[Congressional Record Volume 153, Number 53 (Tuesday, March 27, 2007)]
[Senate]
[Pages S3980-S3981]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                        FINANCIAL LITERACY MONTH

  Mr. REID. Mr. President, I ask unanimous consent that the Senate 
proceed to the consideration of S. Res. 126.
  The PRESIDING OFFICER. The clerk will report the resolution by title.
  The legislative clerk read as follows:

       A resolution (S. Res. 126) designating April 2007 as 
     ``Financial Literacy Month.''

  There being no objection, the Senate proceeded to consider the 
resolution.
  Mr. AKAKA. Mr. President, I am pleased I have submited a resolution 
designating April of this year as Financial Literacy Month. I thank my 
cosponsors, Senators Dodd, Clinton, Cochran, Durbin, Kohl, Kennedy, 
Menendez, Schumer, Inouye, Stabenow, Cardin, Levin, Crapo, DeMint, 
Feinstein, Baucus, Thomas, Lincoln, Allard, and Enzi. I am glad to work 
once again with my colleagues in a bipartisan manner to advance 
financial and economic literacy for all Americans.
  As we enter into the month of April, I wish to recognize those 
organizations that released information last April shedding light on 
financial literacy in our country. This includes Junior Achievement's 
annual poll of teenagers on issues of personal finance, the Jumpstart 
Coalition for Personal Financial Literacy's survey of the financial 
literacy of high school seniors, and the Employee Benefit Research 
Institute's Retirement Confidence Survey. These surveys present deeply 
troubling figures that underscore the need for increased financial 
literacy. For instance, while 84 percent of teens with credit cards 
reported paying off their balance in full each month, 16 percent 
admitted that they were just making the minimum payments according to 
the Junior Achievement poll. Further, the Jumpstart survey found that 
most high school seniors failed a test about credit cards, retirement 
funds, insurance, and other personal finance basics, and the Employee 
Benefit Research Institute found that despite modest savings, over two-
thirds of Americans are confident in their retirement. In addition to 
these valuable surveys, I would like to acknowledge the biennial Survey 
of the States published by the National Council on Economic Education. 
It was last released in 2005 and provided a useful update on the status 
of financial and economic education nationwide.
  The resolution I have submitted today designates April 2007 as 
Financial Literacy Month, and highlights the need to promote financial 
literacy. To this extent, I would like to mention a few efforts that 
give a sense of the variety of approaches being taken to highlight 
financial and economic education. Here in Washington, the National 
Foundation for Credit Counseling will award a winner for its national 
poster contest later in the month. With a theme of ``Plant the Seed of 
Saving to Grow Your Future,'' the contest encourages first through 
twelfth grade students to start thinking about how to best manage their 
finances. On public television, a new show, called ``What's up in 
Finance?,'' created by station WNET in New York City, will premiere 
this April. It will help to make financial and economic education more 
accessible to young adults and introduce them to the range of job 
opportunities in finance and economics. In Santa Barbara, California, 
the Money Camp, in coordination with Junior Achievement and BizWorld, 
will host a Financial Literacy Training Intensive program. The event is 
intended to be the first of an annual event to provide advanced 
training to professionals in the area of financial education. In New 
Jersey, the state departments of Education and of Banking and Insurance 
are coordinating with banks and credit unions to bring staff from 
government and financial institutions who will make presentations on 
budgeting, saving, and credit at high schools in the State. I applaud 
these and other efforts taking place in April to address the need for 
greater financial literacy among Americans.
  Increased financial and economic literacy can help people navigate 
around the countless pitfalls found in the marketplace. Consumers with 
a variety of credit histories can easily find credit in many different 
forms. Lenders' aggressive marketing campaigns encourage families to 
take on substantial debt for indulgences and luxuries, which may be 
harmful if families are already saddled with debt and not saving toward 
an education or retirement nest egg. Taking on substantial or 
additional debt that they cannot effectively pay back is irrational, 
but abusive marketing efforts have resulted in unprecedented levels of 
borrowing.
  Although the availability of credit has grown dramatically, the 
understanding of financial matters has not. Consequently, we are 
presented with a number of worrisome statistics. During the last 2 
years, Americans have on average spent more money than they make. The 
last year this occurred was in 1933 at the end of the Great Depression. 
Moreover, the household debt service ratio, which gives a sense of the 
proportion of disposable income people are using to pay off their debt, 
increased to record levels again in 2006. These findings suggest a 
serious problem exacerbated by the fact that most workers have not 
calculated how much they need to save for retirement, even if they 
believe they are behind schedule in their retirement.
  As policymakers, we need to focus on these issues year round. 
However, focusing on Financial Literacy Month in April means that we 
have a designated part of the year when we can reassess our efforts to 
highlight those that worked and improve on those that have not. I urge 
my colleagues to support this resolution.
  Mr. REID. Mr. President, I ask unanimous consent that the resolution 
be agreed to, the preamble be agreed to, and the motion to reconsider 
be laid upon the table; that any statements relating to this matter be 
printed in the Record.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The resolution (S. Res. 126) was agreed to.
  The preamble was agreed to.
  The resolution, with its preamble, reads as follows:

