[Congressional Record (Bound Edition), Volume 154 (2008), Part 5]
[House]
[Pages 7212-7219]
[From the U.S. Government Publishing Office, www.gpo.gov]




                     FINANCIAL LITERACY MONTH 2008

  Mr. HINOJOSA. Mr. Speaker, I move to suspend the rules and agree to 
the resolution (H. Res. 1079) supporting the

[[Page 7213]]

goals and ideals of Financial Literacy Month 2008, and for other 
purposes.
  The Clerk read the title of the resolution.
  The text of the resolution is as follows:

                              H. Res. 1079

       Whereas personal financial literacy is essential to ensure 
     that individuals are prepared to make informed financial 
     choices, as well as manage money, credit, debt, and risk and 
     become responsible workers, heads of households, investors, 
     entrepreneurs, business leaders, and citizens;
       Whereas personal financial management skills and lifelong 
     habits begin to develop during childhood;
       Whereas a study completed in 2006 by the Jump$tart 
     Coalition for Personal Financial Literacy found that high 
     school seniors know less about principles of basic personal 
     finance than did high school seniors 7 years earlier, and the 
     average scores in both years were failing grades;
       Whereas the 2007 Survey of the States by the National 
     Council on Economic Education found that 49 States include 
     the subject of economics and 40 States include the subject of 
     personal finance in their elementary and secondary education 
     standards, up from 48 and 31 States, respectively, in 2002;
       Whereas 55 percent of college students acquire their first 
     credit card during their first year in college, and 92 
     percent of college students acquire at least 1 credit card by 
     their second 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 the personal savings rate in the United States was 
     zero percent at the end of the fourth quarter of 2007, which 
     puts it among the lowest since the government began 
     collecting the data in 1959;
       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 2004 found that only 42 
     percent of workers surveyed have calculated how much money 
     they will need to save for retirement and 37 percent of 
     workers say that they are not currently saving for 
     retirement;
       Whereas the average baby boomer has only $50,000 in savings 
     apart from equity in their homes;
       Whereas a study by the American Institute of Certified 
     Public Accountants found that 55 percent of people between 
     the ages of 25 and 34 maintain an interest-bearing account or 
     other savings instrument, a decrease of 10 percent since 
     1985;
       Whereas the April 2007 National Foundation for Credit 
     Counseling consumer financial literacy survey found that only 
     39 percent of American consumers keep close track of their 
     expenses; less than half have ordered their credit report; 
     and one-third do not know where to go for financial advice;
       Whereas studies show that as many as 10,000,000 households 
     in the United States are ``unbanked'' or are without access 
     to mainstream financial products and services;
       Whereas expanding access to the mainstream financial system 
     provides individuals with lower-cost and safer options for 
     managing finances and building wealth and is likely to lead 
     to increased economic activity and growth;
       Whereas public, community-based, and private sector 
     organizations throughout the United States are working to 
     increase financial literacy rates for Americans of all ages 
     and walks of life through a range of outreach efforts, 
     including media campaigns, websites, and one-on-one 
     counseling for individuals;
       Whereas at least 6,500 bankers will teach savings skills to 
     young people on April 29, 2008, during Teach Children to Save 
     Day, which was started by the American Bankers Association 
     Education Foundation in April of 1997 and has helped more 
     than 45,000 bankers teach savings skills to nearly 2,300,000 
     young people;
       Whereas staff from America's credit unions will make 
     presentations to young people at local schools on financial 
     topics such as student loans, balancing a checkbook, and auto 
     loans during National Credit Union Youth Week, which will be 
     held April 20-26, 2008;
       Whereas Members of the United States House of 
     Representatives established the Financial and Economic 
     Literacy Caucus (FELC) in February 2005 to (1) provide a 
     forum for interested Members of Congress to review, discuss 
     and recommend financial and economic literacy policies, 
     legislation, and programs, (2) collaborate with the private 
     sector, and nonprofit and community-based organizations, and 
     (3) organize and promote financial literacy legislation, 
     seminars, and events, such as ``Financial Literacy Month'' in 
     April, 2008, and the annual ``Financial Literacy Day'' fair 
     on April 28, 2008; 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, and JA 
     Worldwide have designated April as Financial Literacy Month 
     to educate the public about the need for increased financial 
     literacy for youth and adults in the United States: Now, 
     therefore, be it
       Resolved, That the House of Representatives--
       (1) supports the goals and ideals of Financial Literacy 
     Month, including raising public awareness about financial 
     education;
       (2) recognizes the importance of managing personal 
     finances, increasing personal savings and reducing 
     indebtedness in the United States; and
       (3) 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 with the goal of 
     increasing financial literacy rates for individuals of all 
     ages and walks of life.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Texas (Mr. Hinojosa) and the gentlewoman from Illinois (Mrs. Biggert) 
each will control 20 minutes.
  The Chair recognizes the gentleman from Texas.


