[Congressional Record Volume 150, Number 55 (Tuesday, April 27, 2004)]
[House]
[Pages H2388-H2392]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SUPPORTING THE GOALS AND IDEALS OF FINANCIAL LITERARY MONTH
Mr. CANNON. Mr. Speaker, I move to suspend the rules and agree to the
resolution (H. Res. 578) supporting the goals and ideals of Financial
Literacy Month, and for other purposes.
The Clerk read as follows:
H. Res. 578
Whereas the financial services industry in the United
States benefits millions of people in the United States,
providing products and services that allow individuals and
families to build homes, buy cars, finance educations, start
businesses, and meet everyday needs;
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, yet
a study completed in 2002 by the Jump$tart Coalition for
Personal Financial Literacy found that high school seniors
knew less about principles of basic personal finance than did
high school seniors 5 years earlier;
Whereas financial education 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, yet a
survey completed in 2002 by the National Council on Economic
Education found that a decreasing number of States include
personal finance in education standards for students in
kindergarten through high school;
Whereas expanding access to the mainstream financial system
provides individuals with lower cost, safer options for
managing finances and building wealth and is likely to lead
to increased economic activity and growth, yet between
25,000,000 and 56,000,000 people over the age of 18 do not
use mainstream, insured financial institutions and are
considered ``unbanked'';
Whereas personal financial management skills and lifelong
habits develop during childhood, and 55 percent of college
students acquire their first credit card during their first
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 although more than 42,000,000 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 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;
Whereas financial literacy empowers individuals to make
wise financial decisions in an increasingly complex economy,
and only 30 percent of those surveyed in an Employee Benefit
Trend Study conducted in 2003 are confident in their ability
to make the right financial decisions for themselves and
their families;
Whereas personal savings as a percentage of personal income
decreased from 7.5 percent in the early 1980s to 2.3 percent
in the first 3 quarters of 2003;
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 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, and
national multimedia campaign be multilingual; 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 have
designated April as ``Financial Literacy Month'' to educate
the public about the need for increased financial literacy
for youth in the United States: Now, therefore, be it
Resolved, That the House of Representatives--
(1) supports the goals and ideals of Financial Literacy
Month; 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.
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
Utah (Mr. Cannon) and the gentleman from Illinois (Mr. Davis) each will
control 20 minutes.
The Chair recognizes the gentleman from Utah (Mr. Cannon).
General Leave
Mr. CANNON. Mr. Speaker, I ask unanimous consent that all Members may
have 5 legislative days within which to revise and extend their remarks
and include extraneous materials on H. Res. 578, the bill under
consideration.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Utah?
There was no objection.
Mr. CANNON. Mr. Speaker, I yield myself as much time as I may
consume.
Mr. Speaker, H. Res. 578 supports the goals and ideals of Financial
Literacy Month. The National Council on Economic Education, its State
Councils and Centers for Economic Education and the JumpStart Coalition
for Personal Financial Literacy have deemed April to be Financial
Literacy Month. Along with my colleagues, especially the sponsor of
this resolution, the gentlewoman from Illinois (Mrs. Biggert), I am
pleased to be highlighting this designation and the important cause of
financial literacy.
This resolution aims to increase awareness of the significance of
thoughtful and well-planned personal financial management. It can be
overwhelming for people of any age to manage money, credit and debt,
but learning simple financial principles can help protect you against
severe family illness, short-term losses of employment, economic
downturns, and other aspects of life that most of us will experience at
one time or another.
Mr. Speaker, the resolution cites the fact that over the last 20
years personal savings have decreased from 7.5 percent of personal
income to just over 2 percent today. This reality means more Americans
have just a small cushion on which to fall back on when financial times
become difficult. We all need to take steps to learn economic
fundamentals and teach our children these principles as well. All of us
can enjoy big returns on our investments in financial literacy.
