[Congressional Record (Bound Edition), Volume 156 (2010), Part 4]
[House]
[Pages 5820-5824]
[From the U.S. Government Publishing Office, www.gpo.gov]




 SUPPORTING THE GOALS AND IDEALS OF NATIONAL FINANCIAL LITERACY MONTH, 
                                  2010

  Mr. HINOJOSA. Mr. Speaker, I move to suspend the rules and agree to 
the resolution (H. Res. 1257) supporting the goals and ideals of 
National Financial Literacy Month, 2010, and for other purposes.
  The Clerk read the title of the resolution.
  The text of the resolution is as follows:

                              H. Res. 1257

       Whereas personal financial literacy is essential to ensure 
     that individuals are prepared to make informed financial 
     choices so that they can become successful heads of 
     households, investors, entrepreneurs, and business leaders;
       Whereas financially informed individuals are better able to 
     take control of their circumstances, improve their quality of 
     life, and plan for their financial future;
       Whereas personal financial management skills and lifelong 
     habits begin to develop during childhood, making it all the 
     more important to support youth financial education;
       Whereas financial education is the first line of defense 
     against financial fraud;
       Whereas the results of the National Foundation for Credit 
     Counseling's fourth annual Consumer Financial Literacy Survey 
     suggest that while many United States adults are improving 
     how they manage their money, and more consumers now have a 
     budget and nonretirement savings, many Americans continue to 
     struggle with their finances, especially young adults and 
     minorities;
       Whereas the Federal Deposit Insurance Corporation's 
     ``National Survey of Unbanked and Underbanked Households, 
     December 2009'' found that approximately 60,000,000 people in 
     the United States are either unbanked or underbanked;
       Whereas almost 54 percent of Black households, 44.5 percent 
     of American Indian/Alaskan households, and 43.3 percent of 
     Hispanic households are either unbanked or underbanked;
       Whereas personal saving as a percentage of disposable 
     personal income was 3.1 percent in February 2010, compared 
     with 3.4 percent in January 2010, and a reduction from a 12-
     month average of 4.1 percent in 2009, according to the Bureau 
     of Economic Analysis;
       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, Web sites, and one-on-one 
     financial counseling for individuals;
       Whereas the National Endowment for Financial Education 
     provides consumers with the tools necessary to manage their 
     money wisely and empower them to turn their financial 
     education into action;
       Whereas bankers across the United States will teach savings 
     skills to young people on April 27, 2010, during ``Teach 
     Children to Save Day'', which was launched by the American 
     Bankers Association Education Foundation in April 1997 and 
     has now helped more than 80,000 bankers teach savings skills 
     to more than 3,200,000 young people;
       Whereas staff from America's credit unions will focus on 
     the financial needs of young people, provide financial 
     literacy education, and teach youth under the age of 18 the 
     benefits of saving and goal setting during ``National Credit 
     Union Youth Week'', April 18-24, 2010;
       Whereas more than 100 Federal agencies have collaborated on 
     a Web site, www.consumer.gov, which helps consumers shop for 
     a mortgage or auto loan, understand and reconcile credit card 
     statements and utility bills, choose savings and retirement 
     plans, compare health insurance policies, and understand 
     their credit report and how it affects their ability to get 
     credit and on what terms;
       Whereas Members of the United States House of 
     Representatives established the Financial and Economic 
     Literacy Caucus in February 2005 to provide a forum for 
     interested Members of Congress to review, discuss and 
     recommend financial and economic literacy policies, 
     legislation, and programs; to collaborate with the private 
     sector, and nonprofit and community-based organizations; and 
     to organize and promote financial literacy resolutions, 
     legislation, seminars, and events, such as ``Financial 
     Literacy Month'' in April 2010, and the annual ``Financial 
     Literacy Day Fair'' on April 27, 2010; and
       Whereas the Council for 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 personal 
     debt 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 
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 as much time as I may need.
  Mr. Speaker, I rise in strong support of House Resolution 1257, 
Supporting the Goals and Ideals of National Financial Literacy Month, 
2010, and for other purposes. I will enter into today's Record 
President Barack Obama's National Financial Literacy Month 
proclamation, which I hold in my hands.
  Mr. Speaker, it gives me great pride to bring this important 
resolution to the floor of the U.S. House of Representatives. It 
contains some very important data on financial literacy and economic 
education. Unfortunately, I'm sad to have to report again this year 
that the surveys and the studies we reviewed while drafting this 
resolution indicate that the majority of Americans remain financially 
illiterate and are in desperate need of financial education.
  I represent the 15th Congressional District of Texas, which includes 
Hidalgo County, one of the poorest counties in the whole country. It is 
89 percent Hispanic and contains over 900 colonias. Many of the 
residents do not speak English fluently, and several speak English as a 
second language.
  They tend to purchase refrigerators, washing machines, automobiles, 
televisions, and electronic equipment in cash. One of the reasons for 
this aberration is a question of trust. Another is that lower-income 
Americans are not aware of the benefits conveyed when they open a bank 
account at a mainstream financial institution.
  A more pervasive problem is that mainstream financial institutions 
tend not to open branches in the neighborhoods in which these 
constituents live. Consequently, these residents are left to rely on 
non-mainstream financial servicers such as payday lenders, such as 
check cashers and other predatory entities.
  For these reasons, I was not surprised by the findings of the FDIC's 
December

