house resolution no.261

Rep. Farrington offered the following resolution:

A resolution to declare April 2022 as Financial Literacy Month in the state of Michigan.

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, Michigan has formally participated in financial literacy programming for eighteen years through the collaboration and coordinated effort of hundred of organizations including financial institutions, non-profit groups, government entities, schools and libraries. The initiative showcases these organizations educational resources, strengthens public-private partnerships, engages the media, and connects people with resources to help them better manage their money; 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 2021 Consumer Financial Literacy Survey report by the National Foundation for Credit Counseling, 62% of U.S. adults have carried credit card debt in last 12 months and 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, 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 debt and become responsible workers, heads of households, homeowners, investors, entrepreneurs, business leaders, and productive citizens; 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 2020 outstanding household debt in the United States reached $14,560,000,000,000 and the total debt balance is $414 billion higher than at the end of 2019; and  

Whereas, According to the most recent FDIC Survey and Report of Household Use of Banking and Financial Services, the number one reason, at twenty-nine percent, cited by unbanked households for not having an account was “Don’t have enough money to meet minimum balance requirements” compared to the majority of banked households being satisfied with their primary bank and thinking  that fees were clearly communicated; 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, 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, Financial Literacy Month highlights the commitment of Michigan banks to strengthen the financial knowledge of Michigan citizens to prepare them for a fiscally-responsible future; now, therefore, be it

Resolved by the House of Representatives, That the members of this legislative body declare April 2022 as Financial Literacy Month in the state of Michigan. We encourage raising public awareness about the importance of personal financial education in Michigan and the rest of the United States. This will help address the serious problems that are associated with mismanagement of personal finances; and be it further

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