Mr. Speaker, I thank the gentlewoman from Illinois (Mrs. Biggert), my
friend and distinguished Member from Illinois, for her work on H. Res.
578. I urge its adoption.
Mr. Speaker, I reserve the balance of my time.
Mr. DAVIS of Illinois. Mr. Speaker, I yield myself such time as I
might consume.
Mr. Speaker, providing America's youth with a good education has been
a national priority but also a national failure. Not only are many
children of our great Nation being deprived of a good academic
education, but many young people today lack the life skills necessary
to function without the financial assistance of their parents.
According to the JumpStart Coalition for Financial Literacy, high
school seniors today know less about the principles of basic personal
finance than seniors did 5 years ago. Even more startling is the fact
that the average student who graduates from high school lacks the basic
skills for managing their own personal finances. Many are unable to do
simple tasks like balancing a checkbook.
Over the last 50 years, a dangerous trend has developed. Saving money
has declined at the same time that borrowing has increased. In 1950,
savings averaged 12.3 percent of national output. By the 1960s, it was
down to 8.5 percent. By the 1980s, it was down to 4.7 percent, and in
the early 1990s, it was only 2.4 percent.
Americans need to work to achieve financial independence, and proper
financial planning is crucial to that process.
While not a final solution, educating our youth about the principles
of personal finance would do a great deal to help them achieve
financial independence and prosperity. Educating new generations to
understand personal finance would help future Americans build wealth
and obtain financial independence.
In order for our youth to lead successful lives these life lessons
must be taught. Creating a Financial Literacy Month is a great first
step towards protecting our youth from poverty.
I rise today to ask that we support the goals and ideas of Financial
Literacy Month and that this President issue a proclamation calling on
the Federal Government, as well as State and local governments, to
observe the month with appropriate programs and activities that promote
financial accountability.
Finally, Mr. Speaker, I want to commend my colleague the gentlewoman
from Illinois (Mrs. Biggert) and my good friend the gentleman from Utah
(Mr. Cannon) for the lead roles that they have played in introducing
and bringing this legislation to the floor.
[[Page H2389]]
Mr. Speaker, I reserve the balance of my time.
Mr. CANNON. Mr. Speaker, I yield as much time as she may consume to
the gentlewoman from Illinois (Mrs. Biggert), the sponsor of H. Res.
578.
Mrs. BIGGERT. Mr. Speaker, I thank the gentleman for yielding me the
time.
Mr. Speaker, I rise today in strong support of H. Res. 578, which my
colleague the gentleman from Texas (Mr. Hinojosa) and I introduced to
designate April as Financial Literacy Month. We did so in order to
raise the public awareness about the importance of financial education
in the United States and the serious consequences that come when young
people and adults lack basic understanding of personal finances and
economics.
{time} 1445
Today, 60 percent of preteens do not understand the difference
between cash, checks, and credit cards. We need to teach basic
financial literacy skills so that they can understand the difference.
But financial literacy is only part of the problem.
It is equally important they understand basic economic concepts, such
as supply and demand, opportunity costs, what drives interest rates,
and other economic principles. Why? Well, it is because financially
literate students may learn what the credit card is, but the lesson
will be meaningless if they do not understand the concept of compound
interest.
Just look at the pay-off. Financial education, including economics,
has been linked to lower delinquency rates for mortgage borrowers,
higher participation and contribution rates in retirement plans,
improved spending and savings habits, higher net worth, and more
positive attitudes towards money.
If our young people learn how to manage money, credit, and debt, they
can become responsible workers, heads of households, investors,
entrepreneurs, business leaders, and citizens. It is through financial
education these young consumers will learn to capitalize on the choices
and flexibility that this new world has created. And financially
literate children grow up to be financially savvy adults. And we need
more of them.
Today, more than 42 million Americans participate in 401(k) plans.
