House Passes Resolution Recognizing Financial Literacy Month
On April 16, the House passed, 414-2, a resolution supporting the goals of Financial Literacy Month (H. Res. 273).
Sponsored by Rep. Rubén Hinojosa (D-TX), the resolution has a number of findings, including:
personal financial literacy is essential to ensure that individuals are prepared to manage money, credit and debt, and become responsible workers, heads of households, investors, entrepreneurs, business leaders, and citizens;
United States consumer debt totaled $2.4 trillion in 2006, of which credit card debt alone exceeded $825 billion;
personal savings as a percentage of income dropped to negative one percent in 2006, the lowest since the Great Depression; and
expanding access to the mainstream financial system provides individuals with lower-cost and safer options for managing finances and building wealth and is likely to lead to increased economic activity and growth.Rep. Virginia Foxx (R-NC) said, “Today many Americans do not know how to balance a checkbook, intelligently invest their money or financially plan for their retirement. Studies have shown that few young adults living in this country know how to responsibly use a credit card…Learning about saving and investing is especially important for today’s young generation because of the uncertainty of the future of Social Security. More so than ever, private savings play a larger role in determining one’s retirement. While there may be Social Security reform in the coming years, everyone must be able to adequately plan their savings for the future.”
Rep. Hinojosa said, “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 one and on. Many consumers do not really understand their finances…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.”
