Opening Statements of Committee Members


Opening Statement of Senator Jim Bunning (R-KY)

Hearing on "The Importance of Financial Literacy Among College Students."

10:00 a.m., Thursday, September 5, 2002 - Dirksen 538

Mr. Chairman, I would like to thank you for holding this hearing, and I would like to thank all of our witnesses for testifying today. I would especially like to welcome Jonathon Miller, the Kentucky State Treasurer here today.

Financial literacy is a very important topic. I think all Americans should brush up on this issue. From elementary school, to high school, to college, to young families, to college parents, to retirees, many Americans are making important financial decisions without the tools that might allow them to make the best decision. We must make information and education available to those making financial decisions.

Everyone knows how easy it is for college kids to get credit cards. They have tee shirt give-aways, and bag give-aways. Students are inundated with junkmail. They get solicitations in the bags they carry their new books home in. It is much easier to get credit cards than to learn about how credit cards work and what responsibilities come with them.

However, restricting credit is not necessarily the answer. Many students use credit cards to charge their books and tuition. They get airmiles that may get them a free ticket home for Christmas. They get cash back. And some, especially those who work, would have a much more difficult time being able to pay for school without credit.

I think most 18 year-olds understand credit cards are not free money. They do realize there are some responsibilities that go along with the card and most know what an interest rate is.

I think we can do a lot to help financial literacy and I do think some companies take advantage of naive kids. I just want to make sure we do not do anything that would deny credit to those who need and understand it.

Once again, I thank our witnesses for testifying today and I look forward to hearing from you.

Thank you, Mr. Chairman.