But a 2002 retirement confidence survey found that only 32 percent of
workers surveyed have calculated how much money they will need to save
by the time they retire. And less than one-third of those surveyed are
confident in their ability to make the right financial decisions for
themselves and their families. One-quarter of those workers, over 10
million Americans, have done no specific financial planning.
Many programs already exist in both the public and private sectors to
address economic education and financial literacy; but no matter what
their specific target, they all recognize that the most effective time
to impart basic financial and economic knowledge is during a student's
formative years through the K through 12 education system.
Many States have introduced outstanding financial literacy programs
for children. In my home State of Illinois, State Treasurer Judy Baar
Topinka created the Bank At School program, which helps children learn
the fundamentals of money management through the operation of an in-
school bank. Schools are partnered with financial institutions which
conduct a monthly bank day at the school where students open savings
accounts and make regular deposits.
I believe that these kinds of programs provide the guidance that is
desperately needed; but we need more, and we need them now. For
instance, while 40 States have set standards for personal financial
education in 2000, only 31 States renewed their standards in 2002. Of
these 31 States, only four States, Idaho, Kentucky, Illinois, and New
York, implemented a course that covers personal finance during a
student's K through 12 education. In 2002, Jump$tart released a survey
that showed high school seniors know even less about credit cards,
retirement funds, insurance, and other personal finance basics than
they did 5 years ago. This is a trend that we must reverse.
With only seven States currently recognizing financial literacy
month, there is obviously a great deal of work to do. But if we take
the time to take on this challenge, we can begin to turn things around
and excite students about becoming the next generation of investors.
Mr. Speaker, the state of financial literacy among our children may
not garner much in the way of headlines, but it is an issue nonetheless
that should command our attention. While it is a problem that is
serious and urgent, it is one that can be solved through education.
This body 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.
We must continue to keep the pressure on in terms of public awareness
of the problem. I hope that we will use this month as a springboard to
raise public awareness about the importance of financial education in
the United States.
I want to thank my distinguished colleague and friend, the gentleman
from Texas (Mr. Hinojosa), for his strong support and cosponsorship of
this resolution. I would also like to thank the chairman of the
Committee on Government Reform, the gentleman from Virginia (Mr. Tom
Davis), and especially the gentleman from Utah (Mr. Cannon) and the
gentleman from Illinois (Mr. Davis), also members of the Committee on
Government Reform, for managing this resolution and the gentleman from
California (Mr. Dreier) for his long-term work on this issue.
Mr. DAVIS of Illinois. Mr. Speaker, it is my pleasure to yield such
time as he may consume to the gentleman from Texas (Mr. Hinojosa), a
Member who has distinguished himself as an educator, an outstanding
businessperson and an outstanding legislator, and who has been at the
heart of the development of this legislation.
Mr. HINOJOSA. Mr. Speaker, I rise in support of House Resolution 578
that the gentlewoman from Illinois (Mrs. Biggert) and I introduced
earlier this year. The legislation supports the goals and ideals being
acknowledged in naming April as Financial Literacy Month. I should note
that the gentlewoman from Illinois and I have been working together on
a number of financial literacy projects for quite some time, and I look
forward to continuing to coordinate our efforts to improve financial
literacy programs for our youth and for U.S. residents at all stages of
their lives.
I want to thank the Committee on Government Reform for bringing this
legislation to the floor today to celebrate April as Financial Literacy
Month. Improving financial literacy, especially in the communities of
the Rio Grande Valley of Texas and Central Texas, has been a top
priority of mine. My ultimate goal is to educate our youth about
financial issues in order to prepare them for the real world.
It is also important that we educate adults and seniors on the basics
of financial literacy to bring them into the mainstream financial
system and to protect them from payday lenders, as well as to protect
them from predatory lenders and others who would take advantage of
them. And so I have decided to act to address these concerns.
