[Congressional Record Volume 145, Number 120 (Wednesday, September 15, 1999)]
[Extensions of Remarks]
[Page E1885]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                     YOUTH FINANCIAL EDUCATION ACT

                                 ______
                                 

                           HON. EARL POMEROY

                            of north dakota

                    in the house of representatives

                     Wednesday, September 15, 1999

  Mr. POMEROY. Mr. Speaker, I am very pleased to join my colleague 
Representative Dreier in introducing the Youth Financial Education Act. 
This legislation provides grants to states to carry out youth financial 
education programs in elementary and secondary schools across the 
country.
  Today's dynamic global economy demands more of our nation's young 
people than ever before. Children are making important financial 
decisions even before they enter the workforce. In order to make 
informed choices regarding personal finances, young people must have 
the skills, knowledge, and experience needed to manage their money and 
achieve general financial literacy. Financial education is critical to 
their ability to provide for their families and save for retirement.
  Despite the importance of youth financial education, the average 
American high school senior lacks even very basic knowledge of personal 
financial affairs. A nationwide survey conducted in 1997 by the 
Jump$tart Coalition for Personal Financial Literacy examined the 
knowledge of 1,509 12th graders. On average, survey respondents 
answered only 57 percent of the questions correctly, and only 5 percent 
of the respondents received a ``C'' grade or better. It should come as 
no surprise, then, that personal bankruptcies are at an all-time high 
in this country, and the personal savings rate is currently in the 
negative for the first time in decades.
  Mr. Speaker, our legislation would help improve the financial 
literacy of our youth by authorizing grants to states of at least 
$500,000 to carry out financial education programs in elementary and 
secondary schools. The legislation does not mandate that state or local 
education agencies teach personal finance; it merely encourages them to 
integrate financial education into existing courses, such as economics 
or mathematics. Most importantly, the bill provides states with the 
resources necessary to develop teacher training and professional 
development activities in personal financial education.
  I would like to take this opportunity to express my appreciation to 
Chairman Dreier for his leadership in this effort. I would also like to 
personally thank Dara Duguay, executive director of the Jump$tart 
Coalition for Personal Financial Literacy, for her organization's 
critical role in the introduction of this legislation. I look forward 
to working with Jump$tart and its partners, as well as other member of 
the education and banking communities, as this legislation moves 
forward.
  Mr. Speaker, all young adults should have the educational tools 
necessary to make informed financial decisions. This legislation will 
go a long way towards preparing our young people for their financial 
future, and I urge my colleagues to support it.

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