[Congressional Record Volume 152, Number 42 (Wednesday, April 5, 2006)]
[House]
[Pages H1486-H1492]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




      SUPPORTING THE GOALS AND IDEALS OF FINANCIAL LITERACY MONTH

  Mr. WESTMORELAND. Mr. Speaker, I move to suspend the rules and agree 
to the resolution (H. Res. 737) supporting the goals and ideals of 
Financial Literacy Month, and for other purposes.
  The Clerk read as follows:

                              H. Res. 737

       Whereas personal financial literacy 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;
       Whereas 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 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;
       Whereas 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 1 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 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 savings as a percentage of personal income 
     decreased from 7.5 percent in the early 1980s to -0.2 percent 
     in the last quarter of 2005;
       Whereas, although more than 42 million 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 37 percent of 
     workers say that they are not currently saving for 
     retirement;
       Whereas personal financial management skills and lifelong 
     habits develop during childhood;
       Whereas financial literacy 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;
       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;
       Whereas a credit report and credit score can impact an 
     individual's ability to, for example, obtain a job, 
     insurance, or housing, and a March 2005, report by the 
     Comptroller General entitled ``Credit Reporting Literacy'' 
     found that ``educational efforts could potentially increase 
     consumers' understanding of the credit reporting process'' 
     and those ``efforts should target those areas in which 
     consumers' knowledge was weakest and those subpopulations 
     that did not score as well on GAO's survey,'' including those 
     with ``less education, lower incomes, and less experience 
     obtaining credit'';
       Whereas public, consumer, community-based, and private 
     sector organizations throughout the United States are working 
     to increase financial literacy rates for Americans of all 
     ages and walks of life through a range of outreach efforts, 
     including media campaigns, websites, and one-on-one 
     counseling for individuals;
       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, annual report, 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 2006 and the annual Financial Literacy Day 
     fair on April 25, 2006; 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, and Junior 
     Achievement 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, including raising public awareness about the 
     importance of financial education in the United States and 
     the serious consequences that may result from a lack of 
     understanding about personal finances; 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 with the goal of 
     increasing financial literacy rates for individuals of all 
     ages and walks of life.

  The SPEAKER pro tempore (Mr. Hayes). Pursuant to the rule, the 
gentleman from Georgia (Mr. Westmoreland) and the gentleman from 
Illinois (Mr. Davis) each will control 20 minutes.
  The Chair recognizes the gentleman from Georgia.


                             General Leave

  Mr. WESTMORELAND. Mr. Speaker, I ask unanimous consent that always 
Members may have 5 legislative days within which to revise and extend 
their remarks and include extraneous material on the resolution under 
consideration.

[[Page H1487]]

  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Georgia?
  There was no objection.
  Mr. WESTMORELAND. Mr. Speaker, I yield myself such time as I may 
consume.
  Mr. Speaker, I rise in support of House Resolution 737 offered by the 
distinguished gentlewoman from Illinois (Mrs. Biggert). This resolution 
would support the goals and ideals of a Financial Literacy Month.
  According to the Associated Press, personal bankruptcies have nearly 
doubled in the past decade, even though modern technological advances 
have made it easier and more convenient for us to manage our money 
through online services at most banks and credit unions. Every day, 
people of all ages face choices that will affect their financial 
future. It is important that we raise awareness about how these choices 
will affect financial health. These decisions we make today will affect 
how we buy houses, finance education, start businesses, save for 
retirement and meet our everyday needs in the future.
  More than 42 million 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 those workers have not 
started planning for their retirement at all. The goal of this 
resolution is to increase the awareness of the significance of 
thoughtful and well-planned personal financial management so that 
retirement can be an enjoyable time. It can be an overwhelming time for 
people of any age to manage money, but learning simple financial 
principles can help protect you against any financial pitfall that 
might occur.
  I ask all Members to join me in supporting House Resolution 737 in 
the hopes that we can educate young and old about the importance of 
financial literacy.
  Mr. Speaker, I reserve the balance of my time.
  Mr. DAVIS of Illinois. Mr. Speaker, it is my pleasure to yield such 
time as he might consume to the principal cosponsor of this resolution, 
Representative Ruben Hinojosa.
  Mr. HINOJOSA. Mr. Speaker, I rise in support of House Resolution 737 
that the gentlewoman from Illinois, Congresswoman Biggert, and I 
introduced earlier this year. The legislation supports the ideals and 
goals of Financial Literacy Month, which falls in April of each year.
  Before I proceed, I want to take this opportunity to thank my good 
friend and colleague, Congressman Danny Davis, the ranking member on 
the Government Reform Federal Workforce Subcommittee, and especially 
Tania Shand of the minority staff for helping expedite committee 
consideration of our bill.
  I also want to thank Congressman Westmoreland for managing time on 
this bill.
  My colleague and friend from Illinois, Congressman 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.
  Mrs. Biggert and I have also worked closely on financial literacy 
issues with House Rules Chairman David Dreier over the years. I think 
all of us owe him and Vince Erse, on his staff, a great deal of 
gratitude for being one of the first Members of Congress to bring 
attention to the need to improve financial literacy rates here in the 
United States.

