H. Res. 148
In the House of Representatives, U.S.,
April 6, 2005.
Whereas the financial services industry in the United States
benefits millions of people in the United States, providing
products and services that allow individuals and families
to build homes, buy cars, finance educations, start busi-
nesses, and meet everyday needs;
Whereas personal financial education 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, yet a study completed in 2004 by 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 7
years earlier;
Whereas financial education has been linked to lower delin-
quency rates for mortgage borrowers, higher participation
and contribution rates in retirement plans, improved
spending and saving habits, higher net worth, and posi-
tive knowledge, attitude, and behavior changes, yet a
2004 survey completed by the National Council on Eco-
nomic Education found that the number of States that
include personal finance in education standards for stu-
•HRES 148 EH
dents in kindergarten through high school has improved
since 2002 but still falls below 2000 levels;
Whereas expanding access to the mainstream financial sys-
tem provides individuals with lower-cost and safer options
for managing finances and building wealth and is likely
to lead to increased economic activity and growth, yet
studies show that as many as 10 million households in
the United States are ‘‘unbanked’’ or are without access
to mainstream bank products and services;
Whereas personal financial management skills and lifelong
habits develop during childhood, and 55 percent of col-
lege students acquire their first credit card during their
first year in college, and 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;
Whereas although more than 42,000,000 people in the
United States participate in qualified cash or deferred ar-
rangements described in section 401(k) of the Internal
Revenue Code of 1986 (commonly referred to as ‘‘401(k)
plans’’), a Retirement Confidence Survey conducted in
2004 found that only 42 percent of workers surveyed
have calculated how much money they will need to save
for retirement and 4 in 10 workers say that they are not
currently saving for retirement;
Whereas personal savings as a percentage of personal income
decreased from 7.5 percent in the early 1980s to 1.1 per-
cent in the last two quarters of 2004;
Whereas Congress sought to implement a national strategy
for coordination of Federal financial literacy efforts
•HRES 148 EH
through the establishment of the Financial Literacy and
Education Commission (FLEC) in 2003, the designation
of the Office of Financial Education of the Department
of the Treasury to provide support for the Commission,
and requirements that the Commission’s materials,
website, toll-free hotline, and national multimedia cam-
paign be multilingual;
Whereas Members of the United States House of Representa-
tives established the Financial and Economic Literacy
Caucus (FELC) in February 2005 to (1) provide a forum
for interested Members of Congress to work in collabora-
tion with the Financial Literacy and Education Commis-
sion, (2) highlight public and private sector best-prac-
tices, and (3) organize and promote financial literacy leg-
islation, seminars and events, such as ‘‘Financial Lit-
eracy Month’’ in April 2005 and the annual ‘‘Financial
Literacy Day’’ fair on April 27, 2005; and
Whereas the National Council on Economic Education, its
State Councils and Centers for Economic Education, the
Jump$tart Coalition for Personal Financial Literacy, its
State affiliates, and its partner organizations have des-
ignated April as ‘Financial Literacy Month’ to educate
the public about the need for increased financial literacy
for youth and adults in the United States: Now, there-
fore, be it
Resolved, That the House of Representatives—
(1) supports the goals and ideals of Financial Lit-
eracy Month; and
(2) requests that the President issue a proclamation
calling on the Federal Government, States, localities,
schools, nonprofit organizations, businesses, other enti-