[Congressional Record Volume 153, Number 61 (Tuesday, April 17, 2007)]
[Extensions of Remarks]
[Page E761]
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. SILVESTRE REYES

                                of texas

                    in the house of representatives

                         Monday, April 16, 2007

  Mr. REYES. Mr. Speaker, I rise today in support of H. Res. 273, a 
resolution supporting the goals and ideals of Financial Literacy Month.
  According to the JumpStart Coalition for Personal Financial Literacy, 
the average high school graduate does not possess basic personal 
financial management skills. These young people are unable to balance a 
checkbook, and most have little knowledge of basic practices such as 
earning, spending, saving and investing.
  This lack of awareness has serious consequences for young people. 
Without a fundamental understanding of finance charges and accumulating 
interest, young people become prone to credit card abuse, which often 
results in overspending and long-term debt. As they take on greater and 
greater financial responsibilities, these men and women are similarly 
unprepared to finance higher education, handle a mortgage, and save for 
retirement. The implications of this behavior extend beyond personal 
welfare. Consumer debt in the U.S. reached $2.4 trillion in 2006, $825 
billion of which comes from credit card debts.
  Financial literacy should be a fundamental part of every young 
American's education. The ability to manage one's finances is essential 
to building wealth and leading a prosperous economic life. On the other 
hand, those who lack the ability to manage money face lifelong 
obstacles to fulfilling their human potential and creating a solid 
economic foundation for their families.
  I thank my distinguished colleagues, Congressman Hinojosa and 
Congresswoman Biggert, for their work leading the House Financial 
Literacy Caucus, and I urge my colleagues to support this resolution.

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