September 2, 2003

Letter to the Editor
Honolulu Advertiser & Honolulu Starr Bulletin

The Hawai'i Council on Economic Education together with Sen. Daniel Akaka recently sponsored the first annual Financial Literacy Conference. The event was a huge success, with over 200 educators, politicians and business leaders attending.

Mostly, the conference focused on how we could improve financial literacy in our state. It was noted that in those states where economics and personal finance are mandatory subjects for high school students, the financial literacy rates are higher and personal savings rates are higher. Meanwhile, in our state, the number of high schools offering economics or personal finance courses has been declining. Our savings rate is low. Our personal bankruptcy rate is high. On a recent survey, adults could only answer an average of 13 out of 20 routine economic questions, a failing rate. Many did not know you would never pay off a credit card debt if you merely pay the minimum amount due each month.

I wonder how long we will tolerate these results before we make the teaching of economics and personal finance mandatory for our high schools. We owe it to our children. We owe it to our future. We owe it to Sen. Akaka, who has been the leading advocate of teaching economics and personal finance nationally. We should provide him with a good example to point to while championing this effort nationally.

Not to diminish the importance of other subjects, but when was the last time you used an algebra equation in your daily life? Compare that to how often you must make financial decisions. I bet you make several of them every day.

As Dr. Robert Duvall, president and CEO of the National Council on Economic Education, says, "Economics and personal finance belong right there with the three Rs. It should be Reading, 'Riting, 'Rithmetic and REAL LIFE!"