Lawmakers embrace significance of financial literacy

Sens. Bill Cassidy (R-LA) and Tim Scott (R-SC) introduced a resolution this week declaring April as Financial Literacy Month, highlighting the importance of learning and maintaining fiscally responsible habits. 

The resolution has garnered bipartisan support.

“Learning healthy habits is crucial for long-term financial security,” Cassidy said. “Financial Literacy Month is about giving families the tools and knowledge needed to take control of their financial futures.”

A Federal Deposit Insurance Corporation (FDIC) report generated in 2017 showed, approximately 25 percent of the nation’s households are unbanked or underbanked and have limited or no access to savings, lending, and other basic financial services.

“We live in an America where there is a deep divide between many of our working class who live in distressed communities and the rest of the country,” Scott said. “Financial literacy is one of the bridges to closing these gaps and encouraging economic prosperity in our communities. I am excited that I’ve been able to pass legislation that creates real tangible results for the American people.”

Sen. Jack Reed (D-RI) said the nation needs to encourage and support Americans in developing the knowledge and skills to be informed consumers and sound managers of their own financial lives.

“From managing a household budget to making major purchases, paying for college, starting a business, and laying the groundwork for a secure retirement, basic financial literacy is essential to success,” he said. “Unfortunately, too many Americans lack the information and experience needed to make informed financial decisions and that’s something that can have implications for their children, local communities and generations to come.”

Reed said raising awareness about the resources available to improve financial literacy is the first step on the path to a financially secure future.