H. Res. 578
In the House of Representatives, U.S.,
April 27, 2004.
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 2002 by the
Jump$tart Coalition for Personal Financial Literacy
found that high school seniors knew less about principles
of basic personal finance than did high school seniors 5
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 sur-
vey completed in 2002 by the National Council on Eco-
nomic Education found that a decreasing number of
States include personal finance in education standards
for students in kindergarten through high school;
•HRES 578 EH
Whereas expanding access to the mainstream financial sys-
tem provides individuals with lower cost, safer options for
managing finances and building wealth and is likely to
lead to increased economic activity and growth, yet be-
tween 25,000,000 and 56,000,000 people over the age of
18 do not use mainstream, insured financial institutions
and are considered ‘‘unbanked’’;
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, yet only 26 percent of people be-
tween 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
2002 found that only 32 percent of workers surveyed
have calculated how much money they will need to save
for retirement, and 25 percent of workers have done no
specific planning for retirement;
Whereas financial literacy empowers individuals to make wise
financial decisions in an increasingly complex economy,
and only 30 percent of those surveyed in an Employee
Benefit Trend Study conducted in 2003 are confident in
their ability to make the right financial decisions for
themselves and their families;
Whereas personal savings as a percentage of personal income
decreased from 7.5 percent in the early 1980s to 2.3 per-
cent in the first 3 quarters of 2003;
•HRES 578 EH
Whereas Congress sought to implement a national strategy
for coordination of Federal financial literacy efforts
through the establishment of the Financial Literacy and
Education Commission in 2003, the designation of the
Office of Financial Education of the Department of the
Treasury to provide support for the Commission, and re-
quirements that the Commission’s materials, website, toll-
free hotline, and national multimedia campaign be multi-
lingual; 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 in the United States: Now, therefore, 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-
ties, and the people of the United States to observe the
month with appropriate programs and activities.
Attest:
Clerk.