The chairman of the Subcommittee on Financial Institutions and
Consumer Credit of the House Committee on Financial Services, the
gentleman from Alabama (Mr. Bachus), held a hearing at my request on
bringing the unbanked into the mainstream financial system. The
chairman of the Subcommittee on Education Reform of the Committee on
Education and the Workforce, the gentleman from Delaware (Mr. Castle),
and the ranking member, the gentlewoman from California (Ms. Woolsey),
held a hearing on financial literacy that allowed the gentlewoman from
Illinois and myself to discuss the CENTS Act, which would establish a
commission to educate our nation's teachers and students on financial
literacy skills.
I also promoted financial literacy when I spoke at a panel with the
gentleman from Alabama (Mr. Bachus) and the gentleman from Virginia
(Mr. Tom Davis) at the FDIC's symposium on financial literacy held at
the National Press Club. With the assistance of the gentleman from
Massachusetts (Mr. Frank), the ranking member on the Committee on
Financial Services, I
[[Page H2390]]
was able to add a section to the FACT Act to ensure that the commission
it creates on financial literacy will develop and promote financial
literacy and education materials in languages other than English,
including for the commission's Web site, a toll-free number, a national
media campaign, and all the materials it disseminates.
Before I conclude, I want to point out some financial literacy
programs of note. The FDIC has a well-written and helpful program in
English, Spanish, and numerous other languages known as Money Smart
that targets adults. It is being disseminated in my district, and it is
helping to encourage the adults in my district to move into the
financial mainstream.
Several large banks, such as Wells Fargo and Bank of America, have
implemented financial literacy programs that are now being used in
schools for K through 12 programs. The Independent Bankers in Texas
have been attempting to encourage the Texas State legislature to
include financial literacy programs as a requirement for graduation
from high school for quite some time.
There are numerous other financial literacy programs out there:
Freddie Mac's CreditSmart Espanol program to train the teachers to
train other teachers how to teach their financial literacy program;
NCEE's K through 12 program; ACB's Money Rules program; Fannie Mae's
Homeownership program in English and Spanish; ICI's Investing for
Success program; and Operation Hope's Banking on Our Future program,
and many others.
There are too many other programs to mention in the time I have been
allotted, which is why a financial literacy commission was created by
the FACT Act. The gentlewoman from Illinois and I will monitor it with
our colleagues in Congress to ensure that it is a success.
Mr. Speaker, I want to thank the gentlewoman from Illinois (Mrs.
Biggert) and her legislative assistant, Danielle English, for working
with me on this important legislation and all other projects; and I
especially want to thank my colleague, the gentleman from Massachusetts
(Mr. Frank), and Jaime Lizarraga, on his staff, for all their
assistance on financial literacy issues.
On behalf of the Committee on Financial Services, I urge my
colleagues to support H. Res. 578.
Mr. CANNON. Mr. Speaker, I yield myself such time as I may consume,
and I want to thank the gentleman from Texas for his comments, commend
him for his significant work in promoting financial literacy, and
associate myself with his comments about the importance of training
especially children in financial literacy.
Mr. Speaker, I yield such time as he may consume to the gentleman
from California (Mr. Dreier), one of the most financially astute
Members of the House.
Mr. DREIER. Mr. Speaker, I thank my friend for yielding me this time
and for his management of this legislation; and I want to begin by
extending my compliments to my very distinguished colleague, the
gentlewoman from Illinois (Mrs. Biggert), who has long been a champion
on this issue, as well as my friend, the gentleman from Texas (Mr.
Hinojosa), who just gave a very thoughtful statement about where we go
and why we need to focus on ensuring that we provide financial literacy
education to young people in this country. And of course every single
debate on the House floor is dramatically enhanced by the voice of the
gentleman from Illinois (Mr. Davis), so I want to express my
appreciation as always to him for his presence here.
Several years ago, Mr. Speaker, I joined our colleague, the gentleman
from North Dakota (Mr. Pomeroy), in establishing an organization known
as Jump$tart, realizing that many of us years and years ago took for
granted the understanding of financial literacy. I will never forget,
as a kid, when my father ensured that I started a savings account. I
looked at that little passbook that I had, which saw only a relatively
modest rate the money I had in there growing; but it was a wonderful,
wonderful thing.