[[Page 5821]]

2009 national survey of unbanked and under-banked households. It 
revealed that approximately 60 million people in our United States are 
either unbanked or under-banked.
  It is for situations such as this that Congresswoman Judy Biggert and 
I began collaborating on financial literacy and economic education 
starting in 2003. Two years later, in 2005, we co-founded and currently 
co-chair the Financial Economic Literacy Caucus. I'm very pleased and 
grateful that she and I and the members of this caucus have worked 
together on a bipartisan basis on financial literacy and economic 
education over the years.
  This year, 2010, the caucus has coordinated with several different 
associations on financial literacy events, including the National 
Consumer Protection Week Fair, America Saves Week, and the release of 
the National Foundation for Credit Counseling's, better known as the 
NFCC, their fourth annual consumer financial literacy survey.
  On April 27th of this year, the Congresswoman and I are coordinating 
on the Annual Financial Literacy Day Fair with Senator Daniel Akaka 
from Hawaii, with the Jumpstart Coalition for Personal Financial 
Literacy, with the Junior Achievement, and the Council for Economic 
Education. This fair, on April 27, will be held in the Senate Hart 
Building from noon to 3 p.m. I encourage you and all my colleagues to 
attend this special event. If you are unable to attend due to conflicts 
in your schedule, you might consider sending one of your staff in the 
Senate Hart Office building.
  America Saves Week, the National Consumer Protection Week Fair, and 
the Financial Literacy Day Fair, as well as the resolutions 
Congresswoman Biggert and I introduce every year to support their goals 
and ideals, are substantive and an important statement of Congress' 
commitment to improving the financial literacy and economic education 
of all Americans.
  The financial literacy fairs are very comprehensive and concrete. 
Agency staff are on hand at these events to provide our staff with the 
materials they need to hold events in our districts to help arm our 
constituents with the information and guidance they need to become more 
confident, savvy, and safe in the marketplace.
  The NFCC's, which is the National Federation for Credit Counseling's, 
fourth annual consumer literacy survey indicates that a larger 
percentage of Americans, more than two in five adults, now keep close 
track of their spending. However, more than half still do not have a 
budget, and more than 11 million adults fail to monitor their overall 
spending.
  Nearly 64 million adults admit to not paying all of their bills on 
time. Though 67 percent of adults say they pay for most purchases with 
cash or with a debit card, approximately 41 percent report that their 
household carries credit card debt, and more than 11 million say they 
carry $10,000 or more in credit card debt from month to month.
  Approximately 100 million people currently have a home mortgage, and 
of those, one in three say that the terms of their mortgage somehow 
turned out to be different than they and their family expected.
  Eighty percent of adults feel there are situations where it is 
acceptable to default on a mortgage, and two of the top three most 
justifiable circumstances place the blame on the lender.
  Despite all this negative data, the proportion of adults who have 
non-retirement savings has increased from 63 percent in 2007 to 67 
percent this year.
  So, Mr. Speaker, as you can tell, we have far to go to improve the 
financial literacy rate of all Americans across the United States 
during all stages of life. One of the ways that our caucus has moved 
the financial literacy cause forward is coordinating with several 
Federal agencies on the National Consumer Protection Week I mentioned 
earlier.
  On a positive note, several Members of Congress have introduced 
comprehensive and beneficial legislation that will help Americans 
become financially literate and provide them with the necessary 
consumer protections.
  One such legislation is the Credit Card Reform Act. Authored by my 
good friend and colleague from New York, Congresswoman Carolyn Maloney, 
it was signed into law by President Barack Obama in 2009. Congresswoman 
Maloney could not be with us on the floor for this debate, but her 
presence is felt here and throughout the United States, and especially 
in the wallets of most Americans.
  Her legislation takes financial literacy and economic education 10 
steps forward. It requires issuers that extend credit to young 
consumers under the age of 21 to obtain an application that contains 
the following: The signature of a parent, guardian, or other individual 
21 years or older who will take responsibility for the debt; or that 
person who signs is proof that the applicant has an independent means 
of repaying any credit extended.

