FOR IMMEDIATE RELEASE APRIL 6, 2000

CONTACT: BRAD SMITH PHONE: 202-225-2305

Dreier Says New Survey of American High School Students
Shows Need to Increase Financial Literacy

Jump$tart Coalition Survey Shows Average score of U.S. High Schools Seniors
in Basic Money Management Skills is Only 52%

WASHINGTON - Pointing to a survey released today by the Jump$tart Coalition that shows the basic personal finance skills of America’s high school seniors have not improved in recent years, Congressman David Dreier (R-San Dimas), Chairman of the House Rules Committee, said the results demonstrate the need to provide young people essential life skills by expanding elementary and secondary instruction in personal money management.

Dreier also praised the Education and Workforce Committee for addressing the issue in the Elementary and Secondary reauthorization (ESEA) bill by including his financial literacy provision. The bill could be acted on as early as today by the Committee.

“This new survey shows that we are not teaching our nation’s youth the essential skills necessary for success in life, like financial literacy. Whether it’s investing in the market or saving for retirement with a 401k plan, people today are more empowered than ever to take charge of their personal finances. Basic money management skills, like balancing a checkbook, saving and investing for tomorrow, and managing debt - are all key to success in today’s world,” Dreier said. “The language included in the ESEA bill will give teachers the resources and flexibility necessary to help make financial literacy a reality for our nation’s students.”

According to the new survey release today, the students’ average score, which was failing in 1997, has worsened. The areas tested were in four basic categories - income, money management, savings and investment, and spending. In 1997 the average score on the survey was 57 percent. This year, it fell to 52 percent.

The language included in the Elementary and Secondary Authorization Bill, H.R. 4141, is practically identical to Dreier’s Youth Financial Education Act of 1999. H.R. 2871, and will help improve financial literacy by authorizing grants to states of at least $500,000 to carry out financial education programs in elementary and secondary schools. This legislation does not mandate that state or local education agencies teach personal finance; it merely encourages them to integrate financial education into existing courses, such as economics and mathematics. Most importantly, the bill provides states with the resources necessary to develop teacher training and professional development activities in personal financial education.

Dreier praised the Jump$tart Coalition, a private non-profit group that promotes financial literacy, for their leadership in pushing this issue as a top priority for our nation’s schools. Dreier noted that many schools and youth organizations use some form of personal finance curriculum, including East Gabriel Valley High School, Pomona High School, the Arcadia Unified School District, and the Boys and Girls Club of Pomona Valley, which currently use curricula developed through Jump$tart.

Dara Duguay, executive director of the Jump$tart Coalition, pointed to the continued lack of personal finance requirements in most states’ curriculum standards as a likely factor in the score decline. “In the last year or two, schools everywhere have been put under intense pressure to perform well on standard examinations,” she said. “As a result, teachers have created lesson plans that focus heavily on concepts and topics to be covered by examinations - leaving little time in the classroom for anything else.”

Further information on the Jump$tart Coalition’s survey and financial literacy teaching resources, such as curriculum development assistance can be found at http://www.jumpstartcoalition.org/