Today, when we look at the wide range of information that is flooding
not only adults but young people as well, and we look at this 21st-
century economy, we realize that everybody is deluged, whether it is
through the mail by credit cards, on the Web, through advertising that
we see; and it can be extraordinarily confusing. And so things that
were taken for granted decades ago when many of us were growing up, we
now have to focus on in the way of education for our young people.
On the Web today, people have the tremendous opportunity to pay their
bills, they have the opportunity to have access to a wide range of
financial services and products, and we also need to realize that today
we have seen this growing investor class. Over half of the American
people, Mr. Speaker, are members of the investor class. They are
invested either through their 401(k), through individual retirement
accounts, through pension funds, and of course those who directly
invest in the markets or in real estate or in other areas. So more than
half the American people are members of that investor class.
As that number grows, it seems to me, Mr. Speaker, that we need to do
everything we possibly can to ensure that our young people have an
awareness level of things that were so often taken for granted and seen
as simple common sense in the past.
{time} 1500
We passed last year legislation, the Federal Financial Literacy
Commission, to promote and enhance financial literacy for all
Americans. The initiative established a national financial literacy
public service campaign to raise the awareness level regarding personal
finance. I was pleased that we have had that in legislation that we
have pursued in the past.
Last month there were a number of organizations that had spent time
and effort focusing on and promoting financial literacy. They include
Citigroup and the Citigroup Foundation's $200 million global financial
literacy initiative; the Credit Union National Association's National
Credit Union Youth Week; the American Bankers Association's National
Teach Children to Save Day; the Jump Start Coalition's biennial Survey
on the State of Financial Literacy among high schoolers; the National
Council on Economic Education/NASDAQ Educational Foundation's National
Teaching Awards Event; and last but not least, my Governor in
California, Arnold Schwarzenegger, established April 2004 as California
Financial Literacy Month with a proclamation.
Put very simply, Mr. Speaker, financial literacy is all about
opportunity. It is about empowering individuals to make informed
financial decisions, helping them to attain financial independence and
to plan for their future prosperity. Working together, we can ensure
that the young people in our country gain a fundamental understanding
of personal finance to help them succeed later in life.
I again congratulate the gentlewoman from Illinois (Mrs. Biggert) and
the gentleman from Texas (Mr. Hinojosa) for recognizing that focusing
this month of April on financial literacy is the right thing to do. I
know that all of my colleagues will want to join in support of this
important resolution.
Mr. DAVIS of Illinois. Mr. Speaker, I yield myself the balance of my
time.
My mother used to tell us that if we learned to take care of our
pennies, that our nickels and quarters would take care of themselves. I
think some of those same principles are embedded in this legislation. I
am proud to support it.
Mr. Speaker, I yield back the balance of my time.
Mr. CANNON. Mr. Speaker, I yield myself the balance of my time.
The prior speaker, the gentleman from California (Mr. Dreier),
referred to the financial services products that we have available. I
would just like to remind us all that we now have a new product in that
array, that is, the health savings account which we passed in the
recent Medicare package. It is good for all Americans. It is one of the
elements of financial awareness that I hope is advanced through this
financial literacy approach that we are taking here today.
I would like to thank the gentlewoman from Illinois (Mrs. Biggert)
and also the gentleman from Texas (Mr. Hinojosa) for their support of
this bill and bringing it to the floor today. I would also like to
thank the gentleman from Illinois (Mr. Davis). It is
[[Page H2391]]
always a pleasure to work with him on projects like this.
Mr. Speaker, I urge all Members to support the adoption of House
Resolution 578.
