The Federal Deposit Insurance Corporation (FDIC) recognizes the
importance of financial education, particularly for those with little or
no banking experience. In 2001, the FDIC started a national financial
education curriculum by launching Money Smart, a comprehensive financial
education curriculum designed to help individuals outside the financial
mainstream enhance their financial skills and create positive banking
relationships. The FDIC has reached over 2.5 million consumers.
Financial education fosters financial stability for individuals,
families, and entire communities. The more people know about credit and
banking services, the more likely they are to increase savings, buy
homes, and improve their financial health and well being. The Money
Smart curriculum helps individuals build financial knowledge, develop
financial confidence, and use banking services effectively.
The Money Smart program may be used by financial institutions and
other organizations interested in sponsoring financial education
workshops. Collaboration is important to the success of any education
effort. The FDIC encourages banks to work with others in their
communities to deliver financial education and appropriate financial
services to individuals who may be unfamiliar with the benefits of
having a relationship with an insured depository institution.
The Money Smart program can help banks fulfill part of their
Community Reinvestment Act obligations. The Community Reinvestment Act
of 1977 (CRA) encourages federally insured banks and thrifts to help
meet the credit needs of their entire community, including areas of
low-and moderate-income. When a bank's CRA performance is reviewed, the
institution's efforts to provide financial education and other retail
services are a positive consideration.
The FDIC continues to work diligently to form alliances with
financial institutions, national non-profit organizations and consumer
based groups, federal, state and local agencies to promote financial
education.
