[Congressional Record Volume 155, Number 69 (Wednesday, May 6, 2009)]
[Extensions of Remarks]
[Pages E1076-E1077]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                  SUPPORTING FINANCIAL LITERACY MONTH

                                 ______
                                 

                          HON. RUBEN HINOJOSA

                                of texas

                    in the house of representatives

                         Wednesday, May 6, 2009

  Mr. HINOJOSA. Mr. Speaker, personal financial management skills and 
lifelong habits begin to develop during childhood. As such, it is 
essential that we begin preparing our youth as early as possible on how 
to make informed financial choices, manage money, credit, debt, and 
risk and eventually become responsible workers, heads of households, 
investors, entrepreneurs, business leaders, and citizens.
  We need to begin working closely with the Department of Education and 
states and localities to ensure that we begin the financial literacy 
learning process at least by the time a child enters Kindergarten.
  Policymakers of both parties, at the local, state, and federal 
levels, recently have increased their focus on financial literacy and 
economic education issues because national surveys reveal troubling 
gaps in students' and the public's knowledge of these subjects. 
Economic competency and financial literacy skills are critical for 
individuals to make sound decisions regarding home ownership, savings, 
investment, credit and borrowing, and retirement planning. An educated 
and financially literate populace will strengthen the national economy, 
especially as individuals improve their own economic well-being.
  Our government should lead by example. We should coordinate and 
communicate a unified message on financial literacy across this Nation. 
We should authorize and appropriate such funds as necessary to create a 
broad-based public awareness campaign comprised of a substantial mass-
market, multimedia effort in support of a national financial literacy 
initiative on the scale of the ``truth'' campaign, developed through 
the Public Education Fund to discourage smoking among young people.
  I believe that the National Endowment on Financial Education and 
several other financial literacy nonprofits and community based groups 
would agree with me. My proposed financial literacy initiative would be 
in addition to the one recommended in the Office of Housing Counseling 
legislation as introduced by my fellow Financial and Economic Literacy 
Caucus Co-Chair, colleague and friend, Congresswoman Judy Biggert. I am 
a proud cosponsor of her legislation and am pleased that it was 
incorporated into H.R. 1728, the ``Mortgage Reform and Anti-Predatory 
Lending Act.''
  In 2004, Congress passed a bill known as the FACT Act. One of the 
provisions in that Act required Treasury and a Financial Literacy 
Education Commission to create a national financial literacy campaign. 
They failed miserably, and, consequently, I think we need to revisit 
Title V of the FACT Act to alter the composition and contributions and 
goals of the Financial Literacy and Education Commission housed at 
Treasury once the Deputy Assistant Secretary for the Office of 
Financial Education is selected.
  Mr. Speaker, some disturbing facts.
  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;
  Eighty-four 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'';
  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;
  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; and,
  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.
  These statistics are alarming.
  All of us here in Congress and across the United States need to take 
actions necessary to address and improve upon these startling facts. I 
am pleased to announce that I am a proud cosponsor of Congresswoman 
Carolyn Maloney's Credit Cardholders' Bill of Rights. I supported it in 
Committee and voted for it when it passed the House.
  One other way of addressing these alarming statistics is by 
increasing the number of Members of Congress dedicated to the financial 
literacy cause. By joining the Financial and Economic Literacy Caucus 
my colleague and friend
  Congresswoman Judy Biggert and I co-founded in 2005 and currently co-
chair, Members can take a giant step forward and help us find the ways 
and means to improve financial literacy across the United States for 
all individuals during all stages of life.
  As members of the Caucus, my colleagues in the House can collaborate 
on events such as the National Consumer Protection Week Fair, America 
Saves Week, Financial Literacy Month, and the Financial Literacy Day 
Fair held every other year in the House of Representatives.
  By joining the Caucus, Members can collaborate with us to increase 
funding for the Council for Economic Education's Excellence in Economic 
Education (EEE) program. Congress authorized the EEE as part of the No 
Child Left Behind Act ``to promote economic and financial literacy of 
all students in kindergarten through grade 12.'' In 2004, the 
Department of Education selected from a competitive process the Council 
for Economic Education (formerly named the ``National Council for 
Economic Education'') to administer and implement the Excellence in 
Economic Education program authorized in the No Child Left Behind Act 
(P.L. 107-110), Subpart 13, Sections 5531-5537).
  Educating students in grades K-12 is the best way to help them 
develop the knowledge and skills they will need for a lifetime of 
economic and financial decisions. The EEE program accomplishes this 
through sub-grants to

