[Congressional Record (Bound Edition), Volume 149 (2003), Part 7]
[House]
[Pages 8625-8628]
[From the U.S. Government Publishing Office, www.gpo.gov]




    EXPRESSING SENSE OF HOUSE ON FINANCIAL LITERACY FOR YOUTH MONTH

  Mr. TOM DAVIS of Virginia. Mr. Speaker, I move to suspend the rules 
and agree to the resolution (H. Res. 127) expressing the sense of the 
House of Representatives that a month should be designated as 
``Financial Literacy for Youth Month,'' as amended.
  The Clerk read as follows:

                              H. Res. 127

       Whereas the informed use of credit and other financial 
     products and services benefits individual consumers and 
     promotes economic growth;
       Whereas financial literacy encourages greater economic 
     self-sufficiency, higher levels of homeownership, and 
     enhanced retirement security, particularly among low- and 
     moderate-income Americans;
       Whereas the past decade has seen declining personal savings 
     rates, increased bankruptcy filings, and rising percentages 
     of family income devoted to servicing household debt;
       Whereas millions of Americans, the ``unbanked'', have never 
     established account relationships at mainstream, insured 
     depository institutions;
       Whereas 55 percent of college students acquire their first 
     credit card during their first year in college, and 83 
     percent of college students have at least 1 credit card;
       Whereas 45 percent of college students are in credit card 
     debt, with the average debt being $3,066;
       Whereas only 26 percent of 13- to 21-year-olds reported 
     that their parents actively taught them how to manage money;
       Whereas a 2002 study by the Jump$tart Coalition for 
     Personal Financial Literacy found that high school seniors 
     know even less about credit cards, retirement funds, 
     insurance, and other personal finance basics than seniors did 
     5 years ago;
       Whereas a 2002 survey by the National Council on Economic 
     Education found that a decreasing number of States include 
     personal finance in their educational standards for students 
     in Kindergarten through 12th grade;
       Whereas financial literacy empowers individuals to make 
     wise financial decisions and reduces the confusion of an 
     increasingly complex economy;
       Whereas personal financial management skills and long-lived 
     habits develop during childhood;
       Whereas personal financial education is essential to ensure 
     that our youth are prepared to manage money, credit, and 
     debt, and become responsible workers, heads of households, 
     investors, entrepreneurs, business leaders, and citizens; and
       Whereas the Jump$tart Coalition for Personal Financial 
     Literacy, its State affiliates, and its partner organizations 
     have designated each April as ``Financial Literacy for Youth 
     Month'', the goal of which is to educate the public about the 
     need for increased financial literacy for youth in America: 
     Now, therefore, be it
       Resolved, That the House of Representatives--
       (1) recognizes and supports the goals and ideals of 
     ``Financial Literacy for Youth Month''; and
       (2) requests the President to 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 ``Financial Literacy 
     for Youth Month'' with appropriate programs and activities.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Virginia (Mr. Tom Davis) and the gentleman from Illinois (Mr. Davis) 
each will control 20 minutes of this debate.
  The Chair recognizes the gentleman from Virginia (Mr. Tom Davis).


                             General Leave

  Mr. TOM DAVIS of Virginia. Mr. Speaker, I ask unanimous consent that 
all Members may have 5 legislative days in which to revise and extend 
their remarks on the resolution under consideration, House Resolution 
127, as amended.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Virginia?
  There was no objection.
  Mr. TOM DAVIS of Virginia. Mr. Speaker, I yield myself such time as I 
may consume.
  Mr. Speaker, House Resolution 127, introduced by my distinguished 
colleague, chairman of the Committee on Rules from the State of 
California (Mr. Dreier), recognizes and supports the goals and ideals 
of a Financial Literacy for Youth Month.
  Mr. Speaker, I want to commend the distinguished chairman for 
introducing this measure. Personal financial management is one of the 
most important skills for any American citizen to acquire, yet not 
enough emphasis seems to be put in our society on teaching these 
abilities to our Nation's young people. Establishing a personal budget, 
managing credit and debt, tracking purchases, and balancing checking, 
savings, and retirement accounts are tasks as difficult as they are 
essential. But the individual security that comes with being 
financially literate and responsible is invaluable for everyone. That 
is why it should be a goal of all Americans to work to teach our 
Nation's youth the basic financial literacy skills they will need to 
live a life of financial security.
  That is why I am pleased that this House is considering this 
important resolution at a time when economic confidence is such a 
relevant value. Mr. Speaker, I urge all Members to support the adoption 
of House Resolution 127, as amended; and again I congratulate

