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

Mr. Speaker, I rise in strong support of House Resolution 273 that the gentlewoman from Illinois (Mrs. Biggert) and I introduced earlier this year. The legislation supports the ideas and goals of Financial Literacy Month, which falls in April of each year.

Before I proceed, I want to take this opportunity to thank my good friend and colleague, Congresswoman Watson from California, for managing time on this resolution for our side of the aisle. I also want to take this opportunity to thank all of my Democratic colleagues who cosponsored this important resolution this year.

Together with the tremendous number of cosponsors Congresswoman Biggert obtained, we broke our old record of 91 cosponsors and garnered the support of 118 Members of Congress for this bill.

I am very pleased with this development. It shows that an increasing number of Members of Congress are beginning to see the light and come on board

the financial literacy cause with me and Congresswoman Biggert.

It is imperative that we, in Congress, pay more attention to the financial literacy rates of our citizens from pre-kindergarten all the way to retirement. The sooner that a person begins to learn good saving habits, the better off he or she will be in the future.

I am especially pleased and honored to inform you that 18 cities and three counties in my congressional district have issued proclamations honoring April 22-28, 2007, as National Financial Literacy Awareness Week.

The cities, in alphabetical order, include the following: Beeville, Combes, Cuero, Donna, Edcouch, Edinburg, Falfurrias, Goliad, Harlingen, La Feria, La Villa, Mathis, McAllen, Mercedes, Pharr, Primera, Santa Rosa, Weslaco. It also includes three counties, which are as follows: Duval County, Jim Wells County and Karnes County.

Mr. Speaker, I also want to take this opportunity to thank several State legislatures for realizing the importance of financial literacy by taking action to address the diminishing understanding of basic finance by U.S. high school students.

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 high school seniors did 7 years earlier, and the average scores in both years were failing. Our high school seniors are failing basic finance.

Add to that the fact that 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 one 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. Add all that together, and you have got a recipe for serious financial troubles down the road for college graduates.

Luckily, in recent years State legislatures around the country have increasingly recognized the importance and effectiveness of financial education. As a result, an increasing number of States now require financial education during high school. I hope my colleagues and their staff are taking note of this because the following States now require high school students to pass some form of financial education or literacy courses before they can graduate. Those States include the following: Alabama, Georgia, Idaho, Illinois, Kansas, Kentucky, Louisiana, Missouri, New York, North Carolina, Ohio, South Carolina, my great State of Texas, Utah, Virginia, and West Virginia.

I strongly recommend that my colleagues contact their State legislators and encourage them to impose similar requirements.

Mr. Speaker, every day consumers deal with money from balancing a checking account to shopping for a mortgage or auto loan, researching a way to pay for a college education, checking credit card statements, saving money for retirement, understanding a credit report, or simply deciding whether to pay cash or charge a purchase. The list goes on and on and on. Many consumers do not really understand their finances.

Now that we know that high school students are failing basic financial literacy exams, it is even more disconcerting to learn that adults are not faring much better. High bankruptcy rates, foreclosures on homes, increased credit card debt, data security breaches, and identity theft make it imperative that all of us take an active role in providing financial and economic education during all stages of one's life.

Every year we here in Congress discuss the future insolvency of Social Security, Medicare, and Medicaid; and that concerns me considerably. But now that I have done some additional research into the demographics and financial standing of the baby boomers, I was shocked to learn that the personal savings as a percentage of income dropped a negative 1 percent in 2006, the lowest since the Great Depression. Even worse, the average baby boomer has only $50,000 in savings for retirement apart from equity in their homes.

These are very serious and disturbing facts that we and our State counterparts must address, and soon. To address these problems and others, I cofounded and currently cochair the Congressional Financial and Economic Literacy Caucus with Congresswoman Judy Biggert. 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 those rates. The caucus has provided a forum for my colleagues to promote policies that advance financial literacy and economic education.

It is my hope that through the Financial and Economic Literacy Caucus we can continue to further educate Americans about financial and economic topics ranging from the importance of saving, reducing credit card debt, obtaining a free annual credit report, avoiding payday lenders, check cashers, and especially these days predatory lenders. Hopefully the caucus can teach individuals to take care of their finances, to lead them down the path to the American Dream of homeownership.

