[Congressional Record Volume 153, Number 60 (Monday, April 16, 2007)]
[House]
[Pages H3379-H3387]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SUPPORTING THE GOALS AND IDEALS OF FINANCIAL LITERACY MONTH
Ms. WATSON. Mr. Speaker, I move to suspend the rules and agree to the
resolution (H. Res. 273) supporting the goals and ideals of Financial
Literacy Month, and for other purposes.
The Clerk read the title of the resolution.
The text of the resolution is as follows:
H. Res. 273
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 personal financial management skills and lifelong
habits develop during childhood;
Whereas a study completed in 2006 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, and the
average scores in both years were failing grades;
Whereas in recent years, the Congress, State legislatures
and Governors around the country have increasingly recognized
the importance and effectiveness of financial education, and,
as a result, an increasing number of States now require
financial education during high school, including Alabama,
Georgia, Idaho, Illinois, Kansas, Kentucky, Louisiana,
Missouri, New York, North Carolina, Ohio, South Carolina,
Texas, Utah, Virginia, and West Virginia;
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 United States consumer debt totaled
$2,400,000,000,000 in 2006, of which credit card debt alone
exceeded $825,000,000,000;
Whereas personal savings as a percentage of income dropped
to negative 1 percent in 2006, the lowest since the Great
Depression;
Whereas, although more than 42,000,000 people in the United
States participate in qualified cash or deferred arrangements
described in section 401(k) of the Internal Revenue Code of
1986 (commonly referred to as ``401(k) plans''), a Retirement
Confidence Survey conducted in 2004 found that only 42
percent of workers surveyed have calculated how much money
they will need to save for retirement and 37 percent of
workers say that they are not currently saving for
retirement;
Whereas the average baby boomer has only $50,000 in savings
apart from equity in their homes;
[[Page H3380]]
Whereas a study by the American Institute of Certified
Public Accountants found that 55 percent of people between
the ages of 25 and 34 maintain an interest-bearing account or
other savings instrument, a decrease of 10 percent since
1985;
Whereas studies show that as many as 10,000,000 households
in the United States are ``unbanked'' or are without access
to mainstream financial products and services;
Whereas expanding access to the mainstream financial system
provides individuals with lower-cost and safer options for
managing finances and building wealth and is likely to lead
to increased economic activity and growth;
Whereas public, consumer, community-based, and private
sector organizations throughout the United States are working
to increase financial literacy rates for Americans of all
ages and walks of life through a range of outreach efforts,
including media campaigns, websites, and one-on-one
counseling for individuals;
Whereas Members of the United States House of
Representatives established the Financial and Economic
Literacy Caucus (FELC) in February 2005 to (1) provide a
forum for interested Members of Congress to review, discuss
and recommend financial and economic literacy policies,
legislation, and programs, (2) collaborate with the private
sector, nonprofits, and community-based organizations, and
(3) organize and promote financial literacy legislation,
seminars, and events, such as ``Financial Literacy Month'' in
April 2007 and the annual ``Financial Literacy Day'' fair on
April 24, 2007; and
Whereas the National Council on Economic Education, its
State Councils and Centers for Economic Education, the
Jump$tart Coalition for Personal Financial Literacy, its
State affiliates, and its partner organizations, and JA
Worldwide 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 have resulted 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. Pursuant to the rule, the gentlewoman from
California (Ms. Watson) and the gentlewoman from North Carolina (Ms.
Foxx) each will control 20 minutes.
The Chair recognizes the gentlewoman from California.
General Leave
Ms. WATSON. Mr. Speaker, I ask unanimous consent that all Members may
have 5 legislative days in which to revise and extend their remarks.
The SPEAKER pro tempore. Is there objection to the request of the
gentlewoman from California?
There was no objection.
Ms. WATSON. Mr. Speaker, 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. That is why I
am pleased to support H. Res. 273.
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 and to
develop, disseminate and encourage the use of financial education
standards for grades K-12 and promote the teaching of personal finance.
To that end, Jump$tart has established 12 must-know personal
financial principles for young people to improve their financial
future. These 12 principles should be followed by adults as well.
The 12 financial principles stressed during the Financial Literacy
Month for Youth are map your financial future;
Do not expect something for nothing, and high returns equal high
risk;
Know your take-home pay, compare interest rates, pay yourself first,
and money doubles by the rule of 72; to determine how long it would
take your money to double, divide the interest into 72;
And 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 thing, pay all your
taxes.
Mr. Speaker, I am pleased to support this resolution supporting the
goals of Financial Literacy Month and urge all my colleagues to support
it.
Mr. Speaker, I reserve the balance of my time.
Ms. FOXX. Mr. Speaker, I yield myself such time as I may consume.
Today many Americans do not know how to balance a checkbook,
intelligently invest their money or financially plan for their
retirement. Studies have shown that few young adults living in this
country know how to responsibly use a credit card. This is a time when
debt is on the rise and savings have dropped to negative 1 percent of
personal income. It is clear that teaching financial literacy is
imperative for individuals to learn how to manage their money, credit
and debt.
While many States require high schools to teach financial education,
increased economic education is still necessary. H. Res. 273 recognizes
the goals and ideals of Financial Literacy Month and raises awareness
of the importance of financial education. It is our hope that the
President calls on the government, States and other organizations to
observe the month with relevant programs and activities supporting
financial education.
Learning about saving and investing is especially important for
today's young generation because of the uncertainty of the future of
Social Security. More so than ever, private savings play a larger role
in determining one's retirement. While there may be Social Security
reform in the coming years, everyone must be able to adequately plan
their savings for the future.
Financial education has proven to be very effective. Simple projects
such as stock market simulations help young people understand how to
invest in stocks, bonds and mutual funds. It is our hope they will
retain these skills when they begin investing their own money.
Organizations such as the Jump$tart Coalition for Personal Finance
Literacy help spread awareness, especially in school-age children. The
National Council on Economic Education has established many programs
which give teachers the tools to teach their students basic economic
skills and help them apply their knowledge to daily life. These groups
recognize the need for more widespread financial literacy, but it is
necessary for Congress to place more emphasis on this idea and
encourage other organizations to begin to participate in this movement
as well.
With a solid background knowledge of financial literacy, we can raise
America's youth to become responsible employees, heads of households,
investors, entrepreneurs and business leaders.
Mr. Speaker, I reserve the balance of my time.
Ms. WATSON. Mr. Speaker, I yield such time as he may consume to the
gentleman from Texas (Mr. Hinojosa).
Mr. HINOJOSA. Mr. Speaker, I rise in strong support of House
Resolution 273 that the gentlewoman from Illinois (Mrs. Biggert) and I
introduced earlier this year. The legislation supports the ideas 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, Congresswoman Watson from California, for
managing time on this resolution for our side of the aisle. I also want
to take this opportunity to thank all of my Democratic colleagues who
cosponsored this important resolution this year.
