Senate Banking, Housing and Urban Affairs Committee members, Paul S. Sarbanes (D-MD), the Chairman of the Committee, and Jon S. Corzine (D-NJ), are urging the Bush Administration to consider a financial literacy initiative to promote this critical issue.

In a letter to Treasury Secretary Paul O’Neill, the two Senators wrote, "Many Americans need a better understanding of the fundamental principles of budgeting, saving, and investing. With a firm grasp on these necessary skills, consumers will be better equipped to avoid unwise debt, maintain a good credit record, and save for the future. We believe that everyone benefits when Americans, particularly those who are the most financially vulnerable, become financially literate.

"As credit, banking, tax and financial systems become increasingly complex, it is clear that millions of Americans are ill-equipped to handle even basic financial tasks. This poses a serious problem to many Americans, but disproportionately affects youth, minorities, lower and middle income Americans, and the elderly."

The two Banking, Housing and Urban Affairs Committee members cited a recent nationwide survey by the non-profit JumpStart Coalition for Personal Financial Literacy which found that "only 36% of surveyed high school students could correctly answer basic personal finance questions, and only 33% believed that financial issues strongly affected their daily lives."

"It is important for the Administration to recognize that financial literacy is fundamental to ensuring that everyone can manage their finances and succeed in our society"; they concluded in their letter to O’Neill.

The two Senators have made financial literacy a high priority for them in the United States Senate. Senator Sarbanes, in his first press conference as the Chairman of the Banking, Housing, and Urban Affairs Committee spoke of promoting greater financial education and literacy opportunities for all Americans and has recently questioned members of the Federal Reserve and the Comptroller of the Currency on these issues. Senator Corzine has both questioned officials and introduced S. 1181, the Youth Financial Literacy Act, to provide grants to states to help them develop and implement financial education programs in elementary and secondary schools. Corzine also offered a bipartisan amendment to the recently passed education reform bill to include financial education as an allowable use in the local innovative education grant program. The amendment was approved unanimously.

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