On Tuesday, the Alabama House of Representatives passed legislation requiring Alabama public schools to teach public high school students about personal financial literacy.
House Bill 164 (HB164) is sponsored by State Representatives Andy Whitt (R-Harvest).
Rep. Whitt is a retired banker.
“I have got story after story from thirty years of banking experience of young people who did not have a checking account,” said Whitt. “They go to convenience stores and check cashing places to get their paychecks cashed. One young fellow was working two hours a week just to be able to get his check cashed each week.”
“In states with financial literacy, it has been shown that credit scores rise 20- or 30-points saving thousands of dollars on home mortgages,” Whitt said.
Whitt said that the class would be “looking at high-interest loans – credit cards. Are there other options? It will look at the percent going into taxes. People don’t understand that when you get paid ten dollars an hour, you are not bringing home ten dollars an hour.”
Whitt explained that HB164 gives schools flexibility in how this is taught to give the latitude to put it in a math class. “They have the ability to do that. It may be in a career tech class,” Whitt said.
Rep. Roland Hollis said, “Thank you for bringing this. We have kids right now that cannot write a check.”
Hollis is a businesswoman.
“They need to know the business,” Hollis said. “We have kids who cannot even count the money back to you.”
State Rep. Mary Moore said, “My concern is that the people who teach the curriculum; they have to be trained. You got some educators who do not manage their own money well, and they are going to teach children?”
Whitt said, “This will be started in high school between the ninth and eleventh grade.”
“I think you need to start in middle school,” Moore said. “The earlier you can start it, the better.”
Whitt said there would be a test on financial literacy at the end of the instruction.
“We are testing our little children to death,” Moore said. “And we are burdening our poor teachers with more paperwork than they can handle now.”
Whitt said that this bill is just the start of the process and would bring other financial literacy bills in the future.
“Orientation for junior colleges” is a possibility, Whitt said. “I hope this is my first step moving forward.”
“This is important – very necessary,” said Rep. Danny Garrett. “A lot of people today don’t write checks. You are looking at EBT cards. They also tend not to carry cash. We are talking about 21st-century financial education.”
State Rep. Thomas Jackson said, “Being an educator myself, how times have changed since I was in the classroom. People don’t want checks. They don’t want paper. People deal in electronic payments now.”
Jackson said that many students come from poverty, so they have little experience managing money.
“The reason they don’t know is that they have nothing to manage,” Jackson said. “Put money in the program and the experience and knowledge in how to get this off the paper and into the classroom.”
Whitt said that the education would teach students about savings and investments.
State Rep. Laura Hall asked if they would teach the students about Bitcoin.
“Bitcoin – that is not covered,” Whitt said. “If you understand Bitcoin, let me know.”
House Bill 164 passed the House 104 to 0.
Ninety-eight members of the House signed on as cosponsors of HB164. The legislation now goes to the State Senate for their consideration.
Tuesday was the eleventh legislative day of the 2023 Alabama Regular Legislative Session.
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