[Congressional Record (Bound Edition), Volume 150 (2004), Part 6]
[House]
[Pages 7594-7598]
[From the U.S. Government Publishing Office, www.gpo.gov]




      SUPPORTING THE GOALS AND IDEALS OF FINANCIAL LITERARY MONTH

  Mr. CANNON. Mr. Speaker, I move to suspend the rules and agree to the 
resolution (H. Res. 578) supporting the goals and ideals of Financial 
Literacy Month, and for other purposes.
  The Clerk read as follows:

                              H. Res. 578

       Whereas the financial services industry in the United 
     States benefits millions of people in the United States, 
     providing products and services that allow individuals and 
     families to build homes, buy cars, finance educations, start 
     businesses, and meet everyday needs;
       Whereas personal financial education is essential to ensure 
     that individuals are prepared to manage money, credit, and 
     debt, and become responsible workers, heads of households, 
     investors, entrepreneurs, business leaders, and citizens, yet 
     a study completed in 2002 by the Jump$tart Coalition for 
     Personal Financial Literacy found that high school seniors 
     knew less about principles of basic personal finance than did 
     high school seniors 5 years earlier;
       Whereas financial education has been linked to lower 
     delinquency rates for mortgage borrowers, higher 
     participation and contribution rates in retirement plans, 
     improved spending and saving habits, higher net worth, and 
     positive knowledge, attitude, and behavior changes, yet a 
     survey completed in 2002 by the National Council on Economic 
     Education found that a decreasing number of States include 
     personal finance in education standards for students in 
     kindergarten through high school;
       Whereas expanding access to the mainstream financial system 
     provides individuals with lower cost, safer options for 
     managing finances and building wealth and is likely to lead 
     to increased economic activity and growth, yet between 
     25,000,000 and 56,000,000 people over the age of 18 do not 
     use mainstream, insured financial institutions and are 
     considered ``unbanked'';
       Whereas personal financial management skills and lifelong 
     habits develop during childhood, and 55 percent of college 
     students acquire their first credit card during their first 
     year in college, yet only 26 percent of people between the 
     ages of 13 and 21 reported that their parents actively taught 
     them how to manage money;
       Whereas although more than 42,000,000 people in the United 
     States participate in qualified cash or deferred arrangements 
     described in section 401(k) of the Internal Revenue Code of 
     1986 (commonly referred to as ``401(k) plans''), a Retirement 
     Confidence Survey conducted in 2002 found that only 32 
     percent of workers surveyed have calculated how much money 
     they will need to save for retirement, and 25 percent of 
     workers have done no specific planning for retirement;
       Whereas financial literacy empowers individuals to make 
     wise financial decisions in an increasingly complex economy, 
     and only 30 percent of those surveyed in an Employee Benefit 
     Trend Study conducted in 2003 are confident in their ability 
     to make the right financial decisions for themselves and 
     their families;
       Whereas personal savings as a percentage of personal income 
     decreased from 7.5 percent in the early 1980s to 2.3 percent 
     in the first 3 quarters of 2003;
       Whereas Congress sought to implement a national strategy 
     for coordination of Federal financial literacy efforts 
     through the establishment of the Financial Literacy and 
     Education Commission in 2003, the designation of the Office 
     of Financial Education of the Department of the Treasury to 
     provide support for the Commission, and requirements that the 
     Commission's materials, website, toll-free hotline, and 
     national multimedia campaign be multilingual; and
       Whereas the National Council on 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 have 
     designated April as ``Financial Literacy Month'' to educate 
     the public about the need for increased financial literacy 
     for youth in the United States: Now, therefore, be it
       Resolved, That the House of Representatives--
       (1) supports the goals and ideals of Financial Literacy 
     Month; and
       (2) 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.

