Press Releases

Washington, D.C. – Today, US Congressman Donald M. Payne spoke to students at the Essex County Vocational Technical School in Newark, NJ on financial literacy.  Organized by the New Jersey Department of Banking and Insurance, Congressman Payne spoke to students about the importance of managing their finances, especially in today’s economy.

At today’s event, Congressman Payne stated, “Becoming financially literate and empowered will help people become a master of their own destiny.  It’s important to understand the concepts of credit scores, credit cards, financial goals, taxes and budgeting.  Studies have shown that individuals who learn about money management fare much better than those who do not.”

Last month, the country saw a net loss of 80,000 jobs cutting across multiple sectors – the highest in 5 years.  The unemployment rate spiked to 5.1% - the highest in 2 ½ years.  With the housing bubble burst, the credit crisis, the fallen value of the dollar and the turmoil in our financial system, our economy is at a low point.

“People in the lower and middle classes are being squeezed at both ends” Payne added.  “If they aren’t losing their jobs, their wages are relatively stagnant.  Coupled with the fact that the prices of goods and services are up from one year ago, the average American’s budget is being stretched thin.”

Starting in October 2006, the New Jersey Department of Banking and Insurance has brought together relevant state agencies and financial professionals to promote financial literacy in New Jersey high schools.  To date, over 14,000 students in approximately 300 high schools have participated in the state’s financial literacy program.  The program is designed to provide students with information on how to utilize financial services effectively, set financial goals, and apply financial information to everyday situations.

“Last year, I introduced the Youth Financial Education Act, which will give state educational agencies the resources to teach K-12 students financial literacy throughout the school year - not just during Financial Literacy Month,” Payne said.  “I am happy to see the New Jersey Department of Banking and Insurance has taken the initiative to bring the topic of financial management to our students.  It’s vital that we start arming our children with the tools necessary to financially succeed in today’s economy.  The earlier we do it, the better.”