                              {time}  1300

  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 Counsel 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, data security breaches, 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 co-founded, and currently co-chair, the 
Congressional Financial and Economic Literacy Caucus with Congresswoman 
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 has provided 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 continue to further educate Americans about financial and 
economic topics ranging from the importance of saving, reducing credit 
card debt, obtaining a free annual credit report, and taking care of 
your finances to lead you down the path to the American dream of 
homeownership.
  At this point, Mr. Speaker, I will insert into the Record letters in 
support of this resolution. They include a letter from the Financial 
Planning Association, the Independent Bankers Association of Texas, the 
Credit Union National Association, from MasterCard, from the Networks 
Financial Institute, as well as from the North American Securities 
Administrators Association. And then it includes a press release from 
the Independent Community Bankers of America.
                                         North American Securities


                             Administrators Association, Inc.,

                                    Washington, DC, April 5, 2006.
     Hon. Judy Biggert,
     House of Representatives,
     Washington, DC.
     Hon. Ruben Hinojosa,
     House of Representatives,
     Washington, DC.
       Dear Congresswoman Biggert and Congressman Hinojosa: On 
     behalf of NASAA I thank you for introducing H. Res. 737, 
     which supports the goals and ideals of Financial Literacy 
     Month. As the Resolution details, the need for financial 
     education in the United States has never been greater. With a 
     majority of Americans investing in our capital markets, there 
     is a growing obligation to ensure our citizens are equipped 
     with a basic understanding of the principles of savings and 
     investing and the ability to recognize and avoid financial 
     fraud.
       State securities regulators have a long tradition of 
     protecting investors through education, and many have 
     established an investor education department within their 
     regulatory agency. Several years ago, recognizing the 
     importance of financial literacy to the prevention of fraud 
     and abuse, the NASAA Board of Directors created an Investor 
     Education Section to develop and support financial literacy 
     and education programs to be delivered at the state level.
       As part of the effort to educate our nation's youth, in 
     April, state securities division staffs will join in 
     celebrating ``Financial Literacy Month'' by visiting schools 
     throughout their state to teach students about personal 
     finance, the capital markets, investment choices and fraud.
       Reaching out to our young citizens is just one component of 
     the ongoing financial education effort undertaken by state 
     securities regulators. We are dedicated to improving 
     financial literacy for our constituents of all ages, 
     recognizing that financial education has a direct impact on 
     the economic health of our families, communities, states and 
     this country overall.
       We commend you for your continued efforts to draw attention 
     to the importance of financial literacy programs. Please 
     contact Daphne Smith, Tennessee Securities Commissioner and 
     Chair of NASAA's Investor Education Section, or Deborah House 
     in NASAA's corporate office if we may be of further 
     assistance to you. We look forward to continuing our work 
     with you and your offices on this particular issue.
           Sincerely,

                                           Patricia D. Struck,

                                                  NASAA President,
     Wisconsin Securities Administrator.
                                  ____

                                      Networks Financial Institute


                                  at Indiana State University,

                                   Terre Haute, IN, April 4, 2006.
     Hon. Judy Biggert,
     House of Representatives, Co-Founder and Co-Chair, Financial 
         and Economic Literacy Caucus, Washington, DC.
     Hon. Ruben Hinojosa,
     House of Representatives, Co-Founder and Co-Chair, Financial 
         and Economic Literacy Caucus, Washington, DC.
       Dear Representatives Biggert and Hinojosa: We are writing 
     to express our support for H. Res. 737, ``Supporting the 
     goals and ideals of Financial Literacy Month.'' The 
     resolution is an important step in raising awareness among 
     individuals, policymakers, and institutions about the need 
     for

[[Page H1488]]

     a more competent, financially literate country.
       A lack of basic money-management skills is widespread among 
     Americans. Over a quarter of our population have not received 
     adequate financial literacy education in order to manage 
     household finances. Personal bankruptcies increased 19% in 
     2002 over 2001, and increased by over 10% in 2003 with young 
     adults between 20 and 24 representing the fastest growing 
     segment of bankruptcy filings. In 2004, America's teenagers 
     scored a failing grade in basic financial literacy knowledge, 
     and more people filed for bankruptcy than graduated from 
     college. Now more than ever, there is a critical need for 
     research-based financial literacy educational programs to 
     reach individuals at all age and socioeconomic levels, 
     particularly in the early years. Our nation's educational 
     systems are an effective conduit through the use of quality 
     programming with a common set of educational standards, pre- 
     and post-education assessment tools, effective training 
     programs for educators, and materials which appropriately 
     serve various segments of adult and child populations. The 
     goal of these efforts is to develop an adult population of 
     consumers that have adequate skills and confidence for making 
     day-to-day financial decisions, and planning for their 
     financial futures.
       Thank you again for introducing H. Res. 737. Your continued 
     leadership and commitment to financial literacy is essential 
     to raise awareness of the need to implement a national 
     strategy, and improve the money, credit, and debt management 
     skills of all individuals.
           Sincerely,
                                                         Liz Coit,
     Executive Director.
                                  ____

                                                   Law Department,


                                     MasterCard International,

                                      Purchase, NY, April 4, 2006.
     Hon. Judy Biggert,
     House of Representatives,
     Washington, DC.
     Hon. Ruben Hinojosa,
     House of Representatives,
     Washington, DC.
       Dear Congresswoman Biggert and Congressman Hinojosa: I am 
     writing to communicate MasterCard's dedication and commitment 
     to increasing financial literacy rates, and we commend the 
     efforts of you and your colleagues on H.R. 737. This bill is 
     yet another example of your admirable devotion to this 
     critical issue.
       MasterCard International will continue consumer education 
     during Financial Literacy Month by hosting activities across 
     the country that help Americans successfully manage their 
     personal finances. Events include the launch of the Spanish 
     language version of our Debt Know How web site 
     (www.debtknowhow.com), activities with policymakers on 
     Capitol Hill that showcase MasterCard's consumer education 
     programs, and a debt training seminar at the 2006 California 
     Summit on Financial Literacy.
       Please let us know if we can ever be of assistance to you 
     or your staff.
           Sincerely,