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


                             General Leave

  Mr. CANNON. Mr. Speaker, I ask unanimous consent that all Members may 
have 5 legislative days within which to revise and extend their remarks 
and include extraneous materials on H. Res. 578, the bill under 
consideration.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Utah?
  There was no objection.
  Mr. CANNON. Mr. Speaker, I yield myself as much time as I may 
consume.
  Mr. Speaker, H. Res. 578 supports the goals and ideals of Financial 
Literacy Month. The National Council on Economic Education, its State 
Councils and Centers for Economic Education and the JumpStart Coalition 
for Personal Financial Literacy have deemed April to be Financial 
Literacy Month. Along with my colleagues, especially the sponsor of 
this resolution, the gentlewoman from Illinois (Mrs. Biggert), I am 
pleased to be highlighting this designation and the important cause of 
financial literacy.
  This resolution aims to increase awareness of the significance of 
thoughtful and well-planned personal financial management. It can be 
overwhelming for people of any age to manage money, credit and debt, 
but learning simple financial principles can help protect you against 
severe family illness, short-term losses of employment, economic 
downturns, and other aspects of life that most of us will experience at 
one time or another.
  Mr. Speaker, the resolution cites the fact that over the last 20 
years personal savings have decreased from 7.5 percent of personal 
income to just over 2 percent today. This reality means more Americans 
have just a small cushion on which to fall back on when financial times 
become difficult. We all need to take steps to learn economic 
fundamentals and teach our children these principles as well. All of us 
can enjoy big returns on our investments in financial literacy.
  Mr. Speaker, I thank the gentlewoman from Illinois (Mrs. Biggert), my 
friend and distinguished Member from Illinois, for her work on H. Res. 
578. I urge its adoption.
  Mr. Speaker, I reserve the balance of my time.
  Mr. DAVIS of Illinois. Mr. Speaker, I yield myself such time as I 
might consume.
  Mr. Speaker, providing America's youth with a good education has been 
a national priority but also a national failure. Not only are many 
children of our great Nation being deprived of a good academic 
education, but many young people today lack the life skills necessary 
to function without the financial assistance of their parents.
  According to the JumpStart Coalition for Financial Literacy, high 
school seniors today know less about the principles of basic personal 
finance than seniors did 5 years ago. Even more startling is the fact 
that the average student who graduates from high school lacks the basic 
skills for managing their own personal finances. Many are unable to do 
simple tasks like balancing a checkbook.
  Over the last 50 years, a dangerous trend has developed. Saving money 
has declined at the same time that borrowing has increased. In 1950, 
savings averaged 12.3 percent of national output. By the 1960s, it was 
down to 8.5 percent. By the 1980s, it was down to 4.7 percent, and in 
the early 1990s, it was only 2.4 percent.
  Americans need to work to achieve financial independence, and proper 
financial planning is crucial to that process.

[[Page 7595]]

  While not a final solution, educating our youth about the principles 
of personal finance would do a great deal to help them achieve 
financial independence and prosperity. Educating new generations to 
understand personal finance would help future Americans build wealth 
and obtain financial independence.
  In order for our youth to lead successful lives these life lessons 
must be taught. Creating a Financial Literacy Month is a great first 
step towards protecting our youth from poverty.
  I rise today to ask that we support the goals and ideas of Financial 
Literacy Month and that this President issue a proclamation calling on 
the Federal Government, as well as State and local governments, to 
observe the month with appropriate programs and activities that promote 
financial accountability.
  Finally, Mr. Speaker, I want to commend my colleague the gentlewoman 
from Illinois (Mrs. Biggert) and my good friend the gentleman from Utah 
(Mr. Cannon) for the lead roles that they have played in introducing 
and bringing this legislation to the floor.
  Mr. Speaker, I reserve the balance of my time.
  Mr. CANNON. Mr. Speaker, I yield as much time as she may consume to 
the gentlewoman from Illinois (Mrs. Biggert), the sponsor of H. Res. 
578.
  Mrs. BIGGERT. Mr. Speaker, I thank the gentleman for yielding me the 
time.
  Mr. Speaker, I rise today in strong support of H. Res. 578, which my 
colleague the gentleman from Texas (Mr. Hinojosa) and I introduced to 
designate April as Financial Literacy Month. We did so in order to 
raise the public awareness about the importance of financial education 
in the United States and the serious consequences that come when young 
people and adults lack basic understanding of personal finances and 
economics.

