Sponsored by:
Assemblywoman VALERIE VAINIERI HUTTLE
District 37 (Bergen)
Assemblywoman NANCY J. PINKIN
District 18 (Middlesex)
SYNOPSIS
Urges institutions of higher education to offer a required undergraduate course on financial literacy.
CURRENT VERSION OF TEXT
As introduced.
An Assembly Resolution urging institutions of higher education to offer a required course on financial literacy.
Whereas, College is the first chance for many young adults to make significant financial decisions on their own, and the financial decisions made during college can affect long-term financial well-being; and
Whereas, In its 2008 survey of high school seniors, the Jumpstart Coalition for Personal Financial Literacy, a national coalition of organizations dedicated to improving student financial literacy, found that participants, on average, correctly answered only 48% of 31 multiple choice questions that covered such topics as taxes, saving, investing, debt, and insurance, which was the worst average score since 1998; and
Whereas, A 2007 survey conducted by the Charles Schwab investment firm found that while 70% of United States parents had taught their teenagers how to do laundry, only 34% had taught them how to balance a checkbook, and only 29% had taught them how credit card fees and interest work; and
Whereas, Most undergraduate students have multiple credit cards, and students often believe that they are managing credit well as long as they make minimum payments; and
Whereas, A growing body of research suggests that poor job attendance and performance may be linked to financial distress, suggesting financial competency is an important element in future success; and
Whereas, Divergence between more complex consumer decisions and financial illiteracy has led to a rising trend of negative consumer behaviors, resulting in record high levels of debt and record low levels of economic security for individuals, families, and communities throughout the nation; and
Whereas, Financial literacy is associated with the health and well-being of individuals, families, communities, and markets, and effective financial education can help individuals develop efficient household budgets, create savings plans, manage debt, and formulate strategic investment decisions for themselves and their families; and
Whereas, Through the delivery of a required financial literacy course, institutions of higher education in the State can equip individuals with the skills necessary to ensure a lifetime of financial well-bring, be effective participants in the economy, and fulfill their role as meaningful contributors to the health and vitality of their communities, the State, and the nation; now, therefore,
Be It Resolved by the
General Assembly of the State of New Jersey:
1. This House encourages each institution of higher education to offer a required course on financial literacy to its undergraduate students to ensure that students learn sound financial skills in order to build a foundation for lifelong financial well-being.
2. Copies of this resolution, as filed with the Secretary of State, shall be transmitted by the Clerk of the General Assembly to the Secretary of Higher Education, who is urged to distribute this resolution to each institution of higher education in the State.
STATEMENT
This Assembly resolution urges institutions of higher education to offer a required course on financial literacy to undergraduate students. College is the first chance for many young adults to make significant financial decisions on their own, and the financial decisions made during college can affect long-term financial well-being. Through the delivery of a required financial literacy course, institutions of higher education in the State can equip individuals with the skills necessary to ensure a lifetime of financial well-being, be effective participants in the economy, and fulfill their role as meaningful contributors to the health and vitality of their communities, the State, and the nation.