                              {time}  1445

  It limits prescreened offers of credit to young consumers and 
prohibits increases in the credit limit on accounts where a parent, 
legal guardian, spouse or other individual is jointly liable unless the 
individual who is jointly liable approves the increase. This law 
increases the protections for students against aggressive card 
marketing and increases transparency of affinity arrangements between 
the credit card company and university. I commend her for her 
dedication to financial literacy and for managing to pass that 
legislation.
  I coauthored the Student Aid and Fiscal Responsibility Act that 
passed both Houses and was signed into law recently by President Barack 
Obama. That law invests $750 million in the College Access Challenge 
Grant Program. These formula grants to States help organizations 
provide services such as financial literacy and debt management skills 
that increase the number of low-income students who are prepared to 
enter and succeed in college and manage their student loans.
  This Congress is also considering legislation that will establish an 
office of financial literacy that I requested in the Financial Services 
Committee. Other financial literacy proposals are being reviewed, 
including establishing financial literacy centers across the United 
States.
  Mr. Speaker, financial literacy and economic education are both a 
life skill and a key component of financial and economic stability and 
development. It is imperative that we pay more attention to the 
financial literacy rates of our citizens from prekindergarten all the 
way to retirement. The sooner a person begins to learn good saving 
habits, the better off he or she will be in the future.
  I urge my colleagues to support this resolution and join the 
Financial and Economic Literacy Caucus.

                            The White House

                     Office of the Press Secretary

                 [For Immediate Release--April 2, 2010]


NATIONAL FINANCIAL LITERACY MONTH, 2010
                                  ____


            BY THE PRESIDENT OF THE UNITED STATES OF AMERICA

                             A PROCLAMATION

       In recent years, our Nation's financial system has grown 
     increasingly complex. This has left too many Americans 
     behind, unable to build a secure financial future for 
     themselves and their families. For many, financial literacy 
     can mean economic prosperity and protection against fraud and 
     predatory banking practices. During National Financial 
     Literacy Month, we recommit to teaching ourselves and our 
     children about the basics of financial education.
       Our recent economic crisis was the result of both 
     irresponsible actions on Wall Street, and everyday choices on 
     Main Street. Large banks speculated recklessly without regard 
     for the consequences, and other firms invented and sold 
     complex financial products to conceal risks and escape 
     scrutiny. At the same time, many Americans took out loans 
     they could not afford or signed contracts without fully 
     understanding the terms. Ensuring this crisis never happens 
     again will require new rules to protect consumers and better 
     information to empower them.
       The new Consumer Financial Protection Agency I have 
     proposed will ensure ordinary Americans get clear and concise 
     financial information. We must put an end to confusing loan 
     contracts, hidden fees attached to mortgages, and unfair 
     penalties that appear without warning on bank statements. The 
     Credit

[[Page 5822]]

     Card Accountability Responsibility and Disclosure Act of 2009 
     began reining in some of these deceptive tactics when it 
     recently took effect. The President's Advisory Council on 
     Financial Capability is also looking for new ways to help 
     individuals make informed decisions and to educate our 
     children on core financial competencies.
       While our Government has a critical role to play in 
     protecting consumers and promoting financial literacy, we are 
     each responsible for understanding basic concepts: how to 
     balance a checkbook, save for a child's education, steer 
     clear of deceptive financial products and practices, plan for 
     retirement, and avoid accumulating excessive debts. To learn 
     more, visit: MyMoney.gov or call toll-free 1-888-MyMoney for 
     helpful guidance and resources.
       Our Nation's future prosperity depends on the financial 
     security of all Americans. This month, let us each take time 
     to improve our own financial knowledge and share that 
     knowledge with our children. Together, we can prevent another 
     crisis and rebuild our economy on a stronger, more balanced 
     foundation.
       NOW, THEREFORE, I, BARACK OBAMA, President of the United 
     States of America, by virtue of the authority vested in me by 
     the Constitution and the laws of the United States, do hereby 
     proclaim April 2010 as National Financial Literacy Month. I 
     call upon all Americans to observe this month with programs 
     and activities to improve their understanding of financial 
     principles and practices.
       IN WITNESS WHEREOF, I have hereunto set my hand this second 
     day of April, in the year of our Lord two thousand ten, and 
     of the Independence of the United States of America the two 
     hundred and thirty-fourth.
                                                      Barack Obama

