[Congressional Record Volume 154, Number 50 (Tuesday, April 1, 2008)]
[Senate]
[Pages S2306-S2307]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
FINANCIAL LITERACY MONTH
Mr. NELSON of Florida. Mr. President, I ask unanimous consent that
the Senate proceed to the immediate consideration of S. Res. 495,
submitted earlier today by Senator Akaka.
The PRESIDING OFFICER. The clerk will report the resolution by title.
The legislative clerk read as follows:
A resolution (S. Res. 495) designating April 2008 as
``Financial Literacy Month.''
There being no objection, the Senate proceeded to consider the
resolution.
Mr. AKAKA. Mr. President, it pleases me to once again sponsor a
resolution designating April as Financial Literacy Month. I thank the
cosponsors of this resolution, Senators Enzi, Dodd, Stabenow, Levin,
Schumer, Inouye, Menendez, Crapo, Johnson, Cardin, Lincoln, Cochran,
Martinez, Murray, Allard, Durbin, Baucus, and Feinstein.
Without a sufficient understanding of economics and personal finance,
individuals will not be able to appropriately manage their finances,
evaluate credit opportunities, and successfully invest for long-term
financial goals in an increasingly complex marketplace. It is essential
that we work toward improving education and consumer protection, and
empowering individuals through economic and financial literacy in order
to build stronger families, businesses, and communities. Now more than
ever, it is imperative that education in economics, credit, and
personal finance takes center stage. During the past year, we have seen
the unscrupulous nature of predatory lenders as they enticed millions
of families into complicated loans they could not afford nor
understand, and we are now witnessing the results of a faltering
housing market that has begun to impact other sectors of the U.S.
economy. Rapidly increasing access to credit for Americans was not
matched by efforts to ensure they could make sense of the complex
agreements they were entering into.
As recent statistics released by the Federal Reserve and the
Department of Commerce have shown, consumer debt in America continues
to rise. Last year, the total amount of consumer debt topped $2.5
trillion, of which credit card balances comprise a major portion. Hard-
working Americans now spend a record 14 percent of their income just to
pay the interest on their accumulated consumer debt. Personal savings
rates have been negative for 2 out of the last 3 years, a situation not
seen in this country since the Great Depression. In a time of rising
costs of energy, higher education, and health care, it is even more
challenging for working families to navigate their difficult financial
situations.
Furthermore, a study conducted last year by the National Council on
Economic Education found that, compared with 2004, even fewer States
now require testing knowledge of economics as a requirement for high
school graduation. We need to do more to invest in financial literacy
now for our young men and women in order to ensure a knowledgeable,
prosperous generation of future American leaders who will be able to
make decisions that will benefit both their families and our nation.
I thank those organizations and individuals who do their part to
ensure the education of personal finance reaches as many Americans as
possible, and I applaud their efforts in these times of economic
distress.
Taking the month of April to focus our attention on financial
literacy will allow us to make steady progress in helping to make
Americans more competent with their limited financial resources. I urge
my colleagues to join with me in the swift passage of this resolution,
and together we can work toward a future where all Americans enjoy the
benefits of a financially literate society.
Mr. NELSON of Florida. Mr. President, I ask unanimous consent that
the resolution be agreed to, the preamble be agreed to, the motions to
reconsider be laid upon the table, with no intervening action or
debate, and that any statements be printed in the Record.
The PRESIDING OFFICER. Without objection, it is so ordered.
The resolution (S. Res. 495) was agreed to.
The preamble was agreed to.
The resolution, with its preamble, reads as follows:
S. Res. 495
Whereas the personal savings rate of people in the United
States declined from negative 0.5 percent in 2005 to negative
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, and the decline continued in
the first month of 2008;
Whereas, in April 2007, a survey on personal finances
reported that 25 percent of workers in the United States
responded as having ``no savings'';
Whereas the 2007 Retirement Confidence Survey conducted by
the Employee Benefit Research Institute found that only 43
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 $2,500,000,000,000 in 2007,
an increase of 33 percent since 2001;
Whereas household debt reached a record $13,750,000,000,000
in 2007;
Whereas, during 2007, a near-record high of more than 14
percent of disposable personal income went to paying the
interest on personal debt;
Whereas people in the United States are now facing record
numbers of homes in foreclosure, and for the first time in
history,
[[Page S2307]]
they have more total debt than equity in their homes;
Whereas approximately 800,000 families filed for bankruptcy
in 2007;
Whereas nearly half of adults in the United States are not
aware that they can access their credit reports for free, and
1 in 4 reported having never checked their credit score;
Whereas, in a 2006 survey, the Jump$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 2007 Survey of the States compiled by the
National Council on Economic Education found that only 22
States require testing of economics as a high school
graduation requirement, 3 fewer States than did so in 2004;
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 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 passed the
Financial Literacy and Education Improvement Act of 2003
(Public Law 108-159; 117 Stat. 2003) establishing the
Financial Literacy and Education Commission and designating
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 2008 as ``Financial Literacy Month''
to raise public awareness about--
(A) the importance of personal 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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