senate resolution no.110

Senator Lauwers offered the following resolution:

A resolution to recognize April 2020 as Financial Literacy Month.

Whereas, The informed use of credit and other financial products and services benefits individual consumers and promotes economic growth; and

Whereas, Learning financial literacy skills at an early age encourages greater economic self-sufficiency, higher levels of successful homeownership, and enhanced retirement security, particularly among low and moderate income citizens; and

Whereas, Quality personal financial education and a strong understanding of financial literacy is essential to ensure that individuals are prepared to manage money, credit, debt, and become responsible workers, heads of households, investors, entrepreneurs, business leaders, and citizens; and

Whereas, A greater understanding of, and familiarity with, financial markets and institutions will lead to increased economic activity and growth; and

Whereas, According to the 2019 Consumer Financial Literacy Survey report by the National Foundation for Credit Counseling, a majority of adults in the United States have credit card debt that carried over from month to month and only an approximated 42 percent of adults in the United States maintain a budget; and

Whereas, During times of both strong and poor economic conditions, personal financial education and money management skills are crucial to ensure that all Michiganders, and especially our young people, are prepared to manage credit; and

Whereas, According to the report titled, “Economic Well-Being of U.S. Households” by the Board of Governors of the Federal Reserve System, 40 percent of adults in the United States cannot cover an expense of $400; and

Whereas, According to the report of the Board of Governors of the Federal Reserve, for the fourth quarter of 2019 outstanding household debt in the United States reached $14,150,000,000,000 and outstanding student loan balances have more than doubled in the last decade to approximately $1,500,000,000,000; and

Whereas, The young people of our state represent Michigan’s single greatest resource who, in the years ahead, will assume leadership positions and responsibility for advancement of our society; and

Whereas, According to the 2020 Council for Economic Education's report titled, “Survey of the States: Economic and Personal Finance Education in Our Nation’s Schools” only 25 states require students to take an economic course as a high school graduation requirement, and only 21 States require students to take a personal finance course as a high school graduation requirement, either independently or as part of an economic course; and

Whereas, According to the Gallup-HOPE Index, only 57 percent of students in the United States have money in an account at a chartered financial institution; and

Whereas, Expanding access to the mainstream financial system will provide individuals with less expensive and more secure options for managing finances and building wealth; and

Whereas, According to the Consumer Financial Literacy Survey Final Report of the National Foundation for Credit Counseling, 41 percent of adults living in the United States gave themselves a grade of C, D, or F on their knowledge of personal finance; and

Whereas, Both federal chartered banks and the state of Michigan understand that an educated consumer is the best consumer and that financially savvy customers will use and get the most from banking services and products throughout their lives; and

Whereas, Financial Literacy Month highlights the commitment of Michigan banks to strengthen the financial knowledge of our youth and to prepare them for a fiscally-responsible future; now, therefore, be it

Resolved by Senate, That the members of this legislative body recognize April 2020 as Financial Literacy Month; and be it further

Resolved, That we encourage raising public awareness about the importance of personal financial education in Michigan and the rest of the United States to help address the serious problems that are associated with a lack of understanding about personal finances; and be it further

Resolved, That we call on every parent, school, business, financial institution, community organization, and unit of government to observe this month with appropriate programs and activities.