How financial literacy can help the Legislature set up Florida for a strong future
Note: Suzanne’s Op-ed was originally published by the Miami Herald on Monday, January 15, 2024.
As Florida’s Legislature convened earlier this month, our leaders shared their vision for the future of our state. House Speaker Paul Renner underlined several priorities for Florida’s legislative agenda, including the importance of fostering economic resilience, empowering Floridians, prioritizing mental health, alleviating poverty and a strong public safety policy.
The prioritization of financial literacy initiatives will advance these legislative goals across our state and set Florida up for a strong economic future for years to come.
Financial literacy is integral to the economic vitality of our state, and its impact extends beyond financial outcomes only. We have seen firsthand how financial literacy plays a pivotal role in enhancing mental health by reducing stress and promoting overall well-being. When individuals possess the knowledge and skills to manage their finances effectively, they gain a sense of control and confidence in their financial decisions.
This empowerment translates into reduced anxiety about money-related concerns, and enables individuals to plan, establish realistic goals, and navigate economic challenges more adeptly.
Moreover, a heightened understanding of personal finances fosters a proactive and resilient mindset, alleviating the mental burden associated with financial uncertainty. Elevating financial literacy for Floridians not only equips them to make better decisions, but also nurtures a mentally stronger Floridian populace.
Alleviating poverty here in Florida is paramount. Financial literacy serves as a powerful tool in preventing and easing poverty by equipping individuals with the knowledge and skills necessary for effective financial management. When citizens are financially literate, they can make informed decisions about budgeting, saving, investing, and debt management. This allows individuals to avoid common pitfalls that can lead to financial instability.
Financial literacy facilitates access to resources and opportunities that can contribute to economic mobility, breaking the cycle of poverty by fostering self-sufficiency and resilience. In essence, being financially literate acts as a key mechanism in building a foundation for financial stability and upward economic mobility, helping individuals secure a more prosperous future for themselves and their families.
Florida’s leaders are strong on prioritizing a public safety policy. As noted in the 2022 report by Justin Jin, Suyi Liu and Khalid Nainar titled, Financial Literacy and Crime Incidence, “Once [community residents] learn about financial management, they likely will share their knowledge with friends and relatives. In this way, people will be less likely to commit crimes against property or each other. The most important finding from our study is the link between citizens’ safety with the accumulation of wealth.”
It is crucial for our legislators to consider financial literacy’s role in Florida’s public safety policy. Enhancing financial literacy can serve as a preventative strategy against crime, fostering safer and more economically sound communities.
This integration into public policy is a strategic step towards ensuring a secure and thriving Florida.
As the 2024 legislative session gears up, it is vital that lawmakers recognize the value of supporting organizations such as The Florida Council on Economic Education. By investing in financial education, we invest in the future prosperity of our state, fostering a more financially savvy and economically resilient citizenry. Such efforts mark an investment that pays dividends not only in the short term but for the long-term economic well-being of Florida for generations to come.
Suzanne Costanza serves as the executive director at the Florida Council on Economic Education. The FCEE exists to prepare Florida’s young people for personal and financial success through educational programs in economics, the free enterprise system and personal financial literacy so that they become productive members of the workforce, responsible consumers and wise investors.