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CONCURRENT RESOLUTION
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WHEREAS, Personal financial literacy is essential in making |
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the decisions required of all individuals in everyday life and is a |
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crucial part of becoming a responsible worker, business leader, |
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head of household, and citizen; and |
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WHEREAS, The ability to manage money effectively is a |
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lifelong skill that develops at a young age; however, this vital |
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subject often goes unaddressed in the classroom, as fewer than |
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one-third of all states mandate a course on personal finance to be |
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offered in high schools; and |
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WHEREAS, In 2008, the National Jump$tart Coalition tested |
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nearly 7,000 12th-grade students on their level of financial |
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literacy, resulting in a mean score of 48.3 percent, the lowest |
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recorded in the history of the survey; this represented a drop of 10 |
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percent from the baseline survey of 1997-1998; and |
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WHEREAS, A lack of adequate financial education can have |
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far-reaching effects on a young person's future, particularly as he |
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or she enters college; according to a 2009 survey of multiple |
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university campuses, students ranked poorly in financial knowledge |
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along such metrics as budgeting, retirement planning, and credit |
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use, despite the fact that the majority used credit cards; this |
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problem is especially acute when considering the alarming rate of |
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credit card debt among college students, with the average student |
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claiming $4,100 in debt in 2009, compared to just under $950 in |
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2004; and |
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WHEREAS, Personal financial literacy continues to be a |
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component of success and well-being in adulthood, yet studies show |
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that American adults are often ill-prepared for long-term monetary |
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concerns; the national personal savings rate fell sharply in the |
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years spanning 1980 to 2007 and remains low to this day, at 4.6 |
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percent of disposable income; in addition, the 2013 Retirement |
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Confidence Survey found that only 66 percent of Americans reported |
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saving funds for retirement, down from 75 percent in 2009; and |
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WHEREAS, Research has shown a link between financial literacy |
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and higher net worth, improved spending and saving habits, lower |
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delinquency rates for mortgage borrowers, and higher participation |
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rates in retirement plans; moreover, students from states with a |
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required financial education course were found to more often |
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display behaviors conducive to healthy money management; compared |
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to other young adults, they are more likely to save, pay off their |
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credit cards in full each month, and take modest financial risks, |
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and they are less likely to reach the maximum limit on their credit |
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cards, make late payments, and engage in compulsive buying; and |
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WHEREAS, Public, community, and private sector organizations |
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around the country are working to increase financial literacy rates |
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for Americans of all ages through media campaigns, websites, and |
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one-on-one counseling; as part of this outreach effort, a number of |
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agencies and groups have designated the month of April as Financial |
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Literacy Month to highlight the importance of personal finance |
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education and to encourage Americans to establish and maintain good |
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saving and spending habits; and |
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WHEREAS, Far from being issues of individual responsibility, |
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personal financial knowledge and awareness have broad implications |
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for the economic welfare of our state and nation; the observance of |
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Financial Literacy Month is a timely reminder of the right and |
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obligation of all Texans to build on their understanding of fiscal |
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matters in order to safeguard the future of their families and of |
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society at large; now, therefore, be it |
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RESOLVED, That the 83rd Legislature of the State of Texas |
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hereby designate April as Texas Personal Financial Literacy Month; |
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and, be it further |
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RESOLVED, That in accordance with the provisions of Section |
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391.004(d), Government Code, this designation remain in effect |
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until the 10th anniversary of the date this resolution is passed. |