According to a 1999 survey conducted on behalf of the National Council on Economic Education (NCEE), half of all American adults and two out of three American high school students received a failing grade when tested on their understanding of the Voluntary National Content Standards in Economics.
In 2002, forty-eight (48) states included economics as part of their educational standards, while thirty-one (31) included personal finance. Hawai`i includes both subjects in its standards, however, while it is required that the standards be implemented, Hawai`i does not require that economics or personal finance courses be offered to students (much less that such courses be mandatory). Furthermore, Hawai`i does not require student testing in either economics or personal finance.
Positive Steps
This dire situation has attracted the attention of Hawai`i’s leaders. On August 4, 1999, U.S. Senator Daniel K. Akaka, in response to meetings with HAWAI`I COUNCIL ON ECONOMIC EDUCATION (the Council) and the sobering state of economic illiteracy as represented in a Parade Magazine article outlining the financial and economic illiteracy of the Nation’s populace, introduced the Excellence in Economic Education Act (EEE Act). The EEE Act passed in December 2001 as a part of the No Child Left Behind Act. This Act, which Senator Akaka is currently pushing for FY 2004 full funding at $10 million, will award a competitive grant to a national nonprofit educational organization that exists primarily to improve student understanding about economic and financial literacy through the classroom.
On April 24, Governor Linda Lingle signed a proclamation designating April 2003 as Financial Literacy for Youth Month. In similar spirit, the Hawai`i State Legislature, both Senate and House, have resolved that April is designated as "Financial Literacy for Youth in Hawai`i Month" to raise public awareness about the need for increased financial literacy in our schools and the serious problems that may be associated with a lack of understanding about personal finances.
In February 2002, meetings between Senator Akaka and the Council concluded that bolder action must be taken to raise the visibility of the challenges we collectively and personally face from continued economic and financial illiteracy. It was decided that Senator Akaka and the HAWAII COUNCIL ON ECONOMIC EDUCATION, with support from the University of Hawaii at Manoa Economics Department, would co-sponsor and organize a statewide conference that would draw broader attention and resources to identifying and implementing specific strategies in the state of Hawai`i.
