Politics
7:42 am
Mon February 10, 2014

Financial Literacy Bill Moves to the Senate

The Kentucky House has approved legislation intended to help citizens of the state better understand how to save and use their money.  Western Kentucky Representative Jim Glenn is the sponsor of the bill which would form the Kentucky Financial Literacy Commission.

The lawmaker from Owensboro says he’s been advising young people about saving money for decades.  Glenn is sponsoring legislation forming the Kentucky Financial Literacy Commission. 

It’s passed the House and is now before senators.  Glenn, a professor at Owensboro Community and Technical College, says this effort could teach people of all ages. 

“It helps the working class people," Glenn said. "It helps senior citizens. It helps parents and it helps young students, four basic groups.  So, they are gonna put together programs, publications, things that are gonna help people increase their core knowledge of financial literacy,”

Glenn says he has offered advice to students such to as skip buying a few soft drinks a week and put that money into savings.  He argues just such a simple process can help instill stronger financial literacy.

He says a change in mindset regarding saving money came some 90 years ago. 

“We moved roughly in the 1920’s from a savings society to a consumer society, which we started using credit cards and things of that general nature.  What we’re trying to do now is make a subtle change back in the other direction,” added Glenn.

Glenn also believes young people need to get advice on saving for retirement.   The Owensboro lawmaker says, as company-supported pensions decline, individuals need to be responsible for putting their own money aside for retirement.

“That’s the core change that’s happened in our society.  So, you work for a fast food outlet, you have to have a 401-k. Most places are like that right now.  So, you have to be conscious of how you save your money,” said Glenn.

The bill calling for the formation of the state commission has passed the House and is now before senators.