                                                Joshua Peirez,

                                           Senior Vice President &
     Associate General Counsel.
                                  ____


   ICBA Applauds Resolution Declaring April Financial Literacy Month

       Washington, D.C. (April 5, 2006).--The Independent 
     Community Bankers of America (ICBA) strongly supports the bi-
     partisan resolution passed by the U.S. House of 
     Representatives today designating April as ``Financial 
     Literacy Month.''
       ``Managing money wisely is critical to success in life,'' 
     said Terry J. Jorde, ICBA chairman and president and CEO of 
     CountryBank USA in Cando, N.D. ``Too many Americans lack the 
     skill and knowledge to make appropriate financial decisions. 
     The more consumers know, the better they are at managing 
     their finances and the better they manage their finances the 
     more likely they are to enjoy a secure financial future.''
       ICBA has an on-going commitment to financial literacy 
     programs, encouraging community banks to provide programs 
     within their communities, as well as forging government, 
     nonprofit and private-sector partnerships such as the FDIC 
     Money Smart program.
       ``We commend Reps. Judy Biggert (R-Ill.) and Ruben Hinojosa 
     (D-Tex.) for introducing a resolution that calls for the 
     federal, state and local government, as well as schools, 
     businesses and other groups to observe Financial Literacy 
     Month,'' said Camden R. Fine, ICBA president and CEO 
     ``Financial education is important for today's consumers to 
     understand and make decisions when faced with the complex 
     array of financial products and services available.''
       For more information, visit the consumer education and 
     resources section of www.icba.org.
 ____

                                                      Credit Union


                                         National Association,

                                    Washington, DC, April 3, 2006.
     Hon. Ruben Hinojosa,
     Rayburn House Office Building,
     Washington, DC.
       Dear Representative Hinojosa: On behalf of the Credit Union 
     National Association (CUNA), which represents 87 million 
     credit union members, I would like to thank you for your 
     introduction of H. Res. 737, which supports the goals and 
     ideals of Financial Literacy Month.
       CUNA strongly supports H. Res. 737 which supports financial 
     literacy initiatives by calling on schools, nonprofit 
     organizations, businesses, government entities on the 
     federal, state, and local levels, and citizens to observe the 
     month with appropriate programs and activities.
       To aid in this endeavor, CUNA establishes a yearly National 
     Credit Union Youth Week, this year scheduled to take place 
     April 23rd--29th. To date, 278 credit unions have committed 
     to participating in CUNA's Youth Savings Challenge for that 
     week, and are estimating to tally 50,000 youth deposits 
     valued at $3.6 million.
       CUNA provides financial literacy resources to credit unions 
     year-round to assist young people and help them manage their 
     own money wisely, and has partnered with the National 
     Endowment for Financial Education (NEFE) and the Cooperative 
     Extension Service to provide schools with free workbooks on 
     financial literacy that can easily fit into an existing 
     curriculum. Many credit unions have volunteered their time to 
     teach the materials to better prepare students for college, 
     covering issues such as credit cards, interest, minimum 
     payments, and checking accounts. Additionally, CUNA recently 
     developed a program called ``Thrive by Five'' which offers 
     free materials on our website for parents to work with pre-
     school aged children on basic financial concepts such as 
     spending and saving.
       Again, CUNA and its member credit unions strongly support 
     H. Res. 737, as well as your leadership with the 
     Congressional Caucus on Financial and Economic Literacy. We 
     look forward to working with you and greatly appreciate your 
     efforts to bring financial literacy to students nationwide.
           Sincerely,
                                                   Daniel A. Mica,
     President & CEO.
                                  ____

                                               Independent Bankers


                                         Association of Texas,

                                        Austin, TX, April 3, 2006.
     Hon. Ruben Hinojosa,
     House of Representatives,
     Washington, DC.
       Dear Congressman Hinojosa: I am pleased that House 
     Resolution 737, which strongly supports the important and 
     admirable goal of financial literacy for our citizens, is 
     scheduled for a vote on the House floor this week.
       As you are aware, The Independent Bankers Association of 
     Texas (IBAT) is committed to improving and enhancing the 
     financial well-being of all Americans, and strongly believes 
     that financial literacy initiatives targeting all age and 
     socio-economic groups is a key component for success. Indeed, 
     our association, through our Main Street Foundation, has 
     worked with a number of partners to further this important 
     cause, and we and our member banks will continue to focus on 
     this vital issue.
       We applaud you for your leadership in this area, and 
     appreciate all the good work you and your fine staff have 
     done to heighten the awareness of financial literacy.
       All of us at IBAT look forward to working with you and your 
     colleagues on this important issue.
           Sincerely,
                                         Christopher L. Williston,
     President and CEO.
                                  ____

                                                     The Financial


                                         Planning Association,

                                    Washington, DC, April 4, 2006.
     Re H.R. 737.

     Hon. Ruben Hinojosa,
     House of Representatives,
     Washington, DC.
       Mr. Hinojosa: The Financial Planning Association (FPA) 
     would like to voice its support for House Resolution 737, 
     which you are co-sponsoring and which was introduced on March 
     28, 2006, in support of the goals and ideals of Financial 
     Literacy Month.
       Our 28,000 members are well situated to understand the 
     vital importance of personal financial education for all 
     Americans. We believe that qualitative individual financial 
     security must be built on a foundation of education and 
     financial literacy.
       In the context of rising personal debt and lower individual 
     savings, there has seldom been a time of greater need for 
     financial literacy. It is against that backdrop that we 
     heartily support the introduction of H.R. 737, and hope your 
     congressional colleagues and the President will share your 
     enthusiastic support of financial literacy for all people.
           Sincerely,
                                                Daniel B. Moisand,
                                                    FPA President.

