News and Information About Financial Education From the FDIC
In This Issue
Message From the FDIC
This edition of Money Smart News highlights several new resources and initiatives brought to you by the FDIC and our partners. We are particularly pleased to report the start of our Youth Savings Pilot program which is part of our collaboration with the Consumer Financial Protection Bureau (CFPB). The purpose of this project is to encourage more financial institutions that are working with their community partners, such as schools, to further facilitate hands-on learning experiences that involve youth savings accounts. Based on research -- such as the Treasury Department study of combining financial education with access to a bank account at a school-based branch -- we believe youth savings programs are a solid strategy for developing healthy savings and other financial habits at a formative age. Not only that, but introducing young people to a banking opportunity at schools or other youth organizations (such as community centers) can promote economic inclusion for more families in a lasting way.
For educators working with teens, we note several recent initiatives that tested the effects of summer jobs programs, lessons on money management, and access to banking products for teens holding paying jobs. We highlight one bank's experience using the Money Smart curriculum (see the first of our Success Stories below) and a new report from the CFPB on summer youth employment. Also be aware that a recent change in the Workforce Investment Opportunity Act, the law that facilitates federal funding of summer jobs programs, will begin to require financial education training for participants. Stay tuned for future coverage of opportunities to use this new law as regulations implementing the Act are developed by the U.S. Department of Labor.
For those working with older consumers, our other Success Story covers the work of many partners helping the unbanked in Kentucky, and our Idea Exchange provides one financial educator's tips for use in homeless shelters and transitional housing. We also are pleased to report that Money Smart for Older Adults, a free resource from the FDIC and the CFPB to help fight elder financial exploitation, is now available in Spanish.
Finally, keep in mind that the FDIC's Community Affairs Branch staff can help your organization use financial education to strengthen low- and moderate-income families and others in need. We also are eager to hear from you about promising approaches or successful strategies involving Money Smart that can be shared with other educators in a future edition of our newsletter. Whether you are asking for assistance or offering ideas, send us an e-mail at moneysmartnews@fdic.gov.
Mark Pearce
Director
FDIC Division of Depositor and Consumer Protection
New Resources for Educators
Learn About the FDIC's New Curriculum for Youth
The FDIC's Money Smart curriculum is phasing in new instructor-led components geared toward grades Pre-K through 12 and will eventually replace the current Money Smart for Young Adults and Money Smart for Elementary School Students. The Pre-K through Grade 2 curriculum was released in late September on the FDIC's Web site and is being tested in pilots this fall, and feedback is welcome. The curricula for Grades 3-5, 6-8 and 9-12+ are scheduled to be released in early 2015. Each new curriculum includes an instructor's guide, a participant's guide, presentation materials, and a parent/caregiver resource guide. The latter is a new addition to the Money Smart curriculum, recognizing the role of parents and caregivers in helping young people learn about finances. For more information on the new curriculum, check out our Web site at
www.fdic.gov/consumers/consumer/moneysmart/young.html.
Resources for Parents and Caregivers of Youth
The CFPB, in collaboration with the FDIC, launched an education and awareness campaign to promote existing tools and resources that parents and caregivers can use to teach children about financial topics. Go to
www.consumerfinance.gov/parents.
FDIC and CFPB Publish Spanish Version of Resources on Elder Financial Exploitation
On October 7, 2014, the FDIC and the CFPB launched a Spanish-language version of Money Smart for Older Adults, a free financial resource developed by the two agencies last year focusing on preventing, identifying, and responding to elder financial exploitation. This instructor-led module, which is part of the Money Smart curriculum, is designed to be provided to older adults and their caregivers by financial institutions, adult protective service agencies, senior advocacy organizations, law enforcement, and others. It contains a participant/resource guide and power point slides that can be downloaded free of charge from the FDIC at
https://www.fdic.gov/consumers/consumer/moneysmart/olderadult.html. Hard copies of the participant/resource guide can be ordered through the CFPB at
http://promotions.usa.gov/cfpbpubs.html.
FDIC Consumer News Features Tips on Preparing Financially for a Stressful Life Event
The Summer 2014 issue of FDIC Consumer News features tips on preparing financially for stressful life events that include disability or death, plus basic strategies for helping others facing a personal hardship. The edition also reports on enhancements to the FDIC Web pages explaining deposit insurance (see more about that below), tips for rebounding from a bad credit history, and basics to know about new credit and debit cards that contain a computer chip for added security. Financial educators are encouraged to use the FDIC Consumer News as a resource for their students or other clients. See this issue and get subscription information (the newsletter is available free) at
www.fdic.gov/consumers/consumer/news/cnsum14.
Strategies From the FDIC on Ways to Save at the Bank
The Spring 2014 issue of FDIC Consumer News features questions to ask plus money-saving tips and strategies to consider when it comes to banking and borrowing. For example, it features five basic questions to help "find" money to put into savings, plus strategies and resources that can help individuals reach their savings goals. This edition also includes a variety of simple suggestions for safe shopping, buying and ways to pay. Find this issue at
www.fdic.gov/consumers/consumer/news/cnspr14.
