The Illiterate State?

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Congress recently began considering and debating credit card reform and consumer protection. While the practices of credit card issuers certainly appear despicable and worthy of Congressional focus, I believe this debate also provides an opportunity to address the related issue of financial literacy in the United States.
 
“41 percent of U.S. adults, or more than 92 million people living in America, gave themselves a grade of C, D, or F on their knowledge of personal finance, suggesting there is considerable room for improvement. This number is highest among Gen Y adults at 47 percent,” according to a recent survey sponsored by the National Foundation for Credit Counseling, conducted by Harris Interactive.
 
"More than 13 million adults (6 percent) report that their household carries credit card debt of $10,000 or more from month to month, and the same number have debts in collection, are seriously considering filing for bankruptcy, or have already done so within the past three years."
 
The focus in Congress has been on better protecting the consumer from predatory lending practices. I suggest Congress also address the personal responsibility the consumer has to appropriately use credit in their lives and how government can provide incentive for individuals to enhance their financial literacy. Congress should consider using some of the resources which would have been earmarked for enforcement programs to increase financial literacy both in school systems and adult education programs.
 
Credit card issuer practices certainly should be reviewed and legislation written, if necessary. I wonder, however, how differently people would use credit cards with better financial literacy education and increased understanding about credit and its proper uses.