Recognizing and supporting the goals and ideals of "Financial Literacy for Youth Month".

Mr. Speaker, I rise in support as a cosponsor of House Resolution 127, naming April the Financial Literacy for Youth Month, and I commend Congressman David Dreier for introducing this important legislation.

I always say that education is the key to success, and providing financial literacy for our youth is an integral part of that process. The resolution expresses the sense of the House that the President should issue a proclamation calling on the federal government, states, localities, schools, nonprofit organizations, businesses, other entities, and the people of the United States to observe the month with appropriate programs and activities.

Designating April as the Financial Literacy for Youth Month should raise public awareness about the need for increased financial literacy in our schools and the serious problems that may be associated with a lack of understanding about personal finances. As Federal Reserve Board Chairman Alan Greespan noted recently:

Today's financial world is highly complex when compared

with that of a generation ago. An understanding of how to

maintain a checking and savings account at a local financial

institution may have been sufficient twenty-five years ago.

Today's consumers, however, must be able to differentiate

between a wide range of products, services, and providers of

financial products to successfully manage their personal

finances. Certainly, young adults have access to credit at a

much earlier age than their parents did. Accordingly, they

need a more comprehensive understanding of credit than was

afforded to the previous generation--including the impact of

compounding interest on debt balances and the implications of

mismanaging credit accounts. In addition, as technological

advances have contributed significantly to the dramatic

changes within the financial services market, consumers more

generally must be familiar with the role that computers play

in the conduct of every traditional financial transaction,

from withdrawing funds to gaining access to credit.

For these reasons and many more, it is imperative that we ensure our youth's financial literacy. Although several groups, including the Department of the Treasury's Office of Financial Education, have recommended that this be accomplished by incorporating financial literacy into math and English classes, I personally believe that we need to focus more on individual financial literacy curriculums. The Federal government should provide additional funds to accomplish this goal. Granted, the No Child Left Behind Act makes $385 million available in Innovation State Grant funds for distribution to the states, but only some of that money will be used to fund financial education initiatives. We need to do more, and we need to use April, the Financial Literacy for Youth Month, to work towards these goals. On the state level, I would hope that the education boards would focus on financial literacy and work with their state legislatures to require at least two semesters of financial literacy as a requirement for graduation from high school. In my own state of Texas, the Independent Bankers Association of Texas has been working diligently towards such a change in curriculum. I hope that more take up this cause.

Some may ask why I am so interested in financial literacy. The reason is that I represent one of the poorest Districts in the nation where people still keep their money in their house and under their mattresses. I am speaking of the ``unbanked.'' Those individuals who tend to be exploited by payday lenders, use expensive money grams for remittances and are subject to crime because they have not entered the mainstream banking system. It is for these people that I am interested in financial literacy and for these reasons that I cosponsored this bill.

Mr. Speaker, I rise today in support of H. Res. 127, recognizing April as ``Financial Literacy for Youth Month''. I am pleased to join my friend and colleague from California, Mr. Dreier, in raising awareness of the need for our youth to learn financial management skills at an early age. If our schools don't teach the ABC's of financial literacy, it doesn't take an accountant to understand that our children are more likely to fall into debt and behind in life.

The financial world has dramatically changed over the last 20 years. The passage of complex laws, like Gramm-Leach-Bliley, has created a whole new world of integrated financial service products and possibilities. While we certainly don't expect children to understand the ins-and-outs of deregulation, some of the effects of this new and modern system are slowly starting to surface and will impact them later on in life.

Mr. Speaker, with all these new choices there is a new responsibility on our part to educate our youth. Why? Because teaching them about personal finance is the best way to prepare them for a financially rewarding adulthood as contributing members of society.

They need to know how to manage money, credit, and debt, and become responsible workers, heads of households, investors, entrepreneurs, business leaders, and citizens. It is through financial education that these young consumers will learn to capitalize on the choices and flexibility that this new world has created.

