News Release

Contact Information

FOR IMMEDIATE RELEASE August 31, 2004

Contact Rebecca Reid at 202-342-2922

National ACEC Chairperson Molinari Praises Financial Literacy Initiatives In House Education Legislation

Key Provisions Allow Grants for Financial and Economic Educational Programs, Financial Counseling Requirements for Those Who Default on Student Loans and Private Employer Offerings of Financial Skills Counseling

Washington, D.C. (May 7, 2004) – Americans for Consumer Education and Competition (ACEC) National Chairperson Susan Molinari said today the College Access & Opportunity Act (HR 4283) introduced by House Education & the Workforce Committee Chairman John Boehner (R-OH) and Rep. Howard P. “Buck” McKeon (R-CA), puts an appropriate spotlight on financial literacy and the need to educate college students about sound money management skills.

“The College Access and Opportunity Act opens the door for colleges and educational institutions to apply for grants for financial literacy programs designed to inform students about sound, practical, real-world money management skills,” noted Molinari. “By providing this opportunity to institutions, academicians and students, we underscore the importance of financial literacy and make it the priority it should be.”

Molinari helped form Americans for Consumer Education and Competition with the goal of improving the financial literacy of young people today, so that they might enjoy more fruitful lives tomorrow. The impetus to create ACEC came from national survey data that found that eighty-one percent of adults wanted solid, personal finance courses taught in their children’s schools. The same survey indicated that less than one in every five adults believed their children’s schools were adequately teaching personal money management skills. ACEC launched the Money Skills Report Card, a national survey of high school seniors – 82% of whom failed the personal financial quiz. Tested on real life questions involving interest rates, loans, and savings options, a passing grade on financial literacy was hard to find.

“College students are a critical population for financial literacy,” said Molinari. “Most students have tuition loans, little additional income while they’re in school and come graduation are ill-prepared to manage their own personal finances as they phase into the workforce. Bad credit can happen overnight and take years to disappear. The financial literacy provisions in this bill would allow us to take a huge step forward in the mission to provide money management education to our youth and young adults.”

The bill also promotes the dissemination of financial and economic materials and counseling for school loan borrowers who have defaulted on loans – a smart, pragmatic measure to educate young borrowers about their financial options.

“Too often we hear the stories of college graduates saddled with tuition debt and overwhelmed with new financial obligations joining the swelling ranks of Americans with bad credit,” said Molinari. “Appropriate money management education is certain to stem the tide of rising defaults and better prepare borrowers for future transactions.”

HR 4283 also encourages private employers to provide financial and educational counseling to employees, which Molinari pointed out expands the reach of financial literacy into the workplace where income-earning individuals can learn how to maximize the value of each paycheck.

“Chairman Boehner, Rep. McKeon and congressional supporters of financial literacy should be commended for their leadership for including these key provisions in the education bill,” said Molinari.

FOR MORE INFORMATION, CONTACT:

Rebecca Reid
Executive Director
Americans for Consumer Education & Competition
202-342-2922
Cell: 410-212-3843