  I reserve the balance of my time.
  Mrs. BIGGERT. I yield myself such time as I may consume.
  Mr. Speaker, I rise today as a cosponsor of House Resolution 1257, 
which recognizes April as Financial Literacy Month, and I would 
strongly urge my colleagues to support it.
  I would like to begin by thanking my good friend and fellow chair of 
the House Financial and Economic Literacy Caucus, Mr. Hinojosa, for 
sponsoring this legislation and for his continuing efforts to improve 
financial literacy rates in America.
  Since 2005, when Mr. Hinojosa and I formed the caucus, financial 
literacy has grown from an interesting offshoot of economic education 
to a key element in numerous efforts on and off the Hill to protect 
consumers, improve financial security, help manage debt, assist in 
retirement planning, and prepare our children to prosper in today's 
sophisticated marketplace.
  We've also seen financial literacy programs become successful 
centerpieces of campaigns to bring independence and family security to 
impoverished and underserved populations, women, minorities, and even 
victims of hurricanes or domestic violence.
  For example, with help from the Allstate Foundation and the National 
Network to End Domestic Violence, thousands of abuse victims nationwide 
have benefited from the Economic Empowerment for Domestic Violence 
Survivors program. It empowers victims of domestic violence with a 
financial strategy to escape abusive households and help provide them 
with resources and training to achieve independence.
  Mr. Speaker, Financial Literacy Month is a chance to recognize and 
support the work of countless organizations like these around America--
and the leadership of groups like the Jumpstart Coalition, Junior 
Achievement, and the Council for Economic Education--for all they do to 
educate American consumers and, most importantly, our children.
  It's also an opportunity to recognize how much more work remains to 
be done. According to the FDIC, as was mentioned, approximately 60 
million people in the United States are either unbanked or underbanked. 
Sixty percent of preteens do not even know the difference between cash, 
credit cards, and checks, and yet only 26 percent of new students are 
actively learning financial planning from their parents.
  And according to the national Foundation for Credit Counseling's 
latest consumer survey, one-third of adults, or more than 75 million 
people, are not putting any part of their income towards retirement, up 
from 28 percent in 2008. These are troubling numbers. And in today's 
economic climate, the financial challenges and choices facing consumers 
have only grown.
  That's why, as Congress reviews our national education guidelines and 
takes up far-reaching changes to our country's regulations, we must 
keep in mind one of the most important benefits of financial literacy 
as expressed in this resolution today before us: Financial education is 
the first line of defense against financial fraud.
  When it comes to preparing against economic uncertainty, recognizing 
deceptive practices, building credit, or making dozens of other day-to-
day financial decisions, nothing protects consumers and their financial 
security more effectively than arming them, even as young students, 
with a sound foundation in financial literacy.
  Consumers benefit most from more financial options, not fewer, and 
with the right information and education, individual Americans are best 
equipped to avoid financial pitfalls, analyze risk, and make financial 
decisions that hold the greatest benefit for their future and that of 
their families.
  With that, I would just like to once again thank my good friend and 
colleague, Mr. Hinojosa, for bringing this resolution to the floor, and 
I would like to also recognize the hard work of his dedicated staff, 
especially Greg Davis, for all their efforts.
  And finally, Mr. Speaker, I would like to encourage all of my 
colleagues and their staffs to attend this year's financial literacy 
day fair on Capitol Hill. As Mr. Hinojosa mentioned, but I think it 
bears repeating, it's going to be held next Tuesday, April 27, where 
Members will be able to find a broad array of financial education 
materials and ideas for reaching out to constituents on this important 
issue. This year, it is being hosted on the Senate side, in Hart 902, 
by Senators Akaka and Enzi, and invitations should be arriving soon to 
each office.
  Mr. Speaker, I urge my colleagues to support House Resolution 1257, 
and I reserve the balance of my time.
  Mr. HINOJOSA. Mr. Speaker, I have no further requests for time, and I 
yield back the balance of my time.
  Mrs. BIGGERT. Mr. Speaker, at this time, I would like to yield as 
much time as she may consume to my friend and colleague in the 
Financial Services Committee, Ms. Jenkins of Kansas.
  Ms. JENKINS. Mr. Speaker, I rise today to support this resolution 
supporting the goals and ideals of Financial Literacy Month, and I 
commend the gentleman from Texas and the gentlelady from Illinois for 
introducing this resolution and for their commitment to financial 
literacy.
  During my service as Kansas State Treasurer, I was proud to partner 
with financial institutions across our great State to increase 
financial literacy for Kansans of all ages. As a certified public 
accountant, I'm committed to this cause and believe it is critical to 
equip our students with good financial habits at a very young age. The 
lesson that must be learned as our Nation emerges from this financial 
crisis is that additional regulation is meaningless if personal 
responsibility is not our primary objective.
  I urge all of my colleagues to support this resolution and to support 
increased financial literacy--not just this month, but always.
  Mr. DREIER. Mr. Speaker, I rise in strong support of H. Res. 1257, 
supporting the goals and ideals of Financial Literacy Month. I would 
also like to commend the gentleman from Texas, Mr. Hinojosa, and the 
gentlelady from Illinois, Mrs. Biggert, the co-chairs of the Financial 
Literacy Caucus, for all of their hard work on this important issue.
  In today's 21st century economy, in which Americans have access to a 
wide variety of financial products, a greater understanding of finance 
is critically important to our economy. As we all know, the roots of 
the financial meltdown can be traced to a number of factors, including 
unscrupulous lenders who took advantage of consumers, irresponsible 
homeowners who borrowed more than they could afford and reckless 
speculators who gambled on bad financial bets.
  Last year, we enacted into law a credit card reform bill to crack 
down on abusive lending practices. This law also requires credit 
lenders to provide borrowers with clear information on lending terms, 
such as the consequences of making only the minimum monthly payment, 
late payment deadlines, penalties and interest rate changes. We must 
hold creditors accountable and ensure full transparency in their 
lending practices; at the same time, borrowers