Together with the tremendous number of cosponsors Congresswoman
Biggert obtained, we broke our old record of 91 cosponsors and garnered
the support of 118 Members of Congress for this bill.
I am very pleased with this development. It shows that an increasing
number of Members of Congress are beginning to see the light and come
on board
[[Page H3381]]
the financial literacy cause with me and Congresswoman Biggert.
It is imperative that we, in Congress, pay more attention to the
financial literacy rates of our citizens from pre-kindergarten all the
way to retirement. The sooner that a person begins to learn good saving
habits, the better off he or she will be in the future.
I am especially pleased and honored to inform you that 18 cities and
three counties in my congressional district have issued proclamations
honoring April 22-28, 2007, as National Financial Literacy Awareness
Week.
The cities, in alphabetical order, include the following: Beeville,
Combes, Cuero, Donna, Edcouch, Edinburg, Falfurrias, Goliad, Harlingen,
La Feria, La Villa, Mathis, McAllen, Mercedes, Pharr, Primera, Santa
Rosa, Weslaco. It also includes three counties, which are as follows:
Duval County, Jim Wells County and Karnes County.
{time} 1430
Mr. Speaker, I also want to take this opportunity to thank several
State legislatures for realizing the importance of financial literacy
by taking action to address the diminishing understanding of basic
finance by U.S. high school students.
A study completed in 2006 by the Jump$tart Coalition for Personal
Financial Literacy found that high school seniors know less about
principles of basic personal finance than high school seniors did 7
years earlier, and the average scores in both years were failing. Our
high school seniors are failing basic finance.
Add to that the fact that 55 percent of college students acquire
their first credit card during their first year in college, and 92
percent of college students acquire at least one credit card by their
second year in college, yet only 26 percent of people between the ages
of 13 and 21 reported that their parents actively taught them how to
manage money. Add all that together, and you have got a recipe for
serious financial troubles down the road for college graduates.
Luckily, in recent years State legislatures around the country have
increasingly recognized the importance and effectiveness of financial
education. As a result, an increasing number of States now require
financial education during high school. I hope my colleagues and their
staff are taking note of this because the following States now require
high school students to pass some form of financial education or
literacy courses before they can graduate. Those States include the
following: Alabama, Georgia, Idaho, Illinois, Kansas, Kentucky,
Louisiana, Missouri, New York, North Carolina, Ohio, South Carolina, my
great State of Texas, Utah, Virginia, and West Virginia.
I strongly recommend that my colleagues contact their State
legislators and encourage them to impose similar requirements.
Mr. Speaker, every day consumers deal with money from balancing a
checking account to shopping for a mortgage or auto loan, researching a
way 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 and on. Many consumers do not really understand their finances.
Now that we know that high school students are failing basic
financial literacy exams, it is even more disconcerting to learn that
adults are not faring much better. High bankruptcy rates, foreclosures
on homes, 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.
Every year we here in Congress discuss the future insolvency of
Social Security, Medicare, and Medicaid; and that concerns me
considerably. But now that I have done some additional research into
the demographics and financial standing of the baby boomers, I was
shocked to learn that the personal savings as a percentage of income
dropped a negative 1 percent in 2006, the lowest since the Great
Depression. Even worse, the average baby boomer has only $50,000 in
savings for retirement apart from equity in their homes.
These are very serious and disturbing facts that we and our State
counterparts must address, and soon. To address these problems and
others, I cofounded and currently cochair the Congressional Financial
and Economic Literacy Caucus with Congresswoman Judy Biggert. The
caucus seeks to address these issues head on by increasing public
awareness of poor financial literacy rates and working to find the ways
and means 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, avoiding payday
lenders, check cashers, and especially these days predatory lenders.
Hopefully the caucus can teach individuals to take care of their
finances, to lead them down the path to the American Dream of
homeownership.
Mr. Speaker, I include for printing in today's Record letters in
support of this resolution. They include letters from JA Worldwide;
National Council on Economic Education; Financial Planning Association,
Independent Bankers Association of Texas; MasterCard; the American
Institute of Certified Public Accountants; the National Association of
Mortgage Brokers; Networks Financial Institute; North American
Securities Administrators Association. It includes HSBC, the
Independent Community Bankers of America; Housing Assistance Council;
National Association of Federal Credit Unions. It includes Capital One;
as well as Visa; Charles Schwab Foundation; Financial Services Forum;
Financial Services Roundtable, National Association of Realtors; Girls,
Incorporated; AFSA Education Fund; Countrywide, First Nations Oweesta
Corporation, Native Americans. It includes National Association of
Affordable Housing Lenders; America's Community Bankers; Community
Bankers Association; Consumer Mortgage Coalition; Texas Credit Union
League; State Farm Insurance Company, Freddie Mac; Wells Fargo; and the
National Youth Involvement Board.
Mr. Speaker, several of these groups will be participating in the
Financial Literacy Day Fair that will take place April 24 from noon to
4 p.m. here on the Hill at the Cannon Caucus Room. It is my
understanding that over 50 different groups will present their
financial literacy products, their programs, and ideas during the fair.
The last time we hosted the event, over 500 people attended the event
not only to take advantage of the free financial literacy advice but
also to enjoy a wonderful buffet. I encourage my colleagues and their
staff to attend the Financial Literacy Day Fair. Again, I repeat, it
will be held April 24 from noon to 4 p.m. in the Cannon Caucus Room and
lunch will be served.
On the same day, April 24, at 3 p.m. in room 2220 of the Rayburn
House Office Building, the Financial and Economic Literacy Caucus is
collaborating with Visa on a different financial literacy event. Visa
is bringing Jean Chatzky to the Hill to provide some financial advice
and respond to questions. Both Members and staff are invited to this
event at 2220 Rayburn from 3:30 to 5 p.m., which I believe will be
beneficial and a huge success.
In closing, Mr. Speaker, our country is suffering financially, and
our constituents are not armed with the tools they need to provide for
a good future. For these reasons and more, I encourage my colleagues to
support this resolution.
Junior Achievement
Worldwide Headquarters,
Colorado Springs, CO, April 9, 2007.
Hon. Ruben Hinojosa,
Rayburn House Office Building, House of Representatives,
Washington, DC.
Hon. Judy Biggert,
Longworth House Office Building, House of Representatives,
Washington, DC.
Dear Representatives Hinojosa and Biggert: On behalf of JA
WorldwideTM and our 1,400 associates and 138,700
classroom volunteers around the country, I want to express
our full-fledged support for H. Res. 273. This resolution
supporting the goals and ideals of Financial Literacy Month
once again demonstrates your leadership in promoting
financial literacy and economic education.
