Kentucky Leads the Way
Earlier this week Yahoo Finance released this article discussing how 25 states are adding Personal Finance Education to High School Curriculums. In addition to adding financial education, four states are looking to add an organization similar to what the Kentucky Financial Empowerment Commission does.
It is great to see more work in this space and that states are looking to Kentucky as a model. I know this due to reports like the Nation’s Report Card on Financial Literacy where Kentucky received a ‘B’ on the report card. This was due to the quality of the policy, as well as the standards written by the Kentucky Department of Education.
I also know Kentucky is seen as a model as well due to conversations I have with state leaders throughout the U.S. Arkansas, Massachusetts, Ohio, and Pennsylvania are the four states looking to add a commission or KFEC equivalent to their state. Today actually marks the first day of the Arkansas Financial Education Commission. They have some really exciting work ahead of them.
Kentucky is seen as a leader in this space. Why is this though? Kentucky has great standards for financial education. They include professional development, credit and debt, decision making & money management, saving and investing, money and the economy, and insurance and risk management. These standards are great because they start with professional development. How could you learn to save if you have no income? The standards also include economics which encourages critical thinking and the consideration of tradeoffs.
Additionally, Kentucky has many stakeholders interested in this work which really boosts the work done for each group in Kentucky. Examples include the state based Centers for Economic Education, Junior Achievement, Jump$tart, the Human Development Institute at the University of Kentucky, the St. Louis Federal Reserve and the Cleveland Federal Reserve, the Department of Financial Institutions, the Kentucky Department of Education, as well as the Kentucky Credit Union League and the Kentucky Bankers Association. This does not even mention everyone, but it is a long list of people and organizations that care deeply about this work.
All of this work is encouraging for Kentucky, especially considering that only 30% of individuals can answer four or five questions on a basic five-question financial literacy quiz correctly. We have a bright future ahead of us and I am really looking forward to it.
