Supporting The Goals And Ideals Of Financial Literacy Month

Floor Speech

SUPPORTING THE GOALS AND IDEALS OF FINANCIAL LITERACY MONTH -- (House of Representatives - April 16, 2007)

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Ms. FOXX. Mr. Speaker, I yield myself such time as I may consume.

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. This is a time when debt is on the rise and savings have dropped to negative 1 percent of personal income. It is clear that teaching financial literacy is imperative for individuals to learn how to manage their money, credit and debt.

While many States require high schools to teach financial education, increased economic education is still necessary. H. Res. 273 recognizes the goals and ideals of Financial Literacy Month and raises awareness of the importance of financial education. It is our hope that the President calls on the government, States and other organizations to observe the month with relevant programs and activities supporting financial education.

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.

Financial education has proven to be very effective. Simple projects such as stock market simulations help young people understand how to invest in stocks, bonds and mutual funds. It is our hope they will retain these skills when they begin investing their own money.

Organizations such as the Jump$tart Coalition for Personal Finance Literacy help spread awareness, especially in school-age children. The National Council on Economic Education has established many programs which give teachers the tools to teach their students basic economic skills and help them apply their knowledge to daily life. These groups recognize the need for more widespread financial literacy, but it is necessary for Congress to place more emphasis on this idea and encourage other organizations to begin to participate in this movement as well.

With a solid background knowledge of financial literacy, we can raise America's youth to become responsible employees, heads of households, investors, entrepreneurs and business leaders.

Mr. Speaker, I reserve the balance of my time.

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