[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. Res. 88 Agreed to Senate (ATS)]







109th CONGRESS
  1st Session
S. RES. 88

        Designating April 2005 as ``Financial Literacy Month''.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 17, 2005

  Mr. Akaka (for himself, Mr. Sarbanes, Mr. Corzine, Mr. Baucus, Mr. 
Cochran, Mr. Crapo, Mr. Dodd, Mr. Durbin, Mr. Inouye, Mr. Johnson, Mr. 
   Kennedy, Mr. Kohl, Ms. Landrieu, Mr. Lautenberg, Mr. Levin, Mrs. 
    Lincoln, Mrs. Murray, Mr. Pryor, Mr. Santorum, Mr. Schumer, Ms. 
Stabenow, and Mr. Thomas) submitted the following resolution; which was 
                        considered and agreed to

_______________________________________________________________________

                               RESOLUTION


 
        Designating April 2005 as ``Financial Literacy Month''.

Whereas at the end of 2004, Americans carried 657,000,000 bank credit cards, 
        228,000,000 debit cards, and 550,000,000 retail credit cards;
Whereas based on the number of total United States households, there are now 6.3 
        bank credit cards, 2.2 debit cards, and 6.4 retail credit cards per 
        household;
Whereas Americans consumer credit debt continues to increase, and has reached a 
        level of in excess of $2,100,000,000,000 as of year end 2004, of which 
        $791,000,000,000 is revolving consumer credit;
Whereas a United States Public Interest Research Group and Consumer Federation 
        of America analysis of Federal Reserve data indicates that the average 
        household with debt carries approximately $10,000 to $12,000 in total 
        revolving debt;
Whereas Americans owe $766,200,000,000 on home equity loans and lines of credit, 
        more than twice as much as in 1998;
Whereas Americans converted $41,000,000,000 in real estate equity into spendable 
        cash in the third quarter of 2004 alone;
Whereas the current level of personal savings as a percentage of personal income 
        is at one of the lowest levels in history, 2 percent, a decline from 7.5 
        percent in the early 1980s;
Whereas through November 2004, 1,869,343 individuals filed for bankruptcy;
Whereas a 2002 Retirement Confidence Survey found that only 32 percent of 
        workers surveyed have calculated how much money they will need to save 
        for retirement;
Whereas only 30 percent of those surveyed in a 2003 Employee Benefit Trend Study 
        are confident in their ability to make the right financial decisions for 
        themselves and their families, and 25 percent have done no specific 
        financial planning;
Whereas approximately 10 percent of individual households remain unbanked, i.e., 
        not using mainstream, insured financial institutions;
Whereas expanding access to the mainstream financial system provides individuals 
        with lower cost, safer options for managing their finances and building 
        wealth;
Whereas a greater understanding and familiarity with financial markets and 
        institutions will lead to increased economic activity and growth;
Whereas financial literacy empowers individuals to make wise financial decisions 
        and reduces the confusion of an increasingly complex economy;
Whereas the Spring 2004 Student Monitor Financial Services Survey found that 46 
        percent of college students have a general purpose credit card in their 
        own name and 37 percent carry over a credit card balance from month to 
        month;
Whereas 45 percent of college students are in credit card debt, with the average 
        debt being $3,066;
Whereas only 26 percent of 13- to 21-year-olds reported that their parents 
        actively taught them how to manage money;
Whereas a 2004 study by the Jump$tart Coalition for Personal Financial Literacy 
        found an increase in high school seniors' scores on an exam about credit 
        cards, retirement funds, insurance, and other personal finance basics 
        for the first time since 1997; however, 65 percent of students still 
        failed the exam;
Whereas a 2004 survey of States by the National Council on Economic Education 
        found that 49 States include economics, and 38 States include personal 
        finance, in their elementary and secondary education standards, up from 
        48 States and 31 States, respectively, in 2002;
Whereas personal financial management skills and life-long habits develop during 
        childhood;
Whereas personal financial education 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; and
Whereas Congress found it important enough to ensure coordination of Federal 
        financial literacy efforts and formulate a national strategy that it 
        established the Financial Literacy and Education Commission in 2003 and 
        designated the Office of Financial Education of the Department of the 
        Treasury to provide support for the Commission: Now, therefore, be it
    Resolved, That the Senate--
            (1) designates April 2005 as ``Financial Literacy Month'' 
        to raise public awareness about the importance of financial 
        education in the United States and the serious consequences 
        that may be associated with a lack of understanding about 
        personal finances; and
            (2) calls on the Federal Government, States, localities, 
        schools, nonprofit organizations, businesses, and the people of 
        the United States to observe the month with appropriate 
        programs and activities.
                                 <all>