  Mr. 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. At present several of these financial literacy 
programs are operating in my district.
  The Security Industry Association's Stock Market Game is one of such 
programs. I am proud that my district was chosen again this year to 
participate in the SIA's second annual ``Capitol Hill Challenge'' Stock 
Market Game. This year the game is being played by many

[[Page H1489]]

more districts across the United States so that the competition amongst 
the students is daunting.
  To meet the challenge, I selected La Feria High School, located in 
Cameron County, to participate in this program. I wish them well and 
want to let them know that I am rooting for them.
  Numerous programs exist to improve financial literacy. Recently, I 
reviewed Jump$tart's Web site and found more than 500 financial 
literacy programs. While this means that many groups and individuals 
are working towards the goal of improving financial literacy rates, it 
also means that more coordination and collaboration amongst the 
programs and the groups are needed.
  Mr. Speaker, yesterday the Financial Literacy Economic Commission 
released its National Strategy for Financial Literacy. While they were 
behind schedule, the report contains some good ideas, especially public 
service announcements and a public media campaign. Although it is a 
good start, much remains to be done. Other actions need to be taken and 
different venues need to be employed to achieve our goal. I remain 
committed to convince our appropriators that they should provide at 
least $3.5 million for the multimedia campaign.
  With our savings rate currently at a negative .2 percent, or two-
tenths of 1 percent, I believe that $3.5 million is a paltry sum if we 
are to improve financial literacy rates in this country. The funds are 
also needed to afford the multimedia campaign the ability to educate 
our constituents who remain subject to predatory lenders, potential 
identity theft from increasing data breaches, and much more.
  Mr. Speaker, last month the House Financial Services Committee agreed 
to hold a hearing on the National Strategy on Financial Literacy as 
required by title V of the FACT Act. This is a crucial step towards 
reaching our goals.
  I want to take this opportunity to again thank my friend 
Congresswoman Biggert and her staff, Nicole Austin and Brian Colgan, 
for working with us on today's legislation. I look forward to 
continuing my collaboration with Mrs. Biggert on any and all efforts 
that will increase public awareness of the need to improve financial 
literacy, to promote programs that increase financial literacy for all 
during all stages of life, and significantly improve financial literacy 
rates across the country. We are already moving forward on this, and we 
will host our annual Financial Literacy Day Fair April 25 with 
Jump$tart, with Junior Achievement, and the National Council on 
Economic Education and together with Senator Daniel Akaka. The fair is 
open to the public and will be held from noon to 5 p.m. in the Senate 
Hart building. I have learned that more than 40 vendors will be sharing 
their financial literacy products with those who attend the event, and 
I encourage all my colleagues and all of their staffs and the public to 
attend the event.
  I urge my colleagues to support this legislation.
  Mr. WESTMORELAND. Mr. Speaker, I yield such time as she may consume 
to the distinguished gentlewoman from the State of Illinois (Mrs. 
Biggert), the author of the bill.
  Mrs. BIGGERT. Mr. Speaker, I thank the gentleman from Georgia for 
yielding me the time.
  Mr. Speaker, I rise today in support of House Resolution 737 to 
designate April as Financial Literacy Month. This is the third year 
that I have introduced this resolution with my colleague from Texas 
(Mr. Hinojosa) to raise public awareness about the importance of 
financial education in the United States.
  The state of financial literacy among our citizens may not garner 
much in the way of headlines, but it is an issue that should command 
our attention. It is a problem that is serious and urgent but is one 
that could be solved through education, and that is why I urge my 
colleagues to support this resolution.
  In 2003 I worked with my colleagues and again Mr. Hinojosa to 
establish within the Fair and Accurate Credit Transaction Act, or the 
FACTA, the Financial Literacy and Education Commission. We tasked the 
commission with establishing a Web site, a toll-free hotline, and a 
national financial literacy strategy. I am happy to say that the 
commission immediately launched www.mymoney.gov and 1-888-MYMONEY, and 
just yesterday it unveiled the national strategy report.
  It is called ``Taking Ownership of the Future: The National Strategy 
for Financial Literacy.'' And it highlights best practices and outlines 
outreach and education goals for the public and private sectors. I 
would urge my colleagues to go to mymoney.gov and take a look at the 
report. It is a great roadmap for how Americans can improve their 
understanding of issues such as credit management, savings, and 
homeownership. It is my hope that this national strategy can serve as a 
focal point for the hundreds of groups out there who are stepping up to 
the plate on financial literacy. There are so many issues and so many 
groups of individuals who need help and want to help.
  Since my colleague Mr. Hinojosa and I founded the Financial and 
Economic Literacy Caucus, which now has 68 Members of Congress, 
literally hundreds, if not a thousand, not-for-profit groups and 
private sector organizations have called us to offer their help or tell 
us about their financial literacy programs.
  And I would like to take a moment to insert into the Congressional 
Record letters of support for these resolutions from four such 
organizations.
                                      Networks Financial Institute


