[Congressional Record Volume 165, Number 70 (Tuesday, April 30, 2019)]
[House]
[Pages H3312-H3314]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




  ENCOURAGING GREATER PUBLIC-PRIVATE SECTOR COLLABORATION TO PROMOTE 
           FINANCIAL LITERACY FOR STUDENTS AND YOUNG ADULTS.

  Mr. FOSTER. Madam Speaker, I move to suspend the rules and pass the 
resolution (H. Res. 327) encouraging greater public-private sector 
collaboration to promote financial literacy for students and young 
adults, as amended.
  The Clerk read the title of the resolution.
  The text of the resolution is as follows:

                              H. Res. 327

       Whereas personal financial literacy is essential to 
     ensuring that individuals are prepared to make informed 
     decisions about budgeting, financial planning, wealth 
     accumulation, higher education loans, 529 savings plans, 
     managing credit cards, and managing other debt;
       Whereas often young people are ill-equipped to handle major 
     financial decisions in an increasingly complex financial 
     marketplace;
       Whereas personal financial management skills begin to 
     develop during childhood;
       Whereas, according to the report of the Girl Scout Research 
     Institute entitled ``Having it All: Girls and Financial 
     Literacy'', only 12 percent of girls feel very confident 
     about making financial decisions;
       Whereas the move away from traditional pensions and toward 
     defined contribution plans requires more financial education, 
     so workers need to be equipped with the financial aptitude to 
     not only save and accumulate assets, but also to turn those 
     assets into lifetime income;
       Whereas the Council for Economic Education found that only 
     22 States require high schools to offer some type of personal 
     finance course and only 17 States require that course for 
     high school graduation;
       Whereas a longitudinal research study by the University of 
     Arizona found that high school and college students who have 
     been exposed to ongoing financial education show an increase 
     in financial knowledge;
       Whereas the 2015 National Financial Capability Study, 
     developed in consultation with the Department of the Treasury 
     and President's Advisory Council on Financial Capability, 
     updates key measures from the 2009 National Financial 
     Capability Study of American adults and deepens the 
     exploration of topics that are highly relevant today, 
     including student loans and medical debt;
       Whereas the Federal Reserve System offers publications in 
     English and Spanish that provide consumers tips on a broad 
     range of topics, from avoiding mortgage foreclosure scams to 
     managing a checking account;
       Whereas a study conducted by Daniel Fernandes, John G. 
     Lynch, Jr., and Richard Netemeyer entitled ``Financial 
     Literacy, Financial Education and Downstream Financial 
     Behaviors'' found that it ``is best to provide assistance 
     just before a decision is made in what is known as `just-in-
     time education' ''; and
       Whereas on September 6, 2018, the U.S. House of 
     Representatives passed, by a vote of 406 to 4, H.R. 1635, the 
     Empowering Students Through Enhanced Financial Counseling 
     Act, which helps improve financial aid counseling for 
     students receiving a Pell Grant or a Federal loan: Now, 
     therefore, be it
       Resolved, That the House of Representatives--
       (1) emphasizes the importance of raising awareness of 
     individual financial capability by providing relevant 
     information, financial workshops, and other decision-making 
     tools to consumers of all ages;
       (2) supports the efforts of Federal financial agencies to 
     partner with organizations that are focused on developing 
     opportunities for minorities and women to place talented 
     young minorities and women in industry internships, summer 
     employment, and full-time positions;
       (3) supports the efforts of the Federal financial agencies 
     to provide consumers with relevant information and decision-
     making tools regarding important financial decisions; and
       (4) urges the Department of the Treasury to consult with 
     the Financial Industry Regulatory Authority and implement 
     future national financial capability studies.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Illinois (Mr. Foster) and the gentleman from Arkansas (Mr. Hill) each 
will control 20 minutes.
  The Chair recognizes the gentleman from Illinois.