                             General Leave

  Mr. HINOJOSA. Mr. Speaker, I ask unanimous consent that all Members 
may have 5 legislative days within 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 Texas?
  There was no objection.
  Mr. HINOJOSA. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, personal financial management skills and lifelong habits 
begin to develop during childhood. It is essential that we begin 
preparing our youth as early as possible to make informed financial 
choices, as well as manage money, credit, debt, and risk, and become 
responsible workers, heads of household, investors, entrepreneurs, 
business leaders, and citizens.
  We need to begin working closely with the Department of Education in 
States and localities to ensure that we begin the financial literacy 
learning process at least by the time a child enters kindergarten, and 
we need to work with the States to encourage them to require some form 
of financial literacy as a required part of the education curriculum.
  Policymakers of both parties at the local, State, and Federal levels 
recently have increased their focus on financial literacy and economic 
education issues because national surveys from such groups as 
Jump$tart, the National Council on Economic Education, and the National 
Federation for Credit Counseling reveal troubling gaps in students' and 
the public's knowledge of these subjects.
  Economic competency and financial literacy skills are critical for 
individuals to make sound decisions regarding home ownership, in 
savings, investment, credit and borrowing, as well as retirement 
planning. An educated and literate populace will strengthen the 
national economy as individuals improve their own economic well-being.
  Mr. Speaker, our government should lead by example. We should 
coordinate and communicate a unified message on financial literacy 
across this Nation. We should authorize and appropriate such funds as 
necessary to create a broad-based public awareness campaign comprised 
of a substantial mass market, multimedia effort in support of a 
national financial literacy initiative on the scale of the ``Truth'' 
campaign developed through the Public Education Fund to discourage 
smoking among young people.
  Furthermore, I believe that the National Endowment on Financial 
Education and several other financial literacy nonprofits and 
community-based groups would agree with me. In 2004, Congress passed a 
bill known as the FACT Act. One of the provisions in that act required 
Treasury and a Financial Literacy Commission to create such a campaign. 
It is now 2008, and Treasury has failed. So now it's our turn to take 
back control of the situation.
  We can introduce legislation authorizing funds for such a national 
multimedia financial literacy campaign. The National Endowment on 
Financial Education recently completed one that was a success. I hope 
that all of my colleagues will support such legislation once it has 
been introduced.

[[Page 7214]]

  Mr. Speaker, some disturbing facts. The personal savings rate in the 
United States was a negative 1 percent at the end of 2006, and it was 
zero percent at the end of the fourth quarter of 2007, which puts it 
among the lowest level since the government began collecting the 
savings rate data in 1959. Although more than 42 million people living 
in the U.S. participate in 401(k) plans, a Retirement Confidence Survey 
conducted in 2004 found that only 42 percent of workers surveyed have 
calculated how much money they will need to save for retirement, and 
only 37 percent of workers say that they are not currently saving for 
retirement.
  Even more disturbing is the fact that the average baby boomer has 
only $50,000 in savings, apart from equity in their home, and the first 
wave of baby boomers have already entered their retirement years. This 
is unbelievable and dangerous to our economy and our way of life.
  Something I want to discuss at length, Mr. Speaker, is the plight of 
what are known as the ``unbanked.'' As many as 10 million households in 
the United States are unbanked, without access to mainstream financial 
products and services. This is a very common occurrence in my 
congressional district. People tend to operate in a cash society along 
the Texas Mexico-border. If these individuals were to buy their goods 
and services by drawing down funds from a checking or a savings 
account, they would eventually be incorporated into the entire 
mainstream financial system. By doing so, they would establish credit. 
Lenders would have access to their credit reports and scores, and this 
would hopefully result in these previously unbanked persons attaining 
the American Dream of homeownership.
  Unfortunately, even when these formally unbanked individuals finally 
have the ways and means to purchase a home, they quickly discover that 
they have to protect themselves from predatory lenders. I believe that 
the legislation that Chairman Frank and the Committee on Financial 
Services is crafting will help low-income individuals who have been 
duped by unscrupulous salespersons, which has resulted in the current 
economic crisis. Chairman Frank definitely has his finger on the pulse 
of this problem, and he will make sure the train stays on the track.
  I salute Congresswoman Biggert for her work on this issue. Six years 
ago, to address all of these financial literacy problems, my colleague 
and good friend and staunch supporter of financial literacy, 
Congresswoman Judy Biggert, and I cofounded and currently cochair the 
Congressional Financial and Economic Literacy Caucus. The caucus seeks 
to address these issues head-on by increasing public awareness of poor 
financial literacy rates and working to find the ways and means to 
improve them.
  The caucus has helped promote policies that advance financial 
literacy and economic education. Together, we have done so by 
connecting Members of Congress with Federal agencies that can help them 
teach financial literacy at town hall meetings, through financial 
literacy e-newsletters, financial literacy fairs, financial football, 
the stock market game, and many more activities.
  Mr. Speaker, I want to take this opportunity to commend my colleagues 
and friends, Congresswoman Eddie Bernice Johnson and Congressman Don 
Payne, for all that they are doing to improve financial literacy. With 
a solid background knowledge of financial literacy, America's youth can 
become responsible employees, heads of household, investors, 
entrepreneurs, and business leaders.

                              {time}  1515

  Parents and teachers need to teach our youth to start saving young, 
stay insured, budget their money, not borrow what they cannot repay, 
and especially avoid excessive credit card debt and the credit card 
sharks that prey on students on every college campus across the United 
States.
  Before I close, Mr. Speaker, I want to take this opportunity to thank 
Congresswoman Biggert for working with me over the years on financial 
literacy. It is a pleasure to work with you and to be able to 
accomplish so much in just a few years.
  I also want to commend her staff, Nicole Austin and Zach Cikanek, for 
their dedication to the financial literacy cause. I want to also 
express my sincere appreciation for the assistance Denise Wilson of our 
Committee on Government Reform provided my staff. I applaud the staff 
from America's credit unions, who made presentations to young people at 
local schools on financial topics such as student loans, balancing a 
checkbook and auto loans during National Credit Union Youth Week, which 
was held the week of April 20 of this year.
  I also want to commend the American Bankers Association Education 
Foundation for holding their annual Teach Children to Save Day. Today, 
April 29, just happens to be Teach Children to Save Day. It is my 
understanding that over 12,000 bankers from 1,100 bank branches signed 
up to host financial literacy events today. Furthermore, I understand 
that tomorrow is El Dia de los Ninos, and they too will be exposed to 
financial literacy education in English and in Spanish. Many American 
children will share financial literacy lessons with approximately 
435,000 students, which is quite an endeavor, but one which they can 
accomplish under the direction of Kathryn Kelly.
  I include the following extraneous material for the Record:

  NFCC and MSN Money Release Consumer Survey Results on Capitol Hill--
         2008 Survey Reveals Serious Gaps in Financial Literacy

