[Congressional Record Volume 155, Number 63 (Tuesday, April 28, 2009)]
[House]
[Pages H4855-H4857]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                  SUPPORTING FINANCIAL LITERACY MONTH

  Mr. MOORE of Kansas. Mr. Speaker, I move to suspend the rules and 
agree to the resolution (H. Res. 357) supporting the goals and ideals 
of Financial Literacy Month 2009, and for other purposes.
  The Clerk read the title of the resolution.
  The text of the resolution is as follows:

                              H. Res. 357

       Whereas personal financial literacy is essential to ensure 
     that individuals are prepared to make informed financial 
     choices, as well as manage money, credit, debt, and risk and 
     become responsible workers, heads of households, investors, 
     entrepreneurs, business leaders, and citizens;
       Whereas personal financial management skills and lifelong 
     habits begin to develop during childhood, making it all the 
     more important to support youth financial education;
       Whereas a 2008 survey of high school seniors conducted by 
     the Jump$tart Coalition for Personal Financial Literacy 
     revealed that students in 2008 answered correctly only 48.3 
     percent of the survey's questions, a decline from those 
     posted by students in 2006, who correctly answered 52.4 
     percent of the questions;
       Whereas 84 percent of undergraduates had at least one 
     credit card in 2008, up from 76 percent in 2004, with the 
     average number of cards increasing to 4.6 according to Sallie 
     Mae's National Study of Usage Rates and Trends 2009 entitled 
     ``How Undergraduate Students Use Credit Cards'';
       Whereas personal saving as a percentage of disposable 
     personal income was 4.2 percent in February, compared with 
     4.4 percent in January, and up from a 12-month average of 1.7 
     percent in 2008, according to the Bureau of Economic 
     Analysis;
       Whereas the average baby boomer has only $50,000 in savings 
     apart from equity in their homes, according to the Federal 
     Reserve Board's Survey of Consumer Finances for 2007;
       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 public, 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 financial 
     counseling for individuals;
       Whereas bankers across the United States taught savings 
     skills to young people on April 21, 2009, during Teach 
     Children to Save Day, which was started by the American 
     Bankers Association Education Foundation in April of 1997 and 
     has now helped more than 72,000 bankers teach savings skills 
     to nearly 3,200,000 young people;
       Whereas staff from America's credit unions are making 
     presentations to young people at local schools on financial 
     topics such as student loans, balancing a checkbook, and auto 
     loans during National Credit Union Youth Week, April 19-25, 
     2009;
       Whereas more than 100 Federal agencies have collaborated on 
     a website, www.consumer.gov, which helps consumers shop for a 
     mortgage or auto loan, understand and reconcile credit card 
     statements and utility bills, choose savings and retirement 
     plans, compare health insurance policies, and understand 
     their credit report and how it affects their ability to get 
     credit and on what terms;
       Whereas Members of the United States House of 
     Representatives established the Financial and Economic 
     Literacy Caucus (FELC) in February 2005 to provide a forum 
     for interested Members of Congress to review, discuss and 
     recommend financial and economic literacy policies, 
     legislation, and programs, collaborate with the private 
     sector, and nonprofit and community-based organizations, and 
     organize and promote financial literacy legislation, 
     seminars, and events, such as ``Financial Literacy Month''

[[Page H4856]]

     in April, 2009, and the annual ``Financial Literacy Day 
     Fair'' on April 30, 2009; and
       Whereas the Council for 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 financial 
     education;
       (2) recognizes the importance of managing personal 
     finances, increasing personal savings, and reducing personal 
     debt in the United States; and
       (3) 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 gentleman from 
Kansas (Mr. Moore) and the gentlewoman from Illinois (Mrs. Biggert) 
each will control 20 minutes.
  The Chair recognizes the gentleman from Kansas.


