Implementation and Effectiveness of the Personal Financial Literacy Pilot Program A Report to the 80th Texas Legislature from the Texas Education Agency
Submitted to the Governor, Lieutenant Governor, Speaker of the House of Representatives and Members of the 80th Texas Legislature January 1, 2007
Implementation and Effectiveness of the
Personal Financial Literacy Pilot Program
Statutory Authority for this Report Texas Education Code §29.915 (Senate Bill 851, 79th Texas Legislature, Regular Session) requires the Texas Education Agency to provide each member of the legislature with a report relating to the implementation and effectiveness of the personal financial literacy pilot program no later than January 1, 2007.
Statutory Authority and Requirements of the Pilot Program The Texas Education Agency (TEA), through Texas Education Code (TEC) Chapter 29, Section 29.915, was required by rule to “establish and implement a financial literacy pilot program to provide students in participating school districts with the knowledge and skills necessary as self-supporting adults to make critical decisions relating to personal financial matters,” and to “develop an application and selection process for selecting school districts to participate in the program.” TEA was to collaborate with the Office of Consumer Credit Commissioner (OCCC) and the State Securities Board (SSB) to develop the curriculum and instructional materials for the program.
Commissioner Rules In accordance with TEC §29.915 the Commissioner of Education adopted 19 TAC Chapter 102, Subchapter EE, §102.1051 Financial Literacy Pilot Program to establish and implement the pilot program. The rules include guidance for application, notification, implementation, evaluation and funding.
Curriculum and Instructional Materials The following 10 areas of instruction were to be included in the pilot:
• • • • • • • •
avoiding and eliminating credit card debt; understanding the rights and responsibilities of renting or buying a home; managing money to make the transition from renting a home to home ownership; starting a small business; being a prudent investor in the stock market and using other investment options; beginning a savings program; bankruptcy; the types of bank accounts available to consumers and the benefits of maintaining a bank account; • balancing a check book; and • the types of loans available to consumers and becoming a low-risk borrower. Collaboration among the State Securities Board (SSB), the Office of Consumer Credit Commissioner (OCCC), and TEA resulted in the identification two programs for use in the pilot: Money Smart, a Federal Deposit Insurance Corporation program, and Financial Literacy 2010 (FL 2010), a joint project of the Texas State Securities Board, Investor Protection Trust, the North American Securities Administrators Association, and the National Association of Securities Dealers.
Funding The program was to be implemented only if sufficient funds were available. Funding could include a gift, grant, or donation from any source, including a foundation, private entity, governmental entity, or institution of higher education. It was determined in January 2006 that sufficient funds were available through a grant awarded to the Texas Credit Union Foundation in the amount of $40,500.
Partnerships The Texas Education Agency notified school districts of the opportunity to participate in the pilot, solicited applications and selected participating districts. Representatives from the Office of Consumer Credit Commission and the State Securities board conducted training in Money Smart and FL 2010 and provided materials to participants. The Texas Credit Union Foundation provided funding for training participant transportation and lodging, and provided logistical support for the training.
Participating Districts Participation in the pilot was limited to no more than 25 school districts. TEA received applications from 31 school districts. Pilot participants were selected to reflect a balance between large and small districts, representation of various geographic regions of the state, and representation of the overall demographics of the state. Participation in the pilot program required a commitment from the district superintendent to use the curriculum selected for the pilot and have designated teachers participate in training in summer 2006. The twenty five districts selected to participate are listed in the table below.
Participant School Districts Austin ISD Bastrop ISD Big Spring ISD Bryan ISD Corrigan Camden ISD Dumas ISD Duncanville ISD El Campo ISD El Paso ISD Floresville ISD Giddings ISD Greenwood ISD Hallettsville ISD Hardin Jefferson ISD Hurst Euless Bedford ISD Kountze ISD North Houston High School for Business Charter Olton ISD Plainview ISD Royce City ISD San Antonio ISD San Antonio School for Inquiry Charter Seminole ISD Stafford Municipal School District Woodsboro ISD
Training The Dallas Federal Reserve hosted training for Money Smart and Financial Literacy 2010 in June 2006. Corrigan Camden ISD, El Campo ISD, Floresville ISD, Giddings ISD, and Woodsboro ISD did not send participants to the training. Corrigan Camden ISD was replaced by Round Rock ISD which was represented at the training. Participants in the training included veteran and novice economics teachers, career and technical education teachers, and curriculum supervisors. Representatives from
Educational Service Center (ESC) 7 (Kilgore,) ESC 11 (Fort Worth) and ESC 20 (San Antonio) attended as invited guests. Don Raschke, Deputy Securities Commissioner of the SSB, Steven O’Shields, Director of Administration of the OCCC, and Michelle Ungurait, Director of Social Studies for TEA, conducted the training focused around the 10 areas of instruction. Information from the Texas State Bar Bankruptcy division was used to supplement the selected curriculum.
Campus Implementation Schools were equipped to begin implementation of the financial literacy curriculum in the fall semester of 2006. Some of the participants implemented the program in the fall semester; others will not begin implementation until the spring semester. Instruction in financial literacy has occurred in several formats including instruction on a weekly basis throughout the semester, concentrated instruction for the last four weeks of the course, and instruction every Friday of the first two months of the semester and a full week in October. Based on self-reporting by pilot participants, it is estimated that over 500 students received instruction in the financial literacy curriculum in the fall of 2006. While teachers generally found the materials to be useful and provided positive feedback, accurately gauging overall program effectiveness is not yet possible.