Supporting the goals and ideals of Financial Literacy Month 2008, and for other purposes.

Mr. Speaker, I move to suspend the rules and agree to the

resolution (H. Res. 1079) supporting the goals and ideals of Financial Literacy Month 2008, and for other purposes.

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.

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.

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.

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 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.

Mr. Speaker, I am delighted to be able to recognize and yield 5 minutes to the gentlewoman from New York (Mrs. Maloney).

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

Mr. Speaker, on that I demand the yeas and nays.

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. Speaker, I yield 3 minutes to the gentleman from Connecticut (Mr. Shays), an important member of the Financial Services Committee.

I yield back the balance of my time.

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 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. 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 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. 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.