                              {time}  1445

  Today, 60 percent of preteens do not understand the difference 
between cash, checks, and credit cards. We need to teach basic 
financial literacy skills so that they can understand the difference. 
But financial literacy is only part of the problem.
  It is equally important they understand basic economic concepts, such 
as supply and demand, opportunity costs, what drives interest rates, 
and other economic principles. Why? Well, it is because financially 
literate students may learn what the credit card is, but the lesson 
will be meaningless if they do not understand the concept of compound 
interest.
  Just look at the pay-off. Financial education, including economics, 
has been linked to lower delinquency rates for mortgage borrowers, 
higher participation and contribution rates in retirement plans, 
improved spending and savings habits, higher net worth, and more 
positive attitudes towards money.
  If our young people learn how to manage money, credit, and debt, they 
can become responsible workers, heads of households, investors, 
entrepreneurs, business leaders, and citizens. It is through financial 
education these young consumers will learn to capitalize on the choices 
and flexibility that this new world has created. And financially 
literate children grow up to be financially savvy adults. And we need 
more of them.
  Today, more than 42 million Americans participate in 401(k) plans. 
But a 2002 retirement confidence survey found that only 32 percent of 
workers surveyed have calculated how much money they will need to save 
by the time they retire. And less than one-third of those surveyed are 
confident in their ability to make the right financial decisions for 
themselves and their families. One-quarter of those workers, over 10 
million Americans, have done no specific financial planning.
  Many programs already exist in both the public and private sectors to 
address economic education and financial literacy; but no matter what 
their specific target, they all recognize that the most effective time 
to impart basic financial and economic knowledge is during a student's 
formative years through the K through 12 education system.
  Many States have introduced outstanding financial literacy programs 
for children. In my home State of Illinois, State Treasurer Judy Baar 
Topinka created the Bank At School program, which helps children learn 
the fundamentals of money management through the operation of an in-
school bank. Schools are partnered with financial institutions which 
conduct a monthly bank day at the school where students open savings 
accounts and make regular deposits.
  I believe that these kinds of programs provide the guidance that is 
desperately needed; but we need more, and we need them now. For 
instance, while 40 States have set standards for personal financial 
education in 2000, only 31 States renewed their standards in 2002. Of 
these 31 States, only four States, Idaho, Kentucky, Illinois, and New 
York, implemented a course that covers personal finance during a 
student's K through 12 education. In 2002, Jump$tart released a survey 
that showed high school seniors know even less about credit cards, 
retirement funds, insurance, and other personal finance basics than 
they did 5 years ago. This is a trend that we must reverse.
  With only seven States currently recognizing financial literacy 
month, there is obviously a great deal of work to do. But if we take 
the time to take on this challenge, we can begin to turn things around 
and excite students about becoming the next generation of investors.
  Mr. Speaker, the state of financial literacy among our children may 
not garner much in the way of headlines, but it is an issue nonetheless 
that should command our attention. While it is a problem that is 
serious and urgent, it is one that can be solved through education. 
This body would like to call special attention to that need during the 
month of April. It is our duty to help our youth succeed in today's 
increasingly sophisticated world of finance.
  We must continue to keep the pressure on in terms of public awareness 
of the problem. I hope that we will use this month as a springboard to 
raise public awareness about the importance of financial education in 
the United States.
  I want to thank my distinguished colleague and friend, the gentleman 
from Texas (Mr. Hinojosa), for his strong support and cosponsorship of 
this resolution. I would also like to thank the chairman of the 
Committee on Government Reform, the gentleman from Virginia (Mr. Tom 
Davis), and especially the gentleman from Utah (Mr. Cannon) and the 
gentleman from Illinois (Mr. Davis), also members of the Committee on 
Government Reform, for managing this resolution and the gentleman from 
California (Mr. Dreier) for his long-term work on this issue.
  Mr. DAVIS of Illinois. Mr. Speaker, it is my pleasure to yield such 
time as he may consume to the gentleman from Texas (Mr. Hinojosa), a 
Member who has distinguished himself as an educator, an outstanding 
businessperson and an outstanding legislator, and who has been at the 
heart of the development of this legislation.
  Mr. HINOJOSA. Mr. Speaker, I rise in support of House Resolution 578 
that the gentlewoman from Illinois (Mrs. Biggert) and I introduced 
earlier this year. The legislation supports the goals and ideals being 
acknowledged in naming April as Financial Literacy Month. I should note 
that the gentlewoman from Illinois and I have been working together on 
a number of financial literacy projects for quite some time, and I look 
forward to continuing to coordinate our efforts to improve financial 
literacy programs for our youth and for U.S. residents at all stages of 
their lives.
  I want to thank the Committee on Government Reform for bringing this 
legislation to the floor today to celebrate April as Financial Literacy 
Month. Improving financial literacy, especially in the communities of 
the Rio Grande Valley of Texas and Central Texas, has been a top 
priority of mine. My ultimate goal is to educate our youth about 
financial issues in order to prepare them for the real world.

