Federal reserve personal financial education initiatives.

Personal financial education, once primarily the concern of individual households and the organizations committed to assisting and educating them, now plays a prominent role in the work of many financial institutions, community and faith-based groups, nonprofit organizations, and local and federal government agencies. Growing concern about the level of knowledge needed to manage personal finances has resulted from the confluence of many factors, including an expansion of credit availability and changes in pension funding mechanisms that have made consumers more responsible for their long-term financial security. Also contributing to the rise of interest has been a marked increase in the number of providers and the complexity of the consumer products offered by the financial services industry. (1)

These trends underscore both the promises and the pitfalls of financial services and draw attention to the importance of deliberate financial planning and savings to achieving such life goals as buying a home, funding higher education, starting a business, and securing a comfortable retirement. In addition to affecting the quality of life of individual households, the attainment of these goals, when taken in the aggregate, has important macroeconomic implications, as a more financially educated population contributes to market efficiency and thereby helps promote the general economic welfare.

The Federal Reserve has for many years worked with educators and community groups to promote economic and financial education and consumer awareness. More recently, Federal Reserve Board Chairman Alan Greenspan, other Board members, and Federal Reserve Bank presidents have stepped up their advocacy of financial education, noting that technological advances and a changing financial marketplace require informed financial decisionmaking.

In recognition of the growing importance of successful personal financial management to individuals and the broader economy, the Federal Reserve System--from the Board of Governors at its central office in Washington, D.C., to the twelve regional Federal Reserve Banks and their Branches--has intensified its efforts, focusing on three strategic areas:

* increasing awareness of the importance of personal financial education

* participating in and facilitating collaborations to improve efficiency in the delivery of financial education

* studying the effectiveness of financial education programs

RAISING AWARENESS

National Awareness Campaign

In May 2003, the Federal Reserve System launched "There's a Lot to Learn about Money," a multifaceted, nationwide financial education campaign with two purposes: to highlight the importance of sound financial decisionmaking among American families and to raise awareness of the financial education resources available through the Federal Reserve and other providers. The campaign reached out to individuals, community groups, and consumer advocates through a variety of media. A website rich in information on borrowing, homebuying, wealth building, and other topics of interest to consumers was developed. A brochure full of tips for consumers on ways to take charge of their financial future was prepared. Public service announcements (PSAs) featuring Chairman Greenspan were recorded for radio and television, in English and Spanish. The System hosted a toll-free telephone number, advertised in the PSAs, through which callers could request copies of the brochure. And both the Board and the Reserve Banks hosted national, regional, and local events and education activities for the public throughout the months following launch of the initiative. (2)

The campaign's reach was broad. The 30-second PSAs were broadcast in many media markets across the country; the radio version was aired more than 37,000 times, and the television version 12,500 times, during the first twelve months of the campaign. The website averaged more than 9,700 visits a month over the period. And more than 141,000 brochures in English and 6,700 in Spanish were distributed.

Members of the Board were actively involved in the effort, beginning with a press conference in May 2003 at which Governor Edward M. Gramlich announced the campaign. In June, Chairman Greenspan, together with then-Richmond Reserve Bank President J. Alfred Broaddus, Jr., and Operation Hope CEO John Bryant, spoke to eighth grade students at a Washington, D.C., middle school about the importance of learning good money management skills. In September, Chairman Greenspan also appeared before the annual legislative conference of the Congressional Black Caucus to discuss the importance of financial education. (3)

Three days after launching the nationwide campaign, the Board, together with the U.S. Department of the Treasury, co-sponsored a roundtable on credit management for representatives of financial services organizations and community and consumer groups. (4) The participants identified the practices most important to effective management of personal credit: building savings to avoid high-cost debt and improve payment options; paying bills on time; paying more than the minimum payment; comparison shopping for credit and obtaining only the credit you need; and understanding your credit history and how it affects you. Those top practices were publicized in a press release issued jointly by the Board and the Treasury the following August. (5)

Federal Reserve Bank Activities

Activities undertaken by the Federal Reserve Banks were an important part of the awareness campaign and are an ongoing element of the Federal Reserve's efforts to promote financial education. The Reserve Banks have used creative programming, teacher training, sponsorship of public events, and development of new print and web resources to reach people of all ages in the twelve Federal Reserve Districts. For example,

* The Chicago Reserve Bank's 2003 edition of its annual "Money $mart Week" featured nearly ninety free educational events tailored for a wide range of groups--educators and students; children, parents, and seniors; public housing residents and first-time homeowners; small-business owners; and the general public--all promoting effective management of personal finances in one way or another. The events, many sponsored by local community organizations and financial institutions, were held in schools, community centers, libraries, and banks throughout the city. In 2004, Chicago's Money $mart Week grew to more than 100 events, and a similar week of activities was held in Detroit by the Chicago Reserve Bank's Detroit Branch.

