[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H. Res. 737 Engrossed in House (EH)]


H. Res. 737

                 In the House of Representatives, U.S.,

                                                         April 6, 2006.
Whereas personal financial literacy is essential to ensure that individuals are 
        prepared to manage money, credit, and debt, and become responsible 
        workers, heads of households, investors, entrepreneurs, business 
        leaders, and citizens;
Whereas a 2004 survey completed by the National Council on Economic Education 
        found that the number of States that include personal finance in 
        education standards for students in kindergarten through high school has 
        improved since 2002 but still falls below 2000 levels;
Whereas a study completed in 2004 by the Jump$tart Coalition for Personal 
        Financial Literacy found that high school seniors know less about 
        principles of basic personal finance than did high school seniors 7 
        years earlier;
Whereas 55 percent of college students acquire their first credit card during 
        their first year in college, and 92 percent of college students acquire 
        at least 1 credit card by their second year in college, yet only 26 
        percent of people between the ages of 13 and 21 reported that their 
        parents actively taught them how to manage money;
Whereas studies show that as many as 10 million households in the United States 
        are ``unbanked'' or are without access to mainstream bank products and 
        services;
Whereas personal savings as a percentage of personal income decreased from 7.5 
        percent in the early 1980s to -0.2 percent in the last quarter of 2005;
Whereas, although more than 42 million people in the United States participate 
        in qualified cash or deferred arrangements described in section 401(k) 
        of the Internal Revenue Code of 1986 (commonly referred to as ``401(k) 
        plans''), a Retirement Confidence Survey conducted in 2004 found that 
        only 42 percent of workers surveyed have calculated how much money they 
        will need to save for retirement and 37 percent of workers say that they 
        are not currently saving for retirement;
Whereas personal financial management skills and lifelong habits develop during 
        childhood;
Whereas financial literacy has been linked to lower delinquency rates for 
        mortgage borrowers, higher participation and contribution rates in 
        retirement plans, improved spending and saving habits, higher net worth, 
        and positive knowledge, attitude, and behavior changes;
Whereas expanding access to the mainstream financial system provides individuals 
        with lower-cost and safer options for managing finances and building 
        wealth and is likely to lead to increased economic activity and growth;
Whereas a credit report and credit score can impact an individual's ability to, 
        for example, obtain a job, insurance, or housing, and a March 2005 
        report by the Comptroller General entitled ``Credit Reporting Literacy'' 
        found that ``educational efforts could potentially increase consumers' 
        understanding of the credit reporting process'' and those ``efforts 
        should target those areas in which consumers' knowledge was weakest and 
        those subpopulations that did not score as well on GAO's survey,'' 
        including those with ``less education, lower incomes, and less 
        experience obtaining credit'';
Whereas public, consumer, community-based, and private sector organizations 
        throughout the United States are working to increase financial literacy 
        rates for Americans of all ages and walks of life through a range of 
        outreach efforts, including media campaigns, websites, and one-on-one 
        counseling for individuals;
Whereas Congress sought to implement a national strategy for coordination of 
        Federal financial literacy efforts through the establishment of the 
        Financial Literacy and Education Commission (FLEC) in 2003, the 
        designation of the Office of Financial Education of the Department of 
        the Treasury to provide support for the Commission, and requirements 
        that the Commission's materials, website, toll-free hotline, annual 
        report, and national multimedia campaign be multilingual;
Whereas Members of the United States House of Representatives established the 
        Financial and Economic Literacy Caucus (FELC) in February 2005 to (1) 
        provide a forum for interested Members of Congress to work in 
        collaboration with the Financial Literacy and Education Commission, (2) 
        highlight public and private sector best-practices, and (3) organize and 
        promote financial literacy legislation, seminars, and events, such as 
        Financial Literacy Month in April 2006 and the annual Financial Literacy 
        Day fair on April 25, 2006; and
Whereas the National Council on Economic Education, its State Councils and 
        Centers for Economic Education, the Jump$tart Coalition for Personal 
        Financial Literacy, its State affiliates, and its partner organizations, 
        and Junior Achievement have designated April as Financial Literacy Month 
        to educate the public about the need for increased financial literacy 
        for youth and adults in the United States: Now, therefore, be it
    Resolved, That the House of Representatives--
            (1) supports the goals and ideals of Financial Literacy Month, 
        including raising public awareness about the importance of financial 
        education in the United States and the serious consequences that may 
        result from a lack of understanding about personal finances; and
            (2) requests that the President issue a proclamation calling on the 
        Federal Government, States, localities, schools, nonprofit 
        organizations, businesses, other entities, and the people of the United 
        States to observe the month with appropriate programs and activities 
        with the goal of increasing financial literacy rates for individuals of 
        all ages and walks of life.



            Attest:

                                                                 Clerk.