Encouraging Greater Public-Private Sector Collaboration to Promote Financial Literacy for Students and Young Adults.

Floor Speech

BREAK IN TRANSCRIPT

Mr. HILL of Arkansas. Madam Speaker, I yield myself such time as I may consume.

I thank Madam Speaker for the opportunity to speak on this important resolution, H. Res. 327, and I want to thank my good friend from Illinois, Dr. Foster, for his passion on this measure to benefit, particularly, the young people in this country.

Certainly, as the most prominent Ph.D. in the House of Representatives and a pioneering entrepreneur, he knows the value of financial literacy.

And I am proud, as a former community banker and investment manager, somebody who dealt with families, their kids, and older Americans for 30 years in finance, to partner on this very important promotion of financial literacy for students and young adults.

It is wonderful that it is a bipartisan effort by our committee.

And it is truly unfortunate, Madam Speaker, that only 25 States require high school students to take a financial literacy class in order to graduate. As a result, many children and adolescents grow into adults who don't know how to properly save, spend, and budget.

I am proud that Arkansas is one of those 25 States, Madam Speaker, as we enacted our requirement back in 2005. But, going back even further to 1962, Arkansas, through the leadership of Bessie Moore, a remarkable educator in our State, created something called Economics Arkansas, which, every summer, puts on financial literacy training for all of our teachers, K through 12, so that they understand to put financial literacy in all the classrooms.

It was a lot of fun last week when we were in the district to go to Robinson Senior High School in Little Rock and see them compete for the Stock Market Game, which is a major component in financial literacy training, through Economics Arkansas.

So not everyone, every student is as lucky as an Arkansan, because two-thirds of Americans can't pass a financial literacy test, Madam Speaker. Forty-four percent do not have enough savings to cover a $400 emergency, and 33 percent have not saved for their retirement.

Financial illiteracy has broader economic costs, higher debt, limited savings. For many, this limits their homeownership. This means they don't have a stable retirement. And for many of our young adults, this critical knowledge creates the burden that we have seen in student loan lending in this country where families are not treating higher education debt as seriously as they treat buying that first house.

Why is that, Madam Speaker? It is because of the lack, in my view, of financial literacy at the high school level, at our admissions offices in colleges, and that is why it was terrific, bipartisan, that this time last year in the last Congress, in September, we passed, with over 400 votes in this House, a measure that requires financial literacy training for students seeking a student loan, for students accepting a Pell grant. That is the kind of good work that this House has been doing.

I want to again thank my friend, Mr. Foster, for his work. As we close Financial Literacy Month, I can't think of a better topic, and I can't think of a better friend to share that work with.

BREAK IN TRANSCRIPT

Mr. HILL of Arkansas. Madam Speaker, I am prepared to close. I have no other speakers on this important matter.

I just want to continue to thank my colleagues on the other side of the aisle and our lead sponsor, Dr. Foster, for his thoughtful elevation of the importance of financial literacy for all of our students and their families.

Madam Speaker, I yield back the balance of my time.

BREAK IN TRANSCRIPT

Source