22 15 10 17 27 34 13 39 18 36 26 24 12 35 25 29 23 37 33 42 11 38 30 43 28 20 16 44 32 40 31 45 14 21 41 46 19 6 3 9 5 4 2 7 8 ® Investments as “one of the 30 who have made the most difference to retirement in self-perceptions (e.g., satisfaction with financial condition, appetite for risk, perception of coordination and consistency, but that would onl Teachers’ Background and Capacity to Teach SaveAndInvest.org: A Financial E and inform general population with sim FLEC sought to im There is no doubt that in today’s political, change. W planning worksheet and calculato institution in I find m • • 4. financial education and in teacher training • Site Map services and community developm GIG m developed by the National Association subsection on Am 22 percent of respondents state that they di Act, put it: “We were attacking problem Com The Emm Web site Improvemen The Summ NBER Working Paper y self in agreem Financial L a ASEC’s role with Money W ASEC coalition as well as m Ce Tracking Television: •o etion to better f p are con their em troller m eets three tim $250,000 - $499,999 – 19 percent Tax site ou e x, a Mexican cem y and Telly award-winning Choose to Save it’s them prove fina of : tinuing to play th ploym i the Curre teracy and Retirement ent with a rev erica Saves W treach it the needs of young adults. e was “Saving for a Lifetim e ilar ent) are appointed s per year and is ncial education through the . No. 5655. Cam ts Full Statement Begins Here risk factors, the findings m ncy, will ho - r is used by consum 17,746 Opening Statement ent m ducatio iat ro ew eek Hous eek for m ea by the General Accountability Office which mbers of nufact le t ent and be social and economic clim st a se n Program for Military Personnel and oday convened jointly by AS to those positio bridge, MA: National Bureau of Personal Finan Planning: A Literature Review of Governm s uring com y occur if th ton is not as Republicans or Dem o .in an effort to assist others who are d know that the m ries of EBRI to participate in the week. In W re inform selected to promote a diversity of ers daily and through partnerships e will c prim e: Advancing Generational Click here to access a summ f National Strategy for Financial pany, requested perm our region a ey arily as a source of contacts. ation. nt Defined Contribution e leadership of the agency c ontinue to se suggest that targeting the ns, or to th e: Results o national public education ate, young Am ilitary offers them al conf EC and the Office e position ek to play th ferenc a National ocrats, but to Econom ission to es to s on ericans T-161 ary a at ic IX. The National Endow V. Financial Literacy and Re X. Financial Maturity Survey (ak ment for tirement Planning: New Financial Education® (NEFE®) a Preparing for their Future) Evidence America.” The PBS Lehrer News Hour did a feature piece on Dallas: “Dallas Salisbury takes ® ® one’s one skills and financial knowledge) Biography of are faced with new challenges. Am Funded by the the regional Boards appointed by the Federal Their Families of his presentation and presentation m riskiest populations with relevant financ Study; Final Report. with the Internal Revenue Se was comm role within any new financ Literacy: Taking Ownership of the Future However, the survey results showed that 96 concluded that the Comm Full State Prosperity.” Participants Recommendation: Mr. Chairm views on the Council.” say ‘W and outreach program starting or enhancing program Ad Research, July 1996. of Personnel Managem share best practices on banking of the m m ito We are able to track the num 2009, 55 ASEC partners and EBRI mem ASEC partners participate in Mone ted to the issue and to the ent Inform i nistrators (NAGDCA) in consultation with FLEC. hat can I do to help? Ontario S $500,000 - $999,999 – 23 percent an and m ation Sect ecurities Commission (OSC) ission ial regulatory structure. ervice, the Social Security Adm is dedicated to risi mbers of the subcomm ent. Representa had not achieved these objectiv partook in breakout sessions io ’ ong the key ” ns Follow s. This a approach set out in the legislation. terials. b ial education program er of initiative. The following were FLEC’s stated percent of parents feel public m Reserve in W unbanked. The conferences will bring y Week Houston’s events such as tim : tives from approximately 12 federal is ng awareness about the need to plan and sues are earlier access to es the PSAs were viewed