       Silver Spring, MD.--The National Foundation for Credit 
     Counseling (NFCC) and MSN Money today released the results of 
     their 2008 Consumer Financial Literacy Survey during a 
     Congressional Briefing on Capitol Hill. The purpose of the 
     survey, conducted by Princeton Survey Research Associates 
     International, is to identify what Americans know about their 
     finances and to assess their overall financial health. Having 
     identified the key areas of deficiency, the NFCC and MSN 
     Money plan to target their financial education initiatives to 
     those Americans most at-risk.
       While some results were positive, others revealed an 
     undeniable need for financial education. Key findings were as 
     follows:
       Significant number struggle with mortgage payments and 
     complexity of buying a home. One in every 10 Americans with a 
     mortgage, or roughly 10 million adults, report being late or 
     missing a mortgage payment in the last year. Adding more 
     stress to the current housing market, almost one-quarter of 
     Americans say they do not know enough about owning a home to 
     consider buying one.
       Millions have serious difficulties paying bills each month, 
     most notably Generation Y. While a majority of the public 
     reports that they pay their bills on time and do not have any 
     debts in collections, a notable minority has fallen behind 
     and is struggling, with seven percent, or roughly 15 million 
     adults, either getting calls from collectors or seriously 
     considering filing for bankruptcy. Higher income households 
     and older Americans are more likely to stay on top of their 
     bills. Whites and Latinos are more likely to pay their bills 
     on time and stay clear of collections than blacks. 
     Alarmingly, only 59 percent or roughly 23 million of the 
     young adults in Generation Y, those ages 18-29, pay their 
     bills on time every month. That translates into millions of 
     tomorrow's leaders, those who will drive the engine of our 
     economy for years to come, who are not practicing a most 
     basic financial principle. The previous generation of 
     consumers, those ages 30-49, also do not appear to be 
     modeling good financial behavior.
       Only a minority keep close track of expenses/spending. 
     Financial experts generally agree that having a household 
     budget is sound financial management. However, similar to the 
     findings from 2007, only a minority of Americans say they 
     keep close track of what they their typical monthly expenses 
     are. Although a majority of the public has at least a 
     somewhat good idea of where their money goes each month, 
     nearly two in 10, or roughly 40 million adults, keep little 
     or no track at all. Contrary to some stereotypes, how closely 
     Americans manage their money does not vary by gender, age, or 
     income. Women continue to be as likely as men, younger people 
     as likely as older people, and lower income households as 
     likely as higher income ones to keep close track of what they 
     spend.
       Savings and emergency funds lacking. A majority of the 
     public does not have a sufficient emergency fund, defined as 
     three to six months income saved. More than one-third, or 
     roughly 76 million adults, say they do not have any non-
     retirement savings. Although a majority is currently saving 
     for their retirement, more than one-quarter are not.
       Many Americans are under-insured, Latinos at higher risk. 
     Even though the baby

[[Page 7215]]

     boomer generation has come of age, only a little more than 
     one-quarter say they have long-term care insurance. Another 
     at-risk group is renters, with only one in 10 saying they 
     have renters insurance. Latinos are also less likely to have 
     medical and life insurance than whites or blacks.
       Minority has ordered credit report. Financial experts 
     recommend that consumers check their credit history at least 
     once a year. Yet, only a minority of Americans has ordered 
     their credit report in the past year, in spite of the fact 
     that it can be acquired for free. And one-third, or roughly 
     72 million adults, readily admit that they do not know their 
     all-important credit score.
       Parents and home the biggest influence on financial 
     education. A plurality of the public says they have learned 
     the most about personal finance from their parents or at 
     home. Almost half of those who closely monitor their finances 
     are more likely to say that they learned about personal 
     finance from their parents or at home, underscoring the 
     potential positive influence parents can have on their 
     children financially. To a lesser extent, some say they 
     learned the most about personal finance on their own, 
     followed by a financial professional, self-help sources, 
     school, work, friends, and their spouse or partner.
       Americans worry about future income growth; Midwest has 
     greatest concerns. And matters are not likely to improve, 
     according to some Americans. Only one-quarter expect their 
     income to outpace inflation. More than half of all Americans 
     believe their income will shrink, not keep pace with 
     inflation, or stay even; this worry is greatest among 
     Americans in the Midwest at nearly 70 percent.
       ``If there were ever a time that Americans needed to 
     embrace financial literacy, it is now,'' said Susan C. 
     Keating, president and CEO of the NFCC. ``The NFCC is proud 
     to make public the results of this survey in hopes that it 
     will be a wake-up call to consumers. We live in a credit-
     dominated society and it is important that consumers avail 
     themselves to the many opportunities to sharpen their 
     financial skills and avoid any traps along the path to 
     financial stability.''
       ``The findings of this study are staggering, especially 
     given the current economic outlook. We conducted this study 
     to get at the core of what financial issues plague Americans 
     and with this information we are now better equipped to help 
     consumers where they need it most,'' said Richard Jenkins, 
     editor-in-chief of MSN Money. ``The good news is that there's 
     an array of tools, expert advice and other resources 
     available to better equip Americans with the information they 
     need to stay on top of their finances. As a first step, I 
     encourage consumers to check out the NFCC and MSN Money Web 
     sites for tips and guidance on how to get their finances on 
     track and stay ahead during these tough financial times.''
       Survey Methodology. Princeton Survey Research Associates 
     International conducted telephone interviews between March 
     5th and March 15th, 2008 from a representative sampling of 
     1,001 Americans nationwide. The margin of error for questions 
     based on the total sample is +/- 3 percentage points.
                                  ____

