Are Nebraskans aware of personal finance?

During a week when State Auditor Mike Foley apologized for inappropriately characterizing low-income people as poor money managers, a national report gave Nebraska high schools a failing grade for the way they teach personal finance.

The 59-year-old Foley, a native of New York and former Nebraska state senator (2000-07) is in his second term as state auditor. In early July he told an audience at an Americans for Prosperity gathering -- "Now, if you are a low-income person, you're probably not managing your money very well anyway. Sorry to stereotype, but that's true."

In a public apology, requested by at least one state senator and the chairman of the Nebraska Democratic Party, Republican Foley noted that his statement "has now received wider circulation and has generated considerable controversy." On its website, Americans for Prosperity calls itself a grassroots movement of over 2.3 million activists nationwide who advocate and promote limited government, lower taxes, and more freedom. The group claims 38,000 members in Nebraska.

"By not choosing my words carefully and by speaking with a sweeping generalization, I gave the impression that low-income persons probably have poor money management skills," Foley said in his written apology. "Deficient money-management skills plague citizens at all income levels, and there are societal costs that need to be acknowledged. It is indisputable that many low income Nebraskans do an excellent job of raising their families and contribute to society through creativity, thrift and a remarkable work ethic."

Omaha Senator Jeremy Nordquist, who was the first to call for Foley to apologize, said he believes Foley's apology was sincere and the auditor did the right thing by acknowledging that he misspoke. Democratic Party Chair Vince Powers of Lincoln characterized the apology as half-hearted and said he longed for the day when "we'll get a politician who will actually admit they're wrong rather than say, 'If I offended anyone ...'"

Meanwhile, on a related front, the Center for Financial Literacy at Champlain College in Vermont, issued a report counting Nebraska as one of 11 states earning an "F" for the way personal finance is taught in high schools. The Center said the study was based on the curricula offered to students and whether or not it was mandatory. Center Director John Pelletier said the study gave the highest grades to states that offer the classes and require students to take them and schools to test for proficiency.

A University of Nebraska instructor disputed the findings because Nebraska allows local control of secondary education. Jennifer Davidson, director of programs and community development for the Nebraska Council on Economic Education, said the state deserves credit for efforts by such organizations that are working on financial literacy. She faulted the study saying it measured only state mandated programs.

Pelletier noted that his own state, Vermont, is a local control state that received a D grade. He said nothing diminishes the need for requiring personal finance courses and proficiency testing.

Perhaps Foley has actually scratched the surface that there is a need for better financial management training to impart the knowledge of money-management skills to all Nebraskans.

In his apology letter he wrote: "Our dignity as human beings is never to be measured by the size of our incomes or quantity of assets, and many of us are only a serious medical incident or employer downsizing away from severe financial stress that can justify public assistance. But for the grace of God, there go I."

Good words Mr. Auditor. Let's hope they come to mind the next time you are asked to give a speech and aren't just being used for personal gain as you deliberate your political future.