Magna Carta News
Friday, October 10, 2003
Oklahoma House of Representatives
Regina Birchum, Media Division
October 9, 2003
OKLAHOMA CITY -- In response to the growing epidemic of debt-laden college students, the Oklahoma Banking Department plans to offer a financial education program to state high schools.
State Banking Commissioner Mick Thompson made the announcement Thursday before the House Committee on Banking and Finance. The legislative panel has been examining the ease with which high school and college students are able to acquire credit cards in this state, and the ramifications of students' growing debt load.
Thompson said the Federal Deposit Insurance Corporation (FDIC) has been developing the "Money Smart" training program for several years, but just finalized a national agreement for implementation among states.
The Money Smart program is a set of 10 instructor-led training modules covering basic financial topics. Subject matter includes how to maintain a checking account, the mechanics of budgeting, the importance of saving, and how to obtain and use credit effectively. The federally underwritten program will be organized and delivered through the state Banking Department. Thompson said initially the program was to be delivered through banks, but he considered the effect of delivering the program through schools after seeing a state representative's request for an interim study on predatory lending practices aimed at college students.
The legislative study was requested by Rep. Joe Dorman, who has spearheaded an effort to educate Oklahoma students about responsible credit management. "There are serious consequences for mismanaging credit," the Rush Springs Democrat said. "This program could go a long way in helping students avoid making poor financial decisions."
Dorman said the earlier people learn about credit and proper financial management, the more likely they are to increase savings and achieve financial success. The freshman legislator noted that many students drop out of college or reduce class schedules because of financial burden. A recent study conducted by the Center for Student Affairs Research at the University of Oklahoma reported that college students in this state have an average of five credit cards and $3,754 in consumer debt.
Thompson said Dorman's idea to reach students was a more direct approach to what the Banking Department hoped to accomplish with Money Smart. "I thought his idea to deliver the program through schools was a better idea," he said. "The school districts would offer statewide penetration."
Program materials and supplies would be provided by the FDIC. "The only cost to schools would be their time," Thompson said. State Supt. Sandy Garrett has committed to coordinating and implementing this program in Oklahoma high schools.
Dorman said that while people of all ages could benefit from better money management skills, the state could make a big impact by targeting students before they have access to credit. "Hopefully, this will teach high school and college students smart financial practices that they will carry with them through life."
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Regina Birchum, Media Division
October 9, 2003
OKLAHOMA CITY -- In response to the growing epidemic of debt-laden college students, the Oklahoma Banking Department plans to offer a financial education program to state high schools.
State Banking Commissioner Mick Thompson made the announcement Thursday before the House Committee on Banking and Finance. The legislative panel has been examining the ease with which high school and college students are able to acquire credit cards in this state, and the ramifications of students' growing debt load.
Thompson said the Federal Deposit Insurance Corporation (FDIC) has been developing the "Money Smart" training program for several years, but just finalized a national agreement for implementation among states.
The Money Smart program is a set of 10 instructor-led training modules covering basic financial topics. Subject matter includes how to maintain a checking account, the mechanics of budgeting, the importance of saving, and how to obtain and use credit effectively. The federally underwritten program will be organized and delivered through the state Banking Department. Thompson said initially the program was to be delivered through banks, but he considered the effect of delivering the program through schools after seeing a state representative's request for an interim study on predatory lending practices aimed at college students.
The legislative study was requested by Rep. Joe Dorman, who has spearheaded an effort to educate Oklahoma students about responsible credit management. "There are serious consequences for mismanaging credit," the Rush Springs Democrat said. "This program could go a long way in helping students avoid making poor financial decisions."
Dorman said the earlier people learn about credit and proper financial management, the more likely they are to increase savings and achieve financial success. The freshman legislator noted that many students drop out of college or reduce class schedules because of financial burden. A recent study conducted by the Center for Student Affairs Research at the University of Oklahoma reported that college students in this state have an average of five credit cards and $3,754 in consumer debt.
Thompson said Dorman's idea to reach students was a more direct approach to what the Banking Department hoped to accomplish with Money Smart. "I thought his idea to deliver the program through schools was a better idea," he said. "The school districts would offer statewide penetration."
Program materials and supplies would be provided by the FDIC. "The only cost to schools would be their time," Thompson said. State Supt. Sandy Garrett has committed to coordinating and implementing this program in Oklahoma high schools.
Dorman said that while people of all ages could benefit from better money management skills, the state could make a big impact by targeting students before they have access to credit. "Hopefully, this will teach high school and college students smart financial practices that they will carry with them through life."
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