Mr. Speaker, I include for printing in today's Record letters in support of this resolution. They include letters from JA Worldwide; National Council on Economic Education; Financial Planning Association, Independent Bankers Association of Texas; MasterCard; the American Institute of Certified Public Accountants; the National Association of Mortgage Brokers; Networks Financial Institute; North American Securities Administrators Association. It includes HSBC, the Independent Community Bankers of America; Housing Assistance Council; National Association of Federal Credit Unions. It includes Capital One; as well as Visa; Charles Schwab Foundation; Financial Services Forum; Financial Services Roundtable, National Association of Realtors; Girls, Incorporated; AFSA Education Fund; Countrywide, First Nations Oweesta Corporation, Native Americans. It includes National Association of Affordable Housing Lenders; America's Community Bankers; Community Bankers Association; Consumer Mortgage Coalition; Texas Credit Union League; State Farm Insurance Company, Freddie Mac; Wells Fargo; and the National Youth Involvement Board.

Mr. Speaker, several of these groups will be participating in the Financial Literacy Day Fair that will take place April 24 from noon to 4 p.m. here on the Hill at the Cannon Caucus Room. It is my understanding that over 50 different groups will present their financial literacy products, their programs, and ideas during the fair. The last time we hosted the event, over 500 people attended the event not only to take advantage of the free financial literacy advice but also to enjoy a wonderful buffet. I encourage my colleagues and their staff to attend the Financial Literacy Day Fair. Again, I repeat, it will be held April 24 from noon to 4 p.m. in the Cannon Caucus Room and lunch will be served.

On the same day, April 24, at 3 p.m. in room 2220 of the Rayburn House Office Building, the Financial and Economic Literacy Caucus is collaborating with Visa on a different financial literacy event. Visa is bringing Jean Chatzky to the Hill to provide some financial advice and respond to questions. Both Members and staff are invited to this event at 2220 Rayburn from 3:30 to 5 p.m., which I believe will be beneficial and a huge success.

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. For these reasons and more, I encourage my colleagues to support this resolution.

Junior Achievement

Worldwide Headquarters,

Colorado Springs, CO, April 9, 2007.

Hon. Ruben Hinojosa,

Rayburn House Office Building, House of Representatives,

Washington, DC.

Hon. Judy Biggert,

Longworth House Office Building, House of Representatives,

Washington, DC.

Dear Representatives Hinojosa and Biggert: On behalf of JA

WorldwideTM and our 1,400 associates and 138,700

classroom volunteers around the country, I want to express

our full-fledged support for H. Res. 273. This resolution

supporting the goals and ideals of Financial Literacy Month

once again demonstrates your leadership in promoting

financial literacy and economic education.

With personal bankruptcies and debt continuing to soar, we

believe that it is critical

that financial literacy education continue to place a high

priority on targeting America's youth. According to the 2007

JA Worldwide Poll on Personal Finance, more than 75 percent

of teens nationwide say they influence their parents' buying

decisions, while nearly 29 percent of 18- and 19-year olds

say they already own and use their own credit cards. The

earlier we can provide youth with tools, tips, and strategies

to help them successfully manage their finances, the better

off our country will be.

I also would like to congratulate you both for your

continued leadership of the Financial and Economic Literacy

Caucus, and for your commitment to events such as this

month's Financial Literacy Day on the Hill. As the nation's

oldest and largest organization dedicated to promoting

economic education and financial literacy, JA Worldwide

stands ready to assist you and the caucus in advancing the

goals of H. Res. 273.

Thank you again for your resolve in championing the

importance of a financially literate society. We look forward

to working with you in the future to advance this critical

issue.

Sincerely,

David S. Chernow,

President and CEO, JA Worldwide.

Mr. Speaker, I submit the following letters regarding H. Res. 273, ``Supporting the Goals and Ideals of Financial Literacy Month'':

MasterCard Worldwide,

Washington, DC, April 13, 2007.

Hon. Ruben Hinojosa,

House of Representatives, Washington, DC.

Hon. Judy Biggert,

House of Representatives, Washington, DC.

Dear Representatives Hinojosa and Biggert: I am writing to

communicate MasterCard Worldwide's strong support for House

Resolution 273, which highlights the goals and promotes the

spirit of financial literacy month.

MasterCard Worldwide shares your vision of increasing

financial literacy, illustrated by our various consumer

education programs. Specifically, MasterCard has developed

two programs called Debt Know How and Are You Credit Wise?

which target consumers at different stages of their financial

lives and aims to increase successful financial planning.

By offering consumers easy-to-understand tips and resources

to increase their financial planning efforts, MasterCard's

Debt Know How program helps consumers successfully manage

debt. The program was developed in conjunction with the

University of Minnesota Extension Service and is available in

both English and Spanish. Debt Know How is offered in both a

``trainer the trainer'' format for community leaders as well

as in a direct-to-consumer format design to reach families

currently struggling with debt.

