[Congressional Record Volume 151, Number 38 (Wednesday, April 6, 2005)]
[House]
[Pages H1797-H1802]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




      SUPPORTING THE GOALS AND IDEALS OF FINANCIAL LITERACY MONTH

  Mr. GUTKNECHT. Mr. Speaker, I move to suspend the rules and agree to 
the resolution (H. Res. 148) supporting the goals and ideals of 
Financial Literacy Month, and for other purposes.
  The Clerk read as follows:

                              H. Res. 148

       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 2004 by the Jump$tart Coalition for 
     Personal Financial Literacy found that high school seniors 
     know less about principles of basic personal finance than did 
     high school seniors 7 years earlier;

[[Page H1798]]

       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 
     2004 survey completed by the National Council on Economic 
     Education found that the number of States that include 
     personal finance in education standards for students in 
     kindergarten through high school has improved since 2002 but 
     still falls below 2000 levels;
       Whereas expanding access to the mainstream financial system 
     provides individuals with lower-cost and safer options for 
     managing finances and building wealth and is likely to lead 
     to increased economic activity and growth, yet studies show 
     that as many as 10 million households in the United States 
     are ``unbanked'' or are without access to mainstream bank 
     products and services;
       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, and 92 percent of college students acquire 
     at least one credit card by their second 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 2004 found that only 42 
     percent of workers surveyed have calculated how much money 
     they will need to save for retirement and 4 in 10 workers say 
     that they are not currently saving for retirement;
       Whereas personal savings as a percentage of personal income 
     decreased from 7.5 percent in the early 1980s to 1.1 percent 
     in the last two quarters of 2004;
       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 (FLEC) 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;
       Whereas Members of the United States House of 
     Representatives established the Financial and Economic 
     Literacy Caucus (FELC) in February 2005 to (1) provide a 
     forum for interested Members of Congress to work in 
     collaboration with the Financial Literacy and Education 
     Commission, (2) highlight public and private sector best-
     practices, and (3) organize and promote financial literacy 
     legislation, seminars and events, such as ``Financial 
     Literacy Month'' in April 2005 and the annual ``Financial 
     Literacy Day'' fair on April 27, 2005; 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 and adults 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 
Minnesota (Mr. Gutknecht) and the gentleman from Illinois (Mr. Davis) 
each will control 20 minutes.
  The Chair recognizes the gentleman from Minnesota (Mr. Gutknecht).