                                    Washington, DC, April 8, 2008.
     Hon. Ruben Hinojosa,
     House of Representatives,
     Washington, DC.
     Hon. Judy Biggert,
     House of Representatives
     Washington, DC.
       Dear Representatives Hinojosa and Biggert:
       I am writing on behalf of the Credit Union National 
     Association (CUNA), to express our support for H. Res. 1079, 
     which supports the goals and ideals of Financial Literacy 
     Month 2008. CUNA is the nation's largest credit union 
     advocacy organization, representing 90% of our nation's 
     approximately 8,800 state and federal credit unions, their 
     state credit union leagues, and their 88 million members.
       Given the uncertainty in today's financial markets, the 
     subprime lending crisis and other economic factors, financial 
     literacy is more important than ever for all Americans. A 
     knowledge of personal financial management, including 
     savings, investment and debt, is essential to ensuring that 
     individuals are empowered to make informed decisions about 
     their finances. The financial literacy is vital to the well-
     being of American families and the overall economic health 
     and prosperity of our nation.
       Credit unions are particularly aware of the importance of 
     providing a financial education to young people. During 
     Financial Literacy Month, credit unions will demonstrate our 
     commitment to educating youth as we hold National Credit 
     Union Youth Week from April 20-26, 2008. Through the week's 
     National Youth Savings Challenge, participating credit unions 
     will motivate children, teenagers, and their parents to 
     become more active users of credit union services. Each year 
     of the challenge has seen a steady increase in participation 
     and savings. In 2007, 393 credit unions participated in the 
     challenge and 71,844 youth--an increase of 9,067 youth 
     accounts--made $10.1 million in saving deposits.
       In keeping with our commitment, credit unions manage many 
     other financial youth literacy programs throughout the year. 
     Credit unions have directly assisted in delivering the 
     National Endowment for Financial Education's (NEFE) High 
     School Financial Planning Program materials to more than 
     1,200 schools and 500,000 students nationwide from 2000 to 
     2007. Of the 6 million student guides which have been 
     distributed since its publication, 4 million were distributed 
     since CUNA's partnership with the program in 2000.
       In addition, credit unions have helped fund the BizKid$ 
     Television Series--a 26-episode series that promotes 
     financial education for middle and high school students and 
     reaches nearly 90 million American households--which was a 
     joint project of the Washington Credit Union Foundation, the 
     Public Broadcasting Service, and Junior Achievement 
     Worldwide. Credit unions across the country also reach out to 
     students on a personal level by visiting local schools to 
     speak about such topics as student loans and hosting personal 
     finance camps for teenagers.
       CUNA believes in the importance of financial literacy for 
     all Americans and thanks you for your leadership in 
     introducing H. Res. 1079. We strongly urge its adoption in 
     the House of Representatives.
           Sincerely,
                                                   Daniel A. Mica,
     President & CEO.
                                  ____


 ICBA Applauds Reps. Hinojosa and Biggert for Resolution on Financial 
                             Literacy Month

       Washington, D.C. (April 15, 2008).--The Independent 
     Community Bankers of America (ICBA) strongly supports the bi-
     partisan congressional resolution Recognizing the Goals and 
     Ideals of Financial Literacy Month (H. Res. 1079) designating 
     April as ``Financial Literacy Month,'' which calls on 
     government, non-profit organizations and the private sector 
     to raise public awareness about the importance of financial 
     education in the United States and the serious consequences 
     that can result from a lack of understanding about personal 
     finances.
       ``Managing money wisely is critical to success in life,'' 
     said Cynthia L. Blankenship, ICBA chairman and vice chairman 
     and chief operating officer of Bank of the West, Irving, 
     Texas. ``Too many Americans lack the skill and knowledge to 
     make appropriate financial decisions. The more consumers and 
     young adults know, the better they are at managing their 
     finances, and the better they manage their finances, the more 
     likely they are to enjoy a secure financial future.
       ``We commend Reps. Ruben Hinojosa (D-Tex.) and Judy Biggert 
     (R-Ill.) for introducing a resolution that supports the goals 
     and ideas of Financial Literacy Month,'' said Blankenship. 
     ``Financial education is important for today's consumers so 
     that they can understand and make good decisions when faced 
     with the complex array of financial products and services 
     available.''
       ICBA encourages its nearly 5,000 member community banks to 
     support the goals of Financial Literacy Month by promoting 
     financial literacy programs during ICBA Community Banking 
     Month in April, as well as throughout the year. ICBA has an 
     on-going commitment to improving financial literacy by 
     forging government, non-profit and private-sector 
     partnerships, such as the Jump$tart Coalition and America 
     Saves.
       ICBA recognizes community banks for their outstanding 
     financial literacy efforts within their community through the 
     National Community Bank Service Award Financial Literacy 
     Award. For 2007, two community banks received recognition:
       Howard Bank, Ellicott City, Md., was honored for its 
     financial literacy program by donating more than $70,000 and 
     volunteering countless hours to local schools, community 
     groups and non-profit associations needing help with 
     financial literacy.
       1st Centennial Bank, Redlands, Calif., was honored for 
     developing curriculum that teaches the basics of money 
     management such as saving, budgeting, spending and using 
     credit wisely. 1st Centennial offers the program and provides 
     all materials for free.

  Some of the results of the National Federation for Credit 
Counseling's survey were positive, but others revealed an undeniable 
need for financial education. These results are consistent with the 
findings of Jump$tart's 2008 financial literacy survey, the National 
Council on Economic Education's 2007 Survey of the States, the 2007 
Ariel-Schwab Black Investor Survey, the Employer Benefit Retirement 
Institute's recent Retirement Confidence Survey, and the National 
Council of La Raza's ``Financial Counseling: A Meaningful Strategy for 
Building Wealth in the Latino Community.''
  In closing, Mr. Speaker, our country is suffering financially and our 
constituents are not armed with the tools they need to provide for a 
good future. Whether you are 5 or 65, it is never too early nor too 
late to take control of your finances. So why not start now?
  For these reasons and more, I encourage my colleagues to support this 
resolution, H. Res. 1079.
  Mr. Speaker, I reserve the balance of my time.

