Financial Literacy Month

The Importance of Financial Education

April 18 751x1024 The Importance of Financial Education

By Senator Josh Stein, 16th District of North Carolina Senator.

Financial Literacy is critically important to the health of our nation and our state. If anyone ever doubted that statement, just consider our current economic situation.

We are in the midst of a slow recovery from the Great Recession created by the financial crisis, which was a result of financial markets that were out of whack and borrowers not understanding what they were getting themselves into. Read more…

POSTED: April 18, 2014 | BY: Annamarie Cerreta | TAGS: , , , , , ,

The Necessity of Financial Education

April 17 150x150 The Necessity of Financial Education

By Richard Fisher, President & CEO of the Federal Reserve Bank of Dallas.

I am excited to express my support of Financial Literacy Month, an extremely important effort. Learning to make sound financial decisions is a skill that positively impacts people throughout their lives. I commend all of the educational institutions and non-profits that spend countless time and energy providing financial education. Read more…

POSTED: April 17, 2014 | BY: Annamarie Cerreta | TAGS: , , , , , , ,

Financial Literacy within Our Communities

April 16 240x300 Financial Literacy within Our Communities By Carolyn Berkowitz, Managing VP of Community Affairs at Capital One; President of the Capital One Foundation.

Today, young people are facing challenges no other generation has faced as they become adults and adapt to an ever changing world. The great recession has left us a job market and economy that are still rebounding, while the cost of college and living are higher than ever. If our children are to grow up to be productive, independent and fulfilled, it is imperative they understand the principles of money management — how to use money wisely, how to save it and how to make it work for them.

Research shows that millennials feel strained when it comes to personal finances. In fact, earlier this year, FINRA released a survey that shows 36% of 18 to 24 year olds have student loan debt and 55% of them fear they won’t be able to pay down their loans. Only one third of respondents have emergency savings, 31% have unpaid medical bills and nearly half carry a balance on their credit cards. Read more…

POSTED: April 16, 2014 | BY: Annamarie Cerreta | TAGS: , , , , , , , , ,

Advocating Financial Literacy

April 15 199x300 Advocating Financial LiteracyBy Congressman Ruben Hinojosa, 15th District of Texas

I am proud to be Co-Chair and Co-Founder of the Financial and Economic Literacy Caucus (FELC) in the U.S. House of Representatives. In 2005, former Congresswoman Judy Biggert and I joined forces to found the first Congressional caucus devoted to furthering financial literacy for all Americans. Over the years, FELC has supported legislation, hosted briefings, and engaged federal agencies on promoting financial literacy at all levels of policy. I am happy to have Congressman Steve Stivers of Ohio, as the new Co-Chair for our Caucus. We share a belief in the power of financial literacy to decrease inequality and increase financial stability and hope for one’s future. Read more…

POSTED: April 15, 2014 | BY: Annamarie Cerreta | TAGS: , , , , , , ,

The work of the President’s Advisory Council on Financial Capability for Young Americans

April 14 215x300 The work of the President’s Advisory Council on Financial Capability for Young Americans

By Beth Kobliner, Member of the President’s Advisory Council on Financial Capability for Young Americans; Author of the New York Times bestseller Get a Financial Life.

I certainly hope I’m wrong about this one.

But when results from the first PISA international test of financial literacy are released in July, I have a sneaking suspicion that the financial know-how of young Americans will be disappointingly low when stacked up against their peers around the world. But hey: If that turns out to be true, let’s not blame a bunch of 15-year-old kids (they’re the ones who took this Program for International Student Assessment test back in 2012). No, we grown-ups should be pointing the finger right back at ourselves. The fact is we are not adequately preparing our kids for a financial literacy test—or, more importantly, for the real-life tests to come as these young adults make their way in a complex financial world. Thanks to the CEE’s annual Survey of the States, we know that while four additional states now require students to study personal finance, that makes just 17 states total.

We can do better—and we will do better. Read more…

POSTED: April 14, 2014 | BY: Annamarie Cerreta | TAGS: , , , , , , ,

Life After High School

April 11 214x300 Life After High School

By Jeffrey Lacker, President of the Federal Reserve Bank of Richmond.

What path should a student choose after high school? Apply to college? Join the workforce? Enroll in career or technical training? Median earnings for college graduates are around $50,000 annually, compared to $28,000 for high school graduates, while the unemployment rate for college graduates is 3.4%, nearly half the 6.4% rate that high school graduates currently face. Given the numbers, it might be tempting to conclude that college is the best path for everyone. However, this recommendation takes into account neither the uncertainty lurking behind the reported numbers nor the preferences and constraints of the individual. Read more…

POSTED: April 11, 2014 | BY: Annamarie Cerreta | TAGS: , , , , , , , , ,

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