                             General Leave

  Mr. GUTKNECHT. 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 material on H. Res. 148.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Minnesota?
  There was no objection.
  Mr. GUTKNECHT. Mr. Speaker, I yield myself such time as I may 
consume.
  Mr. Speaker, as a member of the Committee on Government Reform, I am 
pleased to call up House Resolution 148 for consideration. This 
valuable resolution supports the goals and ideals of Financial Literacy 
Month, and its purpose is to increase awareness of the significance of 
well-planned personal financial management. I strongly support this 
goal, and I encourage my colleagues to join me in support of this 
important resolution.
  Mr. Speaker, it can be overwhelming for Americans of any age to 
establish and manage income, savings, and credit. But learning simple 
financial principles can help protect against illness or disability, 
long-term losses of unemployment, and other aspects of life that most 
of us will experience at one time or another.
  Mr. Speaker, the resolution cites that over the last 20 years, 
personal savings have decreased from about 7.5 percent of personal 
income during the 1980s to only 1.1 percent in the last two quarters of 
2004. This, I am afraid, shows the dangerous reality that unfortunately 
Americans are relying too much on credit and many are spending beyond 
their means.
  Most Americans and their families will experience lean financial 
times sometime during their lives. That is why the message of this 
resolution is so important and why we need to encourage schools to 
teach our young people the principles of personal finance at early 
ages.
  Life is uncertain, and jobs change. Family circumstances and 
macroeconomic instability can affect every one of us. But we as a 
Nation can be confident that we will ultimately enjoy big returns on 
our investments in financial literacy.
  Mr. Speaker, several important groups, including the National Center 
on Economic Education, the Jump$tart Coalition For Personal Financial 
Literacy and their partner organizations consider April to be Financial 
Literacy Month. Consistent with this designation, today I am pleased to 
join with my distinguished colleague, the gentlewoman from Illinois 
(Mrs. Biggert), to sponsor this legislation in supporting financial 
literacy. I urge all Members to vote in favor of the adoption of this 
resolution.
  Mr. Speaker, I reserve the balance of my time.
  Mr. DAVIS of Illinois. Mr. Speaker, I yield myself such time as I may 
consume.
  Mr. Speaker, financial literacy may be more important today than 
during any other time in our Nation's history. That is why I am pleased 
to support H. Res. 148, introduced by the gentlewoman from the Great 
State of Illinois (Mrs. Biggert), which supports the goals of Financial 
Literacy Month for Youth.
  As the resolution notes, a study by the Jump$tart Coalition for 
Personal Financial Literacy found that 92 percent of college students 
have at least one credit card by their sophomore year. This fact 
becomes alarming when you consider that the same study found that only 
26 percent of people between the ages of 13 and 21 claimed that they 
had been taught how to manage their money by their parents. This 
resolution serves as an important wake-up call for all of us: the 
administration, Congress, and the American taxpayer.
  As the economy begins to rebound from an arduous period, now is an 
opportune time to teach all Americans, young and old, about fiscal 
responsibility. The Jump$tart Coalition's aim is to identify personal 
finance materials for educating our youth. To that end, they have 
established 12 must-know personal finance principles for young people 
if they want to improve their financial future.
  The 12 financial principles stressed during Financial Literacy Month 
for youth are, one, map your financial future; do not expect something 
for nothing; high returns equal high risk; know your take-home pay; 
compare interest rates; pay yourself first; money doubles by the rule 
of 72, which is a way of determining how long it takes your money to 
double while in the bank; your credit past is your credit future; start 
saving young; stay insured; budget your money; and do not borrow what 
you cannot repay.
  These important, but basic, principles are of value to all of us. But 
let me add one more, since the 15th is not too far away: pay your 
taxes, and on time.
  Mr. Speaker, I am pleased to endorse this resolution supporting the 
goals of Financial Literacy for Youth Month and urge all of my 
colleagues to support it as well. As a matter of fact, my mother used 
to tell us that if you take care of your nickels, then your quarters 
will take care of themselves.
  Mr. Speaker, I reserve the balance of my time.
  Mr. GUTKNECHT. Mr. Speaker, I yield myself such time as I may 
consume.

[[Page H1799]]

  Mr. Speaker, I thank the gentleman from Illinois for his support for 
this important resolution, and I thank him for his wit and wisdom.
  Madam Speaker, at this time I am pleased to yield such time as she 
may consume to the gentlewoman from Illinois (Mrs. Biggert), the author 
of this resolution.
  Mrs. BIGGERT. Madam Speaker, I thank the gentleman from Minnesota for 
yielding me time and for cosponsoring this resolution and for his 
advocacy for financial literacy.
  Madam Speaker, I rise today in strong support of House Resolution 
148, which my colleague, the gentleman from Texas (Mr. Hinojosa), and I 
introduced for a second year to designate April as Financial Literacy 
Month. We did this once again to raise public awareness about the 
importance of financial education in the United States and the serious 
consequences that come when young people, adults, and older Americans 
lack basic understanding of personal finance and economics.