                             General Leave

  Mr. MOORE of Kansas. Mr. Speaker, I ask unanimous consent that all 
Members have 5 legislative days within which to revise and extend their 
remarks on this legislation and to insert any extraneous material 
thereon.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Kansas?
  There was no objection.
  Mr. MOORE of Kansas. Mr. Speaker, I yield myself 5 minutes.
  I would first like to thank my colleague, the gentlewoman from 
Illinois, for her good work on the issue of financial literacy. I would 
also like to recognize my colleague, Mr. Hinojosa, as cofounder and 
cochair of the Financial and Economic Literacy Caucus and to commend 
him for his work on this issue.
  Possessing the skills to make informed financial decisions not only 
helps American families, but it's important for long-term fiscal 
soundness. From basic financial tools like balancing a checkbook and 
making a family budget, to more complex themes such as understanding 
intricate contracts, everybody can benefit from a little education on 
financial literacy.
  As we have seen with the recent housing market problems, for example, 
too many people are unfamiliar with basic economic concepts needed to 
make responsible investments. With serious questions about the long-
term viability of Social Security, it's clear that we do need to do a 
better job of educating people about the importance of private 
retirement savings.
  Most importantly, however, we must ensure that throughout their 
regular education, our students have access to programs that promote 
financial literacy so they can form good money management habits before 
they inadvertently learn bad ones. Studies show that the percentage of 
undergraduates with credit cards is rising, while their basic 
understanding of the terms of these cards is on the decline. We must do 
something to stem this tide.
  With responsible money management skills, it is easier for Americans 
to ride out rough economic times and prosper in times of economic 
richness. As we face the toughest economic challenge in our country 
since the Great Depression, it's evident that exercising prudent 
monetary practice is not a luxury, but a necessity, for all Americans.
  We need to highlight the need for financial education and 
understanding. H. Res. 357 supports these goals and the goals of 
Financial Literacy Month. I couldn't be happier to be a cosponsor.
  Mr. Speaker, I reserve the balance of my time.
  Mrs. BIGGERT. Mr. Speaker, I yield myself as much time as I may 
consume.
  I rise today as a cosponsor of House Resolution 357, which recognizes 
April as Financial Literacy Month, and I would strongly urge my 
colleagues to support it.
  I would like to begin by thanking my good friend and fellow chair of 
the House Financial and Economic Literacy Caucus, Mr. Hinojosa, for his 
continuing efforts to improve financial literacy rates in America. I 
know he would have liked to have been here. He has been such an 
important force in financial literacy matters and will continue to be. 
I would like to thank my colleague from Kansas (Mr. Moore) for managing 
this bill on his behalf.
  Our Financial and Economic Literacy Caucus has been at the forefront 
of this issue for several years, but we have much more work to do 
before us if we are going to help today's children become tomorrow's 
smart investors, entrepreneurs and business leaders, especially in 
tough economic times like this.
  Mr. Speaker, efforts to stimulate the economy cannot succeed unless 
we equip Americans with the knowledge and resources they need to 
succeed in today's market.
  According to the Jump$tart Coalition, high school seniors in 2008 
answered only 48.3 percent of their organization's survey questions 
correctly on personal finance, a decline of 4.1 percent from 2006. And 
your average baby boomer still only has less than $50,000 in savings, 
and that savings continues to shrink as our economy continues to regain 
its momentum.
  I know it's kind of odd to think about, but one of the few bright 
spots in the current economic climate is that savings rate has finally 
risen above the near zero level up to the 4 percent range. I think 
Americans are learning that a financial buffer is critical when times 
get unexpectedly tough.
  So while we want to stimulate commerce in the short term, we must 
ensure that people do not forget the lessons of the past. We need to be 
prepared for tuition costs, a home, health care and retirement. We need 
a financial cushion against unexpected challenges like the death of a 
family member or a health condition, and we need the capital necessary 
for new entrepreneurs to launch the startups and open the small 
businesses that drive this economy.
  Every American should have the opportunity and the know-how to 
fulfill each of these goals, and we must share these lessons with our 
children and our grandchildren through new, effective methods of 
teaching sound money management skills. That is why I urge my 
colleagues to support this resolution and show that financial literacy 
remains a top priority for Congress.
  I would also like to encourage Members of the House and their staff 
to attend Friday's annual Financial Literacy Day Fair, which will be 
held from 12 noon to 4 p.m. in the afternoon in the Cannon Caucus Room, 
where you will be able to find a broad array of financial educational 
materials and ideas for reaching out to constituents on this important 
issue.
  With that, I would urge support of this resolution and yield back the 
balance of my time.
  Mr. MOORE of Kansas. Mr. Speaker, I would join my colleague from 
Illinois in inviting Members to attend this Financial Literacy Day. 
This is very, very important and I appreciate her mentioning that.
  Mr. DREIER. Mr. Speaker, I rise in strong support of H. Res. 357, 
supporting the goals and ideals of Financial Literacy Month. I would 
also like to commend the gentleman from Texas, Mr. Hinojosa, and the 
gentlelady from Illinois, Mrs. Biggert, the co-chairs of the Financial 
Literacy Caucus, for all of their hard work on this important issue.
  It is imperative in our current economy that we do everything we 
possibly can to encourage greater financial literacy for all Americans. 
As we all know, a major factor in the collapse of our financial markets 
can be attributed to unscrupulous lenders who took advantage of 
consumers. In these cases, predatory lenders, looking to make a quick 
buck, misled consumers by encouraging them to enter into complicated 
mortgage products, such as adjustable rate mortgages, without fully 
understanding the implications if home prices fell or interest rates 
adjusted. In other cases, irresponsible borrowers took advantage of so-
called ``no-doc'' loans to exaggerate income information to buy a home 
they couldn't afford or re-finance to pull equity out, as if their home 
were an ATM machine. This eventually led to higher mortgage 
delinquencies and contributed to the housing downturn, ultimately 
affecting responsible homeowners who lived within their means and paid 
their mortgages on time. Even the best and brightest minds on Wall 
Street fell prey to this problem, making bad bets and overexposing 
their organizations with complicated financial products based on these 
bad loans. As mortgage defaults increased, the value of many of these 
real estate-related products collapsed, creating a