With personal bankruptcies and debt continuing to soar, we
believe that it is critical
[[Page H3382]]
that financial literacy education continue to place a high
priority on targeting America's youth. According to the 2007
JA Worldwide Poll on Personal Finance, more than 75 percent
of teens nationwide say they influence their parents' buying
decisions, while nearly 29 percent of 18- and 19-year olds
say they already own and use their own credit cards. The
earlier we can provide youth with tools, tips, and strategies
to help them successfully manage their finances, the better
off our country will be.
I also would like to congratulate you both for your
continued leadership of the Financial and Economic Literacy
Caucus, and for your commitment to events such as this
month's Financial Literacy Day on the Hill. As the nation's
oldest and largest organization dedicated to promoting
economic education and financial literacy, JA Worldwide
stands ready to assist you and the caucus in advancing the
goals of H. Res. 273.
Thank you again for your resolve in championing the
importance of a financially literate society. We look forward
to working with you in the future to advance this critical
issue.
Sincerely,
David S. Chernow,
President and CEO, JA Worldwide.
____
National Council on
Economic Education,
March 27, 2007.
Hon. Ruben Hinojosa,
House of Representatives, Rayburn House Office Building,
Washington, DC.
Hon. Judy Biggert,
House of Representatives, Longworth House Office Building,
Washington, DC.
Dear Representatives Hinojosa and Biggert: On behalf of the
National Council on Economic Education (NCEE) I am writing to
express my support for H. Res. 273, a Resolution Supporting
the Goals and Ideals of Financial Literacy Month. I want to
commend you and your colleagues for once again highlighting
the importance of financial and economic education.
The NCEE believes that our young people deserve to know
about the economic system they will be laboring in,
contributing to, benefiting from, and ultimately, inheriting.
Since our founding, we have learned that economic and
financial literacy, taught early, often, and well, is a key
factor in our nation's future success in the global economy.
Our charge is to ensure that young people have the tools to
embrace an ``economic way of thinking'', a critical skill
that will help them make informed decisions based on
rational, ethical inquiry.
H. Res. 273 provides an important and timely ``call to
action'' from the House of Representatives to improve
financial and economic literacy. The first step to address
the challenges described in the resolution is to provide our
elementary and secondary students with the solid grounding in
the fundamentals of economics and personal finance that will
lead to sound decisions through life. H. Res. 273 correctly
recognizes that ``personal financial management skills and
lifelong habits develop during childhood,'' and that it is
also essential to increase ``financial literacy rates for
individuals of all ages and walks of life.''
We look forward to continuing to work with both of you,
along with the House Financial and Economic Literacy Caucus,
and all Members of the House and Senate, to achieve the goals
reflected in H. Res. 273.
Thank you again for your consistent leadership on this
critical issue.
Sincerely,
Robert F. Duvall,
President & CEO.
____
FPA Commends Representatives Hinojosa and Biggert for Supporting
Financial Literacy Month
Denver, Apr. 10.--The Financial Planning
Association' (FPA') strongly supports
the bipartisan congressional resolution (H. Res. 273)
designating April as ``Financial Literacy Month'' co-
sponsored by Representative Ruben Hinojosa (D-Texas) and
Representative Judy Biggert (R-III.). This resolution seeks
to raise public awareness about the importance of financial
education in the U.S. Throughout the month and across the
country, FPA has committed to increasing the public's
awareness about the importance of financial education and
financial planning.
In observance of Financial Literacy Month, FPA has planned
a host of programs and activities to increase financial
literacy for individuals of all ages and walks of life. Some
of these events include:
April 5--FPA participated in a financial literacy panel
featuring Senator Wayne Allard (R-Colo.) at the University of
Colorado in Boulder.
April 11--FPA panelist will speak to Capitol Hill staff on
issues surrounding retirement and Thrift Savings Plans in
conjunction with the Savings Coalition.
April 12--Financial education seminar at the Teen Center in
Capital Heights, Md.
April 13--Reverse mortgages seminar at Point East Senior
Condominium in Aventura, Fla.
April 13--Presentation for soon-to-be law graduates at
University of Michigan School of Law.
April 18--Investing presentation at Wachovia in Richmond,
Va.
April 18--Investing presentation at Nexus in Plymouth,
Minn.
April 18 and May 9--Forging your financial future,
budgeting and investing presentations at the Bronx Community
College in New York.
April 19--Tax planning, investment and wealth building
seminar for the Black Law Students Association at Yale Law
School in New Haven, Conn.
April 24--Participate in exhibit hall at the Financial
Literacy Fair sponsored by Jump$tart Coalition in Washington,
D.C.
April 25--Budgeting presentations for the Greater
Washington Jump$tart Coalition in 17 public high schools in
the Washington, D.C. public school system.
April 26--Financial planning 101 presentation at the St.
Charles Public Library in St. Charles, Ill.
FPA highly commends Representative Hinojosa and
Representative Biggert for leading the Congressional efforts
to encourage financial education.
____
IBAT Education Foundation,
April 11, 2007.
Hon. Ruben Hinojosa,
Hon. Judy Biggert,
House of Representatives, Washington, DC.
Dear Representatives: The Independent Bankers Association
of Texas (IBAT), representing over 500 community banks and
thrifts, is pleased to wholeheartedly and enthusiastically
support House Resolution 273.
A financially literate populace is of paramount importance
to the continued economic prosperity of our country and its
citizens. The IBAT Main Street Foundation was created to
foster and promote the goals outlined in this resolution, and
our membership is committed to delivering financial education
in a number of venues.
We are especially pleased with a new collaborative
agreement with Junior Achievement, with a strong focus on
financial education.
We applaud you for your multiple initiatives in this
important area, and very much appreciate the support of the
many co-sponsors and supporters of this resolution.
We look forward to working together with you and others who
share the passion of enhancing the financial knowledge and
expertise of our citizenry.
Sincerely,
Mary Lange, CAE,
President, IBAT Education Foundation.
____
AICPA Supports House Resolution on April as Financial Literacy Month
New York, NY, Apr. 10, 2007.--The American Institute of
Certified Public Accountants (AICPA) strongly endorses the
bi-partisan Congressional resolution (H.R. 273) supporting
April as ``Financial Literacy Month.'' This resolution raises
awareness about the critical need for financial education in
the United States and encourages government, as well as the
private sector, to collaborate on this important public
service issue.
``The CPA profession is dedicated to improving the
financial literacy of all Americans,'' said Barry C.
Melancon, AICPA President and CEO. ``The AICPA applauds Reps.
Ruben Hinojosa (D-TX) and Judy Biggert (R-IL) and the more
than 100 co-sponsors of this resolution for their concern and
recognition that a financially educated citizenry is
essential to the strength of our country.