[[Page 7596]]

  It is also important that we educate adults and seniors on the basics 
of financial literacy to bring them into the mainstream financial 
system and to protect them from payday lenders, as well as to protect 
them from predatory lenders and others who would take advantage of 
them. And so I have decided to act to address these concerns.
  The chairman of the Subcommittee on Financial Institutions and 
Consumer Credit of the House Committee on Financial Services, the 
gentleman from Alabama (Mr. Bachus), held a hearing at my request on 
bringing the unbanked into the mainstream financial system. The 
chairman of the Subcommittee on Education Reform of the Committee on 
Education and the Workforce, the gentleman from Delaware (Mr. Castle), 
and the ranking member, the gentlewoman from California (Ms. Woolsey), 
held a hearing on financial literacy that allowed the gentlewoman from 
Illinois and myself to discuss the CENTS Act, which would establish a 
commission to educate our nation's teachers and students on financial 
literacy skills.
  I also promoted financial literacy when I spoke at a panel with the 
gentleman from Alabama (Mr. Bachus) and the gentleman from Virginia 
(Mr. Tom Davis) at the FDIC's symposium on financial literacy held at 
the National Press Club. With the assistance of the gentleman from 
Massachusetts (Mr. Frank), the ranking member on the Committee on 
Financial Services, I was able to add a section to the FACT Act to 
ensure that the commission it creates on financial literacy will 
develop and promote financial literacy and education materials in 
languages other than English, including for the commission's Web site, 
a toll-free number, a national media campaign, and all the materials it 
disseminates.
  Before I conclude, I want to point out some financial literacy 
programs of note. The FDIC has a well-written and helpful program in 
English, Spanish, and numerous other languages known as Money Smart 
that targets adults. It is being disseminated in my district, and it is 
helping to encourage the adults in my district to move into the 
financial mainstream.
  Several large banks, such as Wells Fargo and Bank of America, have 
implemented financial literacy programs that are now being used in 
schools for K through 12 programs. The Independent Bankers in Texas 
have been attempting to encourage the Texas State legislature to 
include financial literacy programs as a requirement for graduation 
from high school for quite some time.
  There are numerous other financial literacy programs out there: 
Freddie Mac's CreditSmart Espanol program to train the teachers to 
train other teachers how to teach their financial literacy program; 
NCEE's K through 12 program; ACB's Money Rules program; Fannie Mae's 
Homeownership program in English and Spanish; ICI's Investing for 
Success program; and Operation Hope's Banking on Our Future program, 
and many others.
  There are too many other programs to mention in the time I have been 
allotted, which is why a financial literacy commission was created by 
the FACT Act. The gentlewoman from Illinois and I will monitor it with 
our colleagues in Congress to ensure that it is a success.
  Mr. Speaker, I want to thank the gentlewoman from Illinois (Mrs. 
Biggert) and her legislative assistant, Danielle English, for working 
with me on this important legislation and all other projects; and I 
especially want to thank my colleague, the gentleman from Massachusetts 
(Mr. Frank), and Jaime Lizarraga, on his staff, for all their 
assistance on financial literacy issues.
  On behalf of the Committee on Financial Services, I urge my 
colleagues to support H. Res. 578.
  Mr. CANNON. Mr. Speaker, I yield myself such time as I may consume, 
and I want to thank the gentleman from Texas for his comments, commend 
him for his significant work in promoting financial literacy, and 
associate myself with his comments about the importance of training 
especially children in financial literacy.
  Mr. Speaker, I yield such time as he may consume to the gentleman 
from California (Mr. Dreier), one of the most financially astute 
Members of the House.
  Mr. DREIER. Mr. Speaker, I thank my friend for yielding me this time 
and for his management of this legislation; and I want to begin by 
extending my compliments to my very distinguished colleague, the 
gentlewoman from Illinois (Mrs. Biggert), who has long been a champion 
on this issue, as well as my friend, the gentleman from Texas (Mr. 
Hinojosa), who just gave a very thoughtful statement about where we go 
and why we need to focus on ensuring that we provide financial literacy 
education to young people in this country. And of course every single 
debate on the House floor is dramatically enhanced by the voice of the 
gentleman from Illinois (Mr. Davis), so I want to express my 
appreciation as always to him for his presence here.
  Several years ago, Mr. Speaker, I joined our colleague, the gentleman 
from North Dakota (Mr. Pomeroy), in establishing an organization known 
as Jump$tart, realizing that many of us years and years ago took for 
granted the understanding of financial literacy. I will never forget, 
as a kid, when my father ensured that I started a savings account. I 
looked at that little passbook that I had, which saw only a relatively 
modest rate the money I had in there growing; but it was a wonderful, 
wonderful thing.
  Today, when we look at the wide range of information that is flooding 
not only adults but young people as well, and we look at this 21st-
century economy, we realize that everybody is deluged, whether it is 
through the mail by credit cards, on the Web, through advertising that 
we see; and it can be extraordinarily confusing. And so things that 
were taken for granted decades ago when many of us were growing up, we 
now have to focus on in the way of education for our young people.
  On the Web today, people have the tremendous opportunity to pay their 
bills, they have the opportunity to have access to a wide range of 
financial services and products, and we also need to realize that today 
we have seen this growing investor class. Over half of the American 
people, Mr. Speaker, are members of the investor class. They are 
invested either through their 401(k), through individual retirement 
accounts, through pension funds, and of course those who directly 
invest in the markets or in real estate or in other areas. So more than 
half the American people are members of that investor class.
  As that number grows, it seems to me, Mr. Speaker, that we need to do 
everything we possibly can to ensure that our young people have an 
awareness level of things that were so often taken for granted and seen 
as simple common sense in the past.

