house resolution no.174

Reps. Schroeder, Farrington, Allor, Bollin, Chirkun, Clemente, Garrett, Hoadley, Hood, Jones, Kahle, Lasinski, Rendon, Sabo, Warren, Wittenberg and Witwer offered the following resolution:

A resolution to declare October 2019 as Get Smart About Credit Month in the state of Michigan.

Whereas, Financial literacy is the basic knowledge and skills that allows individuals to make educated decisions about their financial resources and plan for a stable economic future; and

Whereas, Those who are proficient in financial literacy possess the capability to create and execute short term and long-term budgets, invest in the market, save and plan for retirement, buy a house, pay off student loans, grow a credit score, and manage communications with their financial institutions; and

Whereas, An important component of mastering financial literacy is the ability to maintain good credit; and

Whereas, Young Michiganders need financial education. According to Forbes Magazine, total U.S. student debt was $1.52 trillion in 2018 involving over 44 million borrowers before they even enter the workforce; and

Whereas, During their early adult years, young Michiganders will face important decisions that will impact their financial futures; and

Whereas, Many Michiganders do not know what a credit score is or how it impacts the ability to qualify for mortgages, car loans, boat loans, or other lines of credit; and

Whereas, Young Americans wish they had the opportunity to learn about personal finance before they graduate high school. According to a 2016 Bank of America/USA Today Better Money Habits report, when asked about what they had hoped to learn more about in school, college students say financial topics are at the top of the list; and

Whereas, Not all states require high school students to learn about personal financial education; and

Whereas, There is no fast and easy way to “fix” damaged credit. Repairing credit history takes time and requires the establishment of good money management over a length of time; and

Whereas, Understanding credit management is key to establishing good credit in the future; and

Whereas, Having access to credit in the future may assist Michiganders who face significant life events, both positive and negative, and experience drastic changes to their financial plans. Our citizens can unexpectedly face a decline in health, medical expenses, or legal troubles. Being able to access affordable emergency lines of credit can help individuals avoid being left with fees, costs, fines, and other financial obligations that are difficult to manage; and

Whereas, Empowering Michiganders to be knowledgeable about their finances and about the best ways to maintain access to positive credit programs will enable our citizens to be in positions to boost our local economies and lower poverty rates over the long term. Lowering poverty rates does not simply create more jobs, but it strengthens our citizens’ ability to provide for their families and to raise their children. Promoting smart credit management and overall financial literacy helps our citizens achieve their American Dream; now, therefore, be it

Resolved by the House of Representatives, That the members of this legislative body declare October 2019 as Get Smart About Credit Month in the state of Michigan; and be it further

Resolved, That we urge all Michigan financial institutions to observe the month with appropriate programs and activities for the students and all members of the communities they serve.