                              {time}  1330

  Madam Speaker, ours is a compelling case, and I know that many 
Members of the House who cosponsored this resolution agree that our 
country is in a financial literacy deficit. The most recent statistics 
indicate that most of our States do not require schools to have 
financial literacy programs, and 7 out of 10 of our children and 
grandchildren failed a basic financial literacy exam.
  The numbers look equally bad for young and older adults. Studies show 
that almost all of our Nation's college students have a credit card by 
the second year of college, but only about a quarter report that their 
parents actively taught them how to manage money. The number of 
bankruptcies remains at a historic high. Over 1.6 million bankruptcy 
cases were filed in 2004.
  And we all know Social Security will soon reach a juncture, and now 
is the time for us to encourage our children and young and older adults 
to embrace learning about finance and economics and engage in good 
budget and long-term savings habits.
  Abraham Lincoln, one of our most beloved Presidents and fellow 
Illinoisan, once said, ``You cannot escape the responsibility of 
tomorrow by evading it today,'' and I agree. We should help our 
citizens avoid getting caught in a credit quagmire, stay out of 
bankruptcy court, and steer clear of a financially unsound retirement. 
I believe that we need to encourage all Americans to take ownership 
over their finances, to be financially astute, and establish financial 
security now. Now is the time.
  I pledge to continue to promote financial and economic education, and 
I know that I am joined by an army of supporters here on the Hill and 
across the country. In recent years, the Congress, Federal agencies, 
State and local governments, schools, the private sector, not-for-
profit and for-profit groups have worked hard and made incremental 
strides toward improving the financial aptitude of Americans of all 
ages and walks of life. However, there is so much more that we can and 
must do to turn the tide.
  Many States have implemented 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 partnering with financial institutions which 
conduct a monthly Bank Day at the school where students open savings 
accounts and make regular deposits.
  I believe that programs like this will provide the guidance that is 
desperately needed; but we do need to do more. We need to coordinate 
our programs. We need to improve America's financial report card, and 
we need to encourage financially sound behavior.
  In Congress we catapulted the Financial Literacy Movement into action 
when we passed the Fair and Accurate Credit Transactions Act. This act 
established the Financial Literacy and Education Commission, which has 
made great strides since its first meeting in 2004. They have 
established a Website, mymoney.gov., and are in the process of 
developing a national strategy.
  While the Commission's work to date has been commendable, some of us 
in Congress thought that we ought to do more. That is why in February, 
the gentleman from Texas (Mr. Hinojosa) and I formed the Financial and 
Economic Literacy Caucus. The caucus currently has 45 Members with 23 
Republicans, 21 Democrats, and 1 Independent. We all agree that 
financial literacy is a national priority, and our goal is to bring 
together interested parties and participants at the national, State, 
and local levels to establish best practices and to promote financial 
and economic literacy on Capitol Hill, at home in our districts and, 
eventually, around the world.
  We are forming an ambitious agenda for the weeks and months to come. 
On April 27 we will host our first Financial Literacy Fair in the House 
Cannon Caucus Room. I would encourage everyone to attend the fair. Our 
caucus also aims to establish a Website, provide a focal point in 
working with the Senate and executive branch, including the Commission, 
and showcase all of the great programs that have been launched in the 
business, education, and not-for-profit communities.
  Today I encourage all Members of the House to join the caucus and 
work with us to educate Americans about finance and economics.
  Madam Speaker, the state of financial literacy among our citizens 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. 
That is why I urge my colleagues to support this resolution in support 
of financial literacy. It is our duty to help our citizens of all ages 
and walks of life to succeed in today's increasingly sophisticated 
world of finance.
  I want to thank my distinguished colleague and friend, the gentleman 
from Texas (Mr. Hinojosa), for his strong support and sponsorship of 
this resolution. I would also like to thank the chairman of the 
Committee on Government Reform, the gentleman from Virginia (Mr. 
Davis), for being a cosponsor of this resolution and moving it through 
his committee. I would especially like to thank the gentleman from 
Minnesota (Mr. Gutknecht) and the gentleman from Illinois (Mr. Davis), 
also members of the Committee on Government Reform, for managing this 
resolution. I would also like to thank the distinguished gentlewoman 
from Ohio (Ms. Pryce) for her support of the resolution and dedication 
to this initiative.
  In conclusion, I would like to thank all of the Members who 
cosponsored this resolution for their support.
  Mr. DAVIS of Illinois. Madam Speaker, it is my pleasure to yield such 
time as he might consume to the gentleman from Texas (Mr. Hinojosa), 
the cosponsor of this resolution.
  (Mr. HINOJOSA asked and was given permission to revise and extend his 
remarks, and include extraneous material.)
  Mr. HINOJOSA. Madam Speaker, I rise in support of House Resolution 
148 that the gentlewoman from Illinois (Mrs. Biggert) and I introduced 
earlier this year. The legislation supports the ideals and the goals of 
Financial Literacy Month, which falls in April of each year.
  Before I proceed, I want to take this opportunity to thank the 
gentlewoman from Virginia (Mrs. Jo Ann Davis), the chairman of the 
Subcommittee on Civil Service, and especially my Ranking Member, the 
gentleman from Illinois (Mr. Danny Davis). Also, I would like to 
recognize and thank Tania Shand on the minority staff for helping 
expedite committee consideration of our bill. My distinguished 
colleague, the gentleman from Illinois (Mr. Davis), has always been a 
strong supporter of economic education and financial literacy, and I 
want to thank him for managing the bill today for our side of the 
aisle.
  The gentlewoman from Illinois (Mrs. Biggert) and I have also worked 
closely on financial literacy issues with the gentleman from California 
(Mr. Dreier), the chairman of the House Committee on Rules. I think all 
of us owe him a great deal of gratitude for being one of the first 
Members of Congress to call for bringing attention to the need to 
improve financial literacy rates.