                              {time}  1500

  We passed last year legislation, the Federal Financial Literacy 
Commission, to promote and enhance financial literacy for all 
Americans. The initiative established a national financial literacy 
public service campaign to raise the awareness level regarding personal 
finance. I was pleased that we have had that in legislation that we 
have pursued in the past.
  Last month there were a number of organizations that had spent time 
and effort focusing on and promoting financial literacy. They include 
Citigroup and the Citigroup Foundation's $200 million global financial 
literacy initiative; the Credit Union National Association's National 
Credit Union Youth Week; the American Bankers Association's National 
Teach Children to Save Day; the Jump Start Coalition's biennial Survey 
on the State of Financial Literacy among high schoolers; the National 
Council on Economic Education/NASDAQ Educational Foundation's National 
Teaching Awards Event; and last but not least, my Governor in 
California, Arnold Schwarzenegger, established April 2004 as California 
Financial Literacy Month with a proclamation.
  Put very simply, Mr. Speaker, financial literacy is all about 
opportunity. It is about empowering individuals to make informed 
financial decisions, helping them to attain financial independence and 
to plan for their future

[[Page 7597]]

prosperity. Working together, we can ensure that the young people in 
our country gain a fundamental understanding of personal finance to 
help them succeed later in life.
  I again congratulate the gentlewoman from Illinois (Mrs. Biggert) and 
the gentleman from Texas (Mr. Hinojosa) for recognizing that focusing 
this month of April on financial literacy is the right thing to do. I 
know that all of my colleagues will want to join in support of this 
important resolution.
  Mr. DAVIS of Illinois. Mr. Speaker, I yield myself the balance of my 
time.
  My mother used to tell us that if we learned to take care of our 
pennies, that our nickels and quarters would take care of themselves. I 
think some of those same principles are embedded in this legislation. I 
am proud to support it.
  Mr. Speaker, I yield back the balance of my time.
  Mr. CANNON. Mr. Speaker, I yield myself the balance of my time.
  The prior speaker, the gentleman from California (Mr. Dreier), 
referred to the financial services products that we have available. I 
would just like to remind us all that we now have a new product in that 
array, that is, the health savings account which we passed in the 
recent Medicare package. It is good for all Americans. It is one of the 
elements of financial awareness that I hope is advanced through this 
financial literacy approach that we are taking here today.
  I would like to thank the gentlewoman from Illinois (Mrs. Biggert) 
and also the gentleman from Texas (Mr. Hinojosa) for their support of 
this bill and bringing it to the floor today. I would also like to 
thank the gentleman from Illinois (Mr. Davis). It is always a pleasure 
to work with him on projects like this.
  Mr. Speaker, I urge all Members to support the adoption of House 
Resolution 578.
  Mr. CANTOR. Mr. Speaker, I rise today to speak in favor of this 
resolution that will designate the month of April as ``Financial 
Literacy Month.'' I would like to thank my colleague, Ms. Biggert from 
Illinois, for introducing this legislation. It is important that we 
raise public awareness and support financial knowledge in the United 
States. The penalties that may be associated with a lack of 
understanding of personal finances are too grave for Americans to be 
left in the dark.
  The majority of Americans successfully use the assistance offered by 
the financial service industry each year. These organizations help 
individuals to build homes, buy a car, finance an education, start a 
business, and many other everyday needs. It is essential that 
individuals are prepared to manage their money, credit, and debt as 
well as to become responsible workers, investors, business leaders, and 
citizens.
  Promoting financial literacy encourages all Americans to make wise 
financial decisions and expands their access to the mainstream 
financial system that provides lower costs, safer options and a greater 
ability to build wealth. The end result is not only greater empowerment 
for the American people, but a likely increase in economic activity and 
growth.
  I would like to thank the Financial Literacy and Education 
Commission, the National Council on Economic Education, the Jump$tart 
Coalition for Personal Financial Literacy, its state affiliates, and 
its partner organizations for designating April as ``Financial Literacy 
Month,'' educating the public about the need for increased financial 
literacy for youth in the United States.
  Personal finance education and awareness is fundamental in ensuring 
that the public is well-versed in issues that will affect them today, 
as well as in years to come, as they plan for college, home-buying, and 
eventually retirement. We must supply them with the knowledge they need 
in order to succeed in today's complex world of finance.
  I urge the passage of this legislation, and I yield back the balance 
of my time.