``Across the nation, our members are volunteering in their
communities every day to help educate Americans about
managing their personal finances more effectively. By
volunteering in America's schools, providing financial
management workshops for deployed soldiers and their spouses,
helping protect senior citizens from financial abuse, and
many other examples, CPAs are sharing their time and
expertise to get Americans moving in the right financial
direction.''
The CPA profession is actively committed to improving
Americans' financial understanding. In 2004, the AICPA
launched 360 Degrees of Financial Literacy
(www.360financialliteracy.org) to help Americans understand
how financial issues affect them at different life stages. In
2006, the Institute debuted a related campaign with the Ad
Council, Feed the Pig TM (www.feedthepig.org), for
25-34-year-olds. A study commissioned by the AICPA found that
Americans in this particular age group have seen their median
net worth decline over the past 20 years despite increases in
income. Moreover, they seem to be willing to take on greater
amounts of unsecured debt.
The American Institute of Certified Public Accountants
(www.aicpa.org) is the national, professional association of
CPAs, with approximately 330,000 members, including CPAs in
business and industry, public practice, government, and
education. It sets ethical standards for the profession and
U.S. auditing standards for audits of private companies;
federal, state and local governments; and non-profit
organizations. It also develops and grades the Uniform CPA
Examination. Headquartered in New York, the AICPA also
maintains offices in Washington, D.C.; Durham, N.C.; and
Lewisville, TX.
____
Capital One Financial Corporation,
McLean, Va, April 9, 2007.
Hon. Ruben Hinojosa,
House of Representatives, Rayburn House Office Building,
Washington, DC.
Hon. Judy Biggert,
House of Representatives, Longworth House Office Building,
Washington, DC.
Dear Representatives Hinojosa and Biggert: On behalf of
Capital One, I am writing to express our strong support for
H. Res. 273 and its affirmation of the goals and ideals of
financial literacy month.
[[Page H3383]]
The legislation highlights the importance of greater
financial literacy skins for all individuals: ``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.'' For several
years, Capital One has been a proud supporter of the bill's
fundamental principles.
Capital One has an on-going commitment to bettering
financial literacy skills in communities across the country.
We are particularly proud of our multi-faceted program to
develop and deliver financial education to low- and moderate-
income populations and others within our local communities
and across the country. This program is described below.
Highlights of Capital One's comprehensive efforts in
financial education and its partnerships follow:
Finance Park. In 2006, Capital One partnered with Junior
Achievement Worldwide to create a signature program--Capital
One/Junior Achievement Finance Park--to introduce seventh--
and eighth-grade students to money management basics. This
unique, mobile program traveled to select cities to provide
students the opportunity to experience a day-in-the-life of
an adult. The goal is to prepare students to make wise
financial decisions. The mobile unit will travel to a number
of additional markets in 2007.
MoneyWi$e with Consumer Action. More than five years ago,
Capital One partnered with Consumer Action to launch
MoneyWi$e, a national literacy partnership. It is the first
program to combine free, multilingual financial education
materials with community training and seminars. Since 2001,
regional conferences have delivered training to more than
400 CBOs from 27 states. Together with Consumer Action,
Capital One has also established a stipend program to help
ensure that CBOs have access to the resources they need to
conduct financial education programs and outreach in their
communities.
As a result of this partnership, Capital One has been able
to facilitate the distribution of more than 1.5 million free
financial education brochures in five languages through a
network of 7,300 CBOs nationwide. The program addresses
financial literacy across both income and ethnic barriers.
All information is provided for free.
Jump$tart Coalition. Together with the Jump$tart Coalition
for Personal Finance, Capital One works with local and state
governments to include a financial education curriculum in
public school systems nationwide. Capital One also played a
very active role in helping to form a Coalition in Virginia--
and Capital One has co-sponsored the Coalition's annual
summit for the past two years.
MoneyWi$e University. To help give students the information
they need to become financially responsible, Capital One
introduced MoneyWi$e University, a program to teach
responsible spending and basic money management skills to
college-aged students. Developed in partnership with Visa and
first introduced on campuses in 2002, the MoneyWi$e
University curriculum educates college students about the
fundamental elements of credit and budget management.
MoneyWi$e University has provided personal instruction to
hundreds of students on five campuses around the country.
Ongoing Local Efforts. Capital One has an ongoing program
through which associates present financial education seminars
directly to clients of local community development
organizations.
Through partnerships with leading national non-profit
organizations, a grassroots approach to training non-profits
to lead Capital One programs on a local level, and direct
delivery of financial education to local non-profit
organization clients, Capital One has a multi-faceted and
comprehensive approach to improving financial literacy. Links
to our programs can be found at www.capitalone.com/
financialeducation.
Again, we would like to thank you for your introduction of
H. Res. 273 and your ongoing leadership with the Financial
and Economic Literacy Caucus in Congress.
Sincerely,
Larry Stein,
Senior Vice President, Policy Affairs.
____
National Association of Realtors',
Washington, DC, April 13, 2007.
Hon. Ruben Hinojosa,
House of Representatives, Rayburn House Office Building,
Washington, DC.
Hon. Judy Biggert,
House of Representatives, Longworth House Office Building,
Washington, DC.
Dear Representatives Hinojosa and Biggert, I am writing on
behalf of over 1.3 million members of the National
Association of REALTORS' to convey our support for
H. Res. 273, a resolution supporting the goals and ideals of
Financial Literacy Month. We also commend you and your
colleagues for your commitment to raising public awareness
about the importance of financial education in the United
States.
As you know, our Nation's finance system offers access to
capital and credit to consumers of almost every economic
condition, which has significantly contributed to the highest
homeownership rates in our Nation's history. Homeownership is
the primary source of a household's net worth and the
fundamental first step toward accumulating personal wealth.
For most households, purchasing a home is one of the
largest financial transactions they will ever make. However,
research reports indicate that many Americans lack the
financial knowledge that empowers them to make sure their
American dream does not turn into a nightmare. For example,
Center for Responsible Lending found that an overwhelming
majority of consumers can not calculate interest charges on a
loan and the Federal Reserve recently reported that almost
half of borrowers with adjustable rate mortgages (ARMS) do
not know the potential maximum interest rate for their loan.
REALTORS' believe that financial education is an
important defense to helping prevent consumers from getting
into abusive mortgages that will undoubtedly be financially
destructive. NAR, in partnership with the Center for
Responsible Lending, has issued three consumer education
brochures, ``How to Avoid Predatory Lending,'' ``Specialty
Mortgages: What Are the Risks and Advantages?'' and
``Traditional Mortgages: Understanding Your Options.'' The
brochures emphasize how important it is for consumers to make
sure they fully understand how traditional non-traditional
mortgages work before deciding which is the right choice
and how to avoid the pitfalls and entrapments of predatory
loans.
