Supporting the Goals and Ideals of Financial Literacy Month
SUPPORTING THE GOALS AND IDEALS OF FINANCIAL LITERACY MONTH -- (House of Representatives - April 05, 2006)
Mr. DAVIS of Illinois. Mr. Speaker, I yield myself such time as I may consume.
I want to commend my colleagues, Representatives Biggert and Hinojosa, for the outstanding work that they continue to do in this important area.
The importance of financial and fiscal responsibility cannot be overstated. 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. And that is why I am pleased to support H. Res. 737, introduced by Representative Biggert of our great State, that is, the State of Illinois.
Personal savings as a percentage of personal income decreased from 7.5 percent in the early 1980s to a negative 0.2 percent in the last quarter of 2005. As the resolution notes, 92 percent of college students acquire at least one credit card by their second year in college; yet only 26 percent of people between the ages of 13 and 21 reported that their parents actively taught them how to manage money.
The Jump$tart Coalition for Personal Financial Literacy seeks to improve the personal financial literacy of young adults. Jump$tart's purpose is to evaluate the financial literacy of young adults; develop, disseminate, and encourage the use of financial education standards for grades K-12; and promote the teaching of personal finance.
To that end, Jump$tart has established 12 must-know personal finance principles for young people to improve their financial future. It would not hurt if adults also followed these 12 steps as well.
The 12 financial principles stressed during Financial Literacy Month for Youth are map your financial future; do not expect something for nothing; high returns equal high risk; know your take-home pay; compare interest rates; pay yourself first, money doubles by the rule of 72, to determine how long it would take your money to double, divide the interest into 72; your credit past is your credit future; start saving young; stay insured; budget your money; do not borrow what you cannot repay; and let me add one more, especially since the 15th is not too far away, pay all of your taxes.
Mr. Speaker, I am pleased to support this resolution supporting the goals of financial literacy month, and urge all of my colleagues to support it.
Mr. Speaker, I reserve the balance of my time.
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