[Congressional Record Volume 150, Number 40 (Friday, March 26, 2004)]
[Extensions of Remarks]
[Page E459]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




              INTRODUCTION OF ``FINANCIAL LITERACY MONTH''

                                 ______
                                 

                           HON. JUDY BIGGERT

                              of illinois

                    in the house of representatives

                        Thursday, March 25, 2004

  Mrs. BIGGERT. Mr. Speaker, I rise today to introduce a resolution to 
designate April as ``Financial Literacy Month''. It is important that 
we 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 
economics.
  The financial world has dramatically changed over the last 20 years. 
The passage of complex laws--like Gramm-Leach-Bliley--has created a new 
world of integrated financial service products and possibilities.
  Mr. Speaker, with all these new choices, there is a new 
responsibility on our part to educate our youth. Why? Because teaching 
them about personal finance and economics is the best way to prepare 
them for a financially rewarding adulthood as contributing members of 
society.
  They need to know how to manage money, credit, and debt, and become 
responsible workers, heads of households, investors, entrepreneurs, 
business leaders, and citizens. It is through financial education that 
these young consumers will learn to capitalize on the choices and 
flexibility that this new world has created.
  The most effective time to impart basic financial and economic 
knowledge is during students' formative years, through the K-12 
education system. In introducing this resolution it is my hope that 
public officials and educators will focus on this critical learning 
area.
  A survey released in 2003 by the National Council on Economic 
Education (NCEE) illustrates accomplishments and challenges in the 
areas of economics and personal finance education. NCEE's 2002 ``Survey 
of the States'' found that 48 states and the District of Columbia had 
economic education standards in place, up from 38 states in NCEE's 
first ``Survey'' in 1998. Testing for economics increased from 25 
states in 1998 to 27 states in 2002.
  However, in the area of personal finance, less progress has been 
evident. While 40 states had set standards for personal finance 
education in 2000, only 31 states renewed such standards in 2002. Of 
those 31 states, only 14 require the standards to be implemented.
  As a Member of both the Financial Services Committee and the 
Education and Workforce Committee, I have come to recognize the 
importance of integrating financial literacy and basic economics into 
the K-12 curricula, and the positive impact this can have on millions 
of future investors. I believe that April should be used to educate all 
age levels on the importance of financial literacy but most 
importantly, our youth.

  More than 42,000,000 people in the United States currently 
participate in qualified cash or deferred arrangements known as 401(k) 
plans. A Retirement Confidence Survey conducted in 2002 found that only 
32 percent of workers surveyed have calculated how much money they will 
need to save for retirement, and 25 percent of workers have done no 
specific planning for retirement.
  Make no mistake--personal finance and economics are the key to 
helping our youth avoid in later years, as adults, the pitfalls of 
foreclosure, predatory lending and credit counseling and better prepare 
them for retirement.
  Mr. Speaker, the state of financial illiteracy among our children may 
not garner much in the way of headlines, but it nonetheless is an issue 
that should command our attention. It is a problem that is serious and 
urgent, but it is one that can be solved through education. I would 
like to call special attention to that need during the month of April. 
It is our duty to help our youth succeed in today's increasingly 
sophisticated world of finance.
  I want to thank my distinguished colleague and friend from Texas, Mr. 
Hinojosa, for his strong support and cosponsorship of this resolution, 
and I urge my colleagues to join us in supporting this bill.

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