In addition to NAR's consumer education materials, many of
our state and local associations have high-profile financial
education programs in partnership with cities and community
groups. Some examples include:
In Maryland, a number of local REALTOR'
associations, including in Anne Arundel County, Howard
County, Prince George's County, and the Greater Baltimore
Board of REALTORS' have partnered with Freddie Mac
to develop CreditSmart, a credit education workshop.
REALTORS' instructors teach the course to renters,
homebuyers, students, and others, on how to manage critical
money skills. The skills that course participants obtain help
point them in the right direction to managing credit and
saving to buy a home.
In 1996, the Illinois Association of REALTORS'
organized the Partnership for Home-Ownership, Inc. to help
assist low-income rural Illinois residents achieve the dream
of homeowners hip. The Partnership has administered several
multi-million dollar mortgage programs (in excess of $130
million), provided pre-purchase homebuyer counseling to over
1,500 Illinois residents, and is a HUD approved housing
counseling agency. The Partnership also recently oversaw the
development of a high school financial educational Web site
that is available both in English and in Spanish.
In Arkansas, the Fort Smith Board of Realtors'
and the city of Forth Smith have teamed up to create a
homebuyer assistance program. Participants receive credit
counseling and mortgage readiness education. The program also
offers a five-week financial fitness course on budgeting,
money management, credit and avoiding predatory lending.
Since 1997, more than 200 families have purchased a home as a
result of the program.
NAR stands ready to work with you and the members of the
Financial and Economic Literacy Caucus to promote the goals
of H. Res. 273 and to support a national strategy focused on
helping improve the financial education of all Americans.
Sincerely,
Jerry Giovaniello,
Senior Vice President.
Ms. FOXX. Mr. Speaker, I yield as much time as she may consume to my
distinguished colleague from the State of Illinois (Ms. Biggert), the
cosponsor of this legislation.
Mrs. BIGGERT. I thank the gentlewoman for yielding.
Mr. Speaker, I rise today in support of House Resolution 273, to
designate April as Financial Literacy Month. This will be the fourth
year that I have had the pleasure of working with my friend and
colleague and fellow Chair of the House Financial and Economic Literacy
Caucus, Mr. Hinojosa, to promote the goals and ideals of Financial
Literacy Month.
I am amazed at the progress that we have made so far over the last
few years in raising awareness about the importance of greater
financial literacy and economic education. Hundreds, if not thousands,
of public-private sector, nonprofit, and community-based organizations
across the country have established financial literacy programs. More
than 50 of them will be on hand in the Cannon Caucus Room on April 24
to share the benefits of their knowledge and experience at the annual
Financial Literacy Day Fair, and I encourage all of our colleagues to
attend and learn more about these important efforts.
As Mr. Hinojosa mentioned, we have received dozens of letters in
support of these efforts and this Financial Literacy Month resolution
from various financial and educational organizations. And I think that
this year we have set a new standard for unity on this issue, with well
over 100 Members of Congress co-sponsoring this resolution. In doing
so, I think we send a clear, unambiguous message that the
[[Page H3384]]
House is committed to addressing one of America's most pressing needs.
And while we have made great strides in raising awareness, the need
for improved financial education has never been greater. According to
the Federal Reserve, consumer debt in America now exceeds $2.4
trillion. According to the Department of Commerce, the personal savings
rate in America recently dropped to negative 1.1 percent, a level that
has not been seen since the Great Depression.
The fact is that today's marketplace abounds with options for
managing wealth. Credit and investment opportunities are presented to
consumers on a daily basis. For instance, by the time they reach their
second year in school, the vast majority, 92 percent, of American
college students have at least one credit card, and yet just a small
fraction of those students have sat down with their parents and learned
the basic principles of money management, like compound interest and
supply and demand.
We have a responsibility to ensure that Americans of all ages have
access to the tools and resources they need to capitalize on their
investment choices, succeed in today's sophisticated economic market,
and enjoy a secure financial future. And the key to this success
continues to be basic financial education starting early, during grades
K through 12.
It is a testament to the progress we are making that 38 States now
include personal finance education in their curriculum guidelines. But
we must continue building on this progress if we are to help today's
students become tomorrow's successful investors, entrepreneurs, and
business leaders.
The Financial Literacy and Education Commission established by
Congress in the Fair and Accurate Credit Transaction Act of 2003
recently held a national summit to develop better methods of teaching
money management skills. I look forward to working with my colleagues
on the Education and Labor Committee to implement and enhance economic
education initiatives as we work to reauthorize No Child Left Behind in
the coming year.
I also look forward to working with my colleagues on legislation that
will put young Americans on the path to an affordable education and a
firm financial future.
At the start of the 110th Congress, I introduced one such bill, H.R.
87, the 401 Kids Family Savings Act of 2007. This bill will allow
parents and family members to set aside money in a child's account that
will accumulate interest tax free and can be used for college tuition,
a first home, or even retirement.
Mr. Speaker, it is critically important that families have access to
effective savings mechanisms like these if they are to secure their
financial futures. But it is even more important that Americans have
the know-how and motivation to use them, and that is the goal of the
Financial Literacy Month and the resolution before us today.
Mr. Speaker, I would like to take this opportunity to thank my good
friend and distinguished colleague from Texas (Mr. Hinojosa) for
introducing this resolution and for his dedication to improving
financial literacy. I also would like to thank Mr. Hinojosa's staff,
especially Greg Davis, for all their hard work, diligent work in
bringing this resolution to the floor. I would also like to thank the
chairman and ranking member of the Oversight and Government Reform
Committee, Mr. Waxman and Mr. Tom Davis, for helping to move this
resolution through their committee in such a timely and bipartisan
manner. And, finally, I would like to thank the gentlelady from
California (Ms. Watson) and the gentlelady from North Carolina (Ms.
Foxx) for their support and for managing this resolution on the floor.
Mr. Speaker, I strongly support this resolution, and I urge my
colleagues to do the same.
Mr. HINOJOSA. Mr. Speaker, I submit the following letters regarding
H. Res. 273, ``Supporting the Goals and Ideals of Financial Literacy
Month'':
MasterCard Worldwide,
Washington, DC, April 13, 2007.
Hon. Ruben Hinojosa,
House of Representatives, Washington, DC.
Hon. Judy Biggert,
House of Representatives, Washington, DC.
Dear Representatives Hinojosa and Biggert: I am writing to
communicate MasterCard Worldwide's strong support for House
Resolution 273, which highlights the goals and promotes the
spirit of financial literacy month.
MasterCard Worldwide shares your vision of increasing
financial literacy, illustrated by our various consumer
education programs. Specifically, MasterCard has developed
two programs called Debt Know How and Are You Credit Wise?
which target consumers at different stages of their financial
lives and aims to increase successful financial planning.
