WASHINGTON, D.C. – U.S. Senators Thad Cochran and Roger Wicker today encouraged more Mississippians to improve their personal “financial literacy” as an individual means of aiding in the nation’s economic recovery.

The Senate has approved S.Res.485, a resolution establishing April 2010 as “Financial Literacy Month.”  The Senate accepted the measure by unanimous consent.

“A proficient understanding of personal finances can be the difference between financial security and ruin for individuals and families.  The economic hardships experienced by many people were not just caused by poor judgment on Wall Street, but also by a lack of financial understanding on a personal level,” said Cochran, who is the primary cosponsor of the Financial and Economic Literacy Improvement Act (S.638).  “I am pleased that more Mississippi schools are promoting financial literacy and hope that all our residents will use Financial Literacy Month to understand how to improve their management of credit, debt and savings.”

“During a time of economic hardship, it is particularly important that all our citizens have the knowledge and skills to make wise decisions about their personal savings, borrowing and spending habits, and long-term investments.  Unfortunately, personal finance management is not always taught in the home, and a lack of financial knowledge can lead to devastating money problems, including unmanageable debt or even home foreclosure,” said Wicker. “By designating April ‘Financial Literacy Month,’ we can further emphasize financial literacy and good money managing skills in students’ curriculum as well as in outreach initiatives for individuals of all ages.”

The Senate resolution states that “quality personal financial education is essential to ensure that individuals are prepared to manage money, credit, and debt, and to become responsible workers, heads of households, investors, entrepreneurs, business leaders, and citizens.”

In 2003, Congress passed legislation establishing the U.S. Financial Literacy Education Commission within the Department of the Treasury to begin a more concerted effort to provide Americans with more information about personal finance management.

The Council for Economic Education’s “Survey of States 2009:  Economic, Personal Finance and Entrepreneurship Education in Our Nation’s Schools” tracks states that require students to take an economic course as a high school graduation requirement.  Mississippi is among states that require students to take an economic education course and encourage school districts to offer high school courses in personal finance education.

Cochran and Wicker have supported efforts by the Mississippi Council on Economic Education (MCEE), a nonprofit organization that provides training and resources to improve economics and personal finance education courses by public and private K-12 educators.

In partnership with the Mississippi Department of Education, MCEE professional development workshops for teachers are provided through three Centers for Economic Education located at Mississippi State University, the University of Southern Mississippi and Mississippi College.

Among other things, the Senate resolution cites various studies and surveys pointing to the challenges faced by individuals and families who lack a working knowledge of their personal finances.  The 2009 Consumer Financial Literacy Survey Final Report produced by the National Foundation for Credit Counseling says that half of all adult Americans do not monitor their overall spending and one-third of adults have no savings.

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