[[Page E1077]]

state and local educational organizations for activities that include 
distribution of curricular materials, replication of best practices and 
teacher training.
  EEE is a targeted, demand-driven, grassroots program. Three quarters 
of the funding goes directly to ongoing state and local economic 
education and financial literacy initiatives with proven track records. 
The program also requires a thorough review and assessment of the use 
and effectiveness of the sub-grants. Finally, federal resources are 
leveraged through the requirement that sub-grant recipients match EEE 
funds dollar-for-dollar.
  Since that time: 48 states and the District of Columbia have been 
served by Excellence in Economic Education (EEE) sub-grants in project 
years 2004-08; 495 sub-grants were awarded in that time-frame; 
$5,418,539 has been awarded to grass-roots organizations nationwide; 
over 1,500 copies the 2007 Survey of the States were distributed to 
individuals and agencies interested in improving economic and financial 
literacy.
  During Financial Literacy Month 2009, the Jump$tart Coalition for 
Personal Financial Literacy, Junior Achievement, and the Council for 
Economic Education hosted the Financial Literacy Day Fair on Capitol 
Hill in collaboration with myself and Congresswoman Biggert in our 
roles as co-chairs of the Caucus. Over 800 people attended this year's 
Financial Literacy Day Fair on April 30, 2009 in the Cannon Caucus 
Room, 345 Cannon, and more than 50 vendors participated presented their 
financial literacy pamphlets, brochures, DVDs, and more at the Fair. 
The youngest participant was an 11 week old baby girl named Juliana and 
a man in his late 80s/early 90s who has worked on Capitol Hill for 
quite some time.
  Also during Financial Literacy Month 2009, bankers across the United 
States taught savings skills to young people on April 21, 2009, during 
Teach Children to Save Day. This Day 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.
  Staff from America's credit unions made 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;
  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.
  In my district, I've held four different financial literacy events at 
four different schools. I was able to host financial literacy programs 
at four different schools in the Beeville as well as the Edinburg area 
of my district. We provided financial literacy workshops to well over 
400 high school students in three days. I hope to add even more events 
in my district during Financial Literacy Month 2010.
  Mr. Speaker, there are hundreds of other financial literacy programs 
out there for us to tap and integrate into resolutions, legislation, 
authorizations and appropriations.
  It is important that we support the goals and ideals of Financial 
Literacy Month, including raising public awareness about financial 
education; recognize the importance of managing personal finances, 
increasing personal savings, and reducing personal debt in the United 
States; and, that the President, the Federal Government, States, 
localities, schools, nonprofit organizations, businesses, and the 
people of the United States 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.

  I am pleased to insert at the end of my remarks a Presidential 
Statement I received April 30, 2009 from President Barack Obama. In it, 
he states that he is ``pleased to join all who are observing Financial 
Literacy Month.'' He goes on to state that ``It is more important than 
ever to understand how to balance a checkbook, budget wisely, plan for 
retirement and avoid accumulating debts that could harm your financial 
future. A strong American economy depends on everyone . . . We must 
pass along such fundamental knowledge to our family and friends, 
because financial literacy empowers all of us.''
  I am personally thrilled that President Obama has issued this 
Financial Literacy Month Statement, and I look forward to working with 
him, his staff at the White House, staff at Treasury, and other federal 
agencies on financial literacy issues now and well into the future.
  I am also inserting at the end of my remarks a list of the Members of 
Congress who are part of the Financial and Economic Literacy Caucus and 
have given permission that their names be listed publicly as members of 
the Caucus.
  Together we can improve our economy. Together, we can re-establish 
our prominence in the global marketplace, and together we can work to 
ensure that the United States remains at the top of the global economy 
by teaching our youth as early as possible how to manage their 
finances.
  We need to act soon. We need to act fast, and we need to act 
prudently and decisively.
  Si, Se Puede!

 Current List of Members of the Financial and Economic Literacy Caucus 
               Who Have Agreed To Make Their Names Public

       Joe Baca, Melissa Bean, Judy Biggert, Brian Bilbray, Dennis 
     Cardoza, William ``Lacy'' Clay, Emanuel Cleaver, Tom Cole, 
     Jim Costa, and Joseph Crowley.
       Elijah Cummings, Geoff Davis, Eliot Engel, Scott Garrett, 
     Al Green, Jim Himes, Ruben Hinojosa, Eddie Bernice Johnson, 
     Patrick Kennedy, Sheila Jackson-Lee, Carolyn McCarthy, Earl 
     Pomeroy, and Loretta Sanchez.
                                  ____



                                              The White House,

                                           Washington, April 2009.
       Sound financial planning and responsibility are essential 
     to our families and our economy, and I am pleased to join all 
     who are observing Financial Literacy Month.
       It is more important than ever to understand how to balance 
     a checkbook, budget wisely, plan for retirement, and avoid 
     accumulating debts that could harm your financial future. A 
     strong American economy depends on everyone--from individuals 
     and homeowners, to investors and entrepreneurs--practicing 
     financial responsibility. We must pass along such fundamental 
     knowledge to our family and friends, because financial 
     literacy empowers all of us.
       The emphasis on financial literacy awareness and education 
     must extend beyond April. I hope the insights you have gained 
     this month will continue to improve the quality of life for 
     you, your family and community, and I wish you all the best.

     Barack Obama.

                          ____________________