[[Page 8626]]

my colleague from California for introducing this important measure.
  Mr. Speaker, I reserve the balance of my time.
  Mr. DAVIS of Illinois. Mr. Speaker, I yield myself such time as I may 
consume.
  Mr. Speaker, I am pleased to support this resolution introduced by 
the chairman of the Committee on Rules which encourages the Jump$tart 
Coalition's efforts to designate April as Financial Literacy Month for 
Youth. As the resolution notes, 83 percent of college students have at 
least one credit card; and of those, 45 percent have an average credit 
card debt of over $3,000. This is at a time when a decreasing number of 
States include personal finance in their education standards for 
kindergarten through 12th grade.
  This resolution serves as a wake-up call for all of us, the 
administration, Congress, and the American taxpayer. The Jump$tart 
Coalition's aim is to identify personal finance materials for educating 
our youth. To that end they have established 12 must-know personal 
finance principles for young people if they want to make a positive 
difference in their financial outlook.
  At this time of budget and tax cuts and a floundering economy, all of 
us might benefit from hearing these 12 financial principles. It does 
not really matter whether you are young or old. They are:
  Map your financial future. Do not expect something for nothing. High 
returns equal high risk. Know your take-home pay. Compare interest 
rates. Pay yourself first. Money doubles by the rule of 72, and that is 
to determine how long it will take your money to double, divide the 
interest into 72. Your credit past is your credit future. Start saving 
young. Stay insured. Budget your money. Do not borrow what you cannot 
repay. And let me add one more, especially since the 15th is not too 
far away. Pay all of your taxes.
  Again, Mr. Speaker, I am pleased to support this resolution 
designating April as Financial Literacy for Youth Month, and I urge all 
of us to strongly support it.
  Mr. Speaker, I reserve the balance of my time.
  Mr. TOM DAVIS of Virginia. Mr. Speaker, I yield such time as he may 
consume to the gentleman from the State of California (Mr. Dreier), the 
distinguished sponsor of this legislation.
  Mr. DREIER. Mr. Speaker, let me begin by expressing my appreciation 
to my good friend, the gentleman from Virginia (Mr. Tom Davis), 
chairman of the Committee, and the ranking member, the gentleman from 
Illinois (Mr. Davis), the Davis twins here, who have moved this measure 
forward for us. They have outlined quite well exactly what it is that 
we are trying to do.
  When I was a kid, Mr. Speaker, I got my first passbook savings 
account; and I was stunned when I put a little bit of my allowance into 
the account. It actually grew without my doing anything other than 
having it there in that account. I was told by my father I needed to 
establish some credit. It has not always been great, but he told me 
that I needed to establish credit, which was another very, very 
important lesson that I learned as a child.
  I believe that the whole idea of individual initiative and 
responsibility for one's actions is very important. I had that 
instilled in me as a kid. But one of the things that we found, 
tragically, is that with the proliferation of credit cards, just 
mentioned by the gentleman from Illinois (Mr. Davis), and the issue of 
just trying to balance a checkbook, which my friend from Virginia 
raised, we have young people who do not have an understanding of the 
basics of what it takes to meet one's financial obligations. So that is 
why the Jump$tart Coalition, and a wide range of other groups, have 
joined in providing strong support for focusing on April as Financial 
Literacy for Youth Month.
  Mr. Speaker, I have been joined by my colleagues, the gentleman from 
North Dakota (Mr. Pomeroy), and others who have been cosponsors of this 
legislation, the gentleman from Ohio (Mr. Oxley), the chairman of the 
Committee on Financial Services; the gentlewoman from Illinois (Mrs. 
Biggert); the gentleman from Wisconsin (Mr. Petri); the gentleman from 
Tennessee (Mr. Ford); the gentleman from Arkansas (Mr. Ross), as well 
as others.
  One of the things we found over the past several years, Mr. Speaker, 
is that we have seen a tremendous increase in the number of 
bankruptcies, up to 1.6 million bankruptcies last year alone.

                              {time}  1430

  Mr. Speaker, I have talked about my having a passbook savings account 
when I was a kid. We have noticed that the personal savings rate has 
dropped from 4.7 percent in 1998 to 2.3 percent in 2001. I believe that 
this legislation will help us focus some attention on this initiative.
  Now, the National Council on Academic Education is an organization 
which has put together some of the tools for schools around this 
country to try and enhance financial literacy among our young people. I 
am very pleased in the district which I am privileged to represent, the 
Cucamonga Middle School, the Glendora High School, Monrovia High 
School, Ranch Cucamonga High School and San Dimas High School have all 
utilized the information that has come forward from the National 
Council on Economic Education.
  We also have others around the country who are doing the same thing.
  I want to say that the stellar leadership of the gentleman from 
Virginia (Mr. Tom Davis) has led him to expeditiously move this 
legislation, which I believe is going to enjoy strong bipartisan 
support due to the strong and resonant statement from the gentleman 
from Illinois (Mr. Davis). I urge my colleagues to join in supporting 
it.
  Mr. DAVIS of Illinois. Mr. Speaker, I yield myself such time as I may 
consume.
  Mr. Speaker, I know that the gentleman from Texas (Mr. Hinojosa) has 
a great deal of interest in this legislation and hopes to be able to 
speak on the legislation.
  I will simply close by stating that my mother used to say that a 
penny saved is a penny earned and my father used to say if one takes 
care of their nickels, the dimes will take care of themselves. It seems 
to me, that kind of logic is inherent in urging young people to pay 
attention at an early age to their financial concerns.
  I commend the gentleman from California (Mr. Dreier) for its 
introduction, and urge all Members to support it.
  Ms. JACKSON-LEE of Texas. Mr. Speaker, I rise today in support of 
House Resolution 127, stating that a month should be designated for 
Financial Literacy for Youth. I believe that financial literacy is an 
empowering tool, and this is something that can benefit all 
individuals, regardless of their class or background. Designating a 
month for programs and activities designed to learn more about 
financial planning is a phenomenal idea, and I am a staunch supporter 
of the effort.
  Gaining more knowledge of fiscal and budget management leads to wiser 
financial decisions in the future. Too often we have people who are not 
taught these skills in their childhood, and have a difficult time 
managing their money later in life. Higher financial literacy 
encourages greater economic self-sufficiency, higher letter of home 
ownership, as well as enhanced retirement security.
  In my own district in Houston, Texas, I am an advocate of the WOW 
program, With Ownership, Wealth. Families that have invested in their 
houses are also investing in the community. When each person has an 
interest in keeping his or her communities safe, clean and properly 
taken care of, then the property value will raise. As owners of the 
homes, this will yield more prosperity on each account, for the 
community and for the individual.
  Financial literacy should also be encouraged for our students 
entering college. A college freshman is inundated with credit card 
offers, promising more wealth and responsibilities than they have ever 
had before. Without proper financial skills, a credit card can lead to 
student debt, creating more burdens and hardships than necessary. 
Financial literacy month can reach out to these students, to understand 
the fiscal consequences of their action, and protect them from future 
debts that can be difficult to relieve, particularly at a time when 
building a sound credit history is so vital.
  Financial literacy is also important for our elderly population. 
Since social security and pensions often do not cover all of the basic 
needs, proper financial planning is often needed to insure that people 
will be taken care of

[[Page 8627]]

 post retirement. A Financial Literacy Month can provide outreach to 
the younger populations who often fail to think of securing their 
futures until it is too late.
  I am proud to support this Financial Literacy for Youth Month, and 
thank my colleagues for bringing this idea to the house floor. If we 
can empower the youth in our nation to make smart, economical 
decisions, we all stand to benefit.
  Mr. OXLEY. Mr. Speaker, I rise today in support of House Resolution 
127, to designate a ``Financial Literacy for Youth Month.''
  To ensure the strength and resiliency of our nation's economy, it is 
vital that we instill in our next generation of consumers an 
understanding of today's increasingly complex financial world.
  In a recent survey of our high school seniors' financial knowledge by 
the Jumpstart Coalition for Personal Financial Literacy, over half 
received a failing grade, a percentage that has grown not only in the 
past five years, but in the five years before that as well. Yet the 
number of students using credit cards and ATM cards has gone up--45 
percent of college students have credit card debt averaging $3066. As 
this trend grows, we need to make sure they understand the implications 
and responsibility of credit.
  Currently, fewer than 30 percent of young Americans are even given 
the opportunity to take money management or personal finance classes in 
high school. This needs to change.
  There are as many as 10 federal departments and agencies that today 
offer a wide variety of educational programs and resources along with a 
growing number of states and private programs. Just last May, the 
Treasury established an Office of Financial Education. We need to 
ensure that schools nationwide are aware of these programs and 
encouraged to utilize them.
  With America's youth spending about $150 billion annually and more 
and more marketing campaigns targeting youth, it is important to give 
them the tools they need to make smart financial decisions.
  In the 1990s, personal bankruptcies rose by 69 percent, and we need 
to combat this trend.
  Educating the next generation early and well will help to contribute 
to the nation's economic vitality.
  They need to understand that there are serious consequences to 
mismanaging one's finances. They need to know that there are investing 
options other than putting your money in a savings account. They need 
to understand the importance of starting to prepare for retirement 
early.
  They need to understand that the long-term pain of mismanaged 
personal debt is not worth the short-term gain. The need to understand 
that responsible use of today's financial tools can help them to 
maximize their purchasing power.
  In conclusion, I would like to commend the gentleman from California 
(Mr. Dreier) for recognizing this vital need and I urge my colleagues 
to support this important initiative.
  Mr. HINOJOSA. Mr. Speaker, I rise in support as a cosponsor of House 
Resolution 127, naming April the Financial Literacy for Youth Month, 
and I commend Congressman David Dreier for introducing this important 
legislation.
  I always say that education is the key to success, and providing 
financial literacy for our youth is an integral part of that process. 
The resolution expresses the sense of the House that the President 
should 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.
  Designating April as the Financial Literacy for Youth Month should 
raise public awareness about the need for increased financial literacy 
in our schools and the serious problems that may be associated with a 
lack of understanding about personal finances. As Federal Reserve Board 
Chairman Alan Greespan noted recently:

       Today's financial world is highly complex when compared 
     with that of a generation ago. An understanding of how to 
     maintain a checking and savings account at a local financial 
     institution may have been sufficient twenty-five years ago. 
     Today's consumers, however, must be able to differentiate 
     between a wide range of products, services, and providers of 
     financial products to successfully manage their personal 
     finances. Certainly, young adults have access to credit at a 
     much earlier age than their parents did. Accordingly, they 
     need a more comprehensive understanding of credit than was 
     afforded to the previous generation--including the impact of 
     compounding interest on debt balances and the implications of 
     mismanaging credit accounts. In addition, as technological 
     advances have contributed significantly to the dramatic 
     changes within the financial services market, consumers more 
     generally must be familiar with the role that computers play 
     in the conduct of every traditional financial transaction, 
     from withdrawing funds to gaining access to credit.

  For these reasons and many more, it is imperative that we ensure our 
youth's financial literacy. Although several groups, including the 
Department of the Treasury's Office of Financial Education, have 
recommended that this be accomplished by incorporating financial 
literacy into math and English classes, I personally believe that we 
need to focus more on individual financial literacy curriculums. The 
Federal government should provide additional funds to accomplish this 
goal. Granted, the No Child Left Behind Act makes $385 million 
available in Innovation State Grant funds for distribution to the 
states, but only some of that money will be used to fund financial 
education initiatives. We need to do more, and we need to use April, 
the Financial Literacy for Youth Month, to work towards these goals. On 
the state level, I would hope that the education boards would focus on 
financial literacy and work with their state legislatures to require at 
least two semesters of financial literacy as a requirement for 
graduation from high school. In my own state of Texas, the Independent 
Bankers Association of Texas has been working diligently towards such a 
change in curriculum. I hope that more take up this cause.
  Some may ask why I am so interested in financial literacy. The reason 
is that I represent one of the poorest Districts in the nation where 
people still keep their money in their house and under their 
mattresses. I am speaking of the ``unbanked.'' Those individuals who 
tend to be exploited by payday lenders, use expensive money grams for 
remittances and are subject to crime because they have not entered the 
mainstream banking system. It is for these people that I am interested 
in financial literacy and for these reasons that I cosponsored this 
bill.
  Mrs. BIGGERT. Mr. Speaker, I rise today in support of H. Res. 127, 
recognizing April as ``Financial Literacy for Youth Month''. I am 
pleased to join my friend and colleague from California, Mr. Dreier, in 
raising awareness of the need for our youth to learn financial 
management skills at an early age. If our schools don't teach the ABC's 
of financial literacy, it doesn't take an accountant to understand that 
our children are more likely to fall into debt and behind in life.
  The financial world has dramatically changed over the last 20 years. 
The passage of complex laws, like Gramm-Leach-Bliley, has created a 
whole new world of integrated financial service products and 
possibilities. While we certainly don't expect children to understand 
the ins-and-outs of deregulation, some of the effects of this new and 
modern system are slowly starting to surface and will impact them later 
on in life.
  Mr. Speaker, with all these new choices there is a new responsibility 
on our part to educate our youth. Why? Because teaching them about 
personal finance is the best way to prepare them for a financially 
rewarding adulthood as contributing members of society.
  They need to know how to manage money, credit, and debt, and become 
responsible workers, heads of households, investors, entrepreneurs, 
business leaders, and citizens. It is through financial education that 
these young consumers will learn to capitalize on the choices and 
flexibility that this new world has created.
  The most effective time to impact basic financial and economic 
knowledge is during students' formative years, through the K-12 
education system. In passing H. Res. 127 it is my hope that public 
officials and educators will focus on this critical learning area. 
While the landmark ``No Child Left Behind Act'' focused on mathematics 
and reading education, policymakers and local educators can use this as 
an opportunity to integrate economics and personal finance into these 
and other subject matters.
  A survey that will be released later this month by the National 
Council on Economic Education (NCEE) illustrates accomplishments and 
challenges in the areas of economics and personal finance education. 
NCEE's ``Survey of the States'' found that 48 states in 2002 and the 
District of Columbia had economic education standards in place, up from 
38 states in NCEE's first ``Survey'' in 1998. Testing for economics 
increased from 25 states in 1998 to 27 states in 2002.
  However, in the area of personal finance, less progress has been 
evident. While 40 states had set standards for personal finance 
education in 2000, only 31 states renewed such standards in 2002. Of 
those 31 states, only 14 require the standards to be implemented.
  Make no mistake--personal finance is the key to helping our youth 
avoid the pitfalls of foreclosure, predatory lending and credit 
counseling as adults.

[[Page 8628]]

  Mr. Speaker, the President's sweeping education reform bill that we 
passed in the last Congress addresses many of the academic skills that 
our youth need to succeed. We cannot forget about the need to teach our 
youth more than purely academic skills. We mustn't forget life skills. 
We must help them learn to manage their personal finances.
  It is our duty to help them succeed in today's increasingly 
sophisticated world of finance.
  Mr. TOM DAVIS of Virginia. Mr. Speaker, I think the gentleman from 
California (Mr. Dreier) has put it very eloquently. I have no further 
requests for time, and I yield back the balance of my time.
  The SPEAKER pro tempore (Mr. Culberson). The question is on the 
motion offered by the gentleman from Virginia (Mr. Tom Davis) that the 
House suspend the rules and agree to the resolution, H. Res. 127, as 
amended.
  The question was taken.
  The SPEAKER pro tempore. In the opinion of the Chair, two-thirds of 
those present have voted in the affirmative.
  Mr. TOM DAVIS of Virginia. Mr. Speaker, on that I demand the yeas and 
nays.
  The yeas and nays were ordered.
  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.

                          ____________________