                                  at Indiana State University,

                                   Terre Haute, IN, April 4, 2006.
     Hon. Judy Biggert,
     House of Representatives, Co-Founder and Co-Chair, Financial 
         and Economic Literacy Caucus, Washington, DC.
     Hon. Ruben Hinojosa,
     House of Representatives, Co-Founder and Co-Chair, Financial 
         and Economic Literacy Caucus, Washington, DC.
       Dear Representatives Biggert and Hinojosa: We are writing 
     to express our support for H. Res. 737, ``Supporting the 
     goals and ideals of Financial Literacy Month.'' The 
     resolution is an important step in raising awareness among 
     individuals, policymakers, and institutions about the need 
     for a more competent, financially literate country.
       A lack of basic money-management skills is widespread among 
     Americans. Over a quarter of our population have not received 
     adequate financial literacy education in order to manage 
     household finances. Personal bankruptcies increased 19% in 
     2002 over 2001, and increased by over 10% in 2003 with young 
     adults between 20 and 24 representing the fastest growing 
     segment of bankruptcy filings. In 2004, America's teenagers 
     scored a failing grade in basic financial literacy knowledge, 
     and more people filed for bankruptcy than graduated from 
     college. Now more than ever, there is a critical need for 
     research-based financial literacy educational programs to 
     reach individuals at all age and socioeconomic levels, 
     particularly in the early years. Our nation's educational 
     systems are an effective conduit through the use of quality 
     programming with a common set of educational standards, pre- 
     and post-education assessment tools, effective training 
     programs for educators, and materials which appropriately 
     serve various segments of adult and child populations. The 
     goal of these efforts is to develop an adult population of 
     consumers that have adequate skills and confidence for making 
     day-to-day financial decisions, and planning for their 
     financial futures.
       Thank you again for introducing H. Res. 737. Your continued 
     leadership and commitment to financial literacy is essential 
     to raise awareness of the need to implement a national 
     strategy, and improve the money, credit, and debt management 
     skills of all individuals.
           Sincerely,
                                                         Liz Coit,
     Executive Director.
                                  ____

                                         North American Securities


                             Administrators Association, Inc.,

                                    Washington, DC, April 4, 2006.
     Hon. Judy Biggert,
     House of Representatives,
     Washington, DC.
     Hon. Ruben Hinojosa,
     House of Representatives,
     Washington, DC.
       Dear Congresswoman Biggert and Congressman Hinojosa: On 
     behalf of NASAA thank you for introducing H. Res. 737, which 
     supports the goals and ideals of Financial Literacy Month. As 
     the Resolution details, the need for financial education in 
     the United States has never been greater. With a majority of 
     American investing in our capital markets, there is a growing 
     obligation to ensure our citizens are equipped with a basic 
     understanding of the principles of savings and investing and 
     the ability to recognize and avoid financial fraud.
       State securities regulators have a long tradition of 
     protecting investors through education, and many have 
     established an investor education department within their 
     regulatory agency. Several years ago, recognizing the 
     importance of financial literacy

[[Page H1490]]

     to the prevention of fraud and abuse, the NASAA Board of 
     Directors created an Investor Education Section to develop 
     and support financial literacy and education programs to be 
     delivered at the state level.
       As part of the effort to educate our nation's youth, in 
     April, state securities division staffs will join in 
     celebrating ``Financial Literacy Month'' by visiting schools 
     throughout their state to teach students about personal 
     finance, the capital markets, investment choices and fraud.
       Reaching out to our young citizens is just one component of 
     the ongoing financial education effort undertaken by state 
     securities regulators. We are dedicated to improving 
     financial literacy for our constituents of all ages, 
     recognizing that financial education has a direct impact on 
     the economic health of our families, communities, states and 
     this country overall.
       We commend you for your continued efforts to draw attention 
     to the importance of financial literacy programs. Please 
     contact Daphne Smith, Tennessee Securities Commissioner and 
     Chair of NASAA's Investor Education Section, or Deborah House 
     in NASAA's corporate office if we may be of further 
     assistance to you. We look forward to continuing our work 
     with you and your offices on this particular issue.
           Sincerely,

                                           Patricia D. Struck,

                                                  NASAA President,
     Wisconsin Securities Administrator.
                                  ____



                                             Visa U.S.A. Inc.,

                                    Washington, DC, April 4, 2006.
     Hon. Judy Biggert,
     House of Representatives,
     Washington, DC.
     Hon. Ruben Hinojosa,
     House of Representatives,
     Washington, DC.
       Dear Representatives Biggert and Hinojosa: I am writing to 
     commend you for introducing H. Res. 737, a ``Resolution 
     Supporting the Goals of Financial Literacy Month.''
       Visa, through its ``Practical Money Skills for Life'' 
     program, has been working to expand and improve financial 
     literacy for youth in schools, as well as consumers at all 
     stages of life. This is an award-winning comprehensive 
     educational program, which includes interactive, computer 
     based activities, as well as plans that can be used by 
     teachers to deliver financial literacy lessons in the 
     classroom. We developed Practical Money Skills for Life in 
     close consultation with educational and nonprofit financial 
     literacy organizations. These materials are available for 
     free through the Internet at http://
www.practicalmoneyskills.com/.
       We look forward to working with you, the House Financial 
     and Economic Literacy Caucus, the Financial Literacy and 
     Education Commission, and other policymakers, to advance this 
     very important cause.
       Thank you again for your leadership on this critical issue.
           Sincerely,

                                               Lisa B. Nelson,

                                 Senior Vice President & Director,
     Government Relations.
                                  ____

                                                   Law Department,


                                     MasterCard International,

                                      Purchase, NY, April 4, 2006.
     Hon. Judy Biggert,
     House of Representatives,
     Washington, DC.
     Hon. Ruben Hinojosa,
     House of Representatives,
     Washington, DC.
       Dear Congresswoman Biggert and Congressman Hinojosa: I am 
     writing to communicate MasterCard's dedication and commitment 
     to increasing financial literacy rates, and we commend the 
     efforts of you and your colleagues on H.R. 737. This bill is 
     yet another example of your admirable devotion to this 
     critical issue.
       MasterCard International will continue consumer education 
     during Financial Literacy Month by hosting activities across 
     the country that help Americans successfully manage their 
     personal finances. Events include the launch of the Spanish 
     language version of our Debt Know How Web site 
     (www.debtknowhow.com), activities with policymakers on 
     Capitol Hill that showcase MasterCard's consumer education 
     programs, and a debt training seminar at the 2006 California 
     Summit on Financial Literacy.
       Please let us know if we can ever be of assistance to you 
     or your staff.
           Sincerely,

                                                Joshua Peirez,

                                           Senior Vice President &
                                        Associate General Counsel.