* The New York Reserve Bank collaborated with local financial institutions, community organizations, the FDIC, and the local Operation Hope affiliate to launch the "Banking on Youth" program for innercity 16- to 18-year-olds who participated in the city's summer youth employment program. The program had both classroom and practical elements: A five-week course focused on management of personal credit, with an emphasis on savings; local banks opened savings accounts for the participants; and orientation sessions for the participants were used as opportunities to reach out to participants' families with information about banking and banking opportunities. Some of the young people saved as much as $2,500 over the summer. The Banking on Youth program is now being replicated in Buffalo, N.Y.

* The Cleveland Reserve Bank takes its "Great Minds Think!" education road show to cities throughout the District. At these free, day-long work shops, students and teachers learn about using economics and personal finance basics to make educated decisions. Workshop attendees discover economic principles portrayed in the world around them--in great literature, art, and contemporary movies. Teachers learn about economic policymaking and get tips on teaching economics and personal finance. Students take part in interactive activities, including an "inflation auction" that allows them to experience rapid deterioration in play money's purchasing power and "A Million or One?" which illustrates the power of compound interest and exponential growth.

* The Philadelphia Reserve Bank has established a faith-based initiative to make personal financial education available to low- and moderate-income individuals. Educational programs are presented by designated volunteers at participating places of worship; the Bank conducts train-the-trainer workshops for the volunteers.

* The Atlanta Reserve Bank brought together policymakers, researchers, business people, and educators in a policy-oriented examination of the current state of economic and financial education in Georgia. Sessions at this "Georgia Summit on Economic and Financial Education" considered curriculum, teacher training, and assessment, with a goal of identifying and understanding the practical linkages between economic education and financial education in the classroom and beyond. Governor Gramlich was a speaker at the conference.

* The San Francisco Reserve Bank's Community Affairs department has facilitated numerous meetings on Indian reservations to promote access to credit and financial education. At each meeting, a representative of the Consumer Credit Counseling Service, a nonprofit community service organization, describes ways the organization can help tribal members repair their credit and reach their financial goals. Several tribes have engaged the organization to develop training programs on their reservations.

* The Minneapolis Reserve Bank's Community Affairs department has taken a leadership role on the Youth Committee of the Native Financial Education Coalition, an organization that works to facilitate the exchange of information, forge partnerships, develop strategies for outreach and training, and identify gaps in information about the financial education needs of Native Americans. The Bank has assisted the coalition in developing pilot programs to bring Native youth together with financial education tools tailored to their needs.

* The Dallas Reserve Bank has translated its workbook on personal finances into Spanish and has added it to the Spanish-language portion of its website. The Bank has also added a Spanish-language option to its phone line for requests for publications and has distributed twenty thousand copies of the workbook this year. (6)

These and other Federal Reserve programs targeted to a variety of audiences are summarized in the table at the end of this article.

Recognition for Contributions

The Federal Reserve's efforts have been recognized by organizations that promote economic and financial literacy. The National Council on Economic Education (NCEE) presented its 2003 William A. Forbes Public Awareness Award to the System for its work to advance economic and financial literacy. And the Georgia Council on Economic Education (an affiliate of the NCEE) in May 2004 presented its first-ever Champion of Economic Education award to the Atlanta Federal Reserve Bank for its education efforts and its cooperation with other organizations in the state that promote economic education. The award was recognized in a special supplement to the Atlanta Business Chronicle.

FOCUSING ON EMPLOYEE EDUCATION

The Federal Reserve's outreach has also extended to its own employees. The Board and nearly all the Reserve Banks planned extensive programs of financial education for their employees following a 2002 meeting hosted by the Board at which private- and public-sector employers discussed ways to make workplace financial education successful. Attendees agreed that critical components of a successful program include basing education and communications on life events (marriage and retirement, for example), providing a dynamic and changing curriculum (one that is kept fresh and interesting), and delivering the information in both high-touch (in person) and high-tech (Internet and intranet) formats.