Are You Credit Wise? is MasterCard's consumer education

program which aims to increase financial literacy rates among

America's college students by teaching successful financial

planning skills. The program employs a peer-to-peer teaching

model to maximize its effectiveness, as college students are

more inclined to listen and act upon information coming from

their peers than from parents, teachers or counselors. In its

eighth year, the Are You Credit Wise? program has reached

more than 420,000 students on 58 college and university

campuses in the U.S. and Canada.

We once again applaud your leadership and your tireless

efforts to improve the lives of the American people through

increased financial literacy.

Sincerely,

Joshua Peirez,

Group Executive, Global Public Policy.

I thank the gentlewoman for yielding.

Mr. Speaker, I rise today in support of House Resolution 273, to designate April as Financial Literacy Month. This will be the fourth year that I have had the pleasure of working with my friend and colleague and fellow Chair of the House Financial and Economic Literacy Caucus, Mr. Hinojosa, to promote the goals and ideals of Financial Literacy Month.

I am amazed at the progress that we have made so far over the last few years in raising awareness about the importance of greater financial literacy and economic education. Hundreds, if not thousands, of public-private sector, nonprofit, and community-based organizations across the country have established financial literacy programs. More than 50 of them will be on hand in the Cannon Caucus Room on April 24 to share the benefits of their knowledge and experience at the annual Financial Literacy Day Fair, and I encourage all of our colleagues to attend and learn more about these important efforts.

As Mr. Hinojosa mentioned, we have received dozens of letters in support of these efforts and this Financial Literacy Month resolution from various financial and educational organizations. And I think that this year we have set a new standard for unity on this issue, with well over 100 Members of Congress co-sponsoring this resolution. In doing so, I think we send a clear, unambiguous message that the

House is committed to addressing one of America's most pressing needs.

And while we have made great strides in raising awareness, the need for improved financial education has never been greater. According to the Federal Reserve, consumer debt in America now exceeds $2.4 trillion. According to the Department of Commerce, the personal savings rate in America recently dropped to negative 1.1 percent, a level that has not been seen since the Great Depression.

The fact is that today's marketplace abounds with options for managing wealth. Credit and investment opportunities are presented to consumers on a daily basis. For instance, by the time they reach their second year in school, the vast majority, 92 percent, of American college students have at least one credit card, and yet just a small fraction of those students have sat down with their parents and learned the basic principles of money management, like compound interest and supply and demand.

We have a responsibility to ensure that Americans of all ages have access to the tools and resources they need to capitalize on their investment choices, succeed in today's sophisticated economic market, and enjoy a secure financial future. And the key to this success continues to be basic financial education starting early, during grades K through 12.

It is a testament to the progress we are making that 38 States now include personal finance education in their curriculum guidelines. But we must continue building on this progress if we are to help today's students become tomorrow's successful investors, entrepreneurs, and business leaders.

The Financial Literacy and Education Commission established by Congress in the Fair and Accurate Credit Transaction Act of 2003 recently held a national summit to develop better methods of teaching money management skills. I look forward to working with my colleagues on the Education and Labor Committee to implement and enhance economic education initiatives as we work to reauthorize No Child Left Behind in the coming year.

I also look forward to working with my colleagues on legislation that will put young Americans on the path to an affordable education and a firm financial future.

At the start of the 110th Congress, I introduced one such bill, H.R. 87, 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 interest tax free and can be used for college tuition, a first home, or even retirement.

Mr. Speaker, it is critically important that families have access to effective savings mechanisms like these if they are to secure their financial futures. But it is even more important that Americans have the know-how and motivation to use them, and that is the goal of the Financial Literacy Month and the resolution before us today.

Mr. Speaker, I would like to take this opportunity to thank my good friend and distinguished colleague from Texas (Mr. Hinojosa) for introducing this resolution and for his dedication to improving financial literacy. I also would like to thank Mr. Hinojosa's staff, especially Greg Davis, for all their hard work, diligent work in bringing this resolution to the floor. I would also like to thank the chairman and ranking member of the Oversight and Government Reform Committee, Mr. Waxman and Mr. Tom Davis, for helping to move this resolution through their committee in such a timely and bipartisan manner. And, finally, I would like to thank the gentlelady from California (Ms. Watson) and the gentlelady from North Carolina (Ms. Foxx) for their support and for managing this resolution on the floor.

Mr. Speaker, I strongly support this resolution, and I urge my colleagues to do the same.

