[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.
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