At the Board, an interdisciplinary staff group began meeting in early 2003 to plan an initiative to provide personal financial education for Board employees. The resulting program was announced in a letter from Governor Mark W. Olson to the Board's roughly 1,800 employees at their homes in mid-April 2003. The letter noted the reasons for the initiative:

      Educated consumers know how to save for their
   goals, use credit wisely, and avoid getting in over
   their heads. They know how to plan for unforeseen
   events that might otherwise result in financial crisis.
   And they know how to prepare for a financially
   secure retirement. These benefits would be reason
   enough to encourage financial education, but the Federal
   Reserve has a special interest in the topic. Educated
   consumers are one key to keeping our economy
   functioning well.

The goal of the Board's initiative first and foremost is to improve outcomes. The aim is not to create financial experts or to educate for education's sake. Rather, it is to improve the financial circumstances of Board employees' lives: to improve employees' ability to deal with emergency situations; to reduce their reliance on financial services that entail needless expense and may not help them best achieve their objectives; and to help them enjoy comfortable, financially secure retirements. The Board sees education as an important component of the overall effort to achieve these goals, but by no means the only one.

On the educational front, the Board's specific objectives are to increase employees' understanding of how Board-sponsored benefit programs can contribute to their financial well-being, to improve employees' knowledge of basic financial concepts and decisionmaking capability in the area of personal finance, and to encourage employees to adopt financial management behaviors that will help increase their short- and long-term savings and better manage or eliminate debt.

During 2004, the Board conducted twelve "lunch and learn" seminars for employees, each focusing on a different topic, such as financial planning, college funding, estate planning, investing, and retirement planning. Two additional, specially designed sessions were held for younger employees--specifically, summer interns and research assistants--to help them understand basic financial concepts and to stress the importance of saving at an early age. In addition, targeted communications highlighting key Board benefits and ways to use them effectively were developed, and communication about maximization of benefits was increased during the 2004 open season enrollment period.

A special section of the Board's employee website devoted to personal finances, called "Managing Your Finances," was developed. Information on the site is grouped under five topics (Basics of Money Management; Credit; Homeownership; Investing and Retirement; and Savings) and can be sorted by employee age (20s; 30s and 40s; and 50s and above) and life event (change in family status; caring for dependents; savings; retirement; and disability). Articles on personal finance topics are regularly featured on the site to remind employees of the importance of information and planning when handling personal finances. More than 2,000 visits to the "Managing Your Finances" page were recorded in the first five months.

The Board recognizes the benefits of employee education to employers as well as employees. In May 2004, Governor Gramlich described the Board's workplace financial education initiative at a meeting of the congressionally chartered Financial Literacy and Education Commission (described later), noting that

      Workplace education benefits both the employer
   and employee. For the employee, more knowledge,
   one hopes, will result in better financial decisions
   and overall financial well-being. . . . For the employer,
   research studies have shown that employees who are
   financially healthy are more productive. (7)

COLLABORATING IN THE DELIVERY OF FINANCIAL EDUCATION

The Federal Reserve System has partnered with several national organizations in recent years to promote and support their work in financial education. The Board of Governors holds an ex officio position on the board of the Jump$tart Coalition. Board officials and staff members participate in activities designed by the organization to promote awareness of the need for students to learn about basic personal financial management during the K-12 educational experience. (8)

Board staff members also participate in the American Savings Education Council, a nonprofit coalition of private and public institutions that seeks to raise public awareness of personal finance matters. (9) And they work closely with the U.S. Treasury Department's Office of Financial Education and the Agriculture Department's Cooperative Extension Service.

Several Reserve Banks have partnered with Operation Hope's Banking on Our Future (BOOF) program. Participants in BOOF's national banker volunteer corps teach young people in low-income communities the basics of checking and savings accounts and the importance of credit and investment. The goal of the program is to help America's youth understand how to make financial decisions that lead to long-term financial well-being. (10)

The Federal Reserve also participates in "America Saves," a nationwide campaign that encourages individuals and families to save and build wealth and assists them in their efforts, whether their goal is paying down debt, building an emergency fund, or saving for a home, an education, or retirement. The campaign is supported by a coalition of nonprofit, corporate, and government groups; overall management is provided by the nonprofit Consumer Federation of America. Board staff members advise the campaign and promote its goals among low- and moderate-income families. Locally, assistance may include such free services as wealth-building workshops, "coaching" on setting and planning for goals, and advice from certified financial planners on achieving goals. (11)

In addition to these national programs, the Federal Reserve System works daily with many local and regional organizations and institutions to increase awareness of the need for financial education.