The FDIC Updates Its Financial Education Site for Young People
The FDIC's "Learning Bank" Web site, which teaches young people about money management and advises parents and teachers on how they can help, was recently updated with a new look and added resources, including a quiz about spotting scams. Please visit
www.fdic.gov/about/learn/learning.
Improvements to the FDIC's Deposit Insurance Education Materials Online
The FDIC announced significant improvements and additions to the deposit insurance education materials available on our Web site. The enhancements are designed to improve the presentation of deposit insurance information for the general public through a variety of resources, including two new videos. All of the FDIC's deposit insurance coverage resources can be found at
www.fdic.gov/deposit.
New Web Address for Money Smart's Self-Paced Learning Program
The FDIC's
Money SmartComputer-Based Instruction program, which includes two age-focused learning paths for adults and young adults, has a new URL. Go to
http://moneysmartcbi.fdic.gov/login/login.php.
More Tips and Information
Money Smart Tips for Teaching Individuals in Transitional Housing
In this edition of the "Money Smart Idea Exchange: Teaching Tips You Can Use," learn about strategies being used to provide financial education classes to residents of homeless shelters and transitional housing. Read the tips at
www.fdic.gov/consumers/consumer/moneysmart/newsletter/ideaexchange/sumfall2014.html. If you have tips on any topics that you would like to share with other financial educators, send them to
MoneySmartNews@fdic.gov.
Our Latest Money Smart Success Stories: From Promoting Summer Jobs for Youths to Helping the Unbanked
Learn how one Money Smart Alliance Member, a major bank, helps students earn income and make financial decisions through summer employment, and how another Alliance Member assists low- and moderate-income unbanked individuals by providing connections to free or low-cost banking products. Visit
www.fdic.gov/consumers/consumer/moneysmart/newsletter/sumfall2014/stories.html
FDIC Releases Results of 2013 National Survey of Unbanked and Underbanked Households
On October 29, 2014, the FDIC released the results of its third national survey of unbanked and underbanked households, the most comprehensive survey of its kind in the United States. The survey, conducted every two years by the FDIC in partnership with the U.S. Bureau of the Census, provides the banking industry and policymakers with insights and guidance on the demographics and needs of the unbanked and underbanked. New to the 2013 survey are questions related to how consumers access their bank accounts. Findings indicate that the percentage of unbanked households declined from 8.2 percent in 2011 to 7.7 percent in 2013, while the share of underbanked households remained essentially unchanged at 20.0 percent. To read or download a copy of the survey and additional information, go to
www.fdic.gov/householdsurvey.
FDIC Advisory Committee Discusses the New Survey Results, Other Topics
The FDIC Advisory Committee on Economic Inclusion (ComE–IN) met on October 29, 2014, and focused on safe banking products, the nationwide "Bank On" program that helps foster positive banking relationships between consumers and financial institutions, and the FDIC's survey of unbanked and underbanked households. To access materials and a video of the meeting or otherwise learn more, visit
www.fdic.gov/about/comein/2014/2014-10-14_meeting.html.
Other Developments
The FDIC Launches a Youth Savings Pilot
The FDIC launched a pilot program to identify and highlight promising approaches to offering financial education tied to the opening of safe, low-cost savings accounts to school-aged children. The pilot consists of FDIC-insured financial institutions that already work with schools and/or non-profit organizations to help youth open savings accounts in conjunction with financial education programs. The first phase of the pilot is underway. In April 2015, the FDIC is scheduled to solicit banks to participate in the second phase. The FDIC plans to report in 2016 on the results of the pilot and provide banks with best practices for working with schools or other organizations and combining financial education with access to a savings account. Learn more at
http://www.fdic.gov/youthsavingspilot.
CFPB Pilot Program Focuses on Summer Youth Employment and Financial Capability
The CFPB developed new tools to help communities include financial skills as part of their youth employment programs. The CFPB started with a pilot program this summer in Providence, Rhode Island; St. Louis, Missouri; Evansville, Indiana, and Little Rock, Arkansas. Results will be gathered and distributed to other communities, most likely in 2015. To learn more, visit
http://www.consumerfinance.gov/blog/summer-jobs-are-a-perfect-time-to-build-financial-skills-for-young-people.
Financial Education Resources From the NCUA
The National Credit Union Administration (NCUA), a member of the interagency Financial Literacy and Education Commission (along with the FDIC), has come out with new financial education resources for consumers and financial educators. These resources include videos, calculators and other resources for teaching young people about money-management skills that can be used in the classroom and at home. The site also contains "Hit the Road," an interactive, savings-focused adventure game and is located at:
http://www.mycreditunion.gov/tools-resources/Pages/default.aspx.
Congressional Hearing Discusses Promoting Financial Literacy Through Technology
On April 30, 2014, the House Financial Services Subcommittee on Financial Institutions and Consumer Credit examined how technology and innovations in mobile banking can be used as a tool to help consumers track their spending and saving and make better decisions for their future. Financial educators interested in reading the written testimony of the witnesses or watching the hearing to gain insights into these issues should visit
http://financialservices.house.gov/calendar/eventsingle.aspx?EventID=377228.
