Table Of Content

Task Force to Study How to Improve Financial Literacy in the State 2002 Interim Report Annapolis, Maryland January 2010 Task Force to Study How to Improve Financial Literacy in the State Department of Legislative Services Office of Policy Analysis Annapolis, Maryland January 2010 For further information concerning this document contact: Library and Information Services Office of Policy Analysis Department of Legislative Services 90 State Circle Annapolis, Maryland 21401 Baltimore Area: 410-946-5400 ! Washington Area: 301-970-5400 Other Areas: 1-800-492-7122, Extension 5400 TDD: 410-946-5401 ! 301-970-5401 Maryland Relay Service: 1-800-735-2258 E-mail: Task Force to Study How to Improve Financial Literacy in the State 2009 Membership Roster Senator C. Anthony Muse, Co-chair Delegate Dana M. Stein, Co-chair Senator Katherine A. Klausmeier Delegate Susan W. Krebs Treasurer Nancy K. Kopp Commissioner Melanie Senter Lubin Commissioner Sarah Bloom Raskin Mr. William Backstrom Ms. Pamela Banks Ms. Kulley Bancroft Mr. Thomas Beck Mr. Randall Cerveny Mr. Michael Croxson Mr. Allen Cox Dr. Charlene M. Dukes Dr. Lynne M. Gilli Ms. Carol Gilbert Mr. Bert J. Hash, Jr. Ms. Mary Ann Hewitt Ms. Robin McKinney Ms. Helen Ottley Ms. Jane R. Stern Mr. Kenneth Venick Staff Sara C. Fidler, Lynne Blume Rosen, Jason F. Weintraub, Mya Coover, Nancy Scaggs; Department of Legislative Services Jay Hutchins, Jackie Lichter; Department of Labor, Licensing, and Regulation v vi Contents Executive Summary ....................................................................................................................... ix Introduction ......................................................................................................................................1 Financial Literacy Education as Part of Primary and Secondary Education ...................................2 Financial Literacy Education as Part of Higher Education ..............................................................4 Recommendations of the President’s Advisory Council on Financial Literacy ..............................5 Adult Education and Adult Correctional Education ........................................................................6 The Example of the Pennsylvania Office of Financial Education ...................................................7 Existing Financial Education Clearinghouse Resources in Maryland .............................................8 Financing Both the Clearinghouse and Other Financial Literacy Education Initiatives .................9 Fines and Penalties Collected by the Office of Financial Regulation .................................9 Investor Protection Trust......................................................................................................9 Staffing Needs for Financial Literacy Services and Programs ..........................................10 Providing Notice of Housing Counseling ......................................................................................11 Financial Education in the Workplace ...........................................................................................13 Providing Financial Education to State and Local Government Employees .....................13 Automatic Enrollment in State Supplemental Retirement Plans .......................................14 Providing Financial Education to Private-sector Employees .............................................14 Workplace Financial Education Honor Roll Program .......................................................15 Financial Education for Recipients of Public Benefits ..................................................................15 Financial Education Information for Applicants for Marriage Licenses .......................................16 Conclusion .....................................................................................................................................16 Appendices .....................................................................................................................................17 vii viii Executive Summary In response to the current nationwide Recommendation 3. Recommend that the financial crisis and the distress that it is Governor, in consultation with MSDE causing millions of American families, the and the Maryland Higher Education Task Force to Study How to Improve Commission (MHEC), establish a Financial Literacy in the State was created Financial Education Program Honor Roll during the 2008 legislative session to study to recognize and encourage best practices the ability of high school students to among school systems and institutions of understand basic financial concepts; assess higher education. the utility of financial literacy education as part of primary and secondary education; Recommendation 4. Write and send a study the ability of consumers over the age letter to Arne Duncan, U.S. Secretary of of 21 who have achieved a high school Education, and Timothy Geithner, diploma to understand basic financial U.S. Secretary of the Treasury, describing concepts; study the problems created for the the goals of the task force; its involvement average consumer by a lack of financial in jump-starting the development of the literacy or knowledge; and make State Curriculum; its presentations to recommendations regarding how to address institutions of higher education in the these problems. State in this regard; and its concern for the lack of centralized information and The recommendations of the task force education on financial education among are as follows: federal-level agencies and national governmental associations. The letter will Recommendation 1. Require the urge Secretary Duncan and Secretary Maryland State Department of Education Geithner to take leadership of (MSDE) to develop a process to monitor establishing cross-agency coordination and report on local implementation of and simplified public access to financial Maryland’s Personal Financial Literacy education resources among points of State Curriculum. Require this contact at the U.S. Department of information to be reported to the Housing and Urban Development, the Governor and the General Assembly on Federal Deposit Insurance Corporation an annual basis. (FDIC), Federal Reserve branches, the Conference of State Bank Supervisors, Recommendation 2. Urge the segment the potential new federal agency being heads of higher education to mandate formed for consumer financial protection, financial literacy education for students and any other appropriate governmental in postsecondary education programs. entities. When possible, request meetings with the segment heads to further emphasize and elaborate on this perspective. ix