The most effective time to impact basic financial and economic knowledge is during students' formative years, through the K-12 education system. In passing H. Res. 127 it is my hope that public officials and educators will focus on this critical learning area. While the landmark ``No Child Left Behind Act'' focused on mathematics and reading education, policymakers and local educators can use this as an opportunity to integrate economics and personal finance into these and other subject matters.

A survey that will be released later this month by the National Council on Economic Education (NCEE) illustrates accomplishments and challenges in the areas of economics and personal finance education. NCEE's ``Survey of the States'' found that 48 states in 2002 and the District of Columbia had economic education standards in place, up from 38 states in NCEE's first ``Survey'' in 1998. Testing for economics increased from 25 states in 1998 to 27 states in 2002.

However, in the area of personal finance, less progress has been evident. While 40 states had set standards for personal finance education in 2000, only 31 states renewed such standards in 2002. Of those 31 states, only 14 require the standards to be implemented.

Make no mistake--personal finance is the key to helping our youth avoid the pitfalls of foreclosure, predatory lending and credit counseling as adults.

Mr. Speaker, the President's sweeping education reform bill that we passed in the last Congress addresses many of the academic skills that our youth need to succeed. We cannot forget about the need to teach our youth more than purely academic skills. We mustn't forget life skills. We must help them learn to manage their personal finances.

It is our duty to help them succeed in today's increasingly sophisticated world of finance.

Mr. Speaker, I yield back the balance of my time.

Mr. Speaker, let me begin by expressing my appreciation to my good friend, the gentleman from Virginia (Mr. Tom Davis), chairman of the Committee, and the ranking member, the gentleman from Illinois (Mr. Davis), the Davis twins here, who have moved this measure forward for us. They have outlined quite well exactly what it is that we are trying to do.

When I was a kid, Mr. Speaker, I got my first passbook savings account; and I was stunned when I put a little bit of my allowance into the account. It actually grew without my doing anything other than having it there in that account. I was told by my father I needed to establish some credit. It has not always been great, but he told me that I needed to establish credit, which was another very, very important lesson that I learned as a child.

I believe that the whole idea of individual initiative and responsibility for one's actions is very important. I had that instilled in me as a kid. But one of the things that we found, tragically, is that with the proliferation of credit cards, just mentioned by the gentleman from Illinois (Mr. Davis), and the issue of just trying to balance a checkbook, which my friend from Virginia raised, we have young people who do not have an understanding of the basics of what it takes to meet one's financial obligations. So that is why the Jump$tart Coalition, and a wide range of other groups, have joined in providing strong support for focusing on April as Financial Literacy for Youth Month.

Mr. Speaker, I have been joined by my colleagues, the gentleman from North Dakota (Mr. Pomeroy), and others who have been cosponsors of this legislation, the gentleman from Ohio (Mr. Oxley), the chairman of the Committee on Financial Services; the gentlewoman from Illinois (Mrs. Biggert); the gentleman from Wisconsin (Mr. Petri); the gentleman from Tennessee (Mr. Ford); the gentleman from Arkansas (Mr. Ross), as well as others.

One of the things we found over the past several years, Mr. Speaker, is that we have seen a tremendous increase in the number of bankruptcies, up to 1.6 million bankruptcies last year alone.

Mr. Speaker, I have talked about my having a passbook savings account when I was a kid. We have noticed that the personal savings rate has dropped from 4.7 percent in 1998 to 2.3 percent in 2001. I believe that this legislation will help us focus some attention on this initiative.

Now, the National Council on Academic Education is an organization which has put together some of the tools for schools around this country to try and enhance financial literacy among our young people. I am very pleased in the district which I am privileged to represent, the Cucamonga Middle School, the Glendora High School, Monrovia High School, Ranch Cucamonga High School and San Dimas High School have all utilized the information that has come forward from the National Council on Economic Education.

We also have others around the country who are doing the same thing.

