Senate, House Committee Support Financial Literacy Month

On March 16, the House Government Reform Committee approved, by voice vote, a resolution (H. Res. 148) supporting the goals and ideals of Financial Literacy Month. The next day, the Senate approved, by unanimous consent, a resolution (S. Res. 88) designating April 2005, as “Financial Literacy Month.”

Sponsored by Rep. Judy Biggert (R-IL), the resolution contains a number of findings, including:

• Personal financial education is essential to ensure that individuals are prepared to manage money, credit, and debt, and become responsible workers, heads of household, investors, entrepreneurs, business leaders, and citizens;
• Financial education has been linked to lower delinquency rates for mortgage borrowers, higher participation and contribution rates in retirement plans, improved spending and saving habits, higher net worth, and positive knowledge, attitude, and behavior changes;
• Financial literacy empowers individuals to make wise financial decisions in an increasingly complex economy;
• Personal financial management skills and lifelong habits develop during childhood;
• The National Council on Economic Education found that the number of states that include personal finance in education standards for students in kindergarten through high school has improved since 2002, but still falls below the 2000 level;
• The Jump$tart Coalition for Personal Financial Literacy found that high school seniors know less about principles of basic personal finance than did high school seniors seven years earlier; and
• April 2005 has been designated as “Financial Literacy Month” to educate the public about the need for increased financial literacy for youth and adults in the United States.

In a press releasing announcing Senate approval of S. Res. 88, sponsor Sen. Daniel Akaka (D-HI) stated, “I thank my colleagues who recognize the importance of financial education in the U.S. and the serious consequences that may be associated with a lack of understanding about personal finances…I think we can all agree that wealth-building and saving for the future are vital to the future economic success of the U.S.”