[[Page H1800]]

  To celebrate Financial Literacy Month, a Financial Literacy Day Fair 
will be held April 27 from noon to 4 p.m. in the Cannon Caucus Room. I 
join my friend, the gentlewoman from Illinois (Mrs. Biggert), in 
encouraging all of our colleagues and their staffs to attend this 
event.
  Every day, consumers deal with money, from balancing a checking 
account to shopping for a mortgage or auto loan, researching ways to 
pay for a college education, checking credit card statements, saving 
money for retirement, understanding a credit report, or simply deciding 
whether to pay cash or charge a purchase. The list goes on and on, but 
many consumers do not really understand their finances.
  In 2004, reports from Jump$tart and the National Council on Economic 
Education, the Schwab Foundation and others indicated that almost 66 
percent of high school students failed a basic financial literacy exam. 
The numbers are not much better for adults. High bankruptcy rates, 
increased credit card debt, and identity theft make it imperative that 
all of us take an active role in providing financial and economic 
education during all stages of one's life.
  On February 15, 2005, I cofounded, and currently cochair, the 
Congressional Hispanic and Economic Literacy Caucus with the 
gentlewoman from Illinois (Mrs. Biggert). The caucus seeks to address 
these issues head on by increasing public awareness of poor financial 
literacy rates, and will work to improve those rates. The caucus will 
provide a forum for my colleagues to promote policies that advance 
financial literacy and economic education. It is my hope that through 
the Financial and Economic Literacy Caucus, we can further educate 
Americans about financial and economic topics ranging from 
homeownership to credit ratings and, yes, insurance.
  At this point, Madam Speaker, I will insert for the Record letters 
and press releases supporting passage of this resolution. They include 
a press release from the National Association of Mortgage Brokers and a 
letter of support from Merrill Lynch. I would also insert letters 
supporting the creation of the Financial and Economic Literacy Caucus 
be included in the Record. They include a statement by Treasury Deputy 
Assistant Secretary Dan Iannicola, a release by the National Council on 
Economic Education, a letter of support from Junior Achievement, a 
press release from the Investment Company Institute, a statement from 
the North American Securities Administrators Association, and a 
statement by the Savings Coalition of America, and I have them all 
included here.

National Association of Mortgage Brokers Applauds Resolution Declaring 
                   April ``Financial Literacy Month''

       McLean, VA--The National Association of Mortgage Brokers 
     (NAMB) supports the bi-partisan resolution passed by the U.S. 
     House of Representatives today designating April as 
     ``Financial Literacy Month.''
       ``We commend Reps. Judy Biggert (R-IL) and Ruben Hinojosa 
     (D-TX) for introducing a resolution that calls for the 
     federal government, states, local governments, schools, 
     businesses and other groups to observe Financial Literacy 
     Month,'' said NAMB President Bob Armbruster. ``Financial 
     education is important for today's consumers who face a 
     complex array of financial products and services.''
       NAMB works closely with the financial services industry as 
     part of its on-going commitment to consumer education. NAMB 
     has a long history of promoting consumer financial education. 
     Last year, for example, NABM initiated a pilot consumer 
     credit education program using Freddie Mac's CreditSmart 
     ' and CreditSmart ' Espanol financial 
     literacy curricula. The pilot is currently being managed by 
     NAMB state affiliates in California, Florida and Texas.
       NAMB also has partnered with United Guaranty to create a 
     consumer information presentation--``Are You Prepared to Head 
     Down the Road to Homeownership? '''--to help 
     educate minorities, immigrants and low-to-moderate income 
     households on the home-buying process. The presentation 
     covers common home mortgage terminology, important steps in 
     the home-buying process, fair housing laws, credit reports 
     and more.
       ``For consumers, financial education is essential to 
     protecting oneself against fraud or abusive financial 
     practices and this education process should begin at a young 
     age, with some targeted curriculum in our high schools,'' 
     adds Armbruster. ``The more consumers know, the better they 
     are at managing their finances.''
       For more information visit NAMB's consumer home page on the 
     NAMB Web site, www.namb.org.
 ____



