Federal Deposit Insurance Corporation
Department of Labor
FDIC, DEPARTMENT OF LABOR INTRODUCE MONEY SMART PROGRAM
FOR IMMEDIATE RELEASE PR-6-2001 (1-19-2001)
Media Contact: Phil Battey (202) 898-6993
The Federal Deposit Insurance Corporation (FDIC) and the Department of Labor today announced a joint initiative, called Money Smart, which offers basic financial education for the first time to people taking part in Welfare-to-Work and Workforce Investment Act programs nationwide.
Beginning in the second quarter of 2001, Money Smart will be available through a national network of more than 800 One Stop Centers, which provide employment and training services for persons seeking new jobs or entering the workforce, including individuals participating in Welfare-to-Work programs. The program also gives financial institutions a new tool to use in serving their communities.
Developed by the FDIC, Money Smart is designed to help adults currently outside the financial mainstream build financial knowledge and develop positive relationships with financial institutions.
"This is an important initiative, and the FDIC is delighted to partner with the Department of Labor to address the needs of individuals in Welfare-to-Work and Workforce Investment Act programs and their families," said FDIC Chairman Donna Tanoue.
"Financial education is important to prepare workers for a secure future," said Secretary of Labor Alexis M. Herman. "Money Smart will expand the Labor Department's efforts to help American workers and their families improve their financial fitness."
Money Smart consists of 10 training modules covering basic financial education topics. The modules are being piloted in the District of Columbia's Naylor Road One Stop Center and with the District of Columbia's Office of Banking and Financial Institutions and the North Capitol Neighborhood Development Corporation.
Said one student from the class at the Naylor Road One Stop Center after opening her first checking account at a local bank: "I got a lot out of this program and now understand that I am more than a customer. I can ask questions. I feel more confident and comfortable at the bank."
The Money Smart program will be ready for distribution to One Stop Centers and financial institutions in the second quarter of 2001. The program's 10 modules are:
Bank On It - an introduction to bank services
Borrowing Basics - an introduction to understanding credit
Check It Out - how to open and maintain a checking account
Pay Yourself First - the importance, benefits, and methods for saving money
Money Matters - preparing a personal budget
Keep It Safe - consumer rights and responsibilities
To Your Credit - the importance of credit history
Charge it Right - the costs and benefits of using a credit card
Loan To Own - the costs and benefits of consumer loans
Your Own Home - an introduction to home loans
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Congress created the Federal Deposit Insurance Corporation in 1933 to restore public confidence in the nation's banking system. The FDIC insures deposits at the nation's 10,101 banks and savings associations and it promotes the safety and soundness of these institutions by identifying, monitoring and addressing risks to which they are exposed.
FDIC press releases and other information are available on the Internet via the World Wide Web at www.fdic.gov and may also be obtained through the FDIC's Public Information Center (800-276-6003 or (703) 562-2200).