Maine Begins Financial Literacy Program for Students

Maine plans to create a Council on Financial Literacy to promote credit education among college and high school students. The state legislature budgeted the program with $50,000 in each of the next two fiscal years that will be used to match spending by local communities on financial literacy programs. The funds come from the Office of Consumer Credit Regulation. State Treasurer David Lemoine will chair the council.

Marilyn Canavan, the legislator that sponsored the bill creating the council, says there is a crying need for credit education for students. “Young people have more opportunities to choose from creditors today than ever before. They need to become more financially literate,” Canavan tells insideARM.

Maine college students have on average debts of $20,402 in education loans and credit card bills by the time they graduate, according to Undergraduate students have on average a monthly credit card balance of $2,237, Canavan found.

Canavan notes that Maine requires young people to complete a driver’s education course before they can receive a license but the state doesn’t require similar courses on financial literacy.  “We haven’t been nearly as zealous in insisting that they learn to responsibly maneuver the byways of personal finance, Canavan told the Associated Press.

The Maine bill follows efforts by other state to promote financial literacy. The National Council on State Legislatures reports that nine states test students on personal finance knowledge while seven states require students take a course in personal finance to graduate.