(1) The
general assembly finds that:
(a) Life skills such as the ability to formulate a household budget, balance a
checking account, read and understand the terms and conditions of a credit card,
and otherwise manage personal finances are critical to a person's success in
today's economy;
(b) In February and March of 2000, in a survey of high school seniors
designed to test their knowledge of personal finance basics, the students answered
only fifty-one and nine tenths percent of the questions correctly, receiving a failing
grade;
(c) Many students graduate from high school without having learned crucial
personal financial management skills, although many have already obtained their
first credit cards;
(d) Studies of consumer finances by the federal reserve board show that, at
the end of 2020, household debt in the United States totaled over fourteen and
one-half trillion dollars. Over one and one-half trillion dollars of this debt is student
debt, over eight hundred billion dollars is credit card debt, and over ten trillion
dollars is mortgage debt.
(e) With the growth in consumer debt and the apparently low level of
education and understanding with regard to personal finances, it is imperative that
the public schools of the state provide students with a thorough, high-quality
curriculum of financial literacy to enable students to understand and master
personal finance skills, including, at a minimum, managing bank accounts;
household budgeting; understanding and managing personal debt, including credit
card debt and student loan debt; and managing personal savings, retirement
savings, homeownership, and investments.
(2) As used in this section, financial literacy means knowledge of personal
finances that is sufficient to enable a person to manage savings, investment, and
checking accounts; to design and maintain a household budget; to assess the
affordability of and how to budget for postsecondary education; to understand the
purpose of and how to access and complete the free application for federal student
aid and the Colorado application for state financial aid, or successor forms for
accessing federal and state financial aid; to manage personal debt, including
student loan debt; to understand consumer credit and finance; to manage personal
credit options, including credit cards; to understand and select from among short-term and long-term investment options; to understand the home buying process,
including home loans and managing mortgage debt; and to understand retirement
plans, tax-deferred accounts, pensions, and government retirement benefits.
(3) (a) Each school district board of education is strongly encouraged to
adopt curriculum pertaining to financial literacy to be taught in grade-appropriate
courses at the elementary, middle, junior high, and high school grade levels. When
selecting mathematics and economics textbooks, each school district is strongly
encouraged to select those texts that include substantive provisions on personal
finance, including personal budgeting; credit; debt management; student loan
borrowing and financial aid; homeownership; retirement, including long-term
investments, tax-deferred accounts, pensions, and government retirement benefits;
and similar personal finance topics.
(b) The curriculum described in subsection (3)(a) of this section must also
include content relating to how to assess the affordability of and budget for
different options for obtaining a postsecondary degree or credential and how to pay
for higher education. The curriculum should familiarize students with the process
and necessary forms for applying for federal and state financial aid, student loans,
scholarships, and grant programs, including accessing and completing either the
free application for federal student aid or the Colorado application for state
financial aid, or successor forms to access federal and state financial aid, and
should ensure that students have an awareness of federal and state programs that
may be available to manage student loan debt.
(4) (a) Each school district board of education shall incorporate all the
financial literacy standards described in section 22-7-1005 (2.8) into a course that
is required for high school graduation.
(b) (I) For the 2025-26 state fiscal year, the general assembly shall
appropriate money from the general fund to the department of education for
distribution to school districts to support implementation of:
(A) A course required to be taught pursuant to subsection (4)(a) of this
section; and
(B) The individual career and academic plan requirements described in
section 22-2-136 (2)(d).
(II) The department of education shall distribute money pursuant to
subsection (4)(b)(I) of this section to school districts that do not currently offer a
course based on a formula determined by the department of education. The
department of education may determine eligibility for funding pursuant to this
subsection (4)(b)(II) based on attestations from school districts.
(III) Any unexpended money remaining at the end of the 2025-26 state fiscal
year from this appropriation:
(A) Does not revert to the general fund or any other fund;
(B) May be used by the department of education in the 2026-27 or 2027-28
state fiscal year without further appropriation; and
(C) Must not be used for any purpose other than the purposes set forth in
this subsection (4).
(IV) The department of education may seek, accept, and expend gifts,
grants, or donations from private or public sources for the purpose of supporting
educators in implementing a course pursuant to subsection (4)(a) of this section.
(V) This subsection (4)(b) is repealed, effective July 1, 2028.