American Express Grants Half a Million Dollars to Financial Literacy Programs.

Business Editors

The American Express Foundation announced today that it has awarded $500,000 dollars from its Economic Independence Fund to 18 non-profit organizations across the United States. Each of the organizations receiving an Economic Independence Fund grant will use the funds over a one-or-two year period to offer training for financial literacy programs or to teach direct financial literacy education to under-served population groups, including the newly employed, young workers, individuals moving from welfare to work and immigrants.

"We've heard from many of our legislative leaders, and even Federal Reserve Board Chairman Alan Greenspan, that financial illiteracy in America is reaching crisis levels," said Barry Murphy, executive vice president at American Express Financial Advisors. "American Express is committed to helping families learn how to manage money wisely, reduce debt, and to save and invest for the future. These everyday money management skills are the bedrock of economic independence."

Research by the American Savings Education Council revealed that more than 10 million American families lack even a basic checking or savings account at a bank or financial institution. The American Savings Education Council said this costs these families a lot of money because they often pay high fees for check cashing and bill payment services, while also being deprived of the ability to establish credit.

The 18 Economic Independence Fund grants, which range from $15,700 to $30,000, will be used by individual grantees to help advance the financial literacy of the target populations they serve. For example, City Team Ministries in San Jose, Calif. will offer money management classes to teach individuals recovering from substance abuse how to manage taxes, balance a checkbook, budget for everyday expenses, and to save for long-term goals such as buying a home.

Another organization, the Council for Disability Rights, located in Chicago, Ill. will use the funds to offer a train-the-trainer program to provide volunteer trainers with the skills and knowledge required to teach financial literacy to disabled adults.

"Our goal is to help support community organizations across the country that are working hard to help vulnerable individuals learn what it takes to achieve financial stability and economic independence," added Murphy. It's akin to the proverb that says `if you give a man a fish, he'll eat for a day, but if you teach a man to fish, he'll eat for a lifetime.' "

The Economic Independence Fund is administered jointly with the National Endowment for Financial Education (NEFE). Through funding from American Express, NEFE has developed a clearinghouse for more than 100 financial literacy programs and curricula. " It is NEFE's core belief that financial literacy can enable all Americans to fulfill their dreams regardless of their age or earning capacity, said William L. Anthes, Ph.D., president and CEO, NEFE. "The clearinghouse has become an important repository for community groups in need of financial literacy educational material."

The clearinghouse is located in the "Multimedia Access" section of the organization's Web site, located at www.nefe.org. NEFE is a non profit foundation dedicated to the mission of helping individuals acquire the information and gain the skills necessary to take control of their financial destiny.

This is the third year that American Express has awarded grants from its Economic Independence Fund. In 2000 when the program was piloted, 10 Economic Independence grants were awarded, totaling $160,000. In 2001, the fund was increased to $500,000 with 18 grants awarded.

Through philanthropic activities worldwide, American Express strives to be a good citizen in the communities in which the company does business and where American Express employees live and work. The American Express philanthropic program, which includes the American Express Foundation and corporate giving, makes grants to non profit organizations on behalf of the American Express Company and its subsidiaries, which include American Express Travel Related Services, American Express Financial Advisors and American Express Bank.

American Express Company (http://www.americanexpress.com), founded in 1850, is a global travel, financial and network services provider. It is a leader in charge and credit cards, Travelers Cheques, travel, financial planning, investment products and international banking, and has been a strong supporter of economic independence since the establishment of its Foundation in 1954.

NOTE TO EDITOR: Attached is a complete list of the 2002 recipients of
Economic Independence Fund grants and projects funded.

1)  City Team Ministries
    "Overcoming Barriers- Preparation for Financial Stability for
    those in Recovery"
    San Jose, CA

2)  Council for Disability Rights
    "Get a (Financial) Life!"
    Chicago, IL

3)  El Centro Hispano
    "Building a Better Future Financial Education Program"
    Durham, NC

4)  Human Services Program of Carroll County, Inc.
    "Money Management to Improve Self Sufficiency"
    Westminster, MD

5)  J.M. Murray Center, Inc.
    "Common Cents - Essential Budgeting and Banking Skills"
    Cortland, NY

6)  Literacy Volunteers of Maricopa County, Inc.
    "Financial Literacy for Immigrants"
    Phoenix, AZ

7)  Mercy Corps
    "Financial Literacy Mentor Corps for Special Needs Low-Income
    Clients"
    Portland, OR

8)  National Federation of Community Development Credit Unions, Inc.
    "Train-the-Trainer Financial Literacy Program for Community
    Development Credit Unions"
    New York, NY

9)  Neighborhood Housing Services of Connecticut, Inc.
    "FitnessCONNECTions"
    New Britain, CT

10) Neighborhood Housing Services of Phoenix, Inc.
    "Financial Fitness Literacy for Spanish Speakers"
    Phoenix, AZ

11) Neighborhood Housing Services of Santa Fe, Inc.
    "Financial Fitness for Life: A Program for Low-Income Homebuyers
    and Homeowners"
    Santa Fe, NM

12) Orleans Community Action Committee, Inc.
    "Self- Sufficiency Money Management"
    Albion, NY

13) Rural Opportunities Housing Corporation of Indiana
    "Hablemos de Dinero (Let's Talk About Money)"
    Muncie, IN

14) Tanana Chiefs Conference, Inc.
    "Financial Literacy Training for Alaska Natives of Interior
    Alaska"
    Fairbanks, AK

15) The Associated Blind, Inc.
    "Steps to Independence: Practical Money Management for the
    Disabled Individual"
    New York, NY

16) Urban League of Broward County, Inc.
    "Financial Literacy Opens Windows to the World (FLOWW)"
    Ft. Lauderdale, FL

17) Warren/Connor Development Coalition
    "'Dinner Club', Partnership for Economic Independence (PEI)
    Program"
    Detroit, MI

18) Young Women's Christian Association
    "Personal Financial Awareness and Empowerment Program"
    Wausau, WI