[[Page 7216]]


  Mrs. BIGGERT. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I rise in strong support of H. Res. 1079, which 
recognizes April as National Financial Literacy Month. I am pleased to 
say that this will be the fifth year in a row that Congress has 
designated April as Financial Literacy Month, and I would like to thank 
my good friend and fellow Chair of the House Financial and Economic 
Literacy Caucus, Mr. Hinojosa, for introducing this resolution and for 
his continuing efforts to improve financial literacy rates in America.
  Our caucus, which boasts about 80 members from both sides of the 
aisle, has been on the front line of this issue for several years, and 
I think it is fair to say that we have made some genuine progress. 
Today, 40 States include personal finance in their educational 
standards. That is up from 31 in 2002. Even more promising, 49 States 
now include some aspect of economics in the curriculum guidelines. But 
we have much work ahead of us if we are going to help today's children 
become tomorrow's smart investors, entrepreneurs and business leaders.
  The savings rate is still hovering just below zero; 10 million 
Americans are unbanked; there were 2.2 million foreclosures in 2007; 
and the front pages of our newspapers across the country proclaim that 
millions of Americans are losing their homes because they were not 
ready to be homeowners.
  Clearly, the need to improve financial literacy of Americans is 
greater than ever. And this applies to all Americans, not just students 
and children. From college grads to senior citizens, consumers are 
being asked to make decisions about increasingly complex financial 
products. According to the FTC, one-third of borrowers could not even 
identify the interest rate in a mortgage disclosure form and half could 
not correctly identify the loan amount. The problem is amplified by 
complicated legal jargon about balloon payments, rate resets, escrow 
accounts, prepayments and closing costs. The list goes on and on. That 
is why I have introduced several bills to help owners find a loan that 
best meets their budget and needs, steering them away from a situation 
that could lead to foreclosure down the road.
  Just last week, I joined Financial Services Ranking Member Bachus and 
Housing and Community Development Subcommittee Ranking Member Shelley 
Moore Capito to introduce legislation that would simplify mortgage 
documents and increase resources for housing counseling. Taken 
together, these reforms will not only prevent foreclosures, they will 
help owners to avoid fraud and allow them to easily compare financial 
products to find the best loan for their families' needs.
  Mr. Speaker, efforts to stimulate the economy cannot succeed unless 
we equip Americans with the knowledge and resources they need to 
succeed in today's sophisticated economic market. Housing is just one 
of these areas where improved financial literacy will benefit 
consumers.
  Americans also need access to the proper tools for saving and 
investing money. At the start of the 110th Congress, I introduced a 
bill called the 401 Kids Family Savings Act of 2007. This bill will 
allow parents and family members to set aside money in a child's 
account that will accumulate tax-free and can be used for college 
tuition, a first home, or even retirement, should the money last that 
long. Not only will this boost savings, it will get kids actively 
engaged in banking from the time they are old enough to count. This 
way, they can learn about things like compound interest in the best way 
imaginable, by watching their own college fund grow.
  Mr. Speaker, there are so many great ideas for improving financial 
literacy rates. In fact, over 50 nonprofit community and private sector 
organizations from across the country came to the Hill yesterday for 
the annual Financial Literacy Day Fair. On display for policymakers 
were hundreds of books, programs and resources on how to improve 
financial literacy in ways that will make a positive impact on people's 
lives. It was a remarkable success, and I would like to congratulate 
the National Council on Economic Education, the Jump$tart Coalition, 
Junior Achievement, and all the other sponsors who worked with Senators 
Akaka and Enzi to put it together.
  I would also like to recognize the impressive efforts of Charles 
Schwab, John Hope Bryant and the other members of the President's new 
Private Sector Advisory Council on Financial Literacy. It is 
increasingly clear that teaching financial literacy requires 
cooperation between the government and industry. This council will help 
to facilitate that cooperation by making and implementing 
recommendations for improving on current financial literacy outreach 
efforts.
  Mr. Speaker, Americans are a diverse group, but we all share some 
very basic financial needs. We need to be prepared for tuition costs, a 
home, health care and retirement. We need a financial cushion against 
unexpected challenges like the death of a family member. And we need 
the capital necessary for new entrepreneurs to launch the start-ups and 
open the small businesses that drive the economy. Every American should 
have the opportunity and know-how to fulfill each of these goals. That 
is why I urge my colleagues to support this resolution and show that 
financial literacy remains a top priority for Congress.
  I would like to once again thank Representative Hinojosa and his 
staff, especially Greg Davis, for all their hard work on this 
resolution. I would also like to thank the chairman and ranking member 
of the Financial Services Committee, Mr. Frank and Mr. Bachus, for 
helping to move this resolution through our committee in a bipartisan 
way.
  Mr. Speaker, I strongly support this resolution and urge my 
colleagues to do the same.
  Mr. Speaker, I reserve the balance of my time.
  Mr. HINOJOSA. Mr. Speaker, I am delighted to be able to recognize and 
yield 5 minutes to the gentlewoman from New York (Mrs. Maloney).
  Mrs. MALONEY of New York. I thank the gentleman for yielding and 
congratulate him on this resolution and all of his hard work.
  Mr. Speaker, I rise in support of this resolution, and I want to 
thank Chairman Hinojosa and Congresswoman Biggert for their leadership 
in this area as co-chairs of the bipartisan Financial and Economic 
Literacy Caucus.
  As this resolution states, we need to work to encourage government 
and private sector initiatives to enhance financial literacy. Given the 
current turmoil in the financial markets, the housing crisis, 
increasing credit card indebtedness and the economic downturn, it is 
very important that all Americans become better educated and more 
responsible financial consumers.
  Financial literacy is important for many reasons, not the least of 
which is to learn how to save. As some point out, we have lost that 
ability. The Department of Commerce reports that personal saving as a 
percentage of disposable income, already low, declined to zero in the 
fourth quarter of 2007, and with the economic downturn, the situation 
will likely get worse. We need to help individuals develop personal 
savings skills, and this resolution will encourage them to do so.
  The deregulation of financial markets and the rapid increase in the 
number and complexity of financial products stump even the most 
financially savvy. We know that financial literacy is especially low 
for certain groups, such as those with lower educational attainment and 
low income. If you don't understand how finance charges on mortgages, 
credit cards or car loans work, you can't make decisions that help you, 
and these decisions could push you further into debt without you 
realizing it.
  The efforts of our school system are uneven, and we need to encourage 
them. In its 2007 Survey of the States, the National Council of 
Economic Education found that only 41 States require economic standards 
to be implemented in the high school curriculum, only 17 States 
actually require an economics course for graduation, only 22 States 
actually test students' knowledge of economics, only seven States 
require that students take a personal

