[Congressional Record Volume 145, Number 120 (Wednesday, September 15, 1999)]
[Extensions of Remarks]
[Page E1886]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                     YOUTH FINANCIAL EDUCATION ACT

                                 ______
                                 

                           HON. DAVID DREIER

                             of california

                    in the house of representatives

                     Wednesday, September 15, 1999

  Mr. DREIER. Mr. Speaker, every day Congress is working to find ways 
to address our nation's high consumer debt, bankruptcy and low savings 
rate. A key piece in solving this puzzle is the lack of financial 
literacy--the ability to manage money--among the majority of our 
nation's citizens. I believe that educating our nation's youth about 
personal finance should be a top priority. That is why I am pleased to 
introduce today the Youth Financial Education Act, which would provide 
grants to states to support financial education programs in elementary 
and secondary schools across the country.
  Our schools teach reading, writing, history, languages, mathematics, 
and science, among other subjects. But do we teach our children how to 
balance a checkbook? Do we instruct them on compounding interest, which 
allows one to save vast amounts of money over the long term for an 
education, or retirement, or to buy a home? Do we instruct them in 
avoiding the credit card trap of easy financing, only to be hit later 
with high finance charges? Do we train students to understand how to 
budget their money, and do they realize the relationship of taxes, 
spending, and investing? Too often, Mr. Speaker, we do not.
  Today's dynamic global economy demands more of our nation's young 
people than ever before. Our young people make financial decisions 
today that will affect them for years to come. Financial education is 
critical to their ability to make wise decisions. Our youth must have 
access to the skills, knowledge and experience needed to manage their 
personal finances and achieve general financial literacy.
  Despite the importance of youth financial education, the average 
American high school senior lacks basic skills in the management 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 at an all-time low.
  The Youth Financial Education Act would help improve the financial 
literacy of our youth by authorizing grants to states of at least 
$500,000 to carry out financial education programs in elementary and 
secondary schools. This legislation does not mandate that state or 
local education agencies teach personal finance; it merely encourages 
them to integrate financial education into existing courses, such as 
economics and mathematics. Most importantly, the bill provides states 
with the resources necessary to develop teacher training and 
professional development activities in personal financial education.
  Additionally, I would like to thank Dara Duguay, executive director 
of the Jump$tart Coalition for Personal Financial Literacy, for her 
organization's efforts in the introduction of this legislation. I look 
forward to working with Jump$tart and its partners, as well as other 
members of the education and banking communities, as this legislation 
moves forward.
  Mr. Speaker, we must make available to our nation's youth the tools 
they need to master the basic financial management skills vital to 
making informed financial decisions. This legislation provides an 
opportunity to prepare our young people for their financial future and 
I urge my colleagues to support it.

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