| 1 | 1 | | By: Farney (Senate Sponsor - Van de Putte) H.C.R. No. 111 |
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| 2 | 2 | | (In the Senate - Received from the House May 9, 2013; |
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| 3 | 3 | | May 9, 2013, read first time and referred to Committee on |
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| 4 | 4 | | Administration; May 20, 2013, reported favorably by the following |
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| 5 | 5 | | vote: Yeas 5, Nays 0; May 20, 2013, sent to printer.) |
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| 6 | 6 | | |
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| 7 | 7 | | |
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| 8 | 8 | | HOUSE CONCURRENT RESOLUTION |
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| 9 | 9 | | WHEREAS, Personal financial literacy is essential in making |
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| 10 | 10 | | the decisions required of all individuals in everyday life and is a |
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| 11 | 11 | | crucial part of becoming a responsible worker, business leader, |
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| 12 | 12 | | head of household, and citizen; and |
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| 13 | 13 | | WHEREAS, The ability to manage money effectively is a |
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| 14 | 14 | | lifelong skill that develops at a young age; however, this vital |
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| 15 | 15 | | subject often goes unaddressed in the classroom, as fewer than |
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| 16 | 16 | | one-third of all states mandate a course on personal finance to be |
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| 17 | 17 | | offered in high schools; and |
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| 18 | 18 | | WHEREAS, In 2008, the National Jump$tart Coalition tested |
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| 19 | 19 | | nearly 7,000 12th-grade students on their level of financial |
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| 20 | 20 | | literacy, resulting in a mean score of 48.3 percent, the lowest |
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| 21 | 21 | | recorded in the history of the survey; this represented a drop of 10 |
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| 22 | 22 | | percent from the baseline survey of 1997-1998; and |
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| 23 | 23 | | WHEREAS, A lack of adequate financial education can have |
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| 24 | 24 | | far-reaching effects on a young person's future, particularly as he |
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| 25 | 25 | | or she enters college; according to a 2009 survey of multiple |
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| 26 | 26 | | university campuses, students ranked poorly in financial knowledge |
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| 27 | 27 | | along such metrics as budgeting, retirement planning, and credit |
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| 28 | 28 | | use, despite the fact that the majority used credit cards; this |
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| 29 | 29 | | problem is especially acute when considering the alarming rate of |
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| 30 | 30 | | credit card debt among college students, with the average student |
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| 31 | 31 | | claiming $4,100 in debt in 2009, compared to just under $950 in |
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| 32 | 32 | | 2004; and |
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| 33 | 33 | | WHEREAS, Personal financial literacy continues to be a |
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| 34 | 34 | | component of success and well-being in adulthood, yet studies show |
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| 35 | 35 | | that American adults are often ill-prepared for long-term monetary |
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| 36 | 36 | | concerns; the national personal savings rate fell sharply in the |
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| 37 | 37 | | years spanning 1980 to 2007 and remains low to this day, at 4.6 |
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| 38 | 38 | | percent of disposable income; in addition, the 2013 Retirement |
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| 39 | 39 | | Confidence Survey found that only 66 percent of Americans reported |
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| 40 | 40 | | saving funds for retirement, down from 75 percent in 2009; and |
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| 41 | 41 | | WHEREAS, Research has shown a link between financial literacy |
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| 42 | 42 | | and higher net worth, improved spending and saving habits, lower |
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| 43 | 43 | | delinquency rates for mortgage borrowers, and higher participation |
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| 44 | 44 | | rates in retirement plans; moreover, students from states with a |
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| 45 | 45 | | required financial education course were found to more often |
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| 46 | 46 | | display behaviors conducive to healthy money management; compared |
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| 47 | 47 | | to other young adults, they are more likely to save, pay off their |
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| 48 | 48 | | credit cards in full each month, and take modest financial risks, |
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| 49 | 49 | | and they are less likely to reach the maximum limit on their credit |
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| 50 | 50 | | cards, make late payments, and engage in compulsive buying; and |
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| 51 | 51 | | WHEREAS, Public, community, and private sector organizations |
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| 52 | 52 | | around the country are working to increase financial literacy rates |
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| 53 | 53 | | for Americans of all ages through media campaigns, websites, and |
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| 54 | 54 | | one-on-one counseling; as part of this outreach effort, a number of |
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| 55 | 55 | | agencies and groups have designated the month of April as Financial |
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| 56 | 56 | | Literacy Month to highlight the importance of personal finance |
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| 57 | 57 | | education and to encourage Americans to establish and maintain good |
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| 58 | 58 | | saving and spending habits; and |
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| 59 | 59 | | WHEREAS, Far from being issues of individual responsibility, |
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| 60 | 60 | | personal financial knowledge and awareness have broad implications |
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| 61 | 61 | | for the economic welfare of our state and nation; the observance of |
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| 62 | 62 | | Financial Literacy Month is a timely reminder of the right and |
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| 63 | 63 | | obligation of all Texans to build on their understanding of fiscal |
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| 64 | 64 | | matters in order to safeguard the future of their families and of |
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| 65 | 65 | | society at large; now, therefore, be it |
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| 66 | 66 | | RESOLVED, That the 83rd Legislature of the State of Texas |
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| 67 | 67 | | hereby designate April as Texas Personal Financial Literacy Month; |
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| 68 | 68 | | and, be it further |
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| 69 | 69 | | RESOLVED, That in accordance with the provisions of Section |
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| 70 | 70 | | 391.004(d), Government Code, this designation remain in effect |
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| 71 | 71 | | until the 10th anniversary of the date this resolution is passed. |
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| 72 | 72 | | * * * * * |
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