[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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