                              S. Res. 126

       Whereas the personal savings rate of people in the United 
     States declined from minus 0.5 percent in 2005 to minus 1.0 
     percent in 2006, making 2005 and 2006 the only years since 
     the Great Depression years of 1932 and 1933 when the savings 
     rate has been negative;
       Whereas the 2006 Retirement Confidence Survey conducted by 
     the Employee Benefit Research Institute found that only 42 
     percent of workers or their spouses calculated how much they 
     need to save for retirement, down from 53 percent in 2000;
       Whereas consumer debt exceeded $2,400,000,000,000 in 2006;
       Whereas household debt reached a record $12,800,000,000,000 
     in 2006;
       Whereas, during the second quarter of 2006, a record high 
     of 14.5 percent of disposable personal income went to paying 
     the interest on personal debt;
       Whereas over 1,000,000 individuals in the United States 
     filed for bankruptcy in 2006;
       Whereas nearly half of adults in the United States are not 
     aware that they can access their credit reports for free;
       Whereas, in a 2006 survey, the Jump$tart Coalition for 
     Personal Financial Literacy found that high school seniors 
     scored an average of only 52.4 percent on an exam testing 
     knowledge of basic personal finance;
       Whereas approximately 10,000,000 households in the United 
     States do not have accounts at mainstream financial 
     institutions such as banks or credit unions;
       Whereas expanding access to the mainstream financial system 
     will provide individuals with less expensive and more secure 
     options for managing their finances and building wealth;
       Whereas the 2004 Survey of the States compiled by the 
     National Council on Economic Education found that only 17 
     States require an economics course to be offered to high 
     school students;
       Whereas quality personal financial education is essential 
     to ensure that individuals are prepared to manage money, 
     credit, and debt, and to become responsible workers, heads of 
     households, investors, entrepreneurs, business leaders, and 
     citizens;
       Whereas increased financial literacy empowers individuals 
     to make wise financial

[[Page S3981]]

     decisions and reduces the confusion caused by the 
     increasingly complex economy of the United States;
       Whereas a greater understanding of, and familiarity with, 
     financial markets and institutions will lead to increased 
     economic activity and growth;
       Whereas, in 2003, Congress found it important to coordinate 
     Federal financial literacy efforts and formulate a national 
     strategy; and
       Whereas, in light of that finding, Congress established the 
     Financial Literacy and Education Commission and designated 
     the Office of Financial Education of the Department of the 
     Treasury to provide support for the Commission: Now, 
     therefore, be it
       Resolved, That the Senate--
       (1) designates April 2007 as ``Financial Literacy Month'' 
     to raise public awareness about--
       (A) the importance of financial education in the United 
     States; and
       (B) the serious consequences that may result from a lack of 
     understanding about personal finances; and
       (2) calls on the Federal Government, States, localities, 
     schools, nonprofit organizations, businesses, and the people 
     of the United States to observe the month with appropriate 
     programs and activities.

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