  Mr. Speaker, I would also like to thank some of the people in my home 
State of Illinois who have demonstrated their commitment to educating 
Americans of all ages about savings and finance: Susan Beecham, founder 
of Money Savvy Generation and the inventor of my favorite financial 
literacy tool, the Money Savvy Pig; and then there is Joanne Dempsey, 
Illinois Council on Economic Education; and one of my good friends, the 
other Judy from Illinois, Illinois State Treasurer Judy Baar Topinka.
  Mr. Speaker, most of our States do not require schools to have 
financial literacy programs, and the majority of students failed a 
basic financial literacy exam. Many eighth graders do not know the 
difference between cash, checks, and credit cards. And most college 
students have at least one credit card with a large unpaid cash 
balance. Adults have not fared very well either, and the number of 
``unbanked'' households in the United States is estimated to be close 
to 10 million.
  Studies show that Americans are not saving for life's expensive, and 
at times unexpected, needs such as education, retirement, and health 
care. Now is the time for us to encourage our children and adults to 
learn about finance and economics and engage in good budget and long-
term savings habits.
  I want to thank my distinguished colleague and friend, the gentleman 
from Texas (Mr. Hinojosa), for his dedication to this issue 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 cosponsoring this resolution and moving it through his 
committee. And I would especially like to thank the gentleman from 
Georgia for managing this resolution and my colleague from Illinois 
(Mr. Davis) for managing the resolution. And last I would like to thank 
the gentleman from California (Mr. Dreier) and the gentlewoman from 
Connecticut (Mrs. Johnson) for their support of the resolution and 
their commitment to financial literacy.
  Mr. DAVIS of Illinois. Mr. Speaker, I yield myself such time as I may 
consume.
  I want to commend my colleagues, Representatives Biggert and 
Hinojosa, for the outstanding work that they continue to do in this 
important area.
  The importance of financial and fiscal responsibility cannot be 
overstated. Personal financial literacy 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. And that is why I am pleased to support 
H. Res. 737, introduced by Representative Biggert of our great State, 
that is, the State of Illinois.
  Personal savings as a percentage of personal income decreased from 
7.5 percent in the early 1980s to a negative 0.2 percent in the last 
quarter of 2005. As the resolution notes, 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.
  The Jump$tart Coalition for Personal Financial Literacy seeks to 
improve the personal financial literacy of young adults. Jump$tart's 
purpose is to evaluate the financial literacy of young adults; develop, 
disseminate, and encourage the use of financial education standards for 
grades K-12; and promote the teaching of personal finance.

                              {time}  1315

  To that end, Jump$tart has established 12 must-know personal finance 
principles for young people to improve their financial future. It would 
not hurt if adults also followed these 12 steps as well.
  The 12 financial principles stressed during Financial Literacy Month 
for Youth are 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, to 
determine how long it would take your money to double, divide the 
interest into 72; your credit past is your credit future; start saving 
young; stay insured; budget your money; do not borrow what you cannot 
repay; and let me add one more, especially since the 15th is not too 
far away, pay all of your taxes.
  Mr. Speaker, I am pleased to support this resolution supporting the 
goals of financial literacy month, and urge all of my colleagues to 
support it.
  Mr. Speaker, I reserve the balance of my time.
  Mr. WESTMORELAND. Mr. Speaker, I yield such time as he may consume to 
my distinguished colleague from the State of California (Mr. Dreier), 
the chairman of the powerful Rules Committee.
  (Mr. DREIER asked and was given permission to revise and extend his 
remarks.)

[[Page H1491]]