Madam Speaker, I missed rollcall votes during the week of April 16, 2007. On rollcall vote No. 214, the motion to suspend the rules and pass, as amended, H.R. 1677, the Tax Payer Protection Act, I would have voted ``yea''; on rollcall vote No. 215, the motion to suspend the rules and agree to H. Res. 196, supporting the goals and ideals of World Water Day, I would have voted ``yea''; on rollcall vote No. 216, the motion to suspend the rules and agree, as amended, to H. Con. Res. 100, condemning the recent violent actions of the Government of Zimbabwe against peaceful opposition party activists and members of civil society, I would have voted ``yea''; on rollcall vote No. 217, the motion to suspend the rules and agree to H. Res. 273, supporting the goals and ideals of Financial Literacy Month, I would have voted ``yea''; on rollcall vote No. 218, the motion to suspend the rules and agree to H. Con. Res. 76, honoring the 50th Anniversary of the International Geophysical Year, I would have voted ``yea.''

On rollcall vote No. 219, ordering the previous question, I would have voted ``yea''; on rollcall vote No. 220, agreeing to H. Res. 301, the rule providing for consideration of H.R. 1257, Shareholder Vote on Executive Compensation Act, I would have voted ``yea''; on rollcall vote No. 221, the motion to suspend the rules and agree to H. Res. 306, offering heartfelt condolences to the victims and their families regarding the horrific violence at Virginia Tech in Blacksburg, Virginia, I would have voted ``yea''; on rollcall vote No. 222, agreeing to the Chabot of Ohio Amendment No. 1, I would have voted ``nay''; on rollcall vote No. 223, agreeing to the Chabot of Ohio Amendment No. 2, I would have voted ``no''; on rollcall vote No. 224, the motion to recommit, with instructions, H.R. 1361, the Relief for Entrepreneurs: Coordination of Objectives and Values for Effective Recovery Act, I would have voted ``nay.''

On rollcall vote No. 225, passage of H.R. 1361, the Relief for Entrepreneurs: Coordination of Objectives and Values for Effective Recovery Act, I would have voted ``yea''; On rollcall vote No. 226, the motion to suspend the rules and agree to H. Res. 300, commending the achievements of the Rutgers University women's basketball team and applauding the character and integrity of their student-athletes, I would have voted ``yea''; On rollcall vote No. 227, the motion to suspend the rules and agree to H. Res. 293, supporting the goals and ideals highlighted through National Volunteer Week, I would have voted ``yea''; On rollcall vote No. 228, ordering the previous question on H. Res. 317, I would have voted ``yea''; On rollcall vote No. 229, agreeing to H. Res. 317, providing for consideration of H.R. 1905 and H.R. 1906, I would have voted ``yea''; On rollcall vote No. 230, the motion to recommit with instructions H.R. 1905, I

would have voted ``no''; On rollcall vote No. 231, passage of H.R. 1905, the District of Columbia Voting Rights Bill, I would have voted ``yea''; On rollcall vote No. 232, passage of H.R. 1906, Adjustment of Estimated Tax Payment Safe Harbor for Individual Taxpayers with Adjusted Gross Income Greater than $5 Million, I would have voted ``yea.''

On rollcall vote No. 233, the motion to recommit with instructions H.R. 1495, the Water Resources Development Act, I would have voted ``no''; On rollcall vote No. 234, passage of H.R. 1495, the Water Resources Development Act, I would have voted ``yea''; On rollcall vote No. 235, the motion to instruct conferees on H.R. 1591, I would have voted ``yea''; On rollcall vote No. 236, agreeing to the Sessions Amendment, I would have voted ``no''; On rollcall vote No. 237, agreeing to the Garrett Amendment, I would have voted ``no''; On rollcall vote No. 238, agreeing to the Campbell Amendment, I would have voted ``no''; On rollcall vote No. 239, agreeing to the McHenry Amendment, I would have voted ``no''; On rollcall vote No. 240, agreeing to the Price Amendment, I would have voted ``No.''

On rollcall vote No. 241, agreeing to the Putnam Amendment, I would have voted ``no''; On rollcall vote No. 242, agreeing to the Price Amendment, I would have voted ``no''; On rollcall vote No. 243, the motion to recommit H.R. 1257, I would have voted ``no''; On rollcall vote No. 244, passage of H.R. 1257, the Shareholder Vote on Executive Compensation Act, I would have voted ``yea.''

Mr. Speaker, I would like to thank my colleagues Mr. Hinojosa and the Mrs. Biggert, for introducing H. Res. 273, a resolution supporting the goals and ideals of Financial Literacy Month. As a member of the Financial and Economic Literacy Caucus and a cosponsor of this resolution, I am proud to support this measure.