[[Page 5823]]

must carefully review this information and use it to make sound 
financial decisions.
  Mr. Speaker, we must all do our part to enhance financial literacy. A 
strong foundation in financial literacy will help Americans meet 
today's needs, prepare for the unexpected and plan for future goals. 
This week, the Credit Union National Association is holding its annual 
National Credit Union Youth Week to highlight the importance of 
financial literacy for our children. In addition, on April 27, the 
American Bankers Association Education Foundation will be holding their 
annual Teach Children to Save Day. Since 1997, 80,000 bank volunteers 
have participated to teach 3.4 million children about basic spending 
and savings decisions.
  A solid understanding of sound financial principles can also help 
families trim their expenses and reduce debt. The Financial Literacy 
Education Commission's website, www.mymoney.gov, has helpful tools, 
resources and savings tips from a number of federal agencies to help 
consumers make informed personal finance choices, whether shopping for 
loans, reducing household costs, planning for savings and retirement, 
or understanding credit card terms.
  Mr. Speaker, financial literacy is about opportunity. It is about 
empowering individuals and families to take control of their finances 
and effectively plan for the future. Working together, we can encourage 
Americans to enhance their understanding of personal finance, which 
will ultimately help to strengthen our financial system and economy. I 
urge my colleagues to support this important resolution.
  Mr. SENSENBRENNER. Mr. Speaker, I rise today in support of House 
Resolution 1257, and I support the goals of Financial Literacy Month. I 
recognize the importance of encouraging Americans to educate themselves 
on financial responsibility.
  However, the irony of this legislation is not lost on me. If April is 
to be recognized as Financial Literacy Month, might I suggest that 
Congress take the time to educate itself on fiscal responsibility and 
restraint? Last year, the federal deficit reached $1.4 trillion, 
undoubtedly an unsustainable figure. Additionally, as the House 
considers this resolution, the chairman of the Budget Committee ponders 
whether to forgo a budget resolution for the next fiscal year.
  While Americans across the country evaluate their priorities and make 
tough choices to responsibly adhere to their budgets, Congress ought to 
do likewise. When times get tough, it's not the American way to stick 
our head in the sand, but to address our issues head-on.
  This resolution ``recognizes the importance of managing personal 
finances, increasing personal savings, and reducing personal debt in 
the United States,'' yet this Congress has consistently operated 
counter to the principles of managing, saving, and reducing debt. I 
encourage my colleagues to heed the advice we are giving the American 
people, and take a serious look at our finances. I believe the time has 
come for Congress to manage our nation's finances, increase our 
national savings, and reduce our national debt.
  Ms. EDDIE BERNICE JOHNSON of Texas. Mr. Speaker, I rise today in 
support of H. Res. 1257, supporting the goals and ideals of National 
Financial Literacy Month, 2010. The resolution recognizes the 
importance of managing personal finances, increasing personal savings, 
and reducing personal debt in the United States.
  Creating a national culture of financial responsibility is incredibly 
important in these difficult economic times. I believe that a 
financially literate public is a key component to having a strong and 
robust economy. Resolutions like the National Financial Literacy Month 
help to promote broad-based financial literacy initiatives that are 
absolutely essential for the well-being of our country.
  A recent survey done by the National Foundation for Credit Counseling 
has shown that more than 60 million adults admit to not paying all of 
their bills on time; approximately 150 million people report that they 
have not ordered their credit report in the last year, and more than 75 
million people are not putting any part of their income toward 
retirement.
  I am always surprised to hear statistics like this, and it is 
alarming because there are very simple things people can do to save 
money and lead more financially stable lives. We must do whatever is 
necessary to educate the public on financial matters and develop 
unbiased financial literacy training programs within our communities.
  I want to acknowledge the vigorous efforts of Congressman Ruben 
Hinojosa and Congresswoman Judy Biggert, co-chairs of the Financial and 
Economic Literacy Caucus, to improve the overall economic situation of 
all those residing in the United States. I would also like to 
