Approximately 60 Oklahoma teachers learned the personal side of credit card debt for young people in the state.
Trisha Johnson, the mother of a college student who committed suicide during her freshman year because she was overwhelmed with credit card debt, challenged the group to ensure students learn the basics of money management while in high school.
Johnson, of Enid, was guest speaker at a one-day personal financial literacy conference Tuesday at River Oaks Golf Club in Edmond. Oklahoma Council on Economic Educa-tion (OCEE), in partnership with Oklahoma State Depart-ment of Education, conducted the event, the first of several one-day conferences to be hosted by OCEE. The purpose of the series is to provide teachers with indepth information about one or more of the 14 areas of instruction included in Oklaho--ma’s Passport to Financial Literacy Act.
The conference focused on consumer credit and the new 2009 credit card legislation. The day’s events included multiple guest speakers and expert panelists including representatives from Bank of America, Oklahoma Banker’s Association, Consumer Credit Counseling Services and Tinker Federal Credit Union.
Johnson has worked on state and federal levels since her daughter’s death in 1997 to help pass legislation requiring stricter guidelines for young adults applying for credit cards.
Her efforts were instrumental in passage of new credit card legislation that takes place in February. Credit Card Act of 2009 will require card issuers to ensure students younger than 21 show means of repayment through employment or in-come or have a co-signer. Other elements of reform include restrictions on percentage rate increases and mandatory disclosure on the credit card statements about how long it will take to repay the balance and interest cost if only paying a minimum amount monthly.
“These guidelines are long overdue. There is no good reason for a creditor to issue a card with a credit limit of thousands of dollars to an 18-year-old student who has no significant sources of income,” Johnson said. “College students should be just like everyone else. If they have the income that enables them to pay off debt, fine. If not, we shouldn’t help them dig a hole they can’t get out of and burdens them for years to come.”
“Personal finance is a basic life skill that all of us need. It is essential that we prepare our next generation to make informed decisions about their own financial futures because their choices affect all of us,” said Sue Lynn Sasser, OCEE executive director.
Oklahoma is one of 15 states requiring students to complete personal finance objectives before graduation.
OCEE is designated by the state Legislature to assist the education department in providing teacher training for personal finance.
OCEE’s next conference will be Feb. 18 in Tulsa and will focus on issues surrounding leasing and mortgage agreements, as well as other housing topics such as predatory lending.
For information about OCEE, call (405) 974-5343.
