Leger Fernández Introduces Bill to Help New Mexicans Build Financial Literacy Skills
WASHINGTON – Reps. Teresa Leger Fernández (NM-03) and Victoria Spartz (IN-05) introduced the bipartisan Financial Fitness Act to create a public personal finance education portal within the Department of Education website to help students and families grow their financial literacy skills and better prepare for their future.
“Every year, students and their families face substantial and difficult financial and debt questions - especially low-income and minority students. Despite this fact, we have yet to make personal finance a core part of students’ basic education,” said Leger Fernández. “New Mexico is ranked as one of the lowest in the country for financial knowledge but we can fix this. This legislation would create an accessible and comprehensive personal finance portal that allows students and the public to develop and improve their financial fitness to better prepare for their future. I was inspired by the success of the financial fitness programs we used when I was with Homewise. As we rebuild our economy, I want every student to build their own financial strength and awareness so they can succeed financially.”
“Student loan debt has become one of the largest forms of consumer borrowing in the country, where a lack of financial literacy, crushing debt loads, and low utility of many college degrees has become a major crisis for many Americans,” Rep. Spartz said. “I am happy to co-lead the Financial Fitness Act with Rep. Leger Fernandez to equip young people with financial literacy resources before they take on student loans.”
The Financial Fitness Act:
- Creates and established a personal finance education portal through the Department of Education that is publicly available
- Provides information on core personal finance concepts such as budgeting, saving, and investing
- Help students learn about managing student loan repayment including benefits, policies, and forgiveness
Find full bill text HERE
During Wednesday’s House Education and Labor committee hearing, Richard Cordray, COO of Federal Student Aid, spoke about the bill and said, “There is much we can do to help families understand what their obligations are, what their risks are, and make good choices with eyes wide open before they get into a problem. These are hard matters… they are complicated issues. People’s understanding of money is not always as deep as we would like and it is something we need to work at everyday to make this country stronger.”
“Congresswoman Leger Fernández’ bill is consistent with Think New Mexico’s initiative to ensure that all students learn essential personal finance skills before they graduate from high school. This bill would enhance our proposed state reforms to make personal finance a graduation requirement and have the New Mexico Public Education Department adopt strong personal finance K-12 education standards. New Mexico is one of only five states that has not adopted personal finance standards, and according to a 2019 study by WalletHub, our state ranks 47th out of 50 for financial knowledge. Providing personal finance education resources and classes to students will lead to those lessons being taken home to parents and guardians, which benefits the whole family. This can aid in breaking generational cycles of poverty.” said Abenicio Eliray Baldonado, Education Reform Director, Think New Mexico
“Developing skills that help Americans better manage their finances is key to helping families achieve longer-term financial security, enabling them to access fair credit, buy their first home, and access higher education. We applaud Congresswoman Leger Fernádez’s effort to make financial fitness education more available to everyone,” said Mike Loftin, CEO of Homewise, Inc.
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