Date: 2010-04-20
Speaker: JACKSON LEE (democrat)
Chamber: H
State: Texas

Mr. Speaker. I rise today in strong support of H. Res. 1257. "Supporting the goals and ideals of National Financial Literacy Month. 2010. and for other purposes." Let me begin by thanking my colleague Representative RUBEN HINOJOSA from my home state of Texas for introducing this legislation into the House of Representatives as it is important that we continually promote and encourage honest and thrifty financial decision making abilities in our citizens. Considering the current state of our economy. Mr. Speaker. it is critically important that we begin raising public awareness about financial education. A recent study put forth by the Federal Deposit Insurance Corporation (FDIC) stated that approximately 54 percent of Black households. 44.5 percent of American Indian/Alaskan households. and 43.3 percent of Hispanic households either have no checking or savings accounts or have used nonbank money orders. nonbank checkcashing services. payday loans. renttoown agreements. or pawn shops at least once or twice a year. This statistic is alarming to many in our nation. Mr. Speaker. and it highlights an increasing lack of financial awareness in our nation. By educating our citizens on the proper use of checking and savings accounts as well as educating citizens of other financial instruments we will seek to see a reduction in the use of payday loans. pawn shops and other predatory financial transactions in our nation. Furthermore. according to the Bureau of Economic Analysis the U.S. aggregate personal savings rate as a percentage of disposable personal income dropped 0.3 percent between January and February of this year. In February the aggregate personal savings rate as a percentage of disposable personal income was 3.1. as compared with 3.4 percent in January 2010. Still further. troubled loans. mortgages and toxic assets are still plaguing our economy and making it increasingly difficult for the average person to make sound financial decisions. This is why it is critically important that we help give people the tools needed to manage their personal finances. Some of the basic encouragements we can pass along to our citizens through education programs would be to increase personal savings. and reduce personal debt. Helping our citizens to become economically empowered and in control of their personal finances is also essential toward the recovery of our national economy. By giving our citizens the ability to plan for their financial future and by giving our citizens the ability to make important investment and entrepreneurial decisions. we will help to improve the quality of life of all Americans through the next generation. While it is important to focus on educating adults in the areas of thrift and finance. it is even more important that we educate our youth about the importance of making sound economic and financial decisions. These types of financial decision making habitswhether they be wise or carelessare often developed during childhood and usually become lifelong tendencies. An added benefit that would come from increasing our nations financial literacy and providing financial education programs for our citizens would be the additional protection against financial fraud that would be created. Giving people the resources to understand and control their own finances and to understand potential risks and hazards would empower people against identity theft and other financial schemes that attempt to do them harm. I ask my colleagues for their support of H. Res. 1257. as well as their continued support for the economically downtrodden in this nation. By increasing the capacity of our citizens to make prudent economic decisions. I am sure that we will see a return to American prosperity that will last for generations to come. I would like to again thank my colleague Representative RUBEN HINOJOSA for his leadership in introducing his bill as well as for his support of the American people and our economy. Mr. Speaker. I strongly support H. Res. 1257 and ask for its immediate adoption.