In 2009 TS Institute was created. Our mission was to train, equip and help infuse financial literacy into K-12 schools while working with legislators on the importance of financial literacy in our schools. Over the past decade we have served thousands of students and hundreds of teachers in the financial literacy and economics space. We have trained, encouraged, came alongside and listened to what we need in Iowa from our teachers. Our passion continues as we see a more financially savvy generation than we did in 2009.
It is with joy that we announce that financial literacy will now be required for all high school students in the state of Iowa. A bill passed on April 17th by Governor Reynolds reads as follows:
DIVISION VII 2 FINANCIAL LITERACY 3 Sec. 20. Section 256.11, subsection 5, Code 2018, is amended 4 by adding the following new paragraph: 5 NEW PARAGRAPH. k. One-half unit of personal finance 6 literacy. All students shall complete at least one-half unit 7 of personal finance literacy as a condition of graduation. The 8 curriculum shall, at a minimum, address the following: 9 (1) Savings, including emergency fund, purchases, and 10 wealth building. 11 (2) Understanding investments, including compound and 12 simple interest, liquidity, diversification, risk return 13 ratio, certificates of deposit, money market accounts, single Senate File 475, p. 13 14 stocks, bonds, mutual funds, rental real estate, annuities, 15 commodities, and futures. 16 (3) Wealth building and college planning, including 17 long-term and short-term investing using tax-favored plans, 18 individual retirement accounts and payments from such accounts, 19 employer-sponsored retirement plans and investments, public and 20 private educational savings accounts, and uniform gifts and 21 transfers to minors. 22 (4) Credit and debt, including credit cards, payday 23 lending, rent-to-own transactions, debt consolidation, 24 automobile leasing, cosigning a loan, debt avoidance, and the 25 marketing of debt, especially to young people. 26 (5) Consumer awareness of the power of marketing on buying 27 decisions including zero percent interest offers; marketing 28 methods, including product positioning, advertising, brand 29 recognition, and personal selling; how to read a credit report 30 and correct inaccuracies; how to build a credit score; how to 31 develop a plan to deal with creditors and avoid bankruptcy; and 32 the federal Fair Debt Collection Practices Act. 33 (6) Financial responsibility and money management, 34 including creating and living on a written budget and balancing 35 a checkbook; basic rules of successful negotiating and 1 techniques; and personality or other traits regarding money. 2 (7) Insurance, risk management, income, and career 3 decisions, including career choices that fit personality styles 4 and occupational goals, job search strategies, cover letters, 5 resumes, interview techniques, payroll taxes and other income 6 withholdings, and revenue sources for federal, state, and local 7 governments. 8 (8) Different types of insurance coverage including 9 renters, homeowners, automobile, health, disability, long-term 10 care, identity theft, and life insurance; term life, cash 11 value and whole life insurance; and insurance terms such 12 as deductible, stop loss, elimination period, replacement 13 coverage, liability, and out-of-pocket. 14 (9) Buying, selling, and renting advantages and 15 disadvantages relating to real estate, including adjustable 16 rate, balloon, conventional, government-backed, reverse, and 17 seller-financed mortgages.
We are so excited for the future of Iowa students and for that matter for all generations to come. As stated by Andy Stanley, “Everybody ends up somewhere in life. A few people end up somewhere on purpose. Those are the ones with vision.” We hope that we are helping to create vision in the hearts of students, teachers, lawmakers, and every hard working American. It’s a great day to be teaching financial literacy!