EVALUATING THE EFFECTIVENESS OF FINANCIAL EDUCATION

At the same time it promotes personal financial education, on its own initiative or in cooperation with others, the Federal Reserve also actively engages in and encourages others to engage in research on the effectiveness of personal financial education programs. Research findings revealing the relationships among specific programs, change in level of knowledge, and change in behavior can guide program providers as they tailor program content, timing, and mode of delivery to particular populations.

Conducting Formal Studies

One research project conducted by Board staff members used data from the Surveys of Consumers on four financial-management activities--cash-flow management, credit management, saving, and investment--to look at connections between what consumers know and what they do. Overall, financial knowledge was statistically linked to financial practices: Consumers who knew more were more likely to engage in recommended financial practices. Although causality could flow in either direction, the study indicates that increases in knowledge may lead to improvements in financial management practices. (12)

Another study by Board staff members, also using data from the Surveys of Consumers, looked at the characteristics and learning preferences of households exhibiting various patterns of financial behavior. Level of knowledge about financial matters and type of financial learning experience were the only variables consistently associated with cash flow management, saving, and investing behaviors: Those who knew more and those who had learned about financial matters from family, friends, and personal experiences had higher scores, that is, a larger proportion reported such behaviors as paying bills on time, having an emergency fund, and having funds spread over different types of investments. The results suggest that increases in knowledge and experience can lead to improvements in financial behavior. However, a "one size fits all" or "one delivery technique fits all" approach to financial education will be less effective than an approach that targets specific learning groups and tailors the program to the group. (13)

The Board has entered into an agreement with the U.S. Department of Defense to conduct longitudinal research on the effectiveness of the military's financial education programs. The goal is to identify and quantify changes in attitudes and financial behavior associated with the programs and the persistence of any changes over time. A treatment group that attended a formal two-day financial education course and a control group not exposed to the course will be tracked over a period of years.

The Federal Reserve Banks are also pursuing studies of the effectiveness of financial education. The Minneapolis Reserve Bank is collaborating with a nonprofit organization to evaluate the benefits of financial education and homeownership counseling programs. The Chicago Reserve Bank has begun a study to determine the effect of mandated high school financial education courses on the financial behavior of students in adulthood. And the Philadelphia Reserve Bank is piloting a longitudinal study of the behavioral effects of consumer education and homebuyer counseling programs.

Assessing the Board's Internal Program for Employees

Program assessment is a critical component of effective financial education. At the Board, the first data have been collected to track the effect of its internal financial education initiative. While the effect on employee behavior could be more precisely determined through a more rigorous longitudinal study, staff agreed that trends in wage garnishments and benefits participation could serve as basic indicators of program effectiveness. Data for the period July 31, 2003-July 31, 2004, in the areas of wage garnishment and participation in the Board's Thrift Plan (the equivalent of a 401(k) plan), group legal plan, and Flexible Spending Account (FSA) plan were chosen to provide a baseline for comparison. Data as of July 2004 indicate improvement in all areas but Thrift Plan participation.

The proportion of employees whose wages had been garnished decreased considerably over the period, from 4.4 percent to 2.2 percent. Participation in the FSA plan increased from 37 percent of employees to nearly 40 percent, in part because of special efforts during new-employee orientation and the open season enrollment period to highlight the plan's dependent care feature and the benefits of putting aside money on a pre-tax basis. And participation in the group legal plan rose from 11 percent to 14 percent, in part because of efforts during open season to highlight the plan's financial planning component; according to the plan vendor, the proportion of employees enrolled is higher at the Board than at any of the vendor's other client companies.

In contrast to these positive effects, participation in the Thrift Plan declined. The overall participation rate dropped from 94 percent to 90 percent (only about half of new employees hired to date in 2004 have enrolled in the Thrift Plan despite additional efforts to explain the benefit). The participation rate remains impressive, (14) but further analysis and targeted educational programs will likely be undertaken.

Encouraging Research and Disseminating Findings

To facilitate the dissemination of findings as well as information about existing education programs, the Chicago Reserve Bank has added to its website a repository of studies related to financial education and a list of major financial education programs throughout the country. (15) Among the materials available on the website are papers on financial education presented at the System's 2003 biennial research conference on community development. These conferences seek to encourage and promote new research exploring issues and policies that affect access to financial services by traditionally underserved communities and consumers. Research on financial education will again be considered at the upcoming April 2005 conference, and those papers will be posted on the website after the conference.