[[Page H4857]]

downturn which spread to other sectors of the global economy.
  It is clear that an understanding of personal finance--from basic 
spending decisions to deciphering borrowing terms to investing and 
saving--is important to effectively plan for the future. And there are 
significant signs that we need to help our youth establish a strong 
foundation in personal finance at an early age and practice these 
lessons throughout life. For example, the Jump$tart Coalition's 2008 
survey found that only 48.3 percent of high school seniors possessed an 
understanding of basic finance, a decline from the 2006 survey. At the 
same time, according to an April 2009 Sallie Mae report, 84 percent of 
college undergraduates had at least one credit card. This represents a 
disturbing trend, as these statistics demonstrate that while these 
young adults have access to credit, they may not necessarily understand 
how to use it wisely. If we don't encourage our children to understand 
personal finance now, we run the risk of repeating the same mistakes 
all over again.
  Mr. Speaker, that is why we must all do our part to enhance financial 
literacy. On April 21, the American Bankers Association Education 
Foundation held their annual Teach Children to Save Day, to help young 
people enhance their savings skills. Since 1997, 72,000 bankers have 
participated to teach nearly 3.2 million youth. Also, America's credit 
unions made presentations at local schools on financial issues during 
National Credit Union Youth Week, April 19 to 25. In addition, 
www.consumer.gov, a website sponsored by 100 Federal agencies, provides 
assistance to consumers on a variety of financial matters, including 
shopping for a mortgage or auto loan, understanding credit card 
statements and planning for savings and retirement.
  At the same time, Congress needs to take action to help workers and 
families begin to rebuild their savings and retirement accounts, and 
prepare for the future. That is why I am supporting the Savings 
Recovery Act, which I co-authored this month with several of my 
colleagues. This bill includes a number of provisions that will help 
working families recoup the losses that have been suffered and once 
again build up the savings and retirement accounts that give us all 
confidence in our financial futures.
  Also of note, late last year, the Federal Reserve Board approved 
final rules which enhance consumer protections and improve credit card 
disclosure terms. The new rules, which go into effect on July 1, 2010, 
protect against unexpected interest rate increases, provide consumers 
with adequate time to make payments and make borrowing terms more 
understandable for consumers.
  Put simply, financial literacy is about opportunity. It is about 
empowering individuals to make informed financial decisions, helping 
them to attain financial independence and future prosperity. Working 
together, we can ensure that America's youth gain a fundamental 
understanding of personal finance to help them succeed later in life. I 
am honored to be an original co-sponsor of this measure and urge 
Members to vote ``yes'' on the resolution.
  Mrs. BACHMANN. Mr. Speaker, I rise today in support of H. Res. 357, 
which recognizes the month of April as Financial Literacy Month.
  As a cosponsor of this important resolution, it is my goal to empower 
individuals with knowledge so they can make informed decisions and 
achieve financial freedom. During these tumultuous and unprecedented 
financial times, it is particularly important that Americans access 
available financial counseling and individuals pay close attention to 
details of all their financial agreements. These are surefire ways to 
ensure that families and individuals have the resources necessary to 
secure a solid future.
  Through a financial plan, we begin to dream. When we dream, we have 
the incentive to save; and through savings, we flourish financially. 
Financial stability is the foundation on which freedom and prosperity 
are built.
  Mr. Speaker, as a member of the Financial Literacy Caucus, I am 
thrilled to cosponsor this resolution so that many Americans, some for 
the first time, can begin to dream of a life of financial security, and 
work to reach their highest goals and aspirations.
  Ms. JACKSON-LEE of Texas. Mr. Speaker, I rise today in strong support 
of H. Res. 357, Supporting the goals and ideals of financial literacy 
month 2009. This resolution is timely. I would like to thank 
Representative Hinojosa for his leadership in bringing this bill to the 
floor. In light of today's economic realities--the fact that this is 