acknowledge Greg Davis and Zachary Cikanek for their endless work and 
dedication to financial education.
  Mr. Speaker, I believe that together we can continue to make a 
difference and help empower people to take control of their financial 
lives. I encourage my colleagues to support this resolution.
  Ms. JACKSON LEE of Texas. Mr. Speaker, I rise today in strong support 
of H. Res. 1257, ``Supporting the goals and ideals of National 
Financial Literacy Month, 2010, and for other purposes.'' Let me begin 
by thanking my colleague Representative Ruben Hinojosa from my home 
state of Texas for introducing this legislation into the House of 
Representatives as it is important that we continually promote and 
encourage honest and thrifty financial decision making abilities in our 
citizens.
  Considering the current state of our economy, Mr. Speaker, it is 
critically important that we begin raising public awareness about 
financial education. A recent study put forth by the Federal Deposit 
Insurance Corporation (FDIC) stated that approximately 54 percent of 
Black households, 44.5 percent of American Indian/Alaskan households, 
and 43.3 percent of Hispanic households either have no checking or 
savings accounts or have used non-bank money orders, non-bank check-
cashing services, payday loans, rent-to-own agreements, or pawn shops 
at least once or twice a year.
  This statistic is alarming to many in our nation, Mr. Speaker, and it 
highlights an increasing lack of financial awareness in our nation. By 
educating our citizens on the proper use of checking and savings 
accounts as well as educating citizens of other financial instruments 
we will seek to see a reduction in the use of payday loans, pawn shops 
and other predatory financial transactions in our nation.
  Furthermore, according to the Bureau of Economic Analysis the U.S. 
aggregate personal savings rate as a percentage of disposable personal 
income dropped 0.3 percent between January and February of this year. 
In February the aggregate personal savings rate as a percentage of 
disposable personal income was 3.1, as compared with 3.4 percent in 
January 2010.
  Still further, troubled loans, mortgages and toxic assets are still 
plaguing our economy and making it increasingly difficult for the 
average person to make sound financial decisions.
  This is why it is critically important that we help give people the 
tools needed to manage their personal finances. Some of the basic 
encouragements we can pass along to our citizens through education 
programs would be to increase personal savings, and reduce personal 
debt.
  Helping our citizens to become economically empowered and in control 
of their personal finances is also essential toward the recovery of our 
national economy. By giving our citizens the ability to plan for their 
financial future and by giving our citizens the ability to make 
important investment and entrepreneurial decisions, we will help to 
improve the quality of life of all Americans through the next 
generation.
  While it is important to focus on educating adults in the areas of 
thrift and finance, it is even more important that we educate our youth 
about the importance of making sound economic and financial decisions. 
These types of financial decision making habits--whether they be wise 
or careless--are often developed during childhood and usually become 
lifelong tendencies.
  An added benefit that would come from increasing our nation's 
financial literacy and providing financial education programs for our 
citizens would be the additional protection against financial fraud 
that would be created. Giving people the resources to understand and 
control their own finances and to understand potential risks and 
hazards would empower people against identity theft and other financial 
schemes that attempt to do them harm.
  I ask my colleagues for their support of H. Res. 1257, as well as 
their continued support for the economically downtrodden in this 
nation. By increasing the capacity of our citizens to make prudent 
economic decisions, I am sure that we will see a return to American 
prosperity that will last for generations to come.
  I would like to again thank my colleague Representative Ruben 
Hinojosa for his leadership in introducing his bill as well as for his 
support of the American people and our economy.
  Mr. Speaker, I strongly support H. Res. 1257 and ask for its 
immediate adoption.
  Mrs. McCARTHY of New York. Mr. Speaker, recently President Obama 
proclaimed April 2010 as Financial Literacy Month. I applaud the 
President for doing this because the country's future prosperity 
depends on the financial security of all Americans. I am proud to be an 
original cosponsor of H. Res. 1257, which supports the goals and ideals 
of National Financial Literacy month.