through bers itt eeting will bring together ee, it is a pleasure to appear today. participated in the W aishington. As an individual nistration, the Office of s focusing on four specific es. I believe that it could may be appropriate. financial education credit, risin eek and in g retirem • use the e Choose to Save nt savings plan that allows them Ballpark E$timate PSAs a in a f nd long programm inancial liter to make contributions to an individual ac ing, such as y initiative the com Mission pany is • ® Events - 67,009 Organizational Structure from the Rand American Life Panel Savingsman to the nation.” ® 2 Dallas L. Salisbury 3 Financial preparedness is a key component of Mr. Chairm financial services consu I want to stress that the views I express t have done so with sufficient resources and clear Personnel Managem should also be taught in school. I. goals and accom costs of higher education, upward inflationa • American Savings Education Council Over the pas generational groups: the Mill save for long-term agencies have regularly participated in Partners Meeting: Personal Finance together community-based organizations, fi Begin to focus resources (tim policym YouTube and the Choose to Save o 2008, 52 ASEC partners and EBRI mem Am an and m erican In $1 m akers, educators, and other leaders plishm illion - $1.49 m te 34 years, I have watche ent, and other organizations mbers of the subcomm e stitu m n er and credit card ts from personal financial security. te of Certified Pub Almost half (42 percent) of the im illio ennial Generation (indivi e, attent n – 8 percen ple oday are m m user, I would prefer re ry p ion, funds) on the aforementioned research ittee, I am entation of the strategy: d m Web site. these m lm ic Accountan r interest and involvem i . ASEC is a m u essures, risin litary readiness. W ltiple a in the fields of general education and nancial service providers, and Federal, y ber t own. My em e Dallas Salisbu s participated in the W etings over the years. The gency progr parents think schools should ts, Federal R g health care costs, duals born from ajor force in directing gulation and protection ployer since 1978, the hether on-base or am ry, ent at the level of s and priorities on presiden eserve Board, 1982 to eek. t and • account set up in their nam Improvements are need undertaking with their 12,000 em Retirement, are currently runni e ed to the FLE . ployees. ng on the Starfish C site Television Network, a The only independent private, nonprofit, national foundation wholly dedicated to • Financial education could be targeted to occur when young Americans become The National Endowment for Financial Education is a nonprofit 501(c)(3) foundation by Annamaria Lusardi and Olivia S. Mitchell President and CEO Subcommittee o ® n Financial Institutions increasing life expectancies, m 401(k) plan participants reve P Inform Gutter found that although his analysis showed II. Financial Literacy Education Commission Sessions were salted with financial education shift dram deployed overseas, it is crucial star state & federal government and m I look forward to workin senior Treasury officials, but As a consum Cam CEO of the Em by an entity that is not governed by the regul Em rioployee Benefit Research Ins r t te tp obell, John. Y. “H achin jo ation on each the three grant projects can priorities. Recommendation: ASEC conducts two partner m state, and local regulators to broker Over the course of the S f present day), Generation X (1961-1981) m inancial lite in eetings are in oo Military Saves, Principal Financ g f g er of financial services, and havi EBR i$1.5 m Investing Basics ployee Benefit Research Institute ( nancial e I, Da racy. Find inf illion lla oousehold F ducati g with your comm rm s h videos from focus groups - $1.9 m ative, yet inf eal a lack of investm ld instead it becam atica on before fifth grade, and eigh ove fu in tha tu itute, gs f mm lle - t m lly as political leadership cha military p dia attenti tiillion – 3 percent e r m iit, delegate om does not lo nance,” nt eetings pe e p away from defined benefit to defined o this o rmal a sittee a ipartnerships and discuss the latest ial Group, Society for hum tiated. From on onto the need for financial education, o summit will be m ng talked to others who are also consum erso en The Journal of Finance. a low priority. A sim s , the Baby Boom that m nd serve as a highly s identified a num b r year. Held in W e bby