FDIC advances education program through partnerships

Northwestern Financial Review, May 1-May 14, 2003 by Hilgert, Jackie

The Federal Deposit Insurance Corporation has formed a series of alliances that gives its financial education program, Money Smart, a higher profile within the banking industry. The FDIC has partnered with America's Community Bankers, the Conference of State Bank Supervisors and most recently with the American Bankers Association Education Foundation in an effort to promote and expand financial literacy in the United States.

"The need for financial education in this country has rarely been more compelling," said Donald Powell, chairman of the FDIC. The FDIC developed the Money Smart program in 2001 to help adults enhance their money management skills, understand the basic financial services offered by the financial mainstream and build their financial confidence to use banking services effectively.

With its alliance with the FDIC, America's Community Bankers will provide the program to its member banks and state association members and will conduct training sessions to assist ACB members in using the program in their communities. Also, ACB will offer to lead a Money Smart workshop during its annual convention.

"Having the right financial skills is essential to achieving American dreams," said Diane Casey Landry, president and CEO of ACB.

Through its alliance with the Conference of State Bank Supervisors, the FDIC will distribute the program to each of the nation's state banking departments and provide commissioners with materials touting the benefits of the curriculum they can then forward to their banks. Neil Milner, president and CEO of CSBS, said supervisors understand how important financial literacy is in upholding national economic health.

Donald Ogilvie, president and CEO of the American Bankers Association, said its partnership with the FDIC enables ABA to broaden its efforts to help adults and children. ABA, through its Education Foundation, has had a financial literacy program for children in place since 1997. ABA's National Teach Children to Save Day, which was held this year on April 10, encourages bankers to make volunteer presentations to students about the concept of saving, how interest makes money grow and how to budget to determine needs and wants.

The Money Smart curriculum is a set of 10 comprehensive instructorled modules covering basic financial topics including an introduction to bank services, tips on obtaining credit and information on buying a home. Money Smart is available in English, Spanish and Chinese.

The alliance between ABA and the FDIC is expected to boost both financial literacy programs.

More advances in financial literacy The Wisconsin Bankers Association has developed a literacy program entitled, "Reading Raises Interest," which more than 150 banks taught in schools throughout the state on National Teach Children to Save Day.

"Teaching children to save has never been more important," said Harry Argue, WBA executive vice president/CEO, about WBA's commitment to financial literacy. Wisconsin Gov. James Doyle joined the effort by proclaiming April 10 to be "Wisconsin Teach Children to Save Day." First lady Jessica Doyle used the occasion to read The Berenstain Bears' Trouble With Money to a thirdgrade class in Madison.

In Minnesota, the $253 million Anchor Bank, West St. Paul NA has launched a new educational program available for students of South St. Paul High School. The program, "Your Checking Account," will enable students to learn the techniques and responsibilities associated with maintaining a personal checking account. The program will be used as a banking simulation in select classes where personal financial management is an important part of the school's consumer education curriculum.

By Jackie Hilgert