                                                Merrill Lynch,

                                    Washington, DC, April 5, 2005.
     Hon. Ruben Hinojosa,
     House of Representatives,
     Washington, DC.
       Dear Mr. Hinojosa: Merrill Lynch strongly supports the 
     formation of the Financial and Economic Literacy Caucus and 
     applauds the efforts of Representative Judy Biggert and 
     yourself in addressing this important issue.
       Merrill Lynch has long shared the Caucus' goal of improving 
     financial literacy for all Americans at all stages of life. 
     The Merrill Lynch Investing Pays Off ' (IPO) 
     curriculum has been specially developed as a tool for 
     volunteers, parents and educators and is designed to be an 
     enjoyable program that will bring to life important concepts 
     and information that all young people need to know. The 
     curriculum has been designed in three stages for ages 
     spanning 7 to 18.
       Merrill Lynch has also launched a financial education 
     program for Girl Scouts in the Greater New York area. Girl 
     Scouts in the region will use the IPO curriculum during troop 
     meetings and educational programs to develop their 
     entrepreneurial skills and increase their financial 
     knowledge.
       The Merrill Lynch IPO program partnered with Sesame 
     Workshop in using Sesame Street character Elmo to bring 
     financial education to children ages 3 to 6 and their 
     parents, through an interactive website and an activity book 
     in English and Spanish.
       Merrill Lynch strongly supports your efforts to increase 
     public awareness of poor literacy rates across the country 
     and work toward improving those rates
           Sincerely,
                                           Bruce E. Thompson, Jr.,
     First Vice President.
                                  ____


  Statement of Deputy Assistant Secretary for Financial Education Dan 
      Iannicola, Jr. on the Financial and Economic Literacy Caucus

       This Department of Treasury press release may be viewed at: 
     http://www.treas.gov/press/releases/js2254.htm
       Today's formation of the Financial and Economic Literacy 
     Caucus is an important step in the federal effort to promote 
     personal economic security through financial education. I 
     commend Representatives Judy Biggert and Ruben Hinojosa for 
     their efforts to provide Americans with the education 
     resources they need to achieve their financial goals. I look 
     forward to partnering with the caucus to advance Treasury's 
     commitment to ensuring that Americans learn more about their 
     finances and, in so doing, live better lives.
                                  ____


   NCEE Applauds Launch of ``Financial and Economic Literacy Caucus''

       The National Council on Economic Education (NCEE) is 
     offering its full support for the newly formed House 
     ``Financial and Economic Literacy Caucus.'' On Tuesday, 
     February 15, Representatives Judy Biggert (R-IL) and Ruben 
     Hinojosa (D-TX) announced the formation of this bipartisan 
     congressional organization. The Caucus will help organize 
     legislative efforts and policy initiatives related to 
     financial literacy and economic education. Membership is open 
     to all Members of the House of Representatives.
       ``Representatives Biggert and Hinojosa are to be commended 
     for bringing energy, focus and commitment to this effort,'' 
     said Robert Duvall, President and CEO of the NCEE. ``Their 
     action could not be more timely. By providing a dedicated 
     forum for economic and financial education policy, the Caucus 
     will help both to direct and to magnify the tremendous 
     congressional interest and energy in these critical issues.''
       I encourage all House Members to join this important 
     organization, and become actively involved in its vital 
     mission,'' Duvall stated, for the NCEE.
       Both Representatives Biggert and Hinojosa will be featured 
     speakers at the 2005 National Summit on Economic and 
     Financial Literacy, convened and conducted by the NCEE, which 
     will be held on Thursday, March 3, 2005 at the National Press 
     Club in Washington, DC.


