[Congressional Record (Bound Edition), Volume 151 (2005), Part 4]
[Senate]
[Pages 5368-5369]
[From the U.S. Government Publishing Office, www.gpo.gov]




 SENATE RESOLUTION 88--DESIGNATING APRIL 2005 AS ``FINANCIAL LITERACY 
                                MONTH''

  Mr. AKAKA (for himself, Mr. Sarbanes, Mr. Corzine, Mr. Baucus, Mr. 
Cochran, Mr. Crapo, Mr. Dodd, Mr. Durbin, Mr. Inouye, Mr. Johnson, Mr. 
Kennedy, Mr. Kohl, Ms. Landrieu, Mr. Lautenberg, Mr. Levin, Mrs. 
Lincoln, Mrs. Murray, Mr. Pryor, Mr. Santorum, Mr. Schumer, Ms. 
Stabenow, and Mr. Thomas) submitted the following resolution; which was 
considered and agreed to:

                               S. Res. 88

       Whereas at the end of 2004, Americans carried 657,000,000 
     bank credit cards, 228,000,000 debit cards, and 550,000,000 
     retail credit cards;
       Whereas based on the number of total United States 
     households, there are now 6.3 bank credit cards, 2.2 debit 
     cards, and 6.4 retail credit cards per household;
       Whereas Americans consumer credit debt continues to 
     increase, and has reached a level of in excess of 
     $2,100,000,000,000 as of year end 2004, of which 
     $791,000,000,000 is revolving consumer credit;
       Whereas a United States Public Interest Research Group and 
     Consumer Federation of America analysis of Federal Reserve 
     data indicates that the average household with debt carries 
     approximately $10,000 to $12,000 in total revolving debt;
       Whereas Americans owe $766,200,000,000 on home equity loans 
     and lines of credit, more than twice as much as in 1998;
       Whereas Americans converted $41,000,000,000 in real estate 
     equity into spendable cash in the third quarter of 2004 
     alone;
       Whereas the current level of personal savings as a 
     percentage of personal income is at one of the lowest levels 
     in history, 2 percent, a decline from 7.5 percent in the 
     early 1980s;
       Whereas through November 2004, 1,869,343 individuals filed 
     for bankruptcy;
       Whereas a 2002 Retirement Confidence Survey found that only 
     32 percent of workers surveyed have calculated how much money 
     they will need to save for retirement;
       Whereas only 30 percent of those surveyed in a 2003 
     Employee Benefit Trend Study are

[[Page 5369]]

     confident in their ability to make the right financial 
     decisions for themselves and their families, and 25 percent 
     have done no specific financial planning;
       Whereas approximately 10 percent of individual households 
     remain unbanked, i.e., not using mainstream, insured 
     financial institutions;
       Whereas expanding access to the mainstream financial system 
     provides individuals with lower cost, safer options for 
     managing their finances and building wealth;
       Whereas a greater understanding and familiarity with 
     financial markets and institutions will lead to increased 
     economic activity and growth;
       Whereas financial literacy empowers individuals to make 
     wise financial decisions and reduces the confusion of an 
     increasingly complex economy;
       Whereas the Spring 2004 Student Monitor Financial Services 
     Survey found that 46 percent of college students have a 
     general purpose credit card in their own name and 37 percent 
     carry over a credit card balance from month to month;
       Whereas 45 percent of college students are in credit card 
     debt, with the average debt being $3,066;
       Whereas only 26 percent of 13- to 21-year-olds reported 
     that their parents actively taught them how to manage money;
       Whereas a 2004 study by the Jump$tart Coalition for 
     Personal Financial Literacy found an increase in high school 
     seniors' scores on an exam about credit cards, retirement 
     funds, insurance, and other personal finance basics for the 
     first time since 1997; however, 65 percent of students still 
     failed the exam;
       Whereas a 2004 survey of States by the National Council on 
     Economic Education found that 49 States include economics, 
     and 38 States include personal finance, in their elementary 
     and secondary education standards, up from 48 States and 31 
     States, respectively, in 2002;
       Whereas personal financial management skills and life-long 
     habits develop during childhood;
       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; and
       Whereas Congress found it important enough to ensure 
     coordination of Federal financial literacy efforts and 
     formulate a national strategy that it established the 
     Financial Literacy and Education Commission in 2003 and 
     designated the Office of Financial Education of the 
     Department of the Treasury to provide support for the 
     Commission: Now, therefore, be it
       Resolved, That the Senate--
       (1) designates April 2005 as ``Financial Literacy Month'' 
     to raise public awareness about the importance of financial 
     education in the United States and the serious consequences 
     that may be associated with a lack of understanding about 
     personal finances; and
       (2) calls on the Federal Government, States, localities, 
     schools, nonprofit organizations, businesses, and the people 
     of the United States to observe the month with appropriate 
     programs and activities.

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