Supporting the Goals and Ideas of Financial Literacy Month

SUPPORTING THE GOALS AND IDEALS OF FINANCIAL LITERACY MONTH -- (House of Representatives - April 06, 2005)

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Mr. DAVIS of Illinois. Mr. Speaker, I yield myself such time as I may consume.

Mr. Speaker, financial literacy may be more important today than during any other time in our Nation's history. That is why I am pleased to support H. Res. 148, introduced by the gentlewoman from the Great State of Illinois (Mrs. Biggert), which supports the goals of Financial Literacy Month for Youth.

As the resolution notes, a study by the Jump$tart Coalition for Personal Financial Literacy found that 92 percent of college students have at least one credit card by their sophomore year. This fact becomes alarming when you consider that the same study found that only 26 percent of people between the ages of 13 and 21 claimed that they had been taught how to manage their money by their parents. This resolution serves as an important wake-up call for all of us: the administration, Congress, and the American taxpayer.

As the economy begins to rebound from an arduous period, now is an opportune time to teach all Americans, young and old, about fiscal responsibility. The Jump$tart Coalition's aim is to identify personal finance materials for educating our youth. To that end, they have established 12 must-know personal finance principles for young people if they want to improve their financial future.

The 12 financial principles stressed during Financial Literacy Month for youth are, one, 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, which is a way of determining how long it takes your money to double while in the bank; your credit past is your credit future; start saving young; stay insured; budget your money; and do not borrow what you cannot repay.

These important, but basic, principles are of value to all of us. But let me add one more, since the 15th is not too far away: pay your taxes, and on time.

Mr. Speaker, I am pleased to endorse this resolution supporting the goals of Financial Literacy for Youth Month and urge all of my colleagues to support it as well. As a matter of fact, my mother used to tell us that if you take care of your nickels, then your quarters will take care of themselves.

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Mr. DAVIS of Illinois. Madam Speaker, we have no further speakers on our side. I would just simply close by suggesting that my father used to tell us that money is like life. The better you manage it, the longer you are likely to keep it.

Madam Speaker, I strongly support this resolution.

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