or take position wit nd all o nt nnel have a e www.ebri.org found further down in this em NEFE c h understanding (John Hancock, 2002), tost students were not financially at- he a financia t W hers aonducted earlier in the fall to st in ten (82 p c h on these importan cess to f in ade availab nges. This is not just true g Generation (1943- ) and chairm tber of barriers that a o l services consum s nhington, DC, these e St s for or agains ple comparison of ffiaective inf nan a n Resource t Vol. 61, No. 4 eercen L lcial educatio e to edu eg an of its ist) th lta o issu tail. rm ucators t r ink e ation er ,es in ers t it h n e • ASEC Chairm nonprofit organization operated on th •o YouTube: As this testimony was com an Dallas Salisbury piled, it t appeared on Ric Edelm e Dish Network, airing 24 hours a ook quite a bit of effort to find an’s and Jean improving the financial well-being of all Am • • Support of Elected Officials 60 percent of those aware of Ballpark E$timate was m the plan contribute to it. entioned in a CFP Boa ericans. rd Newsletter article on governed by a volunteer “financially independent.” Board of Trustees Financial independence occurs at a m Empl and led by president and CEO oyee Benefit Research Institute edian age of 20. Ted Beck. A The underlying literacy characteristics ® fall into 3 categories: 1 ® U.S. Department of Justice, the Employee Benefits Security Administration of the U.S. should happen before high school. savings, and retirem the f risk, it did reveal that som when party control changes, but occurs within contribution retirem 1. General Savings “put a face” on the erod inf of saving education program attend III. proposals. Nor do our savings and financial perspective, I currently s and this lack of investm f oirm nancial servic uture. ance at the first m ation that will ena 1960), and the Silent Generation (1925-1942). and policym Continue to ensure produc clearinghouse. GIG is a forum (2006): 1553-–1604. gatherings are designed to bring together individu developm FINRA Inv oo Choose to Save Managem Saving Money & Managing Debt $2 m als and em ents and strategies in bringi es, m e akers throughout the nation. e illion o estor Education Foundation nt plans, and rapi e nt planning thro nt, and the Social y ing safety nets, bur e eeting of FLEC, com reac ee no such i b nt s, the Am le them e ployers face in s subgroups are m rknowledge (leading to or investm m Web Site: tion is positiv ore – 6 percen to m tive collaboration and endependent regulator, w rugh its research and program ican dly changing technology. These 20- and 30- wher ake 1100 Security Adm Savings Education Council® (ASEC) prudent saving and i aving denso e to e agen o literacy education program 13th S ng people into the financial m t p re prone to a party with new sta ared to the m these in representatives from m for retirem cies’ representatives can speak freely e debt, and variety of financial treet, i They were challenged to develop nistration. itiatives if comm NW, Financially Risky Behaviors o est recen hich if properly S nt. At the sam ent m unication between federal, u nvesting decisions for ite 878 the “c siffing as well. Thus, . stakes) is m t m a large variety of onsum eeting, would s, the Am ae instream time, er” is the ore likely erican . Chatzky’s radio program America Saves Week day of news, entertainm docum o ents related to FL All of the Choose to Save and Co . s prom ent, docum nsumer Credit EC’s goals and past events—as the oting th en e W taries, and other programming about PSAs are posted to our account eek and a savings message. The • Representative Ruben Hinojosa (D-TX) introduced a resolution (H. Res. staff of fewe It tends to coincide with m r than 25 individuals guides NE ajor life ev FE’s public-service work at its headquarters ents like high school graduation (23%), Abstract ability to do financial calculations (e.g., compound interest) Department of Labor, and the Pension ® Benefit Guaranty Corporation (PBGC). ® Washington, DC 20005 decisions competing for the lim (FRB) and could reduce financial IV. ( serve to prove this point. (A full section on FLEC appears below). som University of Arizona: Arizona Pathways C. Recommendations dom Savings Education Council founded in 1995, or them to appear among poorer and less-educated households (Cam the ro im www.asec.org ple e iselves and their f nant presence in all of these rep things, encom m le bein to each o organization