NEXT STEPS

The Federal Reserve System's "There's a Lot to Learn about Money" campaign raised awareness of the importance of personal financial education, inspired numerous programs in local Reserve Bank communities, and broadened educational outreach to System employees. As an initial follow-on to its own effort, the System is advising the Council for the New American City of the U.S. Conference of Mayors on its nationwide campaign to promote financial education. The council's project, called "Dollar Wise," is a multiyear effort to encourage mayors to organize, implement, and publicize local financial literacy initiatives. (16) The goals are to educate consumers and increase their capacity to invest in their communities. The Federal Reserve is working with interested mayors to encourage local coalitions to devise community-based educational strategies reflecting the needs of participating cities in light of their demographics, resources, and capacity. This new partnership will engage mayors, local Reserve Banks, and community leaders in delivering community-based financial education in a myriad of ways.

In addition, the Board is working with other members of the Financial Literacy and Education Commission to carry out its charge to serve as a central point of information about government resources in the area of financial education. (17) This body, which was established by the federal Fair and Accurate Credit Transactions Act of 2003, has developed a financial education web portal with links to information on such topics as budgeting and taxes, fraud and scams, and retirement planning and has set up a toll-free number for consumer financial information. (18) The commission is developing a national strategy for financial empowerment to promote basic financial literacy and education among all Americans. The objective is to provide consumers with the resources and skills that enable them to understand, evaluate, and compare financial products, services, and opportunities--and, equally important, to avoid abusive, predatory, or deceptive credit offers and products.

The Federal Reserve System is committed to continuing its efforts to promote personal financial education. The challenge will be to support financial education in a way that makes effective use of the System's resources and national visibility and complements the resources already available. Future efforts will be guided by the answers to two questions: What can the Federal Reserve do that no one else can? And what results do we hope to achieve?

Federal Reserve System Financial Education Activities, by District

District        Activity                          Contact

BOARD OF        Teaching Teens about Money-       Rose Pianalto,
GOVERNORS       Workshop for middle and high      [phone]
                school teachers. Co-hosted with
                the Federal Reserve Bank of
                Richmond

                Lunch and Learn-Ongoing series    Terri Johnsen,
                of financial education seminars   [phone]
                for employees offering
                information on various
                financial planning and consumer
                protection issues

                Advisory support for national      Terri Johnsen,
                groups-Staff support for policy    [phone]
                development by national
                organizations, including
                Jump$tart, National Council for
                Economic Education, America
                Saves campaign, and working
                groups of the Financial
                Literacy and Education
                Commission

                Contributions to research and     Terri Johnsen,
                literature-Publication of         [phone]
                academic papers on various
                aspects of financial education,
                including "Household Financial
                Management: The Connection
                between Knowledge and Behavior"
                and "Financial Literacy: An
                Overview of Practice, Research,
                and Policy

                Consumer education brochures-     Terri Johnsen,
                Preparation and distribution of   [phone]
                brochures advising consumers of
                their rights and protections in
                connection with credit and
                deposit accounts and providing
                information on products that
                have generated numerous
                consumer complaints

BOSTON          School-based model-Personal       Marilyn Weekes,
                finance program for middle        [phone]
                school students in Boston
                public schools and in a
                Providence, R.I., urban school.
                Partners: Operation Hope; and
                Johnson & Wales University

                Adult-based model-Series of       Marilyn Weekes,
                four personal finance workshops   [phone]
                and a train-the-trainer session
                targeting caseworkers serving
                homeless families, welfare
                recipients, unemployed, and
                ethnically diverse populations
                in Springfield and Holyoke,
                Mass. Partners: Organization
                for a New Equality; and
                Partners for Community

                The New England and Caribbean     George (Scott) Guild,
                Economic Connection-Discussions   [phone]
                on financial literacy projects.
                Collaborators include the Essex
                National Heritage Commission;
                the National Park Service; and
                Salem State College

                The New England Economic          George (Scott) Guild,
                Adventure-Educational             [phone]
                initiative to teach middle
                school and high school students
                about improvements in living
                standards

                Identity Theft-Booklet in         Matt Quigley,
                English and Spanish explaining    [phone]
                what identity theft is, how it
                happens, how to protect
                yourself, and what steps to
                take if your identity is
                stolen; video also available

NEW YORK        First meeting of an               Steve Malin,
                intergovernmental, public-        [phone]
                private coalition to fight
                identity theft-Resulted in new
                interagency work groups,
                improved reporting, stronger
                links to a central base, new
                legislation, and changes in
                police procedures. Co-hosted
                with the Federal Trade
                Commission

                New York State Financial          Steve Malin,
                Literacy Coalition-Introduction   [phone]
                of Blue Star Certification
                program in New York area high
                schools; certification goes
                to schools at which three-
                fourths of seniors pass a
                rigorous financial
                literacy examination;
                individual students also
                receive recognition

