WASHINGTON — CUNA's recent letter to the Treasury Department makes the case that not-for-profits are just the right organizations to support the nation's strategy to increase the financial literacy of all Americans pointing to the many education efforts of credit unions.
The Treasury's Financial Literacy and Education Commission recently requested comment on the subject of raising the financial literacy levels of kindergarten through postsecondary students in the United States.
The CUNA letter noted that the not-for-profit sector can participate in a number of ways in promoting financial education. "Credit unions have traditionally considered financial education to be part of their social mission. Indeed, education is one of the operating principles of the international credit union movement," stated the CUNA letter. "Besides providing numerous programs and materials that credit union volunteers can utilize at schools to teach financial education, CUNA hosted a National Financial Literacy Summit in September last year to bring together major organizations involved in the credit union movement's financial literacy initiatives to explore the future of those efforts."
The letter went on to highlight some major CUNA and CU initiatives including: The Jump$tart Coalition for Personal Financial Literacy; a CUNA partnership with the National Endowment for Financial Education and the Cooperative Extension Service to teach the High School Financial Planning Program to high school seniors across the nation; JA's Biz Kid$ sponsorship; the National Youth Involvement Board; and outreach to Hispanic communities.
NAFCU President/CEO Fred Becker recently touted the "extraordinary impact" credit unions are having on youth financial literacy.
A NAFCU comment letter sent in response to the Treasury's request regarding financial literacy of kindergarten through postsecondary students shines a light on how credit unions continue to reach out and educate younger members.
"According to NAFCU's July 2006 Flash Report data, 94% of responding credit unions offer financial education programs. Of those credit unions, a large majority are also offering youth-oriented programs: 73% of credit unions surveyed offer programs for members ages 25 and younger; 48% offer programs for high school students; and 42% provide education oriented toward younger, elementary school children. Additionally, NAFCU member credit unions indicate that 40% offer programs for middle school students, while 30% specifically target college students," stated Becker in the comment letter.
The letter continued, "NAFCU and its member credit unions know that financial illiteracy is an issue that touches all Americans–at every age and income level. Financially illiterate families in difficult economic situations can easily fall victim to predatory lending and other unscrupulous practices."
NAFCU has developed a financial education program based on the Federal Deposit Insurance Corporation's Money Smart program.
NCUA's JoAnn Johnson, a former teacher, is committed to using education to battle financial woes.
"Financial literacy is a vital starting point to strengthening the economy while helping Americans achieve their dreams," she said. "By teaching the wise use of credit and the advantages of prudent money management, financial literacy fosters economic growth and empowerment. The bottom line is that the more consumers know about credit and financial services, the more likely they are to increase savings, become homeowners, and improve their financial position."
NCUA serves as a member of the Financial Literacy and Education Commission, which was established by Congress, composed of representatives from 20 federal agencies, and chaired by the Secretary of Treasury. Recently, Johnson was selected by the commission to serve as chairman of the www.MyMoney.gov Web site subcommittee.
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