April: A Great Time for Financial Education

Years ago, the Jumpstart Coalition decided to name April as the Financial Literacy for Youth Month. In 2003, the federal government decided to take up the cause, and they put together the Financial Literacy and Education Commission. This commission is chaired by the US Treasury, and is made up of 20 other government agencies. The products of this commission are two documents that they have published: Taking Ownership of the Future: National Strategy for Financial Literacy 2006 and Promoting Financial Success in the United States: National Strategy for Financial Literacy 2011. Please keep in mind that these are only a series of goals, and they have not necessarily been accomplished.

The Commission’s 2006 “Taking Ownership of the Future” publication covered topics such as saving, homeownership, credit, consumer protection, investor protection, and K-12 financial education. It’s written on the premise that consumers must be financially educated in order to “understand how to prevent becoming involved in transactions that are financially destructive, how to avoid becoming victims of fraud, and how to exercise their consumer protection rights” (page 11).  This publication acknowledges the challenges that the public faces when it comes to the topics listed above, and then it states the government’s strategy to overcome those challenges. I find it incredibly ironic that the current economic crisis we now find ourselves in began one year later, in 2007.

The Commission’s 2011 “Promoting Financial Success in the United States” publication makes the great point that the need for financial education is more pressing than ever in this current market. “Indeed, as we have learned, the financial difficulties of individuals and families can dramatically affect the financial health of local communities and regional markets” (page 4). The goals listed in this publication include: increasing awareness of and access to financial education, identifying and improving foundational financial competencies, and sharing effective practices. These goals are very consistent with the goals listed in “Taking Ownership of the Future”.

The history of financial education started out with great intentions and goals. The government desired that all people have access to financial education, education that improved upon itself and its effectiveness. They even went so far as to create an extremely accessible website, MyMoney.gov. Despite this effort on the government’s part, these ideas were (are) ignored. We still live above our means, opting for instant gratification instead of thinking long-term, and failing to read the fine print. The government, Wall Street, and

Main Street

didn’t force us into this; we just continue to choose to be distracted by the shiny things.

But, I think there is still hope, and that hope can only be found in the people. There are numerous tools, agencies, and options at our disposal and most of them are free. You may have to take a couple of years and put some real effort into it, but you can get yourself to a better financial situation. It is my personal belief that if everyone acts responsibly and holds themselves accountable for their actions, we’ll have a great stepping stone to improving our communities, regions, states, and then country. The population of the people will always outnumber those who work in financial institutions and government offices. By my count, if each individual does right, the whole economic situation can’t help but correct itself, and the government seems to agree.

A few resources to help you get started:

a.      Lesson plans for all ages and special needs; All print materials and DVDs are free; Newsletters; Podcasts; Materials Available in English and Spanish    

2. Federal Reserve Education

a.      Numerous Publications and Resources; Financial Education for all ages; Economic Data       

3. FDIC Money Smart

a.      Various Resources available; Computer and Classroom Based Instruction for all ages; 'Train the Trainer' program; all resources are free to order; Money Smart Course available in 8 languages.

4. My Money      

a.      Resources for all ages and special populations (women, caregivers, military, etc); Research on financial education; Materials available in English and Spanish

5. Corporation for Enterprise Development

a.      Economic Policy and Asset Building Research; Advocates for low-income wealth building    

6. Real Economic Impact           

a.      From the National Disability Institute; Economic and Asset Building Resources; Public Policy           

7. Doorways to Dreams 

a.      Numerous Publications and Resources Regarding Savings

8. Jump$tart Coalition    

a.      Financial literacy for students Pre K to College             

9. 360 Degrees of Financial Literacy     

a.      Numerous Publications and Resources; Financial Education for all ages; Economic Data

10. Asset Platform           

a.      Numerous Publications and Resources; Financial Education for all ages         

11. National Foundation for Credit Counseling   

a.      Numerous Publications and Resources; Primary focus on Credit and Homeownership Counseling

12. Smart About Money

a.      Numerous Publications and Resources  

Marlissa Cunningham

AmeriCorps*VISTA

Family Financial Literacy Coalition

Community Link

IDA &Asset Building Collaborative

1. Practical Money Skills for Life