Mr. CANTOR. Mr. Speaker, I rise today to speak in favor of this
resolution that will designate the month of April as ``Financial
Literacy Month.'' I would like to thank my colleague, Ms. Biggert from
Illinois, for introducing this legislation. It is important that we
raise public awareness and support financial knowledge in the United
States. The penalties that may be associated with a lack of
understanding of personal finances are too grave for Americans to be
left in the dark.
The majority of Americans successfully use the assistance offered by
the financial service industry each year. These organizations help
individuals to build homes, buy a car, finance an education, start a
business, and many other everyday needs. It is essential that
individuals are prepared to manage their money, credit, and debt as
well as to become responsible workers, investors, business leaders, and
citizens.
Promoting financial literacy encourages all Americans to make wise
financial decisions and expands their access to the mainstream
financial system that provides lower costs, safer options and a greater
ability to build wealth. The end result is not only greater empowerment
for the American people, but a likely increase in economic activity and
growth.
I would like to thank the Financial Literacy and Education
Commission, the National Council on Economic Education, the Jump$tart
Coalition for Personal Financial Literacy, its state affiliates, and
its partner organizations for designating April as ``Financial Literacy
Month,'' educating the public about the need for increased financial
literacy for youth in the United States.
Personal finance education and awareness is fundamental in ensuring
that the public is well-versed in issues that will affect them today,
as well as in years to come, as they plan for college, home-buying, and
eventually retirement. We must supply them with the knowledge they need
in order to succeed in today's complex world of finance.
I urge the passage of this legislation, and I yield back the balance
of my time.
Mr. CASTLE. Mr. Speaker, I rise in support of H. Res. 578, which
recognizes and supports the goals of Financial Literacy Month.
Now more than ever, we live in a world that has become increasingly
complicated when it comes to personal financial matters. A generation
ago, a basic knowledge of balancing a checkbook and maintaining a
savings account was adequate. However, in today's complex world many
Americans are faced with difficult decisions such as determining what
type of loan they need; whether to invest in stocks or bonds; how to
best manage credit; and how soon to start planning for family education
needs and their retirement. There are approximately 40,000 different
credit products available, an intimidating thought for the most
educated consumer.
Unfortunately, large numbers of consumers never learn the basics of
maintaining their personal finances and may struggle unnecessarily with
choices leading to financial freedom. Instead, many live paycheck to
paycheck and acquire substantial debt.
Today, our nation's youth are bombarded with a multitude of financial
options at an increasingly young age. Yet many are ill-equipped to make
informed decisions about financial matters. According to a 2001 Teenage
Research Unlimited survey, teenagers spend rather than save 98 percent
of their money, a total of $172 billion in 2002. One out of every three
teenagers has credit cards and even more have an ATM card.
Various public and private organizations have developed programs to
promote public knowledge of basic finances. Many of these organizations
are working with elementary and secondary students to provide them with
a strong education in money management and provide teacher training on
how to integrate basic financial education principles into curricula.
For example, in my home state of Delaware, MBNA opened the Financial
Advisory Service (FAS) over ten years ago, which offers professional
advice to MBNA people and their immediate family members. FAS, under
the leadership of Tom Dibble, set out to offer professional personal
money management education for all MBNA people. Since the service was
established, MBNA has extended the service into the community and into
the local school systems through the facilitation of basic credit and
money management curriculum to all grade levels in elementary, high
schools, and colleges throughout the country. FAS has educated nearly
1,500 students in Delaware 14,000 students throughout the country since
1995. Their extensively educated advisors teach, not only credit
information, but, especially in the case of students, spend a great
deal of time on financial basics like balancing a checkbook and
budgeting.
This fall I held a hearing in my Subcommittee entitled, ``Financial
Literacy Education: What Do Students Need to Know to Plan For the
Future?'' I was particularly interested in learning what schools,
government, and industry were doing to help educate youth about not
only the intricacies of being financially sound, but also the very
basics. I was pleased to learn that there is engagement across the
spectrum. I am happy to support today's resolution--to recognize those
that are already active, and to encourage more to become active.