                             about the ncee

       The NCEE (www.ncee.net) is a non-profit, non-partisan 
     organization dedicated to improving economic literacy. 
     Through its unique nationwide network of state Councils and 
     more than 200 university based Centers for Economic 
     Education, NCEE's programs reach more than 150,000 K-12 
     teachers and over 15 million students in more than 70,000 
     schools each year. The NCEE was also recently designated by 
     the U.S. Department of Education as the leadership 
     organization to implement the $1.5 million Excellence in 
     Economic Education program through the No Child Left Behind 
     legislation. Through the Cooperative Education Exchange 
     Program (CEEP), the distinctive programs of the National 
     Council on Economic Education are also reaching over 10 
     million students in 26 countries, including Indonesia, 
     Central and Eastern Europe, the former Soviet Union and other 
     developing market economies.
                                  ____



                                           Junior Achievement,

                          Colorado Springs, CO, February 15, 2005.
     Hon. Ruben Hinojosa,
     Rayburn House Office Building,
     Washington, DC.
       Dear Representative Hinojosa: On behalf of Junior 
     Achievement's 1,400 associates and 110,000 classroom 
     volunteers nationwide, congratulations on your latest effort 
     to promote financial literacy and economic education.

[[Page H1801]]

       The establishment of a Financial & Economic Literacy Caucus 
     reinforces the importance of a financially literate society. 
     With personal bankruptcies and debt continuing to soar, I 
     urge the caucus to consider a focus on youth. According to 
     the latest JA Poll on Personal Finance, nearly 70 percent of 
     teens nationwide say they influence their parents' buying 
     decisions, while nearly 25 percent of 18-year olds say they 
     already own and use their own credit cards. The earlier we 
     can intervene with an education on the ``economics of life,'' 
     the better off we'll be.
       As the nation's oldest and largest organization dedicated 
     to promoting economic education and financial literacy, JA 
     stands ready to assist the caucus in advancing its goals.
       Thank you for your resolve in championing this important 
     issue. We look forward to working with you.
           Sincerely,
                                                 David S. Chernow,
     President and CEO, JA Worldwide.
                                  ____


  ICI Lauds Formation of the Financial Literacy Caucus Washington, DC

       February 15, 2005.--The Investment Company Institute today 
     announced its support for the creation of the Financial and 
     Economic Literacy Caucus under the bipartisan leadership of 
     caucus Co-Chairs, Congressmen Judy Biggert (R-IL) and Ruben 
     Hinojosa (D-TX).
       The caucus will host educational forums and such events as 
     ``Financial Literacy Month.'' It will also act as focal point 
     for communicating with various public and private agencies 
     and groups.
       ``Mutual funds are many Americans' introduction to 
     investing,'' said ICI President Paul Schott Stevens. ``The 
     earlier they understand the importance of investing to pay 
     for educating their children and funding their retirement, 
     the more effective their planning will be. We are pleased to 
     support the Caucus' mission of promoting financial 
     literacy.''
       Providing America's 92 million mutual fund investors with 
     the tools they need to develop goals, evaluate risk, and make 
     informed investment decisions is a long-standing mission of 
     the Institute and its mutual fund members, Stevens said.
       The Institute supports financial education through its 
     Investor Awareness series of public messages and publications 
     and through the work of its Education Foundation. Since 2000, 
     the Foundation's primary focus has been the Investing for 
     Success program.
       In partnership with the National Urban League and the 
     Hispanic College Fund, the program promotes the benefits of 
     long-term investing within the African-American and Hispanic 
     communities.
       Reps. Biggert and Hinojosa are both members of the House 
     Committee on Financial Services and the House Committee on 
     Education and the Workforce, which has jurisdiction over 
     pensions. They also share long histories of promoting 
     financial literacy through their legislative actions.
                                  ____


NASAA Commends Launch of Congressional Financial and Economic Literacy 
                                 Caucus

