“As a young boy growing up in South Texas, my parents instilled in me the importance of saving, understanding where money came from, how to open a bank account, and many more things that helped me become financially literate,” said Hinojosa.  “Unfortunately though, there are far too many people of all ages who do not have the basic skills they need to understand their finances and secure their future.  Financial education for people of all ages must be a priority.”

The Financial and Economic Literacy Caucus consists of 80 bi-partisan members of Congress who are committed to improving the financial literacy rates of all Americans through legislation, educational programs, and town halls.  

Below are Congressman Hinojosa’s opening remarks, prepared for delivery:

“As Co-Founder and Co-Chair of the Financial and Economic Literacy Caucus, I am very pleased to be with you here today to discuss an issue, really a cause, that is near and dear to me and, I believe, to all of you.  I am speaking, of course, of the need to improve financial literacy rates across the United States for all individuals during all stages of their life.

“I believe that all of us here today share that common purpose, improving financial literacy for all Americans. It is a very daunting task, especially in light of the tremendous number of financial literacy programs that exist. 

“As a Member of Congress, I receive many comments, advice and recommendations from my colleagues, from entities off the Hill and even from editorials on the methodology to use, the exposure to give, and the oversight Congress should provide in order to consider, coordinate and collaborate on a way to address and implement where appropriate all these programs. 

“The programs run the gamut from some pre-school financial literacy programs such as The Money Mammals program geared towards K-12 students; economics and financial literacy courses independently or combined into one course for high school students.  Also, there are programs for young adults; a few for those in mid-life; and several geared towards those planning for their retirement. 

“There really are too many financial literacy programs to discuss during today’s event.  Jump$tart’s website lists over 500 financial literacy programs from which we are expected to choose.  We must work together to find ways to implement them appropriately, evaluate them properly and to follow up to assess their effectiveness. 

“Basically, we need to follow up with students who take financial literacy courses to determine if they use what they were taught in high school or in earlier grades.  In this particular instance and for the sake of today’s discussion and the release of NASBE’s new report, I will focus on the ways and means needed for all of us to work together to ensure that we provide the best financial literacy programs in our education system with a focus on students in K through 12.

“After reviewing the report “Who Will Own Our Children,” I want to applaud you for recommending several different actions State Boards of Education should take to address the financial literacy needs of our future – our youth currently enrolled in K through 12 classes. 

“It seems to me the recommendations you have made in today’s report are a giant step in the right direction.  The following five recommendations caught my attention: (1) require state boards of education to evaluate the current status of financial and investor education in their state; (2) find ways to ensure that all students receive comprehensive financial and investor education; (3) ensure that teachers and/or staff teaching financial literacy concepts are adequately trained; (4)  ensure that states improve their capacity to evaluate financial literacy programs; and (5) work together to enable state boards to cooperate and communicate with other states to develop a common assessment tool for financial and investor education.

“I am very pleased that my home state of Texas is taking a rather progressive approach to financial literacy.  Not only has the state legislature adopted legislation to require high school students to complete a course in economics, but last year, Texas adopted legislation to incorporate financial literacy as part of the core curriculum for high school students.  Time and money restrictions make it impossible at this time for Texas to require high school students to take a financial literacy course independent of their required course in economics.  However, I commend Texas for addressing the financial literacy needs of our youth.  It is off to a good start. 

“I did find several rather disturbing statistics in your NASB Report.  My own research indicates that, in 2005, one bankruptcy petition was filed for every sixty households, which was a twenty-three percent increase from the previous year. According to the Federal Reserve, revolving debt for American consumers totaled $805 billion in March of this year. Worse yet, the United States’ personal savings rate based on the percentage of personal disposable income devoted to savings, was at negative 1.5% percent at one time last year – I repeat – the savings rate reached an all-time low of negative 1.5%  last year. I think we all agree that a negative personal savings rate is unacceptable, and actions must be taken to remedy the problem.   

“During a hearing on financial literacy last week in the ‘Financial Institutions Subcommittee,’ the National Endowment for Financial Education, or NEFE, presented the most comprehensive plan for government involvement in the financial literacy cause.  I agree with NEFE’s conclusion that the government can and should lead by example and coordinate and communicate a unified message.  We should sponsor a broad-based public awareness campaign comprised of a substantial mass-market, multimedia effort in support of a national financial literacy initiative on the scale of the current “truth” campaign, developed through the Public Education Fund to discourage smoking among young people.  I also like their idea of creating a “Literacy Corps” because one-on-one counseling provides the greatest potential to effect positive change in the management of one’s finances. 

“If there is one thing I would like all of you to take home with you today from my remarks is that it is never too late to take control of your finances.  Whether it be a toddler learning how to count; a youth learning the fundamentals of savings and checking accounts as well as investing and possibly donating; someone in their mid-life planning for their child’s education or for their own retirement; or an older person concerned they haven't planned for their golden years; it is never too late for them, and for all of us, to take control of our finances.  However, the sooner we start teaching the youth of America about finances the better. So, I urge all of you to start planning for your future and for that of our students today.    Again, I am honored that you invited me to be with you at the National Press Club today, and I look forward to working with you to implement a comprehensive strategy to improve financial literacy rates.”