[[Page 7217]]

finance course for graduation, and only nine States actually test 
students' knowledge of personal finance.
  Just last month, the Jump$tart Coalition released its annual study, 
which found that the 2008 high school senior class knows less about 
principles of basic personal finance than their 2006 counterparts. This 
does not bode well for their ability to manage their finances as a 
result.
  This resolution shows our commitment to improving financial literacy 
through both public and private sector efforts. I urge my colleagues to 
support it. I congratulate the authors, and I congratulate the chairman 
and the ranking member for their efforts in moving it through the 
committee.
  Mrs. BIGGERT. Mr. Speaker, I yield 3 minutes to the gentleman from 
Connecticut (Mr. Shays), an important member of the Financial Services 
Committee.
  Mr. SHAYS. Mr. Speaker, I rise today in support of the goals and 
ideals of Financial Literacy Month and the commitment in Congress to 
raise public awareness about the importance of financial education.
  As we near the end of April, which is Financial Literacy Month, 
credit card debt is on the rise, borrowers are defaulting on mortgage 
payments, oil prices are hitting historic highs, unemployment is 
increasing and consumers continue to bite off more debt than they can 
handle. Financially illiterate consumers cannot be expected to make 
sound financial decisions because they simply are not equipped with the 
tools and knowledge they need.

                              {time}  1530

  It seems to me we can't expect people to be thoughtful consumers when 
they are not afforded the knowledge they need to make wise choices 
about their finances.
  In light of recent turmoil in the subprime mortgage and credit 
markets, financial education is now more important than ever. Federal 
Reserve Chairman Ben Bernanke drew attention to this point when he 
said, ``The crisis in the U.S. subprime mortgage market underscored the 
need for Americans to develop a sound base of financial knowledge.''
  I believe it is important to ensure Americans have access to the 
knowledge and expertise they need to be savvy consumers and wise 
investors. It is never too early to learn about the importance of good 
credit and savings.
  Parents and schools play an important role in educating tomorrow's 
consumers, which is why I am supportive of initiatives like Jump$tart 
that bring financial education into our Nation's classrooms. Jump$tart 
is a national coalition of organizations dedicated to improving the 
financial literacy of kindergarten through college-aged youth by 
providing educational resources and advocating for increased personal 
finance education. A 2008 survey of high school seniors conducted by 
the alliance revealed that graduating seniors continue to struggle with 
basic financial concepts.
  First convened in December 1995, the Jump$tart Coalition for Personal 
Financial Literacy determined that the average high school graduate 
lacks basic personal financial management skills like even balancing a 
checkbook. Laying the groundwork for financial independence at a young 
age will create a generation of individually prosperous and fiscally 
responsible consumers, and a corresponding stronger and better Nation.
  Mr. HINOJOSA. Mr. Speaker, I submit the following extraneous material 
for the Record:

Financial Counseling: a Meaningful Strategy for Building Wealth in the 
                            Latino Community

            (By Beatriz Ibarra, National Council of La Raza)


                                summary

       The report shows that current policies to improve financial 
     literacy for Latinos fail to include one-on-one financial 
     counseling programs, the linchpin of any strategy to close 
     the wealth gap for Hispanics. Financial Counseling: A 
     Meaningful Strategy for Building Wealth in the Latino 
     Community provides specific policy recommendations on how to 
     increase programs proven to improve financial decision-making 
     of Hispanics--especially the more than 14.5 million who lack 
     a basic checking account.