       Washington, February 16, 2005.--The following is a 
     statement from North American Securities Administrators 
     Association President and New Jersey Board of Securities 
     Chief Franklin L. Widmann on the formation of the Financial 
     and Economic Literacy Caucus. Organized in 1919, NASAA is the 
     oldest international organization devoted to investor 
     protection. NASAA's membership consists of securities 
     administrators in the 50 states, the District of Columbia, 
     Puerto Rico, Canada, and Mexico.
       ``NASAA commends Representatives Judy Biggert (R-IL) and 
     Ruben Hinojosa (D-TX) for their leadership in forming the 
     Financial and Economic Literacy Caucus. Providing a forum for 
     Members of Congress to promote policies advancing financial 
     literacy and economic education is an important step to 
     ensuring that our citizens have the tools necessary to build 
     financial knowledge and financial security.
       ``State securities regulators share your concern about the 
     deficit level of financial literacy in this country and the 
     impact it has on personal financial decision-making. And we 
     also share a common dedication and commitment to doing 
     something about it.
       ``We stand ready to assist the Caucus and serve as a 
     resource, as you move forward in developing and implementing 
     programs to improve the level of financial literacy in this 
     country.''

  Madam Speaker, financial literacy means empowerment, power to manage 
money, credit, and debt, and become responsible workers, heads of 
households, investors, entrepreneurs, and leaders. It means banking the 
unbanked and bringing them into the mainstream financial system to 
protect them from abusive predatory or deceptive credit offers and 
financial products.
  Numerous programs exist to improve financial literacy: The NCEE's 
Financial Fitness For Life program; Jump$tart's Personal Finance 
Education Standards and Benchmarks are used by educators and parents; 
Junior Achievement's programs and surveys; ICI's Investing for Success 
program; the FDIC's free, multilingual Money Smart adult financial 
literacy curriculum; the FTC's I.D. theft What's It All About program; 
as well as CFA's America Saves program; VISA's Practical Money Skills 
For Life program; AICPA's 360 Degrees of Financial Literacy program; 
the Girl Scouts of America's Money Smarts program; the CHCI NHI's 
homeownership workshops; Lincoln Financial's financial planning 
programs; the ABA Education Foundation's Take Control of Our Personal 
Finances program; ACB's Money Rules program; the North American State 
Securities Association's program.
  Madam Speaker, the list goes on and on. It includes Fannie Mae's 
homeownership program in English and Spanish; Operation Hope's Banking 
on Our Future program; and Freddie Mac's CreditSmart Espanol program.
  At present, several of these financial literacy programs are 
operating in my congressional district, Texas 15. The Security Industry 
Association's Stock Market Game is one such program. I am proud that my 
district was chosen again this year to participate in SIA's second 
annual Capitol Hill Challenge stock market program. This year I 
selected La Feria High School, located in Cameron County, Texas, to 
participate in this program. They have been competing against 15 other 
districts from across our country. I wish them well. Please know I will 
be rooting for my team.
  Madam Speaker, I want to thank the gentlewoman from Illinois (Mrs. 
Biggert), and her legislative assistant Nicole Austin, for working with 
me on today's legislation.
  In closing, I want to say that I look forward to continuing to 
collaborate with her on any and all efforts that will help increase 
public awareness of the need to improve financial literacy, to promote 
programs that increase financial literacy for all during all stages of 
life, and to significantly improve the financial literacy rates across 
this great country. It is never too late to take control of your 
personal finances, and it is something that all of us in the United 
States can start today.
  I urge my colleagues to support this legislation, Madam Speaker.
  Mr. DAVIS of Illinois. Madam Speaker, we have no further speakers on 
our side. I would just simply close by suggesting that my father used 
to tell us that money is like life. The better you manage it, the 
longer you are likely to keep it.
  Madam Speaker, I strongly support this resolution.
  Madam Speaker, I yield back the balance of my time.
  Mr. GUTKNECHT. Madam Speaker, I would only close by saying that 
financial literacy clearly is an idea whose time has come. I thank the 
authors for bringing it forward. I urge all Members to support the 
adoption of House Resolution 148.
  Ms. JACKSON-LEE of Texas. Madam Speaker, I am here today to 
supporting the goals and ideals of Financial Literacy Month. I want to 
thank my colleagues Congresswoman Biggert and Congressman Hinojosa for 
introducing such a valuable piece of legislation.
  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. 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 2004 by the Jump$tart 
Coalition for Personal Financial Literacy found that high school 
seniors know less about principles of basic personal finance than did 
high school seniors 7 years earlier.
  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 
2004 survey completed by the National Council on Economic Education 
found that the number of States that include personal finance in 
education standards for students in kindergarten through high school 
has improved since 2002 but still falls below 2000 levels.

