Senate Bill S9378

                                 
BILL NUMBER: S9378

SPONSOR: MARTINEZ
 
TITLE OF BILL:

An act to amend the education law, in relation to establishing instruc-
tion in financial and insurance literacy

 
PURPOSE:

The purpose of this legislation is to ensure all high school students
are taught a curriculum that includes instruction in financial and
insurance literacy.

 
SUMMARY OF PROVISIONS:

Section 1. The education law is amended by adding a new section 819
authorizing the commissioner of education to develop and adopt a curric-
ulum for financial and insurance literacy. This section further clari-
fies that each local board of education shall require all students
grades nine through twelve to complete a half-credit course of financial
and insurance literacy prior to graduation and allows flexibility to
              

each local school system to meet this requirement.

Section 2. Establishes the enacting clause.

 
JUSTIFICATION:

Educating students on financial and insurance literacy is crucial to
better equip them for the many circumstances in life in which such know-
ledge is necessary. Through a curriculum containing financial and insur-
ance literacy, students will be provided with the necessary tools to
navigate complex insurance policies and financial decisions.  Comprehen-
sion of key concepts such as budgeting, investing, personal insurance
policies, and retirement saving will enable our youth to effectively
manage their money, avoid debt traps and scams, and plan for future
financial security. Education in financial and insurance literacy has
been proven to empower our young population to make more informed deci-
sions about insurance coverage and protect themselves and their assets
from unforeseen risks.

Experts and researchers have seen positive outcomes of financial litera-
cy education in other states that have implemented such including Geor-
gia, Idaho, and Texas, with those states reporting relatively higher
credit scores and lower relative delinquency rates for students who took
a course compared to those who did not. New York State Comptroller Tom
DiNapoli and Education Commissioner Betty Rosa have expressed their
strong support for financial and insurance literacy education highlight-
ing that "financial literacy can be a great equalizer for students and
New York cannot afford to wait."'

The intent of this legislation is to ensure financial and insurance
literacy is standardized and integrated into school instruction in a
meaningful way to benefit our students without putting an undue finan-
cial burden on school districts through an unfunded mandate.  School
districts will have the option to incorporate financial and insurance
literacy into existing coursework based on the content determined by the
Commissioner. Should state funding be appropriated for this need in the
future, school districts can then choose to offer a separate course of
study. This legislation will help New York foster an educational commu-
nity which stresses the importance of financial independence and resili-
ence in the face of economic challenges.

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
This act shall take effect immediately.
1 New York State Education Department Commissioner Rosa Op-Ed: We Should
Be Teaching Financial Literacy in New York's High Schools, Betty A. Rosa
and Thomas P. DiNapoli. Retrieved from:
https://www.nysed.govinews/2024/commissioner-rosa-op-ed-we-should-be-
teaching-financial-literacy-newyorks-high-schools