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…
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.