  Mr. DREIER. Mr. Speaker, I thank my friend for yielding, and 
congratulate him and his colleagues on the Government Reform and 
Oversight Committee for their hard work on this important issue.
  As I look around the Chamber, Mr. Speaker, I, of course, want to say 
that this Illinois nexus here between Davis and Biggert is obviously a 
great one and very committed to the issue of financial literacy, and my 
good friend from Texas, Ruben Hinojosa, has done so much to further 
this cause.
  I want to say that I remember it was probably a decade ago that Mr. 
Pomeroy and I stood here beginning to focus attention on this issue. I 
want to again say how much I appreciate the fact that Mrs. Biggert and 
Mr. Hinojosa have led the charge here. I believe that this resolution 
is very deserving of our support. I see my friend Eddie Bernice Johnson 
here as well, so I suspect she is supportive of this, and Mr. Sherman 
and others.
  I do believe if we look at where we are as a Nation today, it is 
amazing what the 21st century has wrought. We are all so supportive of 
these dramatic changes that have been made, improving the quality of 
life and the standard of living for people. But one of the things we 
point to is the fact we see this emerging investor class; 56.7 million 
American families are today members of the investor class.
  What has all of this technological change brought about? Well, one 
thing is the explosion of the access to all kinds of different 
financial products and services out there. Many of them are offered to 
young people who, unfortunately, don't really have much of a grasp or 
understanding of financial responsibility and financial literacy.
  That is why what we are doing here today is the right thing. In fact, 
I am very pleased to see that the Commission on Financial Literacy that 
has been put into place just yesterday made the decision to move ahead 
with positive methods of education advancing this cause.
  If we are going to see the number of investors in the United States 
of America grow, and as we want to continue to see the standard of 
living increase for so many people, with that obviously comes 
responsibility. As people take on responsibility, the best way for them 
to do it is if they have the kind of literacy that is necessary in 
dealing with this explosion of financial products and services that are 
out there.
  So, I simply want to say congratulations. Here we are, trying to 
encourage education in science, technology, engineering and math, the 
STEM Program we were talking about just last week, and as well we are 
proceeding with the work on our very important higher education bill, 
and key to that is our quest to ensure that people understand these 
different financial products that are there.
  Mr. Speaker, I congratulate my colleagues who have been so involved 
in this, and I hope very much that we will be able to have strong 
support for this measure. I hope we have unanimous passage of it. We 
will be able to at that point see a greater understanding and an 
enhancement of these toll-free numbers that are out there and all the 
other educational tools that my friend Mrs. Biggert talked about.
  With that, I encourage strong support for the resolution.
  Mr. DAVIS of Illinois. Mr. Speaker, I yield such time as she may 
consume to the gentlewoman from California (Ms. Loretta Sanchez).
  Ms. LORETTA SANCHEZ of California. Mr. Speaker, I thank the gentleman 
from Illinois. I rise in strong support of H. Res. 737, supporting the 
goals and the ideal of Financial Literacy Month.
  Mr. Speaker, we need to care more about financial literacy in this 
country and making sure our constituents have the tools to be 
responsible consumers, to make them good savers and to make them great 
investors.
  In a new survey conducted by the Financial Literacy Forum, two of 
every five Americans say they know only some, little or not much about 
how to manage their finances and only 10 percent of college students 
have had financial education in high school. We used to learn financial 
skills at home or at school, but now Americans aren't even being taught 
these crucial life skills in either place.
  Now, more than ever before, we Americans need to be financially 
literate. The average American family spends $200,000 to raise a child 
to the age of 18, and yet the United States savings rate barely breaks 
above 1 percent. The cost of education, as everyone knows, is 
skyrocketing. Undergraduate students have an average credit card 
balance of about $3,000.
  I am not saying that greater financial literacy will solve all of our 
problems, but it will help people to manage their financial issues 
better. Sound financial knowledge helps individuals prepare to own a 
home, to save for retirement, to protect themselves from fraud, to 
start a business, to plan for college. And the benefits of financial 
literacy accrue not just to the individual, but to our communities as 
well. The more people in our communities save, the more they can 
invest, the more they can create business, the more we create and build 
America. Financial literacy is really the cornerstone to lasting wealth 
creation. And, above all, remember it is not how much you make, it is 
what you do with the money you get.
  So I would like to thank my colleagues again for introducing this 
important legislation, and I would urge the House to support H. Res. 
737.
  Ms. JONES of Ohio. Mr. Speaker, making thoughtful and informed 
decisions about your finances is more important than ever. Financial 
literacy and education are the foundation for wealth building. Being 
knowledgeable of the different financial products available leads to 
increased wealth among individuals and families and is key to 
stimulating the economy.
  There are many more aspects of financial literacy than knowing how to 
open and maintain a savings or checking account. In today's society, 
increasingly more adults, young and old participate in financial 
decision making including, life insurance coverage, 401(k)s, stocks, 
business, investments, credit cards, mortgage loans, and automobile 
financing.
  I believe that financial literacy should be taught at an early age. 
Parents should instill in their young children the value of saving and 
investing. According to the American Bankruptcy Institute, more young 
people filed for bankruptcy than graduated from college in 2001. In 
addition, personal bankruptcy filings were up 7.4 percent last year.
  There are several programs like JumpStart, which are geared toward 
teaching children and young adults the basics of financial management. 
The JumpStart Organization in Ohio was recently awarded a $10,000 grant 
from The McGraw-Hill Companies to launch Financial Literacy for 
Teachers Training Workshops for Pre-Teachers and Teacher Training in 
Personal Finance Basics in five different regions in Ohio. This grant 
will equip them with the knowledge, tools, skills and resources to 
instruct their students to develop personal financial skills and to 
enable them to apply money management skills effectively in their 
everyday lives.
  Surprisingly, half of all Americans are living paycheck to paycheck. 
In addition, 40 percent of Americans say they live beyond their means. 
I realize it is often more difficult for lower income individuals and 
those who live on a month to month basis to save, but one would be 
surprised how much a small weekly or monthly saving could accumulate 
over a period of time if it is allowed to grow.
  I am pleased to be a cosponsor of this resolution, and urge my 
colleagues on the House and Senate to pass this important measure.
  Mr. HOLT. Mr. Speaker, I rise in support of H. Res. 737, which would 
support the goals and ideals Financial Literacy Month, among them 
raising public awareness about the importance of financial literacy.
  As many of my colleagues are aware, borrowing--particularly on 
credit--has increased dramatically in recent years, while private 
savings have fallen. At the end of 2004, Americans carried 657,000,000 
bank credit cards, 228,000,000 debit cards, and 550,000,000 retail 
credit cards--that comes to 6.3 bank credit cards, 2.2 debit cards, and 
6.4 retail credit cards per household. The household debt of United 
States citizens climbed to $11,000,000,000 by the close of the third 
quarter of 2005. Meanwhile, personal savings as a percentage of 
personal income have decreased from 7.5 percent in the early 1980s to 
negative 0.5 percent in 2005, the first year that the rate has been 
negative since the Great Depression.
  My colleagues are familiar with these statistics and the problems 
that such trends create for our economy, among them our low current 
accounts balance and our oft-cited trade deficit.
  Americans should be familiar with the financial tools and strategies 
that can reverse these trends--tools and strategies made available by 
programs like Financial Literacy Month. By working to improve the 
financial literacy of people from all ages and walks of life, we can