the deepest recession since the Great Depression with unemployment at 
record highs--I would encourage each of my colleagues to support this 
legislation.
  Americans are taught to work hard and make money and to buy house, 
but we are never told about financial literacy. In these tough economic 
times, it is imperative that Americans know about financial literacy; 
it is crucial to our survival. Americans need to be prepared to make 
informed financial choices. Indeed, we much learn how to effectively 
handle money, credit, debt, and risk. We must become better stewards 
over the things that we are entrusted. By becoming better stewards, 
Americans will become responsible workers, heads of households, 
investors, entrepreneurs, business leaders and citizens.
  In 2008, 84 percent of undergraduates had at least one credit card. 
This figure is staggering. Young people who themselves might not even 
have job are able to get credit cards. This is astounding because it 
begins the cycle of indebtedness.
  Recent studies have indicated that young people do not even know 
basic financial topics such as the impact of student loans on one's 
credit, how to balance a checkbook, and the impact of automobile loans 
on one's credit.
  Because of my concern that young people are not sufficiently informed 
about financial literacy, I have introduced a H.R. 1325. H.R. 1325, To 
require financial literacy counseling for borrowers, and for other 
purposes. This legislation is important because approximately two-
thirds of students borrow to pay for college according to the Center 
for Economic and Policy Research. Moreover, one in ten of student 
borrowers have loans more than $35,000. Passing this legislation will 
ensure that our nation's college students will be more prepared when 
incurring student loan debt and help them to avoid default as student 
loans severely impact one's credit score. Currently there is about $60 
billion in defaulted student loan debt.
  Many students do not understand the reality of repaying student debt 
while taking out these loans. While most Americans have debt of some 
kind, student loan repayment is especially scary, as one cannot just 
declare bankruptcy and have their loans discharged. Due to the lack of 
financial literacy counseling for borrowers, student loan payments are 
often higher than expected. Recent grads are unable to afford the 
monthly payments resulting in them living paycheck to paycheck, 
acquiring credit card debt and in extreme cases, grads leaving the 
country in order to avoid repayment and debt collectors.
  Students and parents are not currently receiving the proper or any 
information of the burden that their student loans will have once they 
graduate. This is possibly a result of the relationship between student 
loan companies and universities, as some lenders offer universities 
incentives to steer borrowers their way.
  College campuses are one place that young Americans are introduced to 
credit and the possibility of living beyond their means. With proper 
loan and credit counseling the burden of debt incurred in college could 
be greatly reduced. Especially in this time of recession, financial 
literacy is one of the most important tools that we can give to our 
students in order to ensure their success in the future.
  This legislation will provide financial literacy training to students 
taking out Federal Student Loans and will require a minimum of 4 hours 
of counseling including entrance and exit counseling. Counseling will 
include the fundamentals of basic checking and savings accounts, 
budgeting, types of credit and their appropriate uses, the different 
forms of student financial aid, repayment options, credit scores and 
ratings, as well as investing.
  I urge my colleagues to support this resolution and to support my 
bill.
  Mr. MOORE of Kansas. Mr. Speaker, I yield back the balance of my 
time.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentleman from Kansas (Mr. Moore) that the House suspend the rules and 
agree to the resolution, H. Res. 357.
  The question was taken.
  The SPEAKER pro tempore. In the opinion of the Chair, two-thirds 
being in the affirmative, the ayes have it.
  Mr. MOORE of Kansas. Mr. Speaker, I object to the vote on the ground 
that a quorum is not present and make the point of order that a quorum 
is not present.
  The SPEAKER pro tempore. Pursuant to clause 8 of rule XX and the 
Chair's prior announcement, further proceedings on this motion will be 
postponed.
  The point of no quorum is considered withdrawn.

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