New Illinois Law to Strengthen Financial Education

A new Illinois law aims to boost financial literacy through a new financial education curriculum and funding. The Financial Literacy Act (Senate Bill 2191) amends the Illinois School Code to develop and adopt curricula, materials, and guidelines for financial education instruction. The Act enhances the current high school consumer education standard by requiring instruction on specific financial literacy topics. The Act also establishes a Financial Literacy Fund made up of state funds and private contributions for activities and materials, including books, games, field trips, and computers, related to financial literacy education.

“People across all income levels need and benefit from financial education. The current consumer education class, which is required for graduation in Illinois public high schools, now includes curriculum for budgeting, savings and investing, managing credit, and opening a deposit account,” says Dory Rand, supervising attorney of the Sargent Shriver National Center on Poverty Law’s Community Investment Unit. “Equipping students with this essential knowledge before graduation prepares them to succeed financially as adults and avoid excessive debt,” she added.

The curriculum covers budgeting, understanding credit, and managing debt—timely topics as credit card companies increasingly target college freshmen with high-interest credit cards. Last May the San Diego Union-Tribune reported that 18-to-24-year-olds represented a fast-growing age group to declare bankruptcy.

The Shriver Center and members of the Illinois Asset Building Group supported the Financial Literacy Act, which, by protecting and building assets, can strengthen Illinois families and communities.

For more information, visit the Shriver Center's website, or contact Dory Rand at 312 368 2007 or Jami Schlafer at 312 368 8575.

Poverty Action Report
July 2006