[Congressional Record Volume 165, Number 71 (Wednesday, May 1, 2019)]
[Extensions of Remarks]
[Pages E516-E517]
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

                                 ______
                                 

                               speech of

                          HON. J. FRENCH HILL

                              of arkansas

                    in the house of representatives

                        Tuesday, April 20, 2019

  Mr. HILL of Arkansas. Madam Speaker, I include in the Record this 
article regarding H. Res. 327 Encouraging Greater Public-Private Sector 
Collaboration to Promote Financial Literacy for Students and Young 
Adults.

               [From the Democrat-Gazette, April 8, 2019]

                             No Money Tree

                          (By Robert Hopkins)

       At an age when children are busy playing with their new 
     Legos or asking for Happy Meals, they're also forming early 
     and foundational ideas about earning, saving and spending 
     that they may carry with them throughout their lives. April 
     is Financial Literacy Month, so it's a good time to discuss 
     why it is important that we teach personal finance and 
     economics to young children.
       Children often develop their financial behaviors as early 
     as 7 years of age, according to research by David Whitebread 
     and Sue Bingham of the University of Cambridge in England. So 
     waiting until students are in

[[Page E517]]

     high school to teach personal finance and economics can mean 
     missing valuable opportunities to help them learn and shape 
     their habits. And it leaves children, during very 
     impressionable years, more apt to construct their 
     understanding of the economy and personal finance from what 
     they observe around them.
       This frequently results in misunderstandings.
       For example, children who see their parents get money from 
     an ATM may not have the context to understand that a bank 
     account is directly connected to the use of the ATM. Without 
     that context, a child hearing, ``We can't afford that this 
     month,'' is likely to think, ``Just go get money out of the 
     machine!''
       Similarly, children may witness an adult paying for most 
     items with a credit card or a mobile phone payment service 
     without recognizing this as money being spent. And often 
     children don't connect your work with income; they may not 
     realize that adults work and are paid for that work.
       At the St. Louis Fed, we have a team of educators, 
     researchers and specialists who are making economic education 
     more accessible and creating fun and memorable lessons and 
     resources for teachers, parents and consumers around the 
     country. In the spirit of Financial Literacy Month, that team 
     has compiled six pertinent things we must teach children:
        1. People work to earn income. Be explicit when explaining 
     to children that you work to earn money to support your 
     family. Give them opportunities to earn as well.
        2. People spend some income, save some income, and donate 
     some income. Give the children in your life opportunities to 
     do this--spend, save, donate.
        3. Saving is a good habit. Provide incentives for your 
     children to save, such as offering to match a percentage of 
     what they put in their piggy banks. Encourage them to save a 
     set amount before considering purchasing a new toy.
        4. Adults can't have everything they want--children can't, 
     either. Teach them to prioritize and make careful choices.
        5. Spending and saving decisions have consequences. Allow 
     your children to live with--and talk to them about--those 
     consequences.
        6. Banks and credit unions are safe places to save your 
     money. Tell children about them, including that those 
     institutions pay interest on savings.
       When they were younger, I tried to share such personal tips 
     with my children, and still do today.
       We believe, based on research, that children who are taught 
     valuable lessons about spending, saving and other personal 
     finance topics at a young age are more likely to become 
     adults who are more financially responsible.
       Share the personal finance tips in this article with your 
     children, grandchildren, students and the other young people 
     in your life. Research shows it may help them grow into 
     teenagers and adults with a better grasp on their personal 
     finances.
       Robert Hopkins is senior vice president and regional 
     executive of the Little Rock Branch of the Federal Reserve 
     Bank of St. Louis.

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