Good Afternoon. I would like to welcome our guests, witnesses, and members to this afternoon’s Education Reform Subcommittee hearing entitled, "Financial Literacy Education: What Do Students Need to Know to Plan For the Future?" Thank you very much for being here.

Now more than ever, we live in a world that has become increasingly complicated when it comes to personal financial matters. A generation ago, a basic knowledge of balancing a checkbook and maintaining a savings account was adequate. However, in today’s complex world many Americans are faced with difficult decisions such as determining what type of loan they need; whether to invest in stocks or bonds; how to best manage credit; and how soon to start planning for family education needs and their retirement. There are approximately 40,000 different credit products available, an intimidating thought for even the most educated consumer.

Unfortunately, large numbers of consumers never learn the basics of maintaining their personal finances and may struggle unnecessarily with choices leading to financial freedom. Instead, many live paycheck to paycheck and acquire substantial debt. According to the Federal Reserve, outstanding, non-secured consumer debt increased over $845 billion over an eleven year span. In 2002, more than a million families filed for bankruptcy.

Today, our nation’s youth are bombarded with a multitude of financial options at an increasingly young age. Yet many are ill-equipped to make informed decisions about financial matters. According to a 2001 Teenage Research Unlimited survey, teenagers spend rather than save 98 percent of their money, a total of $172 billion in 2002. One out of every three teenagers has credit cards and even more have an ATM card.

Various public and private organizations have developed programs to promote public knowledge of basic finances. Many of these organizations are working with elementary and secondary students to provide them with a strong education in money management and provide teacher training on how to integrate basic financial education principles into curricula.

For example, in my home state of Delaware, MBNA opened the Financial Advisory Service (FAS) over ten years ago. This service offers professional advice to MBNA employees and their immediate family members. FAS, under the leadership of Tom Dibble, has extended this service into the community and into the local school systems through the facilitation of basic credit and money management curriculum to all grade levels in elementary, high schools, and colleges throughout the country. FAS has educated nearly 1,500 students in Delaware and 14,000 students throughout the country since 1995. Their extensively educated advisors teach not only credit information, but, especially in the case of students, spend a great deal of time on financial basics like balancing a checkbook and budgeting.

I am looking forward to hearing the witness’ testimony. With that, I yield to my colleague from California, Mrs. Woolsey for whatever opening statement she may have.