  Mr. BACA. Mr. Speaker, I rise to support H. Res. 1079, a resolution 
supporting the goals and ideals of Financial Literacy Month and thank 
my friend and colleague Mr. Hinojosa for offering it. I also want to 
thank Mr. Hinojosa for his leadership of the Financial and Economic 
Literacy Caucus (FELC), of which I am a proud member.
  This year, the theme for my annual women's conference was ``Financial 
Literacy for Women,'' to recognize the importance of educating and 
encouraging women to take steps that could result in a better financial 
future for themselves and their families. At this conference, I invited 
speakers to motivate the women in my district to think about their 
finances and plan for the future.
  That's what this resolution is all about, ensuring that individuals 
from all walks of life-- women, men, young and old--recognize the 
importance of managing personal finances, increase personal savings and 
reduce their debt. In these tough economic times it is important that 
we all prepare for our financial future.
  The past few months we have seen rising prices for gas to food, more 
Americans losing their homes or the value in their homes, and rising 
unemployment. Earlier this year, the New Direction Congress passed an 
economic stimulus package to help families with high costs of gas, 
health care and groceries, and to jumpstart our slowing economy. 
Recovery Rebates will be in the hands of 130 million Americans, 
starting early in May.
  The strain of the economic downturn on middle-class families demands 
a second growth and relief package now--and Congress will work in a 
bipartisan way to find solutions for the immediate crisis and for a 
long-term economic recovery for America.
  I am a proud member of the House Financial Services Committee and 
last week, we held a markup of legislation that will help address the 
foreclosure crisis. The first bill, H.R. 5818 provides $15 billion in 
loans and grants to States to allow them to buy up repossessed 
properties. This will help ensure that abandoned homes don't stay on 
the market too long to keep home prices from dropping even further. The 
second bill, H.R. 5830 allows the FHA to insure up to $300 billion in 
subprime loans so that these families in danger of foreclosing can 
refinance into a more affordable loan. It also provides money to 
housing counselors to increase their efforts in underserved, poor, and 
minority communities.
  Congress is doing its part to help stabilize our economy and help 
keep families in their homes. This resolution supports our efforts by 
calling on the President to issue a proclamation calling on the Federal 
Government, States, localities, schools, nonprofit organizations, 
businesses, other entities to observe Financial Literacy Month with 
community programs and events. This outreach will help us raise public 
awareness about financial education and is particularly important for 
our country's present and future economic well-being.
  I urge my colleagues to support H. Res. 1079.
  Mrs. BACHMANN. Mr. Speaker, I rise to support H. Res. 1079. Financial 
stability is the foundation on which freedom and prosperity are built. 
It is vital that all Americans grab hold of their personal finances so 
that families and future generations of Americans have the opportunity 
to prosper. I rise to honor the goals and ideals ``Financial Literacy 
Month'' represents, and urge the nation to secure their finances and 
plan for the years to come.
  As a member of the Financial Literacy Caucus and co-sponsor of this 
resolution, I join my colleagues in acknowledging the importance of 
financial planning and encourage Americans to set goals rather than 
live from paycheck to paycheck. With the assistance of dedicated 
financial planners, Americans can be educated and assisted with setting 
up a sound financial plan and provide for their family a more secure 
life.
  Through a financial plan, we begin to dream. When we dream, we have 
the incentive to save; and through savings, we flourish financially.
  Through a variety of activities, workshops, and seminars in local 
communities, citizens will have the ideal opportunity to speak with 
knowledgeable financial planners and begin to paint a picture of a more 
sound and secure future of financial independence.
  Mr. Speaker, I am thrilled to co-sponsor this resolution so that many 
Americans, for the first time, can begin to dream of a life of 
financial security, and work to reach their highest goals and 
aspirations.
  Ms. JACKSON-LEE of Texas. Mr. Speaker, I rise today in strong support 
of H. Res. 1079, supporting the goals and ideals of Financial Literacy 
Month. I would first like to thank my distinguished colleague, Ruben 
Hinojosa of

[[Page 7218]]