                Foundations of Finance-Workshop   Steve Malin,
                on personal financial             [phone]
                management for college advisors
                at high schools and freshman
                orientation officers at
                colleges; also, workshops for
                college students, parents of
                college and high school
                universities and government
                agencies

                Banking on Youth-Program,         Arlene Abbass,
                including active-learning         [phone]
                activities, to teach financial    Connie Poniatowski,
                concepts to low-income young      [phone]
                people in New York City and
                Buffalo

PHILADELPHIA    Faith-based financial education   Marty Smith,
                initiative-Personal financial     [phone]
                education programs for low- and
                moderate-income individuals
                presented through their places
                of worship

                Longitudinal study of the         Marty Smith,
                effectiveness of homeownership    [phone]
                counseling and financial
                management skills

                Sponsorship of meeting-           Christy Hevener,
                Convening of financial            [phone]
                education providers in the
                greater Philadelphia area

                Participation on task force-
                Participation by Bank's
                president on the Pennsylvania
                Governor-s Task Force for
                Working Families to develop
                ideas for improving financial
                literacy, building wealth, and
                preventing lending abuses

                Promotion of financial            Andrew Hill,
                education curriculum for          [phone]
                teachers of K-12

                Production of training video to   Marty Smith,
                help people steer clear of        [phone]
                predatory lenders

CLEVELAND       Great Minds Think!-Education      Kelly Adams-Banks,
                road show offering                [phone]
                presentations on financial
                education and economic theory
                to students and teachers

                Financial Education: What Is It   Ruth Clevenger,
                and Why Is It So Important?-      [phone]
                Release of survey results

                Financial education               Ruth Clevenger,
                roundtables-Meetings at which     [phone]
                results of the Fourth District
                financial education survey were
                shared

                Creation of financial task        Ruth Clevenger,
                force-Creation of task force to   [phone]
                develop local partnerships on
                financial education

                Financial Education Consortium-   Ruth Clevenger,
                Broad-based coalition of          [phone]
                financial education providers,
                financial institutions, and
                community-based organizations
                to promote financial education
                in western Pennsylvania

RICHMOND        Minds in Motion-Savings-related   Lisa Turner,
                program involving students,       [phone]
                teachers, and parents that
                teaches children about the
                concepts of interest and
                compound interest

                Teaching Teens about Money-       Amanda Gibson,
                Workshop for middle and high      [phone]
                school teachers. Co-hosted with
                the Board of Governors

ATLANTA         Georgia Summit on Economic and    Tim Smith,
                Financial Education-Statewide     [phone]
                policy-oriented conference on
                personal finance

                Louisiana School Initiative-      Tim Smith,
                Presentation of economic and      [phone]
                financial education at almost
                60 schools

                Fed Financial Education Day-      Tim Smith,
                Recurring program of economic     [phone]
                and financial education for
                middle school students

                Georgia Bankers Roundtable-New    Juan Sanchez,
                Bank-sponsored program with a     [phone]
                focus on financial education

                Winners for the Future-Program    Tim Smith,
                on financial literacy and         [phone]
                economic education for high
                school students covering such
                topics as the real world,
                dressing for success, and
                interviewing skills

                Florida Housing Coalition         Juan Sanchez,
                Predatory Lending Workshop-       [phone]
                Workshop on the role of
                financial education in
                combating predatory lending

                Calhoun County Saves-Initiative   Juan Sanchez,
                emphasizing the value of          [phone]
                financial education and the
                importance of savings

                Immigrant Farmworkers Focus       Juan Sanchez,
                Group-Focus group to determine    [phone]
                how to tailor financial
                education initiatives to the
                immigrant farmworker population
                of Immokalee, Fla. Co-sponsored
                with HUD

CHICAGO         Chicago Money $mart Week-More     Liz Handlin,
                than 100 financial education      [phone]
                events for people of all ages

                Power of Money-Partnership with   Liz Handlin,
                a distribution firm enabling      [phone]
                the Bank to bring economic
                education to more than 720,000
                middle and high school students

                Expansion of CEDRIC (Consumer     Alicia Williams,
                and Economic Development          [phone]
                Research and Information
                Center) website

                Detroit Money $mart Week-150      Sheila McKean,
                financial education events for    [phone]
                people of all ages

                Marshall High School              Liz Handlin,
                Partnership-Tutoring and          [phone]
                mentoring program for inner-
                city schools

