Fountain Lake High School Visit

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Each April, we mark Financial Literacy Month, an opportunity to learn more about healthy financial habits. On Monday, I visited 9th grade students at Fountain Lake High School in Hot Springs to talk about this important topic. My earliest lessons about personal finance came from my parents, who started a savings account for me at the local bank in Dardanelle just after I was born. Growing up, they always emphasized the importance of living within our means and saving money. I have carried these lessons with me in my own life and as your Congressman in Washington.

The students at Fountain Lake High School were no different than me. Many of them said they too learned the importance of saving and practicing responsible financial habits from their parents. But most were surprised--and upset--to learn Washington politicians haven't been adhering to those same principles. We had a great discussion about our out-of-control national debt and why it's increased to record levels over the last 5 years. We also talked about what will happen to our economy if we don't rein in spending and reduce our debt.

One student asked: who holds the majority of our national debt and will we ever pay it off? For those of you who are also curious, I wanted to take a moment to answer that question here on the Cotton Blog. While China is the largest foreign holder of our national debt, the largest share of outstanding debt lies in the savings and retirement accounts of hardworking Arkansans and taxpayers across the country.

Unfortunately, the larger our debt in relation to the size of our economy, the higher the risk that global financial markets will lose faith in our ability to fulfill our obligations, which could lead to a serious fiscal crisis. However, I'm confident that if we limit spending increases and start practicing some real fiscal restraint in Washington our national debt will shrink in proportion to our economic output. It's going to take hard work to change the Washington "spend more" culture, but I know we can do it.

Please be sure to check back here over the next two weeks for more on my Financial Literacy Month efforts.

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