  Expanding access to the mainstream financial system provides 
individuals with lower-cost and safer options for managing finances and 
building wealth and is likely to lead to increased economic activity 
and growth, yet studies show that as many as 10 million

[[Page H1802]]

households in the United States are `unbanked' or are without access to 
mainstream bank products and services. 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, and 92 percent of college students acquire at least 
one credit card by their second 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.
  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 2004 found that 
only 42 percent of workers surveyed have calculated how much money they 
will need to save for retirement and 4 in 10 workers say that they are 
not currently saving for retirement. It is unfortunate that personal 
savings as a percentage of personal income decreased from 7.5 percent 
in the early 1980s to 1.1 percent in the last two quarters of 2004.
  Congress has sought to implement a national strategy for coordination 
of Federal financial literacy efforts through the establishment of the 
Financial Literacy and Education Commission (FLEC) 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, Web site, toll-free hotline, and 
national multimedia campaign be multilingual.

  I am glad to be here today to support the goals and ideals of 
Financial Literacy Month; and join my colleagues in requesting 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.
  Mr. DREIER. Madam Speaker, I would like to commend the Gentlelady 
from Illinois, Mrs. Biggert, and the Gentleman from Texas, Mr. 
Hinojosa, for introducing this important resolution. As a member of the 
Financial and Economic Literacy Caucus, I am proud to rise in support 
of this measure.
  Over 40 years ago, fewer than 2 in 10 families owned stocks. Today, 
this figure has risen dramatically, with more than 50 percent of 
Americans owning assets dependent on the stock market. We've come a 
long way. But I believe we can still do more to provide greater 
opportunities for all Americans to become part of the Investor Class.
  One method is to reach out directly to our local communities. In my 
own district, I am sponsoring a team of students from Bonita High 
School (La Verne) to participate in the Securities Industry 
Association's (SIA) stock market game. This program provides teachers 
with an engaging real-world tool for teaching basic economic skills 
while instilling in their students an understanding of the importance 
of sound saving and investing. As students track their team's 
portfolio, they are able to commit the skills they learn in school to 
real-world financial decisions.
  It is also important to note that efforts to enhance financial 
literacy should not just be confined to our own country. As we strive 
for expanded trade and investment with our global partners, the 
financial ups and downs in world markets have a greater impact on our 
local economies. Helping to spread financial and economic literacy to 
emerging markets is critically important to establishing stability in 
developing nations. For example, in 2004 Citigroup and the Citigroup 
Foundation provided more than $22 million in support of financial 
education programs in activities that reached millions of people in 
more than 40 countries. These activities included community development 
projects to support the expansion of thrift and credit-based 
cooperative groups in India and the development of a microfinance 
industry in China.
  Financial literacy is more than just crunching numbers. It is about 
empowerment and opportunity. It is about making your money work for 
you, whether it is buying a first home, paying for college, or planning 
for retirement. That is why we must do everything we possibly can to 
ensure that all Americans have a solid understanding of personal 
finance.
  Madam Speaker, I urge all of my colleagues to vote in support of this 
resolution.
  Mr. GUTKNECHT. Madam Speaker, I yield back the balance of my time.

                              {time}  1345

  The SPEAKER pro tempore. (Mrs. Miller of Michigan.) The question is 
on the motion offered by the gentleman from Minnesota (Mr. Gutknecht) 
that the House suspend the rules and agree to the resolution, H. Res. 
148.
  The question was taken.
  The SPEAKER pro tempore. In the opinion of the Chair, two-thirds of 
those present have voted in the affirmative.
  Mr. DAVIS of Illinois. Madam 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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