Concerned by studies indicating that the vast majority of American youth lack the basic knowledge and skills to make intelligent, informed decisions about their finances, U.S. Senator Daniel K. Akaka (D-Hawaii) is leading a bipartisan effort to designate April 2003 as Financial Literacy for Youth Month. Senator Akaka has introduced a resolution (S.Res. 48) which requests that the President promote financial literacy by issuing a proclamation calling on schools, nonprofit organizations, businesses, government entities on the federal, state, and local levels, and citizens to observe the month with appropriate programs and activities. Senators Thad Cochran (R-MS), Jon Corzine (D-NJ), Orrin Hatch (R-UT), Tim Johnson (D-SD), Edward M. Kennedy (D-MA), Paul Sarbanes (D-MD), Charles Schumer (D-NY), and Debbie Stabenow (D-MI).
The United States is seeing high levels of household debt, bankruptcy filings, and home foreclosures. Our nation's college students face increasing credit card debt, with the average debt load at $3,066. However, only 26 percent of teens and young adults reported that their parents taught them how to manage money, and only four states require students in grades K-12 to enroll in a personal finance course. "Financial literacy needs to be increased in every part of the country," Akaka noted. "We need to educate our children now, during their formative years of schooling. Learning good personal financial management skills at an early age will equip them with the tools necessary to become responsible workers, heads of households, investors, entrepreneurs, business leaders, and citizens. Hopefully, students will grow into adults who will avoid skyrocketing levels of debt, or the pitfalls that could cause them to file bankruptcy or make unwise economic decisions."
The Jump$tart Coalition for Personal Financial Literacy has raised the level of awareness about the urgent need for financial literacy. As a major part of this effort, for several years, it has encouraged its partner organizations and state affiliates to sponsor a wide range of events for our youth in April. Designating the month of April would focus increased awareness about the need for financial literacy. It would also serve to encourage innovative and interactive events with long-lasting impact that will bring the point home to our children about the importance of financial literacy.
"As with other life skills, good money management skills and habits are best formed during childhood. In partnership with interested entities at the state and local levels, we can do more to give our youth the knowledge that will empower them to make sound financial decisions, now and in the future," Akaka said.