The Canadi delegates identified num state, and local governments to facilitate po Goal: The W action plans with com ented, the CFPA could becom shows are broadcast in all of the top 20 o g set out f egiving and service. The only source Retirem ) and Choose to Save b site is the prim ther becaus inform passing both Generation X an s, both public and priv an Investor Education Fund am o ent for Improv r th ilies. ation was not on FLEC’s site, but on other agencies’ sites. (www.youtube.com e CFPA may or m e th pelling m e m ited res erous m ary conduit for risk by im eeting is open to only ements to FLEC resen e (. I www.choosetosave.org ources—both tim essages, eaningful ftative board and council positions, not the to Life Success for University Students not ate. The goal of each m proving credit card be a/ctspsas , it would be a waste of tim y not add value in this area, depending getting out inform approaches, and potential partners for Choose to Save, started in 1997. EBRI d Generation Y, are employing a m steps that the governm m s of its programm sitive financial educ e). Of the 92 posted, there are: tropolitan areas of the United States e and m federal agencies and A pbell, 2006). ). I want to stress that the oney—of the nation’s ation to the general eet haviors. It also showed iing is to n ng are nonprofits, ation efforts. The ent, e e, money and m etwork ployers, SEC yriad The large majority of service members who participate in the TSP state that a personal • Ballpark E$timate 180) of support of Am was merica Saves W entioned in an article in Social Security eek. The Resolution was passed by ’s Social in Greenwood Village, Colorado. To learn m college graduation (10%) or when taking a first job (24%). ore, visit the History section of this Web site. The present paper introduces a new dataset, the Rand American Life Panel (ALP), which Mission understanding of financial concepts (e.g., relationship between interest rates and bond Phone: (202) 659-0670 th views I express today are m that having taken personal finance education (APLUS) ASEC Programs & Sur V. An advocate for greater financial edu financial services organizations that the cons of Clark, Robert L., Madeleine B. d’Ambrosi Dallas Sa em upon the specificity of the legi effort, and would only serve to m exists to pro new approaches to th erging households. public. It includes free the m In the firs st federal governm Evaluation: with each o im Evaluation: Financial L aff. lis ple To learn m o bury v e m ide f dia, comm Financial Advice enting the action steps. t q acts, a ther and share inform i uteracy and Retirement Planning arter of 2006, the Treasu ore about Money W eir prof e vey Research nd m unity organizations, school nt and its agencies m y own, a yslation, the attitudes and pr f savings tools such as: ess u ll statem islead the publi ion nd shoul ca al, f tion, ING DIRECT is comm ation on financial literacy ef ient for the reco na eek H o, Ann A. McDerm ncia um d not be attributed to m is associated with less financially risky ry Departm ay wa er is to be protected from ouston, please visit their W l, and f c. I stress, as not s, and others can and should take to nt to change, but it is the state and am rd in e iorities of the board and the nt will partner with a ily lives that w cludes m ed, and Ksham ed in my introduction, itted to helping y e forts, with an any survey and m, or financial ployer or ill inevitab eb site a Sa non-profit want. ly and on the Oprah Network. charities, and other caus Links to results from 8-10 second PSAs e-driven organizations. events, such as the International Conference on decision led them to begin contributing to the plan (68 percent). Dallas holdsSecurity Update a BHouse Committee on F the House on February 25 .A. degree in f during inance f America Saves Week rom th. e Univerisnancial Services ity of. Washington in Seattle, Washington, • In January 2008, only 38% of Gen Xers and Yers reported having an “emergency offers several appealing features for an anal prices) ysis of financial literacy and retirement The mission of the National Endowment for Fina Fax: (202) 7 ncial Education is to help individual 75-6312 FINRA Investor Education Foundation have far-reaching consequences for how they Governm Financial knowledge and planning are interre behavior. It follows that co VI. Am and an M.P.A services organizations represen Many colleg anyone else. that these are m study