By offering consumers easy-to-understand tips and resources
to increase their financial planning efforts, MasterCard's
Debt Know How program helps consumers successfully manage
debt. The program was developed in conjunction with the
University of Minnesota Extension Service and is available in
both English and Spanish. Debt Know How is offered in both a
``trainer the trainer'' format for community leaders as well
as in a direct-to-consumer format design to reach families
currently struggling with debt.
Are You Credit Wise? is MasterCard's consumer education
program which aims to increase financial literacy rates among
America's college students by teaching successful financial
planning skills. The program employs a peer-to-peer teaching
model to maximize its effectiveness, as college students are
more inclined to listen and act upon information coming from
their peers than from parents, teachers or counselors. In its
eighth year, the Are You Credit Wise? program has reached
more than 420,000 students on 58 college and university
campuses in the U.S. and Canada.
We once again applaud your leadership and your tireless
efforts to improve the lives of the American people through
increased financial literacy.
Sincerely,
Joshua Peirez,
Group Executive, Global Public Policy.
____
NAMB,
Washington, DC, April 10, 2007.
Hon. Ruben Hinojosa,
House of Representatives, Washington, DC.
Hon. Judy Biggert,
House of Representatives, Washington, DC.
Dear Congressman Hinojosa and Congresswoman Biggert: On
behalf of the 27,000 members of the National Association of
Mortgage Brokers (NAMB), I would like to thank you and your
colleagues for your work on House Resolution 273, supporting
the goals of National Financial Literacy Month.
At a time when home buyers and consumers face the hurdles
of a complicated marketplace and predatory lenders, your work
educating consumers is invaluable. As you know, an educated
consumer is a protected consumer.
As H.R. 273 makes clear, smart financial management is the
result of a lifetime of sound spending habits and financial
education. Encouraging consumers to develop these good habits
is essential to ensuring strong credit and a healthy
financial outlook.
NAMB joins you in our dedication to maintaining the highest
commitment to consumer education on mortgage and home-buying
issues. Our members work to improve the financial
understanding of consumers across the country in a variety of
ways. First, our work with Freddie Mac's CreditSmart and
CreditSmart Espanol has helped lower-income workers and
families better manage their financial futures. Second, we
inspire a commitment to consumer education in the next
generation of mortgage brokers through our work with Delta
Epsilon Chi (DECA). DECA is an international association of
high school and college students studying business and
entrepreneurship.
NAMB applauds your commitment to this issue and your
dedication on behalf of consumers and across the Nation. We
salute your efforts to improve the lives and financial
futures of hard-working Americans.
Sincerely,
Harry Dinham,
President, National Association
of Mortgage Brokers.
____
Networks Financial Institute,
Indianapolis, IN, April 10, 2007.
Hon. Ruben Hinojosa,
House of Representatives, Washington, DC.
Hon. Judy Biggert,
House of Representatives, Washington, DC.
Dear Representatives Hinojosa and Biggert: On behalf of
Networks Financial Institute at Indiana State University
(NFI), I am writing to express our strong support for H. Res.
273 as well as our appreciation for your leadership on the
critical issue of financial literacy.
In recent years, the need to improve financial literacy has
gained a significant amount of attention as Americans save
less for their retirement and spend more of their disposable
income. In our consumer oriented society, long-term saving
and investing for retirement have become overlooked
priorities and resulted in unsustainable credit card debt and
personal bankruptcies. This trend has the potential for long
term negative consequences on the well being of both
individual households and our nation's economic stability.
NFI works diligently to effect positive change in the
financial literacy of all Americans through our research,
collaboration,
[[Page H3385]]
and implementation of financial literacy education programs.
A deep body of research exists that shows the importance of
introducing literacy skills as early in a child's cognitive
development as possible. This continuum of learning extends
to financial literacy. As such, NFI is committed to providing
financial literacy education to all age levels beginning in
early childhood. Parents and teachers are in the best
position to shape the knowledge and behaviors of future
consumers, and to give children the foundation they need to
make the best financial literacy choices.
NFI commends you for the very crucial role you play in the
financial education of Americans, and we look forward to
continuing to work with you and your colleagues in the House
Financial and Economic Literacy Caucus to insure that the
goals and ideals of Financial Literacy Month are realized
each and every day.
Sincerely yours,
Elizabeth A. Coit,
Executive Director.
____
Washington, DC, April 12, 2007.
Hon. Ruben Hinojosa,
House of Representatives, Washington, DC.
Hon. Judy Biggert,
House of Representatives, Washington, DC.
Dear Representatives Hinojosa and Biggert: HSBC-North
America strongly supports H. Res. 273, a resolution
supporting the goals and ideals of Financial Literacy Month.
On behalf of HSBC, I would like to commend you and
Congresswoman Biggert for your ongoing efforts to highlight
the importance of financial literacy at the national level.
As an industry leader, HSBC champions several issues
important to consumers, including financial education.
Through the Center for Consumer Advocacy, a repository of
information on financial literacy education, insights, and
guidance, HSBC continues its commitment to improving
America's financial literacy rates.
Signature initiatives include:
YourMoneyCounts.com--HSBC's consumer education website
provides information in a broad range of financial and money
management topics. There are over 1,900 site visitors per
month.
Adult Financial Literacy Workshops--In partnership with the
Center for Neighborhood Enterprise (CNE), HSBC provides
financial education workshops at numerous community
locations. More than 5,000 families were educated in 2006.
Financial Education Grant Program--HSBC provides $1 million
in grant funding to support consumer financial education,
credit management, and home buyer counseling programs. These
programs are provided by twelve organizations in nine states,
and assisted more than 164,000 families in 2006.
YourFutureCounts--In partnership with the Society for
Financial Education and Professional Development (SFED), HSBC
presents credit management and personal financial management
seminars in Historically Black Colleges and Universities
(HBCU) campuses nationwide. More than 11,000 students have
attended seminars since the program's inception in 2005.
Additionally, during Financial Literacy month, HSBC will
host and participate in many financial literacy activities
across the nation, including Capitol Hill, that help
Americans gain critical information necessary to successfully
manage their personal finances. For example, once again this
year, HSBC will serve as a lead sponsor of the Federal
Reserve Bank's Chicago Money Smart Week from April 30-May 5.
We are proud of our involvement in this important program
which offers consumers a wealth of information on how to
better manage their personal finances through more than 300
events ranging in topic from credit to home buying to
retirement.
We, at HSBC, believe financial education empowers consumers
to use credit wisely, build assets and accumulate wealth,
providing everyone with an opportunity for a secure and
comfortable future.
Your leadership on this issue is essential to raise
awareness and to implement a national strategy to improve the
money management, credit use, and debt management skills of
all individuals. We look forward to continuing to work with
you and greatly appreciate your efforts to make financial
literacy a nationwide endeavor.
Sincerely,
J. Denis O'Toole,
Senior Vice President, Government Relations HSBC-North
America.
