Federal Reserve

Financial Literacy: Benefits for the “Micro” and the “Macro”

By Scott Wolla, Senior Economic Education Specialist, Federal Reserve Bank of St.Louis.

In a general sense, to be “literate” is to have knowledge or skill in a particular field. So literacy in reading, for instance, involves developing the skill of reading. If you are literate in this sense, you can read a novel by Charles Dickens, your local newspaper, or a comic book. But it does not usually involve the student memorizing facts about reading, such as how many books the typical child reads (or should read) in a given year. While those facts might have value, they probably have little value for learners. Read more…

POSTED: April 18, 2013 | BY: Leslie Rasimas | TAGS: , , , , , , ,

Council for Economic Education Introduces K-12 National Standards for Financial Literacy

The Council for Economic Education (CEE) is pleased to introduce the National Standards for Financial Literacy, a framework for the body of knowledge and skills that should be contained in a K-12 personal finance curriculum. Developed by a team of experienced and talented economists, education specialists at Federal Reserve banks, and financial education researchers, the National Standards for Financial Literacy raise the bar for financial literacy education.

The standards contain the six areas of knowledge and understanding that are fundamental to personal finance: Earning Income; Buying Goods and Services; Using Credit; Saving; Financial Investing; and Protecting and Insuring.  Each standard emphasizes decision-making skills by explicitly relating planning and goal setting, financial decision-making, and assessing outcomes to each standard. Through the standards, students learn how their personal situations and preferences affect their financial decision making, while beginning to understand the trade-offs inherent in every choice they make.  In the end, more informed choices lead to better choices as well as greater satisfaction with the choices that are made. Read more…

POSTED: April 16, 2013 | BY: Leslie Rasimas | TAGS: , , , , , , , , , , ,

Focusing on Major Financial Decisions – Richmond Fed President Shares his Perspective

Jeff Lacker 300x199 Focusing on Major Financial Decisions   Richmond Fed President Shares his PerspectiveBy Jeffrey M. Lacker, President of the Federal Reserve Bank of Richmond; CEE Board Member.

What’s the first thing you think of when you read the words “financial literacy”? How to write a check? There’s sure to be a website to help you with that. In fact, if you Google it, you’ll get about 1.4 billion results. How to create a budget? You’ll find more than 2.8 billion results. In other words, there are plenty of resources to guide you through these and other financial decisions.

So it may surprise you to hear that the Federal Reserve Bank of Richmond has added to these options by creating a new financial education and resource website. One of the first things that you’ll notice, however, is that our site is not about every financial decision. It’s about big ones. And it reflects our belief that financial literacy efforts should focus on key financial decisions – ones that have major and long-term impacts for individuals and their families. Read more…

POSTED: April 2, 2013 | BY: Leslie Rasimas | TAGS: , , , , ,

Featured CEE Affiliate – EconomicsPennsylvania

EconomicsPennsylvania (EconPA), with continued collaboration from the local Centers for Economic Education, trained over 500 teachers in 2012, and will continue outreach efforts in 2013.

New partnerships are leading the way for increased outreach to the state’s students. EconPA and Bloomsburg University launched the inaugural Youth Entrepreneurial Experience Camp last year. Thirty-one students from across the state engaged in a 3-day intensive program to learn about business and entrepreneurial skills in a competition.  The camp was an all-expense paid venture for the students, and the top performers received a year of start-up capital and support; both winners have launched their ventures.

EconPA also partnered with the Federal Reserve Bank of Cleveland to host Youth Entrepreneurial Challenge Days, as well as hosting a Day of Learning with Lincoln Financial and Temple University’s Fox Business School for Title I Schools in Philadelphia.

Local students received attention as Pennsylvania was home to the first
place national team in the 2012 Capitol Hill Challenge, Lewisburg High
School, which dedicates much of their staff and resources to participating
in the various programs that EconPA offers (photo below).

A major success of EconPA stems from the network of Centers located at universities, school district offices, business corporate centers and local banks for program delivery—ensuring trainers are at ground level to train educators. EconPA continues to raise the stakes for economic and personal finance requirements by working with state legislatures and education specialists such as Michael MacDowell, Managing Director of the Calvin K. Kazanjian Economics Foundation and CEE Board member, who was asked by PA Governor Corbett to serve on a task force on post-secondary education.

EconPA was featured in CEE’s Winter 2013 CEE Report; download the newsletter to learn more about their efforts with students and teachers.

economicspennsylvania Featured CEE Affiliate   EconomicsPennsylvania

2012 Capitol Hill Challenge winners (l-r) Brett Clark Lewisburg High School student; Mark
DiRocco, Lewisburg Area School District Superintendent; Daniel Cole, Lewisburg High School student.

POSTED: January 24, 2013 | BY: Leslie Rasimas | TAGS: , , , , ,

Financial Collapse: A 10-Step Recovery Plan by Alan S. Blinder

Sunday’s New York Times featured this opinion piece by Alan S. Binder, professor of economics and public affairs at Princeton, a former vice chairman of the Federal Reserve and the author of “After the Music Stopped: The Financial Crisis, the Response and the Work Ahead.”

Blinder outlines his 10 Financial Commandments, which, he says, “were brazenly violated in the years leading up to the crisis.” Read more…

POSTED: January 22, 2013 | BY: Leslie Rasimas | TAGS: , , , , ,

CEE in the News: Financial literacy can help deflate the growing student loan debt bubble

CEE’s Survey of the States was once again utilized as the backbone of support for economic and financial education in our nation’s schools.

In last week’s USA TODAY, Sabina Bharwani and Carrie Sheffield encourage K-12 education in economics and personal finance to prevent the ever-climbing student debt from reaching uncontrollable proportions.

“Teaching personal finance, economics and business in schools is a fundamental task in our hypercompetitive world, yet too few of our schools are on board. In 2011, just 22 states required a high school course in economics and just 14 states required the offering of a course in personal finance, according to research from the Council for Economic Education (CEE). These classes offer a solid foundation for studying our ever-globalizing world and guidance on dealing with tempting credit card offers hitting students’ mail boxes at age 18.”

Read their full column here.

POSTED: January 14, 2013 | BY: Leslie Rasimas | TAGS: , , , , ,

Resources

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