Texas, for introducing this important legislation. I believe basic 
financial literacy is imperative to ensure that individuals are capable 
of making financial choices, as well as managing money, credit, debt, 
and risk and becoming responsible workers, heads of households, 
investors, entrepreneurs, business leaders, and financially stable 
citizens. Understanding how each of these topics work together and 
affect each other is important for laying the groundwork for solid 
financial foundation for you and your family.
  Personal financial management skills and lifelong habits begin to 
develop during childhood. In 2006, the JumpStart Coalition for Personal 
Financial Literacy found that high school seniors knew less about 
principles of basic personal finance than did high school seniors 7 
years earlier, and the average scores in both years were failing 
grades. Financial security is the cornerstone of prosperous 
communities, nurturing neighborhoods and strong families. However, many 
individuals and families are experiencing financial crisis because of 
inadequate savings, too much debt and poor planning for potential major 
life events. Today, a majority of consumers are experiencing some sort 
of financial difficulty causing a significant impact on their everyday 
lives. In fact, Americans carry more than $2 trillion in consumer debt 
and 30 percent of consumers report having no extra cash--making it 
impossible to escape the financial burden of living paycheck to 
paycheck. On average, U.S. households carry about $8,000 in credit card 
debt alone. The total U.S consumer credit card--revolving credit--debt 
was $937.5 billion in November 2007 which is absolutely unheard of.
  Far too many Americans are insufficiently educated about their 
personal finances. The personal savings rate in the United States was 
zero percent at the end of the fourth quarter of 2007, which puts it 
among the lowest since the government began collecting the data in 
1959. Shockingly, about half of adults--49 percent--say they are 
concerned they have not paid enough attention to managing their 
finances as they should have and 48 percent are concerned they don't 
know enough about financial planning; 4 out of 10 American workers are 
not saving for retirement. Public, community-based, and private sector 
organizations throughout the United States are working to increase 
financial literacy rates for Americans of all ages and walks of life 
through a range of outreach efforts, including media campaigns, Web 
sites, and one-on-one counseling for individuals.
  Mr. Speaker, I urge Members of Congress in a time of economic crises 
and brink of economic recession, to promote literacy in all aspects of 
finance. I support the goals and efforts established by the National 
Council on Economic Education, the JumpStart Coalition for Personal 
Financial Literacy, its State affiliates, and its partner organizations 
for supporting the goals and ideals of Financial Literacy Month, 
including raising public awareness about financial education. I 
recognize the importance of managing personal finances, increasing 
personal savings and reducing indebtedness in the United States. I urge 
my colleagues to join me in supporting this legislation that 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 the month with appropriate programs and activities with the 
goal of increasing financial literacy rates for individuals of all ages 
and walks of life.
  Mr. CARSON. Mr. Speaker, I rise in strong support of H.R. 1079, a 
resolution supporting the goals and ideals of Financial Literacy Month 
2008. It is fitting that in April, the month that our taxes are due, we 
bring attention to the important issue of financial literacy.
  As citizens face their taxes this year, they have also been facing 
the burden of increased financial difficulties as foreclosure rates 
soar, health care and energy costs continue to rise, and substantial 
numbers of jobs are cut. During this time of economic strain, it is 
especially crucial that consumers become knowledgeable about their own 
financial situation and that we take steps to ensure our children 
receive proper financial education to plan for their future.
  In my district, groups such as the Indianapolis Asset Building 
Campaign are working to increase financial literacy in the city, 
especially among moderate and low income individuals. The campaign was 
spearheaded by my grandmother, Representative Julia Carson, former 
Mayor Bart Peterson, Momentive, Purdue Cooperative Extension, 
Indianapolis Neighborhood Housing Partnership, the Boner Center, Junior 
Achievement, the Internal Revenue Service and the Annie E. Casey 
Foundation.
  It has been proactive in connecting taxpayers with financial literacy 
information such as free preparation services, tax credit information, 
the availability of low or no cost savings accounts and predatory 
lending. These kinds of efforts are critical to stem the cyclical debt 
low and moderate income individuals frequently become trapped in.
  I want to thank Chairman Frank for bringing light to this issue by 
holding a hearing in the Financial Services Committee and I want to 
also note Congressman Hinojosa's strong leadership in this issue and 
his dedication to educating consumers on the importance of debt 
management and asset building.
  We must continue working on this issue to help consumers become savvy 
on the complex financial products we have in the marketplace today and 
prevent them from becoming dependent on credit or victims of predatory 
lending.
  Mr. AL GREEN of Texas. Mr. Speaker, I am proud to support H. Res. 
1079, a resolution supporting the goals and ideals of Financial 
Literacy Month 2008. With the economy in its current state, and with 
the anticipation of more hardships to come, it has become increasingly 
important for all Americans to have a basic understanding of financial 
systems and resources. Many of the challenges that we face today could 
have been avoided if more Americans were financially literate and able 
to make informed decisions while protecting themselves from abusive 
financial practices.
  A recent 2008 Financial Literacy Survey prepared for the National 
Foundation on Credit Counseling and MSN Money highlights the growing 
need for quality financial literacy education. According to the report, 
over 50 million Americans have no money set aside for their own 
retirement, and roughly 76 million Americans have no savings outside of 
their retirement fund. Over 30 percent of Americans do not know their 
own credit score, and over 60 percent have not requested a free copy of 
their credit report in the past year. Approximately 40 million 
Americans make little or no effort to budget their finances or keep 
track of their own spending, and around 15 million Americans are being 
called by collectors and have seriously considered filing for 
bankruptcy. In the state of Texas, there were more than 184,000 prime 
and subprime mortgages in delinquency at the end of 2007, a situation 
that was closely linked to the lack of financial literacy among 
consumers. The problem is only worsened by the fact that one in four 
Americans say they would not consider buying a home at this time 
because they do not know enough to feet comfortable doing so.
  By designating April as Financial Literacy Month, we are recognizing 
the importance of financial literacy and making an active effort to 
encourage and support quality financial literacy education programs. 
The American Dream cannot be obtained by those who suffer from 
dangerous consumer habits, poorly managed finances, unsustainable 
levels of debt, and barriers to mainstream financial services and 
institutions. Financial Literacy Month is a reminder for all of us to 
continue working so that every individual will have the tools and 
knowledge they need to attain financial security and strengthen our 
Nation's economy.
  Mr. DREIER. Mr. Speaker, I would like to commend the gentleman from 
Texas, Mr. Hinojosa, and the gentlelady from Illinois, Mrs. Biggert, 
for introducing H. Res. 1079, a resolution supporting the goals and 
ideals of Financial Literacy Month 2008. As a co-sponsor of this 
resolution and a member of the Financial and Economic Literacy Caucus, 
I am proud to support this measure.
  Almost a decade into the 21st century, we are finding that more 
Americans have access to financial services and products than ever 
before. With the click of a button, consumers can perform a variety of 
financial activities over the Internet, from paying bills to managing 
investments. Technology has allowed more people to enjoy the benefits 
of access to capital and today, half of all American households own 
equities. This growing number of ``investor class'' Americans are 
participating in financial markets through retirement plans, investment 
vehicles or Internet trading accounts.
  Yet, many Americans are concerned about our economy. Uncertainty has 
not only had a big impact on housing markets, but has also resulted in 
a great deal of volatility in stock markets both in the United States 
and abroad. The need for financial literacy has never been greater than 
it is right now. While sound financial and investment decisions are 
necessary for creating economic booms, they are absolutely essential in 
weathering the busts. As working Americans, small-business owners and 
the ever-growing investor class address these current economic 
challenges, they must have the right tools to make the best decisions 
for their own financial security.
  Therefore, it is fitting that this resolution reaffirms the important 
role that financial literacy plays in helping individuals evaluate the 
complex financial choices that they encounter and

[[Page 7219]]

further recognizes the need to begin teaching financial management 
skills at an early age. By educating our youth to understand money, 
savings, credit, debt and risk, we will not only be providing lifelong 
skills, but also can ensure that individuals will have the tools 
necessary to make informed decisions in this evolving 21st century 
economy.
  It is also important to note that efforts to enhance financial 
literacy are not confined to our own country. Earlier this month, 
governments throughout Europe declared their commitment to promoting 
financial education. The private sector is also actively engaged in 
enhancing economic literacy throughout the developing world. For 
example, Citigroup and the Citigroup Foundation have provided more than 
$22 million in support of financial education programs that have 
reached millions of people in more than 40 countries. These activities 
include community development projects to support the expansion of 
thrift and credit-based cooperative groups in India and the development 
of a microfinance industry in China. As we strive for expanded trade 
and investment with our global partners, it is clear that growth in 
world markets is increasingly linked to growth in our own economy. In 
other words, financial literacy abroad allows us to reap the benefits 
here at home.
  Ultimately, expanding access to the financial system and knowledge of 
its workings provides individuals with greater choice and lower costs 
when managing finances, building wealth and making investments. These 
activities in turn lead to increases in economic activity and growth 
that benefits our entire Nation. I urge my colleagues to recognize the 
importance of financial literacy and support this measure.
  Mr. HINOJOSA. Mr. Speaker, I yield back the balance of my time.
  Mrs. BIGGERT. I yield back the balance of my time.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentleman from Texas (Mr. Hinojosa) that the House suspend the rules 
and agree to the resolution, H. Res. 1079.
  The question was taken.
  The SPEAKER pro tempore. In the opinion of the Chair, two-thirds 
being in the affirmative, the ayes have it.
  Mr. HINOJOSA. 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.

                          ____________________