____
[From the Independent Community Bankers of America]
ICBA Applauds Reps. Hinojosa and Biggert for Resolution on Financial
Literacy Month
Washington, DC. (April 4, 2007)--The Independent Community
Bankers of America (ICBA) strongly supports the bi-partisan
congressional resolution (H. Res. 273) designating April as
``Financial Literacy Month,'' which calls on government, non-
profit organizations and the private sector to raise public
awareness about the importance of financial education in the
United States and the serious consequences that can result
from a lack of understanding about personal finances.
``Managing money wisely is critical to success in life,''
said James P. Ghiglieri, Jr., ICBA chairman and president of
Alpha Community Bank, Toluca, Ill. ``Too many Americans lack
the skill and knowledge to make appropriate financial
decisions. The more consumers and young adults 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 improving financial
literacy by encouraging community banks to provide financial
education within their communities and by forging government,
nonprofit and private-sector partnerships, such as the FDIC
Money Smart program, JumpStart Coalition, and Practical Money
Skills for Life.
``We commend Reps. Ruben Hinojosa (D-Tex.) and Judy Biggert
(R-Ill.), along with the more than 100 cosponsors, for
introducing a resolution that supports the goals and ideas of
Financial Literacy Month,'' said Ghiglieri. ``Financial
education is important for today's consumers so that they can
understand and make good decisions when faced with the
complex array of financial products and services available.''
____
National Association of
Federal Credit Unions,
Arlington, VA, April 5, 2007.
Hon. Ruben Hinojosa,
House of Representatives, Washington, DC.
Hon. Judy Biggert,
House of Representatives, Washington, DC.
Dear Congressman Hinojosa and Congresswoman Biggert: On
behalf of the National Association of Federal Credit Unions
(NAFCU), the only trade organization that exclusively
represents the interests of our nation's federal credit
unions, I want to thank you for introducing H. Res. 273, in
support of the goals and ideals of Financial Literacy Month.
As you know America's savings rate has been steadily
decreasing for years. While there is no easy solution to the
problem, highlighting the most problematic issues and
focusing on creating a comprehensive national plan to improve
financial literacy is a very important step forward. NAFCU
and its membership was particularly pleased to see Congress
acknowledge the importance of increasing financial literacy
awareness through the strong bi-partisan support of this
resolution. With America's savings rate at its lowest point
in years and consumer debt continuing to steadily grow,
designating April as Financial Literacy Month is an excellent
step in raising public awareness on this important issue.
As I am sure you are already aware, improving financial
education and teaching members to invest prudently is a
hallmark of the credit union movement. I wanted to take this
opportunity to offer NAFCU's expertise in that field should
you have any questions regarding the many diverse and unique
programs that credit unions offer in this regard. With nearly
800 member credit unions, NAFCU and its members have a number
of knowledgeable individuals who have helped design and
implement numerous financial literacy programs.
Again, if NAFCU can be of any help to you or the Committee,
please contact me or NAFCU Director of Legislative Affairs.
Sincerely,
Fred R. Becker, Jr.,
President/CEO.
____
VISA.
Hon. Ruben Hinojosa,
House of Representatives, Washington, DC.
Hon. Judy Biggert,
House of Representatives, Washington, DC.
Dear Representatives Hinojosa and Biggert: I am writing to
commend you for your efforts on behalf of financial
education, and for introducing H. Res. 273, 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 award-winning comprehensive educational
program includes interactive, computer based activities, as
well as plans that can be used by teachers to deliver
financial literacy lessons in the classroom.
Visa 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/.
Recently, Visa announced its first ever statewide rollout
of its ``Financial Football'' program in West Virginia.
Financial Football is a popular, interactive computer game
that incorporates content from Practical Money Skills for
Life, and tests students' knowledge by combining the
structure and rules of the NFL with financial education
questions.
This statewide rollout, conducted in partnership with West
Virginia State Treasurer John D. Perdue, distributed
Financial Football game and curriculum CDs to all high
schools in the State.
Visa is encouraged by your leadership on financial
education issues. We look forward to working with you, the
House Financial and Economic Literacy Caucus, your House and
Senate colleagues, and the Financial Literacy and Education
Commission, to advance this very important cause.
[[Page H3386]]
Thank you again for your dedication to improving financial
literacy.
Sincerely,
Lisa B. Nelson,
Senior Vice President & Director,
Government Relations.
____
The Financial Services Roundtable,
Washington, DC, April 13, 2007.
Hon. Ruben Hinojosa,
House of Representatives,
Washington, DC.
Hon. Judy Biggert,
House of Representatives,
Washington, DC.
Dear Congressman Hinjosa and Biggert: The Financial
Services Roundtable applauds your leadership in introducing
House Resolution 273, recognizing the goals and ideals of
Financial Literacy Month. We strongly support your efforts to
strengthen Americans' understanding of the financial world.
The Roundable considers financial literacy integral to
Americans in realizing their dreams by preparing them to
save, invest, and manage their money. This resolution
highlights the positive impact of sound financial literacy on
achieving life's goals. Whether you are just entering the
workforce, purchasing your first home or nearing retirement
age, everyone can benefit from increased financial awareness
and education.
The Roundtable has put in place trusted resources like
www.MyMoneyManagement.net and 888-995-HOPE to help consumers.
MyMoneyManagement.net is the first industry-wide financial
education effort to provide comprehensive information to help
Americans with their financial difficulties and direct them
to nonprofit credit counselors. 888-995-HOPE is available 24/
7 to homeowners in America having trouble paying their
mortgage. Homeowners receive free foreclosure prevention
counseling by expert counselors at HUD approved agencies.
The Financial Services Roundtable represents 100 of the
largest integrated financial services companies providing
banking, insurance, and investment products and services to
the American consumer. Member companies participate through
the Chief Executive Officer and other senior executives
nominated by the CEO. Roundtable member companies provide
fuel for America's economic engine, accounting directly for
$65.8 trillion in managed assets, $1 trillion in revenue, and
2.4 millions jobs.
We thank you for your leadership in recognizing Financial
Literacy Month through H. Res. 273. The Roundtable is proud
to support this important resolution.
Best regards,
Steve Bartlett,
President and CEO.
____
AFSA Education Foundation,
Washington, DC, April 12, 2007.
Hon. Ruben Hinojosa,
House of Representatives,
Washington, DC.
Hon. Judy Biggert,
House of Representatives,
Washington, DC.
Re: Support for House Resolution 273
Dear Representative Hinojosa and Representative Biggert:
The American Financial Services Association Education
Foundation (AFSAEF) and AFSA strongly support H. Res. 273--
the bi-partisan resolution designating April as Financial
Literacy Month. Furthermore, we commend your exemplary
leadership in championing financial literacy education for
youth and adults.