                Mexican Consulate of Chicago's    Harry Pestine,
                New Alliances Task Force for      [phone]
                Financial Education-
                Participation on task force to
                promote financial education
                and develop new programs,
                products, and services for
                Spanish-speaking and non-
                Spanish-speaking immigrants

                Asset Building Innovations:       Harry Pestine,
                Interactive Conference-           [phone]
                Sponsorship of conference
                focused on helping low-income
                individuals, families, and
                communities understand,
                participate in, and benefit
                from mainstream banking
                services and products and
                resulting in recommendations
                for change in government
                regulations and policies

ST. LOUIS       Planting Your Financial Future:   Glenda Wilson,
                Seeds for Success-One-day         [phone]
                Money Matters" workshop for
                women covering such topics as
                identity theft, investing and
                saving, and retirement

                Banking on Our Future-Class on    Glenda Wilson,
                savings and personal finance      [phone]
                for 11-year-olds attending
                summer camp

                Women's Financial Education       Glenda Wilson,
                Series-Personal financial         [phone]
                education programs for women
                ages 30-65

                Gateway to Financial              Glenda Wilson,
                Fitness-Teaching for and          [phone]
                serving on the board of a
                program that helps people
                achieve better financial health
                and improve their housing
                options

MINNEAPOLIS     Native Financial Education        Jacqueline Nicholas,
                Coalition (Youth Committee)-      [phone]
                Assistance in development of
                pilot programs to help Native
                youth get access to financial
                education tools

                St. Paul Foundation Credit Card   Jacqueline Nicholas,
                Project-Help in development of    [phone]
                plans to have major credit card
                issuers study the effect of
                early educational and
                counseling intervention on
                cardholders' subsequent
                financial performance

                The Academy of Finance-           David Fettig,
                Involvement in design of          [phone]
                program for high school juniors
                and seniors to benefit young
                adults, the financial services
                industry, and the community

                Montana Financial Education       Jacqueline Nicholas,
                Coalition-Discussion of           [phone]
                statewide financial education
                coalition

KANSAS CITY     Federal Reserve System Personal
                Financial Education website-
                Launch of website for System

                Banking on Kids-Development of    Annette LePique,
                student-operated bank at the      [phone]
                Boys and Girls Club of Greater
                Kansas City (first of several
                sites planned for the
                metropolitan area). In
                partnership with a local
                commercial bank

                Denver Financial Literacy         Ariel Cisneros,
                Network-Involvement in broad      [phone]
                civic partnership to develop
                network of financial education
                resources

                Academy of Finance-Sponsorship    Sharon Oamek,
                of programs in inner city         [phone]
                schools in Kansas City and
                Omaha

                Financial Education in            Steve Shepelwich,
                Oklahoma: Building Our Future     [phone]
                Together-Development and
                hosting of statewide symposium
                on financial education
                challenges and opportunities in
                Oklahoma

DALLAS          Personal finance workbook-        Elizabeth Sobel,
                Translation of workbook on        [phone]
                building wealth into Spanish;
                also, addition of Spanish-
                language option to publications
                request phone line

                Presentations on building         Elizabeth Sobel,
                wealth-Presentations throughout   [phone]
                the District, including
                sponsorship of workshops in
                both Spanish and English
                presented by the Hispanic
                Bankers Association

                Personal financial education      Elizabeth Sobel,
                curriculum-Provision of           [phone]
                curriculum for personal
                financial education for
                kindergartners through senior
                citizens.

                Partnership with Texas Southern
                University School of Business
                Financial Education Center;
                and the Texas Council on
                Economic Education

                The Cost of Credit-Conference     Elizabeth Sobel,
                for high school faculty           [phone]
                interested in incorporating
                personal financial education
                into their instruction. Co-
                sponsored with the Texas
                Council on Economic Education

                Personal Finance 2003:            Elizabeth Sobel,
                Financial Literacy and            [phone]
                Economics for K-12 Math and
                Social Studies Faculty-Two-day
                workshop in Houston, El Paso,
                Bandera, and Dallas

SAN FRANCISCO   Building Native Communities-      Lena Robinson,
                Workshops in Portland,            [phone]
                Sacramento, Seattle, and
                Phoenix to train tribal members
                and representatives of Native
                American community
                organizations to teach
                financial education curriculum
                in their communities

                California Central Valley         Lena Robinson,
                Spanish Language Financial        [phone]
                Education-Activities in
                cooperation with a federal-
                partners consortium