findings. director, and adequate staff Washington, DC ericans understand the im 1. build a secure retirem local o organization to develop and im em Four regional conferences were held. Improve co “Retirem A summ 2009 Retirement Confidence Survey ent-wide respo phasis on effective best practices and o www. . e graduates will en from the M rW ganization y it was held on this topic in F ent Plans and S personal views. mone ills and Es mmunica yweekhouston.org a nxwell Schoo sibility f s tha llege students, and especially tate P and budget resources being prov tio e porta tnt for our nation’s actua tatives. Too m ter yo n efforts aving Decis lo annin nce of savings at an earl r review llly m of ung adultho ple C g i m tizenship and Public ake the bigg ent a PSA on the benefits iand s e ons: th lated (Lusardi and M br manage their f uch of the fi Most of the presentations from uary 2007. A request for comm how can other ASEC partners benefit od poised for succes workers. tream e Role of Infor elining of st dif those engaging in FRB, would W nancial and econom y age and develop long-term, ided for funding. Assurance f inances and prepare for their erence Affa hile there was extrao fiirs at S nancial education will m itchell, 2006). Lusardi in the ation and Education.” s. Som of lifetim yra ir com cuse e m the four ie savings c crisis we ents on ay mrdinary unities. • Ballpark E$tim Financial Education, that are posted a te retirem 20-15 second PSAs ent planning worksheet and interactive tool. on other sites, should be included • • Eighteen of ASEC’s PSAs have been National distribution of the TV PSAs modified with an endslate which is ongoing through the National NEFE organizes its a awar savings fund” for unexpected expens •eness of Proclam financial instruments (e.g., reverse ctiv ations were issued from ities into four action areas es or in case of a job loss. the governors of m , which flow from ortgages, annuities) Colorado, Kentucky, the foundation’s planning. It allows us to evaluate financial knowledge during workers’ prime earning Americans acquire the knowledge and skills necessary to take control of their financial VII. ING Direct Parents Financial Behavior Survey ® University. Dallas grew up in Everett, Washington, and now resides in Washington, D.C. National Baseline Financial Capability Survey and Mitchell (2006) found that people who be Lisa Green VII. June 23, 2009 Survey Research: are in the m benefit from personal financial education. Mu long-term stum that m common sense savings practices. more ble at first, and still others will f ost of those appointed to the Bo diversity in views on both th We feel that three factors greatly contribu the state of financial literacy in th 2006 National Summ Journal of P and the savings resources available on the Financial conferences are availab from In response to your invitation to tes ING Direct Parents Fin confused, not fi wald, a o inancial security. the experience. A detailed report is dst of appears to be a result of Case Studies Senior Research Associate at ension Economics and Finance less, if CFPA is given authority it on Retirem le on the Office of ancial Beha e bar all. W ard and th r e co ie ent Savings: the “capture” of curre tify and provide comm hat sets them r displayed financial knowledge were m s to re vior Survey untry was made in the Federal Registry; ch more needs to be learned, however, provided with the proceedings of the e Advisory Comm Mathew Greenwald & Associates, the Comptrolle te to the success and longevity of GIG: tirem . Vol. 5, No. 1 (2006): 45 while at the s e on different pathways? nt secur Literacy and Education ity a r of nt regulators by the ent based upon my own ittee with “deep a the Curren nd the ways to me time FLEC -67. cy’s W ore eb • Make th on FLEC’s site so that in e information pr Please see s 3-20 second PSAs ub-section b esented a teres t th elow: “Ballp e FL ted parties do not have to browse the EC mee ark E$tim tings availa ateble to the pu Worksheet” blic. Education also clearly plays a role in prom Association of Broadcasters (NAB otes the Week. convincing service m ) and Associated Press Network. embers to contribute: mission and Since m initiatives North Dakota, and W id-2005 over 1.6 . million individuals ashington. Dallas Salisbury, have com President and CEO of pleted the interactiv the Empl e oyee years when they are m • 67% believe that they can rely on friends aking key financial decisions, and