                             General Leave

  Mr. FOSTER. Madam Speaker, I ask unanimous consent that all Members 
may have 5 legislative days in which to revise and extend their remarks 
on this legislation and to insert extraneous material thereon.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Illinois?
  There was no objection.
  Mr. FOSTER. Madam Speaker, I yield myself such time as I may consume.
  Madam Speaker, I rise in support of H. Res. 327, a bipartisan 
resolution we introduced in April in honor of Financial Literacy Month.
  I would like to start by thanking my friend Congressman French Hill 
from Arkansas, who should truly be considered as an original cosponsor 
of this resolution for working on this legislation with me.
  The aim of this resolution is simple but important. It encourages 
collaboration between the public and private sector to promote 
financial literacy for students. It emphasizes the importance of 
financial literacy for consumers of all ages, and it supports efforts 
of Federal agencies to expand financial education resources.
  This year alone, approximately 15.1 million students will be in 
grades 9 through 12 and almost 20 million students will be enrolled in 
colleges and universities.
  That is a lot of young people who will soon be entering a complex 
financial marketplace where they will have to quickly make important 
financial decisions. These include decisions about paying for college, 
credit cards, financing a car or a home purchase, preparing for 
unexpected emergencies, and saving for retirement.
  However, without an understanding of basic financial concepts, these 
young people will not be well equipped to make these decisions.
  At a time when student loan balances stand at $1.5 trillion and a 
majority of private workers have access to defined contribution plans 
and not traditional pension benefits, it is even more important for 
young people and workers to be financially literate.
  Part of the problem is that too few schools incorporate financial 
education into their curriculum. According to the Council for Economic 
Education, only a third of States require high school students to take 
a course in personal finance. In those States, most schools teach the 
subject as one portion of another course of study--such as math, 
economics, or social studies--while only five States require a 
semester-long, standalone personal finance course.
  Studies show that financial illiteracy carries significant cost. 
Consumers who fail to understand the concept of

[[Page H3313]]

compound interest spend more on transaction fees, run up bigger debts, 
and incur higher interest rates on loans.
  We also need to work on making financial literacy tools available for 
everyone. Unfortunately, levels of financial literacy are lower among 
the less educated minorities and women.
  Just 19 percent of high school graduates possess basic financial 
knowledge and skills. Perhaps even more troubling, according to a 
survey by the Consumer Federation of America and the Financial Planning 
Association, 21 percent of respondents, including 38 percent of those 
with income below $25,000, reported that winning the lottery was ``the 
most practical strategy for accumulating several hundred thousand 
dollars for their own retirement.''
  This is a tragedy in the making, and we can do better.
  While Americans are not expected to manage their own legal cases or 
medical conditions, they are expected to manage their own finances.
  We teach our children to wear seat belts. We teach them to say no to 
drugs. We should also be teaching them the financial literacy skills 
that they will need to successfully navigate the financial marketplace.
  We want to give young people and all consumers the tools they need to 
survive. One of the ways in which we can do that is by having Federal 
agencies partner with schools, local and State governments, workplaces, 
community organizations, nonprofits, and financial service providers.
  Whether it is giving students immersive opportunities to see how 
money and banking work in the real world or helping train and equip 
teachers with the curriculum and materials they need to succeed in the 
classroom, Federal agencies should be bold and innovative in their 
approaches and leverage the ways in which technology can be used to 
further these laudable goals.
  We cannot afford to have future generations of Americans grow up 
without learning these fundamental skills. For that reason, I urge all 
my colleagues to support this resolution.

  Madam Speaker, I reserve the balance of my time.
  Mr. HILL of Arkansas. Madam Speaker, I yield myself such time as I 
may consume.
  I thank Madam Speaker for the opportunity to speak on this important 
resolution, H. Res. 327, and I want to thank my good friend from 
Illinois, Dr. Foster, for his passion on this measure to benefit, 
particularly, the young people in this country.
  Certainly, as the most prominent Ph.D. in the House of 
Representatives and a pioneering entrepreneur, he knows the value of 
financial literacy.
  And I am proud, as a former community banker and investment manager, 
somebody who dealt with families, their kids, and older Americans for 
30 years in finance, to partner on this very important promotion of 
financial literacy for students and young adults.
  It is wonderful that it is a bipartisan effort by our committee.
  And it is truly unfortunate, Madam Speaker, that only 25 States 
require high school students to take a financial literacy class in 
order to graduate. As a result, many children and adolescents grow into 
adults who don't know how to properly save, spend, and budget.
  I am proud that Arkansas is one of those 25 States, Madam Speaker, as 
we enacted our requirement back in 2005. But, going back even further 
to 1962, Arkansas, through the leadership of Bessie Moore, a remarkable 
educator in our State, created something called Economics Arkansas, 
which, every summer, puts on financial literacy training for all of our 
teachers, K through 12, so that they understand to put financial 
literacy in all the classrooms.
  It was a lot of fun last week when we were in the district to go to 
Robinson Senior High School in Little Rock and see them compete for the 
Stock Market Game, which is a major component in financial literacy 
training, through Economics Arkansas.

