[Congressional Record Volume 152, Number 48 (Thursday, April 27, 2006)]
[Extensions of Remarks]
[Pages E658-E660]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




      SUPPORTING THE GOALS AND IDEALS OF FINANCIAL LITERACY MONTH

                                 ______
                                 

                               speech of

                          HON. RUBEN HINOJOSA

                                   of

                    in the house of representatives

                       Wednesday, April 15, 2006

  Mr. HINOJOSA. Mr. Speaker, 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. 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. 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.
  A March 2005 GAG report 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 GAG's survey, including 
those with less education, lower incomes, and less experience obtaining 
credit. 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. In February 2005, 
Congresswoman Judy Biggert (R-IL) and I co-founded, and currently co-
chair, the Financial and Economic Literacy Caucus, FELC, 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. The Caucus has been a success.
  I would like to submit for the Record the following letters in 
support of a bill Congresswoman Biggert and I co-sponsored and that 
passed the House: H. Res. 737, a bill Recognizing the Goals and Ideals 
of Financial Literacy Month that falls in April of each year. The bill 
was reported to the House favorably by the Committee on Government 
Reform and passed the House on April 6, 2006 by a recorded vote of 423-
1. The documents I am submitting today include letters of support for 
H. Res. 737 from the Federal Trade Commission and the National 
Association of Insurance Commissioners. I am also submitting for the 
Record three letters in support of Financial Literacy Month. They 
include a letter from the President, George W. Bush, Rick Perry, 
Governor of the State of Texas, and the Southeast Regional Financial 
Education Center.

[[Page E659]]

                                     Federal Trade Commission,

                                                    Washington, DC
       Dear Member of Congress: Thank you for co-sponsoring House 
     Resolution 737, designating April 2006 as ``Financial 
     Literacy Month'' to raise public awareness about the 
     importance of financial education in the United States, and 
     calling on various public and private entities to observe the 
     month with appropriate programs and activities.
       Measures such as this help boost consumer education 
     programs the Federal Trade Commission has developed for 
     fostering a national ``culture of financial smarts,'' where 
     all individuals can take steps towards personal financial 
     stability and contribute to a healthy national economy. Along 
     these lines, the FTC's Office of Congressional Relations 
     wanted to share with you new resources launched for Financial 
     Literacy Month that are available for supporting your 
     outreach programs.
       Enclosed please find the FTC's ``Focus on Finances'' 
     booklet, which we have modified from a newspaper supplement 
     that ran in The Washington Times. As you will see, the 
     booklet serves as a guide for young adults, entering a new 
     phase in their lives in facing new financial challenges and 
     opportunities. From new college students to graduates 
     entering the work force, this guide focuses on issues that 
     all consumers are faced with: credit, budgeting, debt, and 
     identity theft.
       We hope you will agree this booklet will be a valuable tool 
     for distribution via district offices or as handouts at 
     community events. The publication can be printed out via the 
     FTC's Web site at www.ftc.gov/bcp/conline/pubs/misc/
nie0406.pdf, or you can contact me, Derick Rill, at my e-mail 
     [email protected], or via phone at 202-326-3007.
       Beyond the FTC's Focus on Finances booklet, the FTC has a 
     wide range of consumer education resources we think you will 
     agree can serve to help your constituents, and we are happy 
     to discuss with your staff ideas for newsletter items, Web 
     site assistance areas, town hall events and more. See the 
     reverse side of this document for details.
       Thank you again for being a part of Financial Literacy 
     Month and please let us know how we can best help your office 
     reach the goals that your resolution set stressing the 
     importance of financial education for all Americans. We look 
     forward to working with you in the future. Please call us at 
     FTC anytime we can be of service.
           Sincerely,
                                                      Derick Rill,
     Congressional Outreach Specialist.
                                  ____

                                           National Association of


                                      Insurance Commissioners,

                                                   April 14, 2006.
     Hon. Judy Biggert,
     House of Representatives,
     Washington, DC.
     Hon. Rubin Hinojosa,
     House of Representatives,
     Washington, DC.
       Dear Congresswoman Biggert and Congressman Hinojosa: On 
     behalf of the National Association of Insurance Commissioners 
     (NAIC), we write to commend your leadership and commitment to 
     financial and economic literacy. The NAIC shares and embraces 
     the goals of H. Res. 737, a Resolution Supporting the Goals 
     and Ideals of Financial Literacy Month, and offers our 
     support for your continued efforts to raise public awareness 
     about the importance of financial education in the United 
     States.
       On March 28, the NAIC launched a comprehensive public 
     education program to assist consumers with information about 
     insurance issues. Under the banner of Insure U, the campaign 
     has two objectives: to help consumers get smart about 
     insurance as their needs change at different life stages, and 
     to educate them about how to avoid being scammed by fake 
     insurance companies. The program includes an online education 
     site and public service announcements in English and Spanish.
       The Insure U curriculum, available at 
     www.insureUonline.org. includes a basic introduction to the 
     four major types of insurance--auto, home, life and health--
     as well as special considerations for young singles, young 
     families, established families and empty nesters/seniors. The 
     public service announcement encourages consumers to call 
     their state insurance department prior to purchasing an 
     insurance policy to confirm that they are dealing with a real 
     insurance company authorized to do business in their state.
       Thank you again for your continued leadership and 
     commitment to financial and economic literacy. The NAIC is 
     committed to working with you, other members of the Financial 
     and Economic Literacy Caucus, and all Members of the House 
     and Senate through events during Financial Literacy Month and 
     year round.
           Sincerely,
     Alessandro Iuppa,
       Maine Superintendent of Insurance, NAIC President.
     Catherine J. Weatherford,
       NAIC Executive Vice President and CEO.
                                  ____