I want to say that the stellar leadership of the gentleman from Virginia (Mr. Tom Davis) has led him to expeditiously move this legislation, which I believe is going to enjoy strong bipartisan support due to the strong and resonant statement from the gentleman from Illinois (Mr. Davis). I urge my colleagues to join in supporting it.

Mr. Speaker, I yield myself such time as I may consume.

Mr. Speaker, I am pleased to support this resolution introduced by the chairman of the Committee on Rules which encourages the Jump$tart Coalition's efforts to designate April as Financial Literacy Month for Youth. As the resolution notes, 83 percent of college students have at least one credit card; and of those, 45 percent have an average credit card debt of over $3,000. This is at a time when a decreasing number of States include personal finance in their education standards for kindergarten through 12th grade.

This resolution serves as a wake-up call for all of us, the administration, Congress, and the American taxpayer. The Jump$tart Coalition's aim is to identify personal finance materials for educating our youth. To that end they have established 12 must-know personal finance principles for young people if they want to make a positive difference in their financial outlook.

At this time of budget and tax cuts and a floundering economy, all of us might benefit from hearing these 12 financial principles. It does not really matter whether you are young or old. They are:

Map your financial future. Do not expect something for nothing. High returns equal high risk. Know your take-home pay. Compare interest rates. Pay yourself first. Money doubles by the rule of 72, and that is to determine how long it will take your money to double, divide the interest into 72. Your credit past is your credit future. Start saving young. Stay insured. Budget your money. Do not borrow what you cannot repay. And let me add one more, especially since the 15th is not too far away. Pay all of your taxes.

Again, Mr. Speaker, I am pleased to support this resolution designating April as Financial Literacy for Youth Month, and I urge all of us to strongly support it.

Mr. Speaker, I reserve the balance of my time.

Mr. Speaker, I yield myself such time as I may consume.

Mr. Speaker, I know that the gentleman from Texas (Mr. Hinojosa) has a great deal of interest in this legislation and hopes to be able to speak on the legislation.

I will simply close by stating that my mother used to say that a penny saved is a penny earned and my father used to say if one takes care of their nickels, the dimes will take care of themselves. It seems to me, that kind of logic is inherent in urging young people to pay attention at an early age to their financial concerns.

I commend the gentleman from California (Mr. Dreier) for its introduction, and urge all Members to support it.

Mr. Speaker, I rise today in support of House Resolution 127, to designate a ``Financial Literacy for Youth Month.''

To ensure the strength and resiliency of our nation's economy, it is vital that we instill in our next generation of consumers an understanding of today's increasingly complex financial world.

In a recent survey of our high school seniors' financial knowledge by the Jumpstart Coalition for Personal Financial Literacy, over half received a failing grade, a percentage that has grown not only in the past five years, but in the five years before that as well. Yet the number of students using credit cards and ATM cards has gone up--45 percent of college students have credit card debt averaging $3066. As this trend grows, we need to make sure they understand the implications and responsibility of credit.

Currently, fewer than 30 percent of young Americans are even given the opportunity to take money management or personal finance classes in high school. This needs to change.

There are as many as 10 federal departments and agencies that today offer a wide variety of educational programs and resources along with a growing number of states and private programs. Just last May, the Treasury established an Office of Financial Education. We need to ensure that schools nationwide are aware of these programs and encouraged to utilize them.

With America's youth spending about $150 billion annually and more and more marketing campaigns targeting youth, it is important to give them the tools they need to make smart financial decisions.

In the 1990s, personal bankruptcies rose by 69 percent, and we need to combat this trend.

Educating the next generation early and well will help to contribute to the nation's economic vitality.

They need to understand that there are serious consequences to mismanaging one's finances. They need to know that there are investing options other than putting your money in a savings account. They need to understand the importance of starting to prepare for retirement early.

They need to understand that the long-term pain of mismanaged personal debt is not worth the short-term gain. The need to understand that responsible use of today's financial tools can help them to maximize their purchasing power.

In conclusion, I would like to commend the gentleman from California (Mr. Dreier) for recognizing this vital need and I urge my colleagues to support this important initiative.