[[Page 5824]]

  As a nation, we have all been impacted by the effects of our 
struggling economy. While there are many factors that have contributed 
to the current economic climate, and there is no one cause, we do know 
that consumers need to be more aware and informed of how their finances 
work and how to avoid some common financial pitfalls.
  It is never too early or too late to learn about consumer, economic, 
and personal finance concepts, which is why I introduced the Financial 
and Economic Literacy Improvement Act. This bill will provide grants to 
improve financial literacy education for K-12 and college students. 
Additionally, I worked with my Financial Services Committee colleagues 
to draft an amendment included in the House financial regulatory reform 
bill that will create a Financial Literacy Program which will run 
through the Department of Treasury's Office of Financial Literacy.
  The Government has an important role in protecting consumers and 
promoting sound financial literacy programs. It is up to each 
individual to utilize services that provide the knowledge and 
understanding of basic concepts such as avoiding excessive debt, saving 
for an education and steering clear of deceptive products and 
practices.
  Now is the time, regardless of age, that we learn, as consumers, 
about financial products so we may protect ourselves and our families 
in the future. I urge all my colleagues to support H. Res. 1257.
  Mr. BACA. Mr. Speaker, I rise to support House Resolution 1257, 
Supporting the goals and ideals of National Financial Literacy Month.
  In these tough economic times, increasing financial literacy is one 
of the best ways we can accomplish a complete recovery and take 
significant steps to prevent another crisis.
  Every day, many Americans struggle with their finances. These 
problems are especially prevalent among young adults and minorities.
  In fact, the FDIC found in a recent study that approximately 
60,000,000 people in the U.S. are underbanked.
  These numbers are more disturbing when we look at the percentage of 
underbanked people among minorities: 43.3 percent of Hispanic 
households and close to 54 percent of Black households are either 
unbanked or underbanked.
  We must do more to educate every American on how to safely manage 
their wealth and build a stable foundation for themselves and their 
family's future.
  In the fall, Mr. Hinojosa, Mrs. McCarthy, and I introduced an 
amendment that would create a new consumer education office within the 
proposed Consumer Financial Protection Agency.
  This office will operate programs and develop initiatives to ensure 
that all financial institutions are doing their part to come up with 
innovative ways to increase financial literacy among their consumers.
  Throughout my time in Congress I have been a consistent supporter of 
improving financial literacy efforts and I am committed to remaining 
one as long as I hold office.
  I want to commend Mr. Hinojosa on his hard work on this issue and for 
bringing this resolution to this floor.
  I urge my colleagues to vote in support of House Resolution 1257, 
Supporting the goals and ideals of National Financial Literacy Month, 
and I yield back the balance of my time.
  Mrs. BIGGERT. I would urge all of our colleagues to support this 
resolution, and 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. 1257.
  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.

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