                                              The White House,

                                    Washington DC, March 23, 2006.
       I send greetings to all those observing Financial Literacy 
     Month this April.
       The American economy is the envy of the world because of 
     the talent of the American people. Our economy grows when 
     individuals are allowed to make their own decisions about how 
     to save, spend, and invest their money and are given the 
     freedom to make a better life for themselves and their 
     family.
       The Federal Government has an important role to play in 
     helping citizens gain the knowledge and tools they need to 
     compete and succeed in the 21st century. The Financial 
     Literacy and Education Commission, created in 2003, was 
     tasked with developing a plan to improve the money management 
     skills of our citizens. Through the launch of ``Taking 
     Ownership of the Future: The National Strategy for Financial 
     Literacy,'' the Commission is hoping to prepare people for 
     the opportunities of life in a free society, enable them to 
     make informed decisions about their financial futures, and 
     help consumers protect their credit and good name.
       My Administration remains committed to expanding economic 
     opportunities and fostering an environment that encourages 
     growth and vitality. By creating an ownership society, where 
     more Americans own their own homes and businesses and control 
     their own retirement savings and health insurance, we can 
     achieve a great national goal and make our country a place 
     where the dignity and security of financial independence are 
     within reach for all Americans.
       I appreciate Secretary Snow, members of the Financial 
     Literacy and Education Commission, and all those working to 
     make every citizen an agent of his or her own destiny. Your 
     work reflects our trust in the American people and makes our 
     society more prosperous and just.
       Laura and I send our best wishes.
                                                   George W. Bush.


                                               State of Texas,

                                           Office of the Governor.
       Sound financial management is important to ensuring that 
     Texans are well-positioned to meet their needs now and in the 
     future.
       From saving and investing to making wise credit decisions, 
     a better understanding of financial management and planning 
     fosters long-term financial security.
       At home, at school, and elsewhere in our communities, and 
     at an early age, we must educate young Texans on these 
     important issues. Not only does financial literacy education 
     help to ensure that young Texans mature into responsible 
     adults, it also contributes to economic success and 
     prosperity for our great state into the future.
       During the month of April, an awareness campaign will be 
     conducted to highlight the importance of financial literacy 
     among young Texans.
       At this time, therefore, I encourage Texans of all ages to 
     recognize the importance of saving, investing and having 
     financial goals. Together we can continue to make a 
     difference for the future.
       Therefore, I, Rick Perry, Governor of Texas, do hereby 
     proclaim April 2006, Youth Financial Literacy Month.
                                                       Rick Perry,
     Governor of Texas.
                                  ____


          April Is National Financial Literacy for Youth Month

       Raleigh, N.C.--Governor Mike Easley has declared April 2006 
     as Financial Literacy for Youth Month in North Carolina. 
     Financial literacy programs are being launched across the 
     nation to heighten the awareness and need to provide 
     financial education to young people. The Jump$tart Coalition 
     for Personal Financial Literacy national biennial survey of 
     financial literacy released 2006 test results on April 5th in 
     Washington, DC. The average score for the 2005-06 survey was 
     52.4%, up marginally from 52.3% in the 2003-04 survey. This 
     year, North Carolina joined the ranks by surveying 254 high 
     school seniors in 13 schools across the state. Test scores 
     were below the national average at 48.2%.
       SERFEC will commemorate Financial Literacy for Youth Month 
     with a full-day event for the freshman class on the campus of 
     Saint Augustine's College in Raleigh, NC on Thursday, April 
     20th. The kickoff for the event will feature concurrent 
     workshops on: It Just Makes Cents: Budgeting Basics; The 
     World of Banking; The Credit Trap: Using Credit Wisely; and 
     What's Your Whip: Helpful Tips on Vehicle Financing. William 
     ``Bill'' Cheeks, President of ABBA Associates, Powder 
     Springs, GA and Midwest/Eastern States Regional Coordinator 
     for the Jump$tart Coalition for Personal Financial Literacy 
     will serve as the guest luncheon speaker. During the 
     afternoon Real World Event, a virtual life skills simulation, 
     students will be challenged to develop a monthly budget based 
     on various educational and employment levels, while ensuring 
     everyday needs and situational crises are met. Corporate 
     sponsors for this power-packed event include Branch Bank & 
     Trust, Citigroup, Citifinancial, GMAC, and the Federal 
     Reserve Bank.
       SERFEC is a 501(c)(3) nonprofit organization whose mission 
     is to provide K-l2 and college freshmen throughout the 
     southeast region with a working knowledge of basic personal 
     finance. SERFEC is principled on the Japanese maxim: ``Tell 
     me, and I'll forget. Show me, and I'll remember. Involve me, 
     and I'll be changed forever.'' According to Angela Towns, 
     Chief Executive Officer, ``Teaching youth basic money 
     management skills is a misnomer. We can tell youth about 
     money and even show them how money works--but until we 
     involve them in the practical application of basic personal 
     finance, we will miss the opportunity for economic growth, 
     economic empowerment, and economic change in the lives of our 
     young

[[Page E660]]

     people, their families, and their communities.''

                          ____________________