it offers detailed financial and family to help them financially if destiny. NEFE’s mission is grounded in the belief that regardless of background or ® likely to plan for retirement, and those who di regulated, instead of the citizen As your request letter notes, related to fi about the impact of personal financial educa It is a pleasure to appear 34 years of VIII. Benefi 7. International Perspective continue Retiremen shared highlights of her firm experience in financial s • t Research Insti address the problem ASEC participated in and contributed Investmen Comm Choose to Save site. However, recomm m Military Retirement C s to exist within Treasury, with the eeting and is circulated t Confidence Survey experience in the f o ission’s W Financia ts tute (EBRI), l Litera subm ee before you today to discuss the im rvices” are there as b site, , delegates repeatedly ’s extensive rese i itted an eva cy Fair nancial educa s the regulators should be prot e onfidence S joi ndations an MyMoney.gov am nong the entire partnership so that ASEC partners ed EBRI as the chi s: nancial education, the adm luu ation and lis d directives of the Financial Literacy and tion on college students’ financial behavior, tion area, I will h arch as part of AARP’s “Di individual financial services consum rvey a report su funding for the Summ d plan were m retue rne f staff executi t of mmarizing the conferen d to the the portant topic of i recommendation ore likely to rely on form ecting. “Deep experience in ighligh iv nistration docum im te at i t, which was held f e that retir our vided W ts foundi points. m s. The proving em ces’ eers, not ng Fa ent ent ial n il” • 1) A comm Many online calculators provided o FLEC has a m Intern itet f ment by our partner organi or a while until they f i49-30 second PSAs xed record of mby ASEC partner organizations. iand th king inform zations to attend the m e conten ation available on the t for which they are eetings ? • One-quarter (26 perc worksheet, while alm • American Arm ent) say tha ost 200,000 have downl ed Forces TV Services have been updated with all of the t a finance broaded the print version from our iefing given by military financial literacy and retirem • A resolution was introduced in the Ne ent planning questions, permitting a finer assessm w Jersey legislature in support of ent of respondents’ income level, f they are in a tough situation. inancially informed individuals are better able to: Tough economic times have forced parents to cut back on their kid's savings while also Primary Objectives 1978. ® financial” services should be interpreted br planning m Education Improvem John Hancock Financial Services To answer this question, University of Ariz consum IX. particularly in relation to other opport In recognition of these issues, Am On April 14, 2009, ASEC, EBRI, and Mathew Bio / Resume Follows cam The national online survey was conducted with as f states: ipaign. nancia First, as a co education will b f from Goal: findings are not posted to the site. who were not able to attend the m National Endo er fi indings f l servic Click here to access a su o ASEC staff enancial literacy March 1-2, 2006 in Washington, DC. thods such as retirem Tax-Free Savings Accounts over tim rom this summ es ind results of the m looking. nsum ent participa w e, attendees h e a cru u Act. The adm m stry r er of fi ent for Financial Education under the new regulatory system cial elem epres t it are curre nancial serv es in f . “Insights into Participan e 7-60 second PSAs er eetings. Som nt calcula mmary of her entati ican av unities for and avenues of financial iie gotten to k ent in any stra nancia nist Savings Education Council (ASEC) and AARP ves, w eeting ntly be oadly enough to include lifetim ona started a landm ration m tors, retirem ices l f in the United States Greenwald & Associates released the ould m e are kept inform m a inform irs in the Washington, DC m presen ing c y reaction is pos now ay already cont teg a oke success m each other very well, have a real m tatio ation from the m y ent sem to inc pt Investm iled and . The need for broad-based n and presen aed. This enhances a rk longitudinal research riease nars, and financial itive to creatio em will be m by Harris Interactive eost likely. Needed savings. nt Knowledge and plate integration, eetings is tation m e consum ade etro area. n of an aterials. ers of America Saves W Over 704,768 individuals have utiliz eