of Education to consult with other state and county agencies, private entities, and nonprofit organizations to disseminate information on financial literacy education resources.

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

THE SENATE	S.B. NO.	2407
THIRTY-SECOND LEGISLATURE, 2024
STATE OF HAWAII