                              {time}  1230

  So not everyone, every student is as lucky as an Arkansan, because 
two-thirds of Americans can't pass a financial literacy test, Madam 
Speaker. Forty-four percent do not have enough savings to cover a $400 
emergency, and 33 percent have not saved for their retirement.
  Financial illiteracy has broader economic costs, higher debt, limited 
savings. For many, this limits their homeownership. This means they 
don't have a stable retirement. And for many of our young adults, this 
critical knowledge creates the burden that we have seen in student loan 
lending in this country where families are not treating higher 
education debt as seriously as they treat buying that first house.
  Why is that, Madam Speaker? It is because of the lack, in my view, of 
financial literacy at the high school level, at our admissions offices 
in colleges, and that is why it was terrific, bipartisan, that this 
time last year in the last Congress, in September, we passed, with over 
400 votes in this House, a measure that requires financial literacy 
training for students seeking a student loan, for students accepting a 
Pell grant. That is the kind of good work that this House has been 
doing.
  I want to again thank my friend, Mr. Foster, for his work. As we 
close Financial Literacy Month, I can't think of a better topic, and I 
can't think of a better friend to share that work with.
  Madam Speaker, I reserve the balance of my time.
  Mr. FOSTER. Madam Speaker, I yield 5 minutes to the gentleman from 
Georgia (Mr.   David Scott).
  Mr. DAVID SCOTT of Georgia. Madam Speaker, I thank the gentleman for 
yielding me this time.
  The first thing I want to say is thank you to Mr. Foster and thank 
you to Mr. Hill for providing sterling, bipartisan leadership on this, 
Madam Speaker, what I feel is one of the most pressing needs facing our 
Nation today, and that is to equip our young people with the financial 
education, the financial acumen of navigating what is becoming even a 
greater, more complex financial system.
  Madam Speaker, let me just bring this glaring statistic to drive home 
this point to you, the Congress, and the American people.
  According to the Council for Economic Education, just 17 States out 
of the 50 States of our great Nation require students to take even one 
course in personal finance. Just 22 States require high school students 
to take a course in just basic economics, and then that course is 
interloped into others and not even in and of itself.
  Yet the financial decisions that our young people are asked to make 
are immense, carrying lifelong consequences to consider in the 
decision, first of all, of whether to go to college or not, how to go 
to college, how to pay for it, and how to pay for the increasing costly 
debt for this college education.
  Consider the challenges that can come from balancing a starting or 
beginning wage against the student loan debt or saving for retirement. 
Or consider many of the basic kitchen table choices that families must 
make each and every day to put food on the table, to buy or not to buy 
an automobile, just the simple electricity bill. They would have to 
make definite choices.
  Consider the advantages that are afforded to consumers who do have 
access to credit, how important that is. How do you acquire that 
access, and how do you maintain that access for credit?
  We are, indeed, a financial consumer economy, but we are basically a 
credit-based economy, and our young people must gravitate and be able 
to grapple with this in a responsible way.
  In our increasingly complex financial marketplace, the value of 
financial education has never been higher. Personal education is badly 
needed.
  To reduce debt, we would look at the debt that so many of our young 
people start out with year after year even finishing college. How do 
you manage that? How do you make those choices?
  Financial literacy is the key to financial security not just of the 
individual, because if we don't have financial security for the people 
of our Nation, we don't have financial security for the future of this 
great Nation. That is why this is one of the most important issues that 
this Congress faces today.
  I am so proud to join with my Republican friend and my Democratic 
friend in showing the bipartisan way that we must go to solve this 
problem and make sure that this generation and every generation coming 
after them have the best financial education.

[[Page H3314]]

  

  Mr. HILL of Arkansas. Madam Speaker, I am prepared to close. I have 
no other speakers on this important matter.
  I just want to continue to thank my colleagues on the other side of 
the aisle and our lead sponsor, Dr. Foster, for his thoughtful 
elevation of the importance of financial literacy for all of our 
students and their families.
  Madam Speaker, I yield back the balance of my time.
  Mr. FOSTER. Madam Speaker, I yield myself the balance of my time.
  I would like to again thank my colleague, Congressman Hill, for his 
assistance in support of this resolution, and I urge my colleagues to 
join us in supporting this important resolution to show Congress' 
commitment to ensuring our Nation's students have the essential 
financial literacy skills they need to thrive and excel in today's 
economy.
  Madam Speaker, I yield back the balance of my time.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentleman from Illinois (Mr. Foster) that the House suspend the rules 
and agree to the resolution, H. Res. 327, as amended.
  The question was taken; and (two-thirds being in the affirmative) the 
rules were suspended and the resolution, as amended, was agreed to.
  A motion to reconsider was laid on the table.

                          ____________________