In this 21st century economy, 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. Increased availability of credit allows more people to enjoy the benefits of easy access to capital and enhanced purchasing power. Today, half of all American households own stocks. This growing number of ``investor class'' Americans are participating in financial markets through retirement plans, investment vehicles or Internet trading accounts.

Yet, as this resolution recognizes, we must do more to ensure that American citizens not only have access to these important financial services, but are equipped with the knowledge to make critical financial decisions as they plan for the future. Whether it is buying a home, paying for college, starting a small business or planning for retirement, it is imperative that we help individuals develop a solid foundation in personal finance.

We must also continue efforts to ensure that individuals are equipped with the proper tools to make smart financial decisions from an early age. Reading, writing and math, the traditional cornerstones of our education system, need to be supplemented with a curriculum that will equip America's youth to meet the real-life demands of the 21st century. In the fast-paced and increasingly complex world in which we live, teaching our students about personal finance issues, from basic spending decisions to investing and saving for retirement, is critical. The efforts of organizations like Visa USA, Citigroup, the Credit Union National Association, the American Bankers Association and the Securities Industry Association have helped to bring financial literacy programs to our Nation's youth in classrooms, after-school programs and libraries. I am proud that in my own district, Bonita High School, the Boys and Girls Club of the Foothills and the Glendora Public Library have had the opportunity to benefit from these programs.

It is also important to note that efforts to enhance financial literacy should not just be confined to our own country. As we strive for expanded trade and investment with our global partners, the financial ups and downs in world markets have a greater impact on our local economies. Helping to spread financial and economic literacy to emerging markets is critically important to establishing stability in developing nations. For example, in 2004 Citigroup and the Citigroup Foundation provided more than $22 million in support of financial education programs in activities that reached millions of people in more than 40 countries. These activities included community development projects to support the expansion of thrift and credit-based cooperative groups in India and the development of a micro-finance industry in China.

Ultimately, expanding access to the financial system and knowledge of its workings provides individuals with greater choice 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 submit the following letters regarding H. Res. 273, Supporting the Goals and Ideals of Financial Literacy Month.

Freddie Mac,

McLean, VA, April 16, 2007.

Hon. Ruben Hinojosa,

House of Representatives,

Washington, DC.

Dear Congressman Hinojosa: On behalf of Freddie Mac, I am

writing to express our support for the bi-partisan

Congressional resolution (H.R. 273) supporting April as

``Financial Literacy Month,'' cosponsored by 115 Members of

the House of Representatives.

As a secondary mortgage market entity, Freddie Mac has made

home possible for one in six home buyers and more than four

million renters in America. We greatly understand the

important role financial literacy plays in obtaining and

maintaining good credit. Credit records affect everything

from renting an apartment to buying a home, paying for a

college education to purchasing a car. Poor credit histories

limit the ability of many consumers to attain financial

security, particularly those in under-served communities--

including low-income consumers, minorities and immigrants.

Without good credit, it's difficult to save money, become a

homeowner, and accumulate wealth.

In response to the need to increase financial literacy and

awareness, Freddie Mac developed the CreditSmart',

and CreditSmart' Espanol consumer education

curricula. CreditSmart is designed to help consumers

understand, build, and maintain good credit. Since its launch

in 2000, the CreditSmart program has reached in excess of one

million people through its outreach network of Community

Based organizations, conventions, initiatives and web access.

(www.freddiemac.com/creditsmart)

CreditSmart is used in numerous communities across America

and is taught to consumers by college instructors, nonprofit

counseling agency staff, consumer and community group staff,

police officers, employers, lenders, real estate

professionals and mortgage brokers. Just two months ago,

Freddie Mac launched CreditSmart Asian a new three-part

series of multilingual guidebooks focused on helping Asian

Americans become more informed consumers. This program will

be available in Chinese, Korean, Vietnamese, and English.

Freddie Mac has also been a leader in sponsoring a

successful consumer awareness campaign to help consumers

avoid predatory lending practices. Don't Borrow

Trouble', is a national award-winning campaign

that combines public education and counseling services to

help homeowners avoid lending practices that strip away their

home's equity. Pioneered in Boston by Mayor Thomas M. Menino

and the Massachusetts Community & Banking Council (MCBC),

Freddie Mac has expanded the campaign to communities

nationwide to almost 50 cities and states throughout the

country. These campaigns have helped inform more than 100,000

consumers across the U.S.

Freddie Mac commends you for your bringing this resolution

to the House of Representatives to continue to draw awareness

to the need for financial literacy and we are grateful for

your leadership of the Financial Literacy Caucus.

Sincerely,

Kirsten Johnson-Obey,

Director, Congressional Relations.