Washington, DC (April 16, 2007) – Today, U.S. House of Representatives took an important step toward helping Americans better understand and manage their personal finances. By a vote of 414 to 2, the House of Representatives passed H. Res. 273, a resolution introduced by Rep. Rubén Hinojosa that supports the goals and ideals of “Financial Literacy Month” which falls in April of each year.
“It is imperative that we pay more attention to the financial literacy rates of our citizens from pre-kindergarten all the way to retirement,” said Hinojosa. “The sooner that a person begins to learn good saving habits, the better off he or she will be in the future.”
Specifically, the goals of this resolution are to provide people with the tools they need to manage their personal finances; to expand unbanked Americans’ access to the mainstream financial system; to engage the financial services industry and demonstrate how their products and services can benefit consumers; and to encourage governments, schools, and businesses to observe the month with the appropriate programs.
As co-founder and co-chair of the House Financial and Economic Literacy Caucus, Congressman Hinojosa has long supported financial education, and Hinojosa’s resolution received widespread bipartisan support with 118 members of Congress signed on as co-sponsors. In addition, officials in Beeville, Cuero, Duval County, Goliad, Jim Wells, Mathis, Donna, Edcouch, Edinburg, Falfurrias, Harlingen, La Villa, McAllen, Mercedes, Pharr, Primera, Santa Rosa, Weslaco and Karnes County have all signed proclamations supporting Financial Literacy Awareness Week, which ran from April 22-28, 2007.
In light of increasing debt among Americans and reports of a rising number of predatory loans, federal, state, and local governments have taken 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 $50,000 in savings apart from the equity in their home. At the same time, 10 million households in the United States are considered to be “unbanked,” or without access to mainstream financial products and services.
“It’s a detriment to our nation’s economic prosperity that so many American consumers don’t properly understand how to manage their money, credit and debt,” said Hinojosa. “Financial literacy means empowerment and fortunately it’s never too late to take control of one’s personal finances.”
On April 24th, Hinojosa will continue to campaign for increased literacy by collaborating on a financial literacy fair in Washington D.C. with public, private, and nonprofit organizations such as Jump$tart, the National Council on Economic Education and JA Worldwide. Representatives will be on hand to showcase their financial literacy services and products that can better help Americans combat runaway debt and accumulate equity.