Fair Caps Off “Financial Literacy Month” Celebrations

Washington, DC (April 24, 2007) – Representative Rubén Hinojosa (D-TX) continued to advocate for increased financial literacy at today’s  fifth annual Financial Literacy Day on the Hill. Hinojosa, along with Sen. Daniel Akaka (D-HI) and Rep. Judy Biggert (R-IL), collaborated with Jump$tart, Junior Achievement, and the National Council on Economic Education for the annual fair that caps off “Financial Literacy Month,” which occurs each April. This year, 50 organizations were on hand to provide information about programs and activities throughout the nation that empower individuals with the knowledge to make sound personal financial decisions. The purpose of the month is to encourage Americans to take control of their finances and become financially literate during all stages of life.

“Today’s event is part of an on-going effort to educate my colleagues and their staff about the importance of boosting the financial literacy rates of their constituents,” said Hinojosa, who is the co-founder and co-chair of the Financial and Economic Literacy Caucus.  “While Americans’ buying power is increasing, there are still many who don’t understand the basics of saving, securing a loan, or opening a checking account. Fortunately it’s never too late to take control of one’s personal finances, and the sooner a person begins to learn good saving habits, the better off he or she will be in the future.”

Earlier this month, Representative Hinojosa introduced H.Res. 273 to support the goals and ideals of “Financial Literacy Month.” Specifically, the goals of H.Res. 273 are to provide people with the tools they need to manage their personal finances; expand unbanked Americans’ access to the mainstream financial system; engage the financial services industry and show how their products can benefit consumers; and, encourage governments, schools, businesses, and other entities, to observe the month with appropriate programs and activities.

“We must remain diligent in our efforts to discover what programs work and find ways to incorporate financial literacy education into the classroom,” said Hinojosa. “It will be a detriment to our nation’s economic prosperity if so many Americans continue to mismanage their money, credit and debt.”

In light of increasing debt among Americans and reports of a rising number of mortgage defaults, government officials are taking an increased interest in boosting financial literacy among their constituents. In 2006 alone, credit card debt in America totaled a whopping $825 billion, while the average baby boomer had only $50,000 in savings apart from the equity in their home. At the same time, 10 million households in the United States are considered to be “unbanked,” or without access to mainstream financial products and services.