Financial Education and The Money Smart Program
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Financial Education and The
Money Smart Program
2013 Accounting and Financial
Women’s Alliance
Annual Conference
Indianapolis, IN
FDIC’s Primary Responsibilities
Provide Federal deposit insurance for banks and
savings associations in the United States.
Perform duties of Receiver for failed banks
and thrifts and then liquidates assets.
p
Supervise and enforce consumer protection
p and
safety and soundness laws at state-chartered
nonmember banks.
Facilitate community development efforts.
2
1Why is the FDIC involved
in financial education?
Reasons include:
1. To help fight predatory lending
2. To encourage financial institutions to
identify untapped markets
3. To assist consumers in shaping
p g their
financial future
4. Complicated financial landscape
3
Banking Status of Households
Banked, but
Underbanked
Fully Banked, Status
68 8
68.8 Unknown * 2
Unknown,* 2.99
Unbanked, 8.2
Underbanked,
20.1
Notes: Percentages are based on 120.4 million U.S. households. Percentages may not sum to 100 because of rounding.
* These households are banked, but there is not enough information to determine if they are underbanked.
4
2More Unbanked Data on
www.economicinclusion.gov
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Money Smart Changes
Behavior
• Statistically significant improvements 6-12
months
th after
ft M Money S Smartt in:
i
– Unbanked participants opening account
– Banked consumers selecting a new account
(comparison-shopping)
– Using spending plans (budgets)
– Paying bills on-time
6
3Financial Education: The First Step
Building wealth
Buying a home and/or Creation of long-term
starting a small business assets
Developing a budget and Opening a Savings and/or
saving money Checking Account
T
Trust
t between
b t consumer and
d E t bli hi Relationship
Establishing R l ti hi
financial institution with a Bank / Credit Union
Financial Education Can Be the Building Block to...
7
Money Smart Features
Available in multiple languages
Available in multiple media formats
No licensing fee or copyright restrictions
Scalable for more sophisticated consumers
Designed for the Un-banked and Underbanked
Flexible – A la carte approach
Easy to Learn
Easy to Teach
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4Product Suite
Self-Paced/
Instructor-Led
Internet-Based
9
Money Smart for Adults
The Modules
• Bank on It In Nine Languages
• Borrowing Basics • English
• Chinese
• Check It Out • Haitian Creole
• Money Matters • Hindi
• Pay Yourself First • Hmong
• Korean
• Keep It Safe • Russian
• To Your Credit • Spanish
• Charge It Right • Vietnamese
• Loan To Own
• Your Own Home
• Financial Recovery Two • Instructor-led
Formats • Self-paced
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5Money Smart for Young
Adults
The Modules
For ages
•Bank On It 12 20
12-20
•Check It Out
•Setting Financial Goals
•Pay Yourself First
Mapped to •All 50 states, DC, Guam and the VI
•Borrowing Basics Educational •Jump$tart national financial
literacy standards
•Charge It Right standards
for:
•NCEE national economics
standards
•Paying for College and Cars
•A Roof Over Your Head
Two • Instructor-led
Formats • Self-paced
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Computer--Based Instruction
Computer
• Can be either a:
– Supplement to instructor-led training
– Stand-alone training
• 20-30 minutes per module
• Certificates of completion
• Available
A il bl iin EEnglish
li h and
dSSpanish
i h
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6MP3 Version
• Money Smart Podcast Network
• Suitable for use with virtually all portable
audio players
• Grouped into four categories
– General
– Checking & Savings
– B dg ti g & Savings
Budgeting S i g
– Credit
• Enhanced version coming soon!
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Money Smart for Small
Business
The Modules
• Organizational Types Jointly
• Time Management produced
• Financial Management
• Recordkeeping by FDIC
• Banking Services and SBA
• Credit Reporting
• Risk Management
• Insurance
I
• Tax Planning and Reporting
• Selling Your Business and
Succession Planning
Instructor-Led Training
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7Money Smart for Elementary
School Students
Two components:
p
For ages
• A teacher’s manual 5-8
for use by anyone
leading a group of
youngsters in a
discussion about
money
• A coloring/activity
book for the students
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Money Smart for Older Adults
A single stand-alone
module
d l Jointly
produced
•Raises awareness among by FDIC
older adults and their
caregivers on how to and CFPB
prevent elder financial
exploitation
p
•Encourages advance
planning and informed
financial decision-making Instructor-Led Training
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8Train--the-
Train the-Trainer Program
• Train-the-Trainer Video
– About
Ab t half
h lf an hour
h overview
i
– English and Spanish
– Viewable online
• Train-the-Trainer workshops
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Money Smart Alliance
• Money Smart Alliance Members can assist
by:
– Hosting classes
– Presenting or promoting Money Smart
– Enhancing delivery and distribution networks.
– Funding local efforts
– Evaluating implementation efforts
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9FDIC’s Role
• Distribute the curriculum to potential
i t t
instructors
• Provide technical assistance, possibly
including linking sites interested in
delivering financial education with
potential instructors
• Teach Train-the-Trainer classes
• Research & publishing best practices
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Ideas for Using Money Smart
• Homebuyer education classes
• Post-homebuyer
P th b ttraining
i i
• Volunteer Income Tax Assistance clients
• Job and career training sites/ One Stops
• Employee Orientation
g
• Faith-based organizations
• Rehabilitation/intervention programs
• Social service centers
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10Money Smart News
• View online or subscribe
• Released quarterly
• Provides:
– Success stories
– Updates on the Money Smart program
– Other items potentially of interest to
financial educators
• Submissions are welcome
21
FDIC Consumer News
• Offers practical guidance on becoming a
smarter user of financial services
• Each issue offers helpful hints, quick tips,
and common-sense strategies to protect
and stretch hard-earned dollars
• Quarterly
Q y
• Re-printable
– Blank space on the back
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11CONTACT INFORMATION
Tracie Morris
Acting Community Affairs Specialist
tmorris@fdic.gov
(703) 254-2375
www.fdic.gov/moneysmart
www.fdic.gov/consumernews
communityaffairs@fdic.gov
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