AFSAEF and AFSA are committed to improving the financial
literacy of all Americans and especially our youth through
our initiatives. AFSAEF developed and made available free of
charge MoneySKILL', an interactive online personal
finance curriculum, aimed at the millions of high school
students who graduate each year without a basic understanding
of money management fundamentals. It is designed to be used
as all or part of their grade for courses in economics, math,
or social studies. The 34-module curriculum includes the
content areas of income, expenses, assets, liabilities and
risk management that is targeted at high school students. A
life simulation module asks students to project their own
life expectancies regarding jobs, neighborhood, cars,
education plans, marriage plans and the number of children
they plan to have. The simulation allows students to
incorporate MoneySKILL' personal finance concepts
into their everyday lives. It challenges them to make the
concepts their own, providing them with skills that will last
a lifetime.
Since it was introduced, high school teachers in all 50
states have been successfully incorporating
MoneySKILL' into their course curricula. In fact,
in the past two months teachers from 40 states have enrolled
more than 9,100 new students to use the course. Teacher-
training workshops have proven to be the most effective way
to reach teachers. Currently we have 21 workshops scheduled
for this year; more are being added as conference plans are
finalized. In addition to MoneySKILL, AFSAEF provides a
comprehensive array of financial brochures and ``how to''
materials for use by adults.
AFSAEF and AFSA strongly support the goals of the House
Financial and Economic Literacy Caucus and especially your
unwavering leadership. We encourage the U.S. House of
Representatives to pass H.R. 273.
Sincerely,
M. Susie Irvine,
President and CEO, AFSA Education Foundation.
____
Housing Assistance Council,
Washington, DC, April 4, 2007.
Hon. Ruben Hinojosa,
House of Representatives,
Washington, DC.
Hon. Judy Biggert,
House of Representatives,
Washington, DC.
Dear Congressman Hinojosa and Congresswoman Biggert:
Congratulations on your introduction of H. Res. 273, the
resolution designating April as Financial Literacy Month.
Congratulations also on your outstanding leadership on this
vitally important issue. The Housing Assistance Council
strongly supports your efforts through your caucus and this
resolution to increase awareness about the importance of
financial education and economic literacy in our nation.
HAC sees on a regular basis the consequences that can
result from a lack of understanding about personal finances.
The local housing development nonprofits that HAC assists
often have a difficult time qualifying potential homebuyers
because of financial and credit problems. In addition, some
families that become homeowners may suffer if they do not
budget carefully or unwisely borrow against the equity in
their homes. These and other problems likely could be avoided
if the families and individuals involved learned better
personal financial literacy at a younger age, or in pre- and
post-purchase counseling.
Please let us know if we can be of any help in your
admirable and essential work.
Sincerely,
Moises Loza,
Executive Director.
____
April 11, 2007.
Hon. Ruben Hinojosa,
House of Representatives,
Washington, DC.
Hon. Judy Biggert,
House of Representatives,
Washington, DC.
Dear Representatives Hinojosa and Biggert: On behalf of the
Charles Schwab Foundation, I offer my congratulations on your
reappointment as Co-Chairs of the Financial and Economic
Literacy Caucus for the 110th Congress. I also want to thank
you for introducing H. Res. 273, which designates April as
``Financial Literacy Month,'' and for attracting a bipartisan
group of more than 100 co-sponsors of the resolution. At
Schwab, we share your belief that increasing financial
literacy is critically important to ensuring that Americans
save more, spend responsibly, and plan for their futures.
As you know, Schwab partners with the Boys & Girls Clubs of
America to offer a financial education program, ``Money
Matters: Make It Count,'' in teen Clubs around the country.
This program of fun, interactive lessons teaches teenagers
everything from the basics of opening a savings account and
writing checks to managing a budget, getting financial aid
for college and even the basics of investing and
entrepreneurship. This highly successful program has helped
provide financial confidence to more than 40,000 teens in the
first two years it was offered. It has also provided a great
opportunity for Schwab employees to offer their expertise as
teachers, both in the Clubs and in local schools.
The need for improved financial education, particularly for
teens, was underscored by the results of Teens & Money, an
annual survey released last month by Schwab. We found that
teens have lofty expectations about their futures, estimating
that they will be earning an average salary of $145,500,
despite the fact that only 5 percent of the U.S. population
currently earns a six-figure income, and the average national
wages are about $40,000. And while 62 percent of teens say
that they are prepared to deal with the adult financial world
after high school, further probing finds gaps that do not
correspond with this confidence. Only 41 percent say they are
knowledgeable about how to budget, just 26 percent understand
how credit card fees and interest work, and only 24 percent
know whether a check-cashing service is a good thing to use.
The credit card issue is of particular concern, because our
survey found that almost a third (29 percent) of teens have
already incurred debt.
The positive news from the survey is that teenagers want to
learn more about personal finance. Nearly 90 percent want to
learn how to make their money grow, and 60 percent say that
learning about money management is a top priority. But teens
are not getting the education they need. Just 28 percent are
being taught about budgeting, spending and saving by their
parents or guardians. Only 24 percent say that their parents
have taught them how to use a credit card responsibly.
Interestingly, two-thirds of the teens surveyed say they
would prefer to learn through experience rather than in the
classroom.
To help address these issues, Schwab is launching this
month Schwab MoneyWiseTM, a comprehensive cross-
generational package of financial education materials,
including a web site, which will offer tools for parents who
would like to help their teens learn more about money.
We believe that programs like our partnership with the Boys
& Girls Clubs of America and our new MoneyWise initiative are
important ways to reach young people, and there are numerous
other programs sponsored by other companies and organizations
that are
[[Page H3387]]
focused on the same goal. We also believe that there needs to
be a concerted national effort to raise awareness about the
importance of financial literacy. Every level of government,
our schools, our private sector companies, our non-profit
organizations, and, perhaps most importantly, our parents all
have an important role to play. We need to continue to work
together to find creative solutions and encourage a national
discussion of the basics of financial education. Efforts like
designating April as ``Financial Literacy Month'' and the
April 24th Financial Literacy Day on Capitol Hill are
important parts of this effort, and we are very pleased to
support both.
Thank you very much for your leadership on this important
issue.
Sincerely,
Carrie Schwab Pomerantz,
President, Charles Schwab Foundation.
{time} 1445
Ms. WATSON. I have no further speakers, Mr. Speaker, and I yield back
the balance of my time.
Ms. FOXX. Mr. Speaker, I yield back the balance of my time also.
The SPEAKER pro tempore. The question is on the motion offered by the
gentlewoman from California (Ms. Watson) that the House suspend the
rules and agree to the resolution, H. Res. 273.
The question was taken.
The SPEAKER pro tempore. In the opinion of the Chair, two-thirds
being in the affirmative, the ayes have it.
Ms. WATSON. 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.
____________________