[[Page H1492]]

help high school and college students prepare themselves for more 
responsible adult lives, help parents continue to provide for their 
children, and help retirees create sustainable plans for their golden 
years. Greater financial literacy will reduce the number of Americans 
forced to file for bankruptcy, increase the nation's private savings, 
and empower more Americans to make informed decisions in an 
increasingly complex market. Altogether, it will spur growth in our 
nation's economy.
  In New Jersey, our credit unions have come together with the 
Department of Banking and Insurance for initiatives like the New Jersey 
Financial Literacy Awareness Network (NJFLAN) to help New Jerseyans 
better understand and manage their finances. NJFLAN partners with 
community organizations, schools, corporations, and financial 
institutions to distribute multilingual educational materials. The New 
Jersey Credit Union also set up a grant-making foundation to back 
initiatives to improve financial literacy within our state. These are 
two examples of positive, practical efforts that can be made at the 
state and district levels to further the goals and ideals of Financial 
Literacy Month.
  I am proud to cosponsor this resolution and urge my colleagues to 
pass this resolution today.
  Mr. BACA, Mr. Speaker, I rise in recognition of Financial Literacy 
Month and in full support of H. Res. 737, which I have cosponsored. As 
a member of the Congressional Financial and Economic Literacy Caucus, I 
encourage all of my colleagues to use this time to raise awareness 
about the importance of financial education and to support efforts that 
prepare Americans with the skills and know-how they need to manage 
money, credit and debt.
  I'd also like to take this time to call attention to an important 
consumer issue that is affecting millions of Americans all across the 
nation.
  Among the most vital pieces of information that can prepare 
individuals to make informed financial decisions is a credit report. 
Understanding one's credit report plays a key role in home-ownership 
readiness, increasing financial literacy, and monitoring for identity 
theft and or/fraud.
  In recognition of the important role a credit report plays in 
enhancing financial literacy and combating identity theft, Congress 
passed legislation that entitles all consumers to one free credit 
report each year.
  However, since the law's passage in 2003 nearly 30 million Latinos 
within the United States including almost 3 million in Puerto Rico--who 
have limited English language skills, are being excluded from this new 
right. They cannot obtain access because the system to order free 
credit reports--a website and toll-free hotline--is only available in 
English. As a result, millions are denied this information, which is 
essential to making informed financial decisions and to guarding 
against identity theft.
  Identity theft is a serious and pervasive crime that affects millions 
of American families. According to a recent study by the Department of 
Justice, an estimated 3.6 million U.S. households--or about 3 out of 
every 100--were victims of identity theft in 2004.
  During last month's markup of the Financial Data Protection Act (H.R. 
3997) in the House Financial Services Committee, I called on America's 
leading credit bureaus to implement new procedures and services to help 
Spanish speakers obtain copies of their free credit report, understand 
the financial information it contains and learn about ways they can 
guard against identity theft, detect it or take corrective action if 
they discover they have been victimized. The right to a free credit 
report is a right for all consumers. In order for tens of millions of 
Spanish speakers to gain access, the system for ordering free credit 
reports must be made available in Spanish.
  Last week, members of the Congressional Hispanic Caucus, of which I 
am First Vice Chair, met with executives from Equifax, Experian and 
TransUnion to discuss this issue and to ask them to take additional 
steps to protect Latinos who have limited English language skills. The 
CHC will continue to monitor this issue to ensure their full compliance 
with the law. They must be held accountable.
  I urge my colleagues to support the adoption of H. Res. 737 and 
encourage all members to support the ideals and goals of Financial 
Literacy Month.
  Mrs. JOHNSON of Connecticut. Mr. Speaker, in an era when Americans' 
dependence on federal entitlements is increasing, when the number of 
Americans filing for personal bankruptcy rose an astounding 30 percent 
in the past year, and when our national savings rate is at its lowest 
point since the Great Depression, it is imperative that our Nation's 
youth understand the importance of long-term financial planning, 
particularly personal savings and investment.
  We need young Americans to develop basic financial skills and 
knowledge to help them prepare for their future. They need to learn and 
understand basic principles such as compound interest, market 
capitalization, and how to avoid credit card debt. Learning simple 
concepts such as these during childhood cultivates lifelong habits of 
responsible financial management.
  In particular, we must emphasize the value of investing early. We 
must stress the significance of tax-advantaged savings opportunities 
such as Roth IRA's, Health Savings Accounts, and 401(k) contribution 
plans offered by employers--especially when a match is offered--as well 
as numerous other vehicles for building substantial nest eggs for 
retirement.
  Improving the financial literacy of our youth will equip the American 
workforce of tomorrow with the tools to grow our national economy and 
to achieve personal financial success and security in retirement. I 
urge my colleagues to join me in offering House Resolution 737 their 
full support.
  Mr. DAVIS of Illinois. Mr. Speaker, I yield back the balance of my 
time.
  Mr. WESTMORELAND. Mr. Speaker, I urge all Members to support the 
adoption of House Resolution 737, and I yield back the balance of my 
time.
  The SPEAKER pro tempore (Mr. Boozman). The question is on the motion 
offered by the gentleman from Georgia (Mr. Westmoreland) that the House 
suspend the rules and agree to the resolution, H. Res. 737.
  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. 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 question will 
be postponed.

                          ____________________