  Mr. CASTLE. Mr. Speaker, I rise in support of H. Res. 578, which 
recognizes and supports the goals of Financial Literacy Month.
  Now more than ever, we live in a world that has become increasingly 
complicated when it comes to personal financial matters. A generation 
ago, a basic knowledge of balancing a checkbook and maintaining a 
savings account was adequate. However, in today's complex world many 
Americans are faced with difficult decisions such as determining what 
type of loan they need; whether to invest in stocks or bonds; how to 
best manage credit; and how soon to start planning for family education 
needs and their retirement. There are approximately 40,000 different 
credit products available, an intimidating thought for the most 
educated consumer.
  Unfortunately, large numbers of consumers never learn the basics of 
maintaining their personal finances and may struggle unnecessarily with 
choices leading to financial freedom. Instead, many live paycheck to 
paycheck and acquire substantial debt.
  Today, our nation's youth are bombarded with a multitude of financial 
options at an increasingly young age. Yet many are ill-equipped to make 
informed decisions about financial matters. According to a 2001 Teenage 
Research Unlimited survey, teenagers spend rather than save 98 percent 
of their money, a total of $172 billion in 2002. One out of every three 
teenagers has credit cards and even more have an ATM card.
  Various public and private organizations have developed programs to 
promote public knowledge of basic finances. Many of these organizations 
are working with elementary and secondary students to provide them with 
a strong education in money management and provide teacher training on 
how to integrate basic financial education principles into curricula.
  For example, in my home state of Delaware, MBNA opened the Financial 
Advisory Service (FAS) over ten years ago, which offers professional 
advice to MBNA people and their immediate family members. FAS, under 
the leadership of Tom Dibble, set out to offer professional personal 
money management education for all MBNA people. Since the service was 
established, MBNA has extended the service into the community and into 
the local school systems through the facilitation of basic credit and 
money management curriculum to all grade levels in elementary, high 
schools, and colleges throughout the country. FAS has educated nearly 
1,500 students in Delaware 14,000 students throughout the country since 
1995. Their extensively educated advisors teach, not only credit 
information, but, especially in the case of students, spend a great 
deal of time on financial basics like balancing a checkbook and 
budgeting.
  This fall I held a hearing in my Subcommittee entitled, ``Financial 
Literacy Education: What Do Students Need to Know to Plan For the 
Future?'' I was particularly interested in learning what schools, 
government, and industry were doing to help educate youth about not 
only the intricacies of being financially sound, but also the very 
basics. I was pleased to learn that there is engagement across the 
spectrum. I am happy to support today's resolution--to recognize those 
that are already active, and to encourage more to become active.
  Mr. SCOTT of Georgia. Mr. Speaker, I rise to recognize April as 
Financial Literacy Month.
  I have joined with Congresswoman Judy Biggert to introduce H. Res. 
578 to recognize the goals of Financial Literacy Month. As a member of 
Congress who has an MBA from the Wharton School of Finance, I believe 
that there are several steps that Americans can take to gain access to 
the financial mainstream. The first and most important step is to have 
fundamental financial literacy. With that knowledge, a consumer can 
increase access to good credit, home ownership, and be able to invest 
money for retirement security.
  The JumpStart Coalition, which is a financial literacy advocacy 
organization, estimates that only approximately 15 percent of high 
school graduates in the United States have taken a course covering 
basic personal finances. Through my work as a member of the House 
Financial Services Committee, I have come to recognize the importance 
of integrating economics and personal finance into the K-12 curricula, 
and the positive impact this can have on millions of future investors. 
I have also seen the need for continued financial education for 
consumers at all economic levels.
  Last year, the House last year passed H.R. 2622, which will allow any 
American to receive a free copy of their credit report each year. This 
tool will help consumers give their credit a check-up before they apply 
for a loan, buy a house, or make a major credit purchase. We cannot 
even begin to encourage low and middle wage earners to use these tools, 
invest in the stock market or consider a home mortgage if they do not 
have a basic economic understanding of savings and credit.
  By having a good understanding of finances, Americans can help 
prevent identity theft and protect themselves from being victims of 
predatory lending practices. Understanding finances also helps 
consumers know how to start saving money for retirement and higher 
education. Information is needed to inform tomorrow's investors so that 
they can

[[Page 7598]]

make sound investment decisions in a variety of market and economic 
conditions. The best way to prevent future economic scandals is to 
create smarter investors. This April, Members of Congress have a good 
opportunity to put a spotlight on economic education.
  I hope my colleagues will join me by recognizing Financial Literacy 
Month and supporting passage of this resolution.
  Ms. LORETTA SANCHEZ of California. Mr. Speaker, I rise today to offer 
my support for H. Res. 578, a resolution that would support the goals 
and ideals of Financial Literacy Month.
  Before I became a Congresswoman, I was a businesswoman. I started my 
own consulting firm in Santa Ana, California assisting public agencies 
and private firms with cost-benefit analysis, strategic planning and 
capital acquisition. I have spent many years in the financial sector, 
and know first-hand the importance of financial literacy and education.
  As Chairwoman of the Congressional Hispanic Caucus Task Force on 
Banking and Finance, I am committed to increasing financial literacy in 
minority communities. Later this year, I will be holding an issues 
conference with leaders from the financial world to discuss ways of 
connecting the financial sector with Hispanic youth to educate them on 
business and career opportunities. We will also explore the obstacles 
minorities face in obtaining capital and examine the effectiveness of 
today's top financial companies in preparing Latinos as leaders in the 
banking and financial sector.
  Mr. Speaker, I cannot emphasize enough the importance of financial 
literacy. Financial knowledge enables individuals to become more 
successful, manage their money wisely and contribute to the economy. It 
is critical that we educate our young people and encourage them to seek 
out opportunities in the business world. I thank the Gentlelady from 
Illinois for introducing this important bill, and would urge my 
colleagues to support it.
  Mr. CANNON. Mr. Speaker, I yield back the balance of my time.
  The SPEAKER pro tempore (Mr. Schrock). The question is on the motion 
offered by the gentleman from Utah (Mr. Cannon) that the House suspend 
the rules and agree to the resolution, H. Res. 578.
  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. CANNON. 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.

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