RALEIGH, N.C. - Action for Children North Carolina reports that in order for North Carolina to overcome its current economic crisis and establish a stable and strong economy, students must be taught basic financial concepts. A new Economic Security Issue Brief, entitled Building the Financial Capability of North Carolina's Children and Families, was released by Action for Children North Carolina today.

Legislation is currently moving through the North Carolina General Assembly to implement one of the report's key public policy recommendations: Establish a Financial Literacy Council. House Bill 817, sponsored by Representatives Tillis, Glazier, Wainwright and Howard, and Senate Bill 1019, sponsored by Senators Stein and Brunstetter, represent bipartisan efforts to ensure North Carolinians have training and resources to navigate the complex financial marketplace from birth to retirement.

A combination of factors, including the availability and use of information and the broader economic and policy context, have been to blame for the recent economic downturn. Therefore, any approach to preparing young people to join the workforce must include a combination of information, experience and protection.

"We applaud those schools, banks and other agencies providing financial education services in North Carolina, but their efforts are not coordinated, universally available or easily accessible," says Barbara Bradley, President and CEO of Action for Children North Carolina. "The fact that North Carolina's children score below the national average in financial literacy, and their scores are declining, is unacceptable, given economic realities."

A recent sample of North Carolina 7th graders failed an assessment of basic knowledge of financial topics including saving, credit and budgeting. In addition to this lack of knowledge, many North Carolina children do not get the real world experiences that are critical to future financial success. An estimated three million households in North Carolina are unbanked or underbanked, and one-in-four does not have a savings account.

In the report, Action for Children summarizes strategies and model programs that have worked across the country. The report also outlines these public policy recommendations for North Carolina:

• Establish a Financial Literacy Council to coordinate existing efforts and make financial institutions and information accessible to facilitate sound decision-making and greater opportunities to save for children and adults.
• Integrate financial education in public schools, K-12, to start money management lessons early and repeat them throughout primary and secondary education.
• Ensure adults have access to sound financial advice.
• Connect more households to the financial mainstream to ensure that every child has the experience of going to a bank or credit union and families have low-cost options to manage their money.

Click here to download Building the Financial Capability of North Carolina's Children and Families.

To find out more about House Bill 817 and Senate Bill 1019, contact Representative Thom Tillis
at: (919) 733-5828; or Senator Josh Stein at: (919) 715-6400.