I want to recognize Minden state legislator Gene Reynolds for his passing House Bill 401 in June that requires financial literacy instruction in public elementary and secondary education. Students will receive 12 years of personal financial instruction, from 1st-12th grade, with the goal of empowering them to be the confident, informed consumer that sets them in the right direction into the work world or in further educational instruction. Rep. Reynolds is a champion for preparing young people with the tools to make good financial decisions. The Federal Reserve Bank of Dallas in its first quarterly 2016 edition of Southwest Economy published an article that gives hope to our optimism that this new law could reap real results. Texas began requiring in 2007 high school students to take personal financial coursework for graduation.
As a result of implementing this requirement, researchers found ‘notable improvements in credit outcomes for young adults who take personal finance courses in high school.’ After this mandate in Texas, credit scores rose significantly and loan delinquency rates fell. This correlation is precisely what we hope to see result from this new law in Louisiana.
Robert T. Taylor
Chief Executive Officer
Louisiana Bankers Association