Mr. SCOTT of Georgia. Mr. Speaker, I rise to recognize April as
Financial Literacy Month.
I have joined with Congresswoman Judy Biggert to introduce H. Res.
578 to recognize the goals of Financial Literacy Month. As a member of
Congress who has an MBA from the Wharton School of Finance, I believe
that there are several steps that Americans can take to gain access to
the financial mainstream. The first and most important step is to have
fundamental financial literacy. With that knowledge, a consumer can
increase access to good credit, home ownership, and be able to invest
money for retirement security.
The JumpStart Coalition, which is a financial literacy advocacy
organization, estimates that only approximately 15 percent of high
school graduates in the United States have taken a course covering
basic personal finances. Through my work as a member of the House
Financial Services Committee, I have come to recognize the importance
of integrating economics and personal finance into the K-12 curricula,
and the positive impact this can have on millions of future investors.
I have also seen the need for continued financial education for
consumers at all economic levels.
Last year, the House last year passed H.R. 2622, which will allow any
American to receive a free copy of their credit report each year. This
tool will help consumers give their credit a check-up before they apply
for a loan, buy a house, or make a major credit purchase. We cannot
even begin to encourage low and middle wage earners to use these tools,
invest in the stock market or consider a home mortgage if they do not
have a basic economic understanding of savings and credit.
By having a good understanding of finances, Americans can help
prevent identity theft and protect themselves from being victims of
predatory lending practices. Understanding finances also helps
consumers know how to start saving money for retirement and higher
education. Information is needed to inform tomorrow's investors so that
they can make sound investment decisions in a variety of market and
economic conditions. The best way to prevent future economic scandals
is to create smarter investors. This April, Members of Congress have a
good opportunity to put a spotlight on economic education.
I hope my colleagues will join me by recognizing Financial Literacy
Month and supporting passage of this resolution.
Ms. LORETTA SANCHEZ of California. Mr. Speaker, I rise today to offer
my support for H. Res. 578, a resolution that would support the goals
and ideals of Financial Literacy Month.
Before I became a Congresswoman, I was a businesswoman. I started my
own consulting firm in Santa Ana, California assisting public agencies
and private firms with cost-benefit analysis, strategic planning and
capital acquisition. I have spent many years in the financial sector,
and know first-hand the importance of financial literacy and education.
As Chairwoman of the Congressional Hispanic Caucus Task Force on
Banking and Finance, I am committed to increasing financial literacy in
minority communities. Later this year, I will be holding an issues
conference with leaders from the financial world to discuss ways of
connecting the financial sector with Hispanic youth to educate them on
business and career opportunities. We will also explore the obstacles
minorities face in obtaining capital and examine the effectiveness of
today's top financial companies in preparing Latinos as leaders in the
banking and financial sector.
Mr. Speaker, I cannot emphasize enough the importance of financial
literacy. Financial knowledge enables individuals to become more
successful, manage their money wisely and contribute to the economy. It
is critical that we educate our young people and encourage them to seek
out opportunities in the business world. I thank the Gentlelady from
Illinois for introducing this important bill, and would urge my
colleagues to support it.
Mr. CANNON. Mr. Speaker, I yield back the balance of my time.
The SPEAKER pro tempore (Mr. Schrock). The question is on the motion
offered by the gentleman from Utah (Mr. Cannon) that the House suspend
the rules and agree to the resolution, H. Res. 578.
The question was taken.
The SPEAKER pro tempore. In the opinion of the Chair, two-thirds of
those present have voted in the affirmative.
[[Page H2392]]
Mr. CANNON. Mr. Speaker, on that I demand the yeas and nays.
The yeas and nays were ordered.
The SPEAKER pro tempore. Pursuant to clause 8 of rule XX and the
Chair's prior announcement, further proceedings on this motion will be
postponed.
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