Guest Viewpoint: Financial education is a smart investment

In announcing NSBA’s endorsement, Donna Gambrell, deputy director of the FDIC’s Division of Supervision and Consumer Protection, said, “It is never too early to provide training in the area of financial education.”

Money Smart is written at the sixth-grade level, but can be adapted for age-appropriate classroom instruction for kindergarten through grade 12.

The Spring 2005 special issue of FDIC Consumer News -- “Taking Control of Your Finances:.A.Special Guide for Young Adults” -- lists a number of common mistakes young adults make with money. These include buying unnecessary items, failing to consider the cost of interest charges and other fees, getting too deeply in debt, paying bills late or otherwise tarnishing their credit record, having too many credit cards, and not saving enough for future needs, such as buying a home, owning a business, or saving for retirement. Clearly, many young people today could benefit from a financial education course.

The FDIC has long recognized the importance of financial education, particularly for people with little or no banking experience.

In 2001, the FDIC initiated a national financial education campaign by developing Money Smart, a training program to help adults outside the financial mainstream enhance their money-management skills and create positive banking relationships.

Financial education fosters financial stability for individuals and entire communities. The more people know about credit and banking services, the more likely they are to increase their savings, purchase homes, and improve their financial health and well being.

It is particularly important for young people to understand complex financial issues if they are to succeed in today’s rapidly changing society.

The Money Smart curriculum helps students build financial knowledge, develop financial confidence, and use banking services effectively.

The FDIC offers this educational tool free of charge with no copyright restrictions to consumer, community, and faith-based organizations; financial institutions; primary and secondary school systems; and colleges and universities. Money Smart contains everything necessary to begin teaching the program immediately and includes take-home guides and other resources for students.

The Money Smart curriculum consists of 10 instructor-led training modules. It is available on CD-ROM in English, Spanish, Chinese, Korean, and Vietnamese. Each module includes a comprehensive guide for instructors, including scripts, exercises, and resource material for class participants.

There is also an interactive version of Money Smart available for computer-based instruction  in two formats: as a CD-ROM and on the FDIC’s website. The interactive version, available in English and Spanish, can be used to complement formal classes, serve as a refresher course, or for independent study.

Some topics covered include “Bank on It,” an introduction to banking services; “Pay Yourself First,” explaining why people should save; and “Money Matters,” which describes how people should keep track of their money.

Money Smart can be taught in its entirety, or specific modules can fill in the gaps in other financial education programs.

In 2003, Money Smart was awarded the Service to America Medal by the Partnership for Public Service. This medal recognizes organizations that have shown a strong commitment to public service and have made a significant contribution that is innovative, high-impact, and critical for the nation. It affirms that the FDIC is on the right track in its efforts to help people to become self sufficient.