                Native American Financial         Craig Nolte,
                Education Coalition Policy        [phone]
                Forum-Effort to establish a
                national strategy for promoting
                financial education to Native
                Americans

                Hope Center (Operation Hope)-     Lena Robinson,
                Help in establishing centers to   [phone]
                promote homeownership and
                small-business assistance
                through education, counseling,
                and credit

                Fair Lending Consortium-Help in   Lena Robinson,
                setting up a clearinghouse in     [phone]
                nine SF Bay-area counties to
                address predatory lending
                issues and provide education,
                counseling, and credit

                IDA initiatives-Creation of       Craig Nolte,
                individual development account    [phone]
                initiatives that include
                financial education components
                for use in Idaho, Utah, Nevada,
                Alaska, and Arizona

Note. Also contributing to this article were Marianne Hilgert, Jeanne Hogarth, Rose Pianalto, Jeff Smith, and Karen Vassallo, of the Board of Governors.

(1.) For a discussion of the changes prompting increased attention to financial literacy, see Sandra Braunstein and Carolyn Welch, "Financial Literacy: An Overview of Practice, Research, and Policy," Federal Reserve Bulletin, vol. 88 (November 2002), pp. 445-57.

(2.) The "There's a Lot to Learn about Money" website is available at www.federalreserveeducation.org/fined/index.cfm; the brochure is available in English at www.federalreserveeducation.org/fined/psa.pdf and in Spanish at www.dallasfed.org/educate/pubs/emoney.pdf.

(3.) The complete text of Chairman Greenspan's remarks is available at www.federalreserve.gov/boarddocs/speeches/2003/20030926/ default.htm.

(4.) Participants in the roundtable, which was chaired by Treasury Assistant Secretary Wayne A. Abernathy and Board Governor Gramlich, included representatives of the National Foundation for Credit Counseling, the Association for Financial Counseling and Planning Education, the In-Charge Institute, the American Bankers Association, America's Community Bankers, the Credit Union National Association, the Fannie Mae Foundation, Freddie Mac, American Express, MasterCard, Visa, the Community Financial Services Association of America, the Consumer Federation of America, the National Council of La Raza, AARP, and College Parents of America.

(5.) The release is available at www.federalreserve.gov/boarddocs/ press/other/2003/20030813/default.htm.

(6.) The Dallas Reserve Bank's Spanish-language website is at www.dallasfed.org/entrada/index.html, and the workbook is available at www.dallasfed.org/ca/ewealth/pdfs/riqueza.pdf.

(7.) The complete remarks can be read at www.federalreserve.gov/ boarddocs/speeches/2004/20040520/default.htm.

(8.) For information on Jump$tart, see www.jumpstart.org.

(9.) The American Savings Education Council (ASEC) website is at www.asec.org; the website for the "Choose to Save" program created by ASEC and the nonprofit Employee Benefits Research Institute is at www.choosetosave.org.

(10.) Operation Hope's website is at www.operationhope.org.

(11.) See www.americasaves.org.

(12.) See Marianne A. Hilgert, Jeanne M. Hogarth, and Sondra G. Beverly, "Household Financial Management: The Connection between Knowledge and Behavior," Federal Reserve Bulletin, vol. 89 (July 2003), pp. 309-22 (www.federalreserve.gov/pubs/bulletin/2003/ 0703lead.pdf).

(13.) A paper reporting on this study, "Patterns of Financial Behaviors: Implications for Community Educators and Policymakers," by Jeanne M. Hogarth, Sondra G. Beverly, and Marianne A. Hilgert, is available at www.chicagofed.org/cedric/files/ 2003_conf_paper_session1_hogarth.pdf.

(14.) According to the Profit Sharing/401(k) Council, the average companywide rate of participation in a 401(k) plan in calendar year 2003 was 70 percent. See John Blossom, "Falling 401(k) Participation Rates--Reversing a Negative Trend." Retrieved November 2004 from www.401khelpcenter.com/401k/blossom_retirement_participation.html.

(15.) This resource, the "Financial Education Research Center," is at www.chicagofed.org/cedric/financial_education_research_center.cfm.

(16.) See www.dollarwiseonline.org.

(17.) Chairman Greenspan is a member of the commission, and Governor Gramlich is the Board's designee.

(18.) The website is at www.MyMoney.gov, and the toll-free number is 1-888-MyMoney.

This article was prepared by Lynn Fox, of the Board's Office of Staff Director for Management, and Joy Hoffmann, of the Federal Reserve Bank of San Francisco, with assistance from Carolyn Welch, of the Board's Division of Consumer and Community Affairs.