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