Madam Speaker, I thank the gentleman from Minnesota for yielding me time and for cosponsoring this resolution and for his advocacy for financial literacy. Madam Speaker, I rise today in strong support of House Resolution 148, which my…
Madam Speaker, I thank the gentleman from Minnesota for yielding me time and for cosponsoring this resolution and for his advocacy for financial literacy.
Madam Speaker, I rise today in strong support of House Resolution 148, which my colleague, the gentleman from Texas (Mr. Hinojosa), and I introduced for a second year to designate April as Financial Literacy Month. We did this once again to raise public awareness about the importance of financial education in the United States and the serious consequences that come when young people, adults, and older Americans lack basic understanding of personal finance and economics.
Madam Speaker, ours is a compelling case, and I know that many Members of the House who cosponsored this resolution agree that our country is in a financial literacy deficit. The most recent statistics indicate that most of our States do not require schools to have financial literacy programs, and 7 out of 10 of our children and grandchildren failed a basic financial literacy exam.
The numbers look equally bad for young and older adults. Studies show that almost all of our Nation's college students have a credit card by the second year of college, but only about a quarter report that their parents actively taught them how to manage money. The number of bankruptcies remains at a historic high. Over 1.6 million bankruptcy cases were filed in 2004.
And we all know Social Security will soon reach a juncture, and now is the time for us to encourage our children and young and older adults to embrace learning about finance and economics and engage in good budget and long-term savings habits.
Abraham Lincoln, one of our most beloved Presidents and fellow Illinoisan, once said, ``You cannot escape the responsibility of tomorrow by evading it today,'' and I agree. We should help our citizens avoid getting caught in a credit quagmire, stay out of bankruptcy court, and steer clear of a financially unsound retirement. I believe that we need to encourage all Americans to take ownership over their finances, to be financially astute, and establish financial security now. Now is the time.
I pledge to continue to promote financial and economic education, and I know that I am joined by an army of supporters here on the Hill and across the country. In recent years, the Congress, Federal agencies, State and local governments, schools, the private sector, not-for- profit and for-profit groups have worked hard and made incremental strides toward improving the financial aptitude of Americans of all ages and walks of life. However, there is so much more that we can and must do to turn the tide.
Many States have implemented outstanding financial literacy programs for children. In my home State of Illinois, State Treasurer Judy Baar Topinka created the Bank At School program which helps children learn the fundamentals of money management through the operation of an in- school bank. Schools are partnering with financial institutions which conduct a monthly Bank Day at the school where students open savings accounts and make regular deposits.
I believe that programs like this will provide the guidance that is desperately needed; but we do need to do more. We need to coordinate our programs. We need to improve America's financial report card, and we need to encourage financially sound behavior.
In Congress we catapulted the Financial Literacy Movement into action when we passed the Fair and Accurate Credit Transactions Act. This act established the Financial Literacy and Education Commission, which has made great strides since its first meeting in 2004. They have established a Website, mymoney.gov., and are in the process of developing a national strategy.
While the Commission's work to date has been commendable, some of us in Congress thought that we ought to do more. That is why in February, the gentleman from Texas (Mr. Hinojosa) and I formed the Financial and Economic Literacy Caucus. The caucus currently has 45 Members with 23 Republicans, 21 Democrats, and 1 Independent. We all agree that financial literacy is a national priority, and our goal is to bring together interested parties and participants at the national, State, and local levels to establish best practices and to promote financial and economic literacy on Capitol Hill, at home in our districts and, eventually, around the world.
We are forming an ambitious agenda for the weeks and months to come. On April 27 we will host our first Financial Literacy Fair in the House Cannon Caucus Room. I would encourage everyone to attend the fair. Our caucus also aims to establish a Website, provide a focal point in working with the Senate and executive branch, including the Commission, and showcase all of the great programs that have been launched in the business, education, and not-for-profit communities.
Today I encourage all Members of the House to join the caucus and work with us to educate Americans about finance and economics.
Madam Speaker, the state of financial literacy among our citizens may not garner much in the way of headlines, but it is an issue nonetheless that should command our attention. While it is a problem that is serious and urgent, it is one that can be solved through education. That is why I urge my colleagues to support this resolution in support of financial literacy. It is our duty to help our citizens of all ages and walks of life to succeed in today's increasingly sophisticated world of finance.
I want to thank my distinguished colleague and friend, the gentleman from Texas (Mr. Hinojosa), for his strong support and sponsorship of this resolution. I would also like to thank the chairman of the Committee on Government Reform, the gentleman from Virginia (Mr. Davis), for being a cosponsor of this resolution and moving it through his committee. I would especially like to thank the gentleman from Minnesota (Mr. Gutknecht) and the gentleman from Illinois (Mr. Davis), also members of the Committee on Government Reform, for managing this resolution. I would also like to thank the distinguished gentlewoman from Ohio (Ms. Pryce) for her support of the resolution and dedication to this initiative.
In conclusion, I would like to thank all of the Members who cosponsored this resolution for their support.