INDIANAPOLIS (Wish) – Bipartisan Indiana legislators said Tuesday the new coursework law will help address students’ lack of financial literacy.
Senator Mike Gaskill, Republican billmaker for Pendleton, an insurance agency, said in his experience many young people don’t even know how to balance their checkbooks or even check their balances regularly. said. National statistics back him up.
According to credit rating agency Experian, the average total debt of Americans aged 18 to 25 will increase by nearly 25% between 2021 and 2022, and Gen Z credit card debt will exceed 25% . Millennials between the ages of 26 and 41 fared less badly, with average gross debt up over 14% over the same period.
Gaskill’s bill would require all children from the 2028 school year onwards to take an independent and personal financial responsibility course. The course should cover topics such as opening and managing bank accounts, managing debt, applying for loans, and understanding credit scores.
According to advocacy group Next Gen Personal Finance, 18 states have or will soon have financial literacy course requirements, but only seven of them require a separate course.
“I think it’s a great opportunity for children to secure their financial future in their 20s. says.
The bill has broad bipartisan support. The final version passed unanimously in both houses on Tuesday. Senator Sheri Yoder, D-Bloomington, who signed as a co-sponsor of the bill, said the course would help young people understand how to make important financial decisions later in life, but it goes deeper. He added that he would not deal with economic problems.
“There is a divide and we want to make sure all Hoosiers know the basics so they can feel involved and actively participating in the economy,” she said. But we need to address the underlying problems of poverty and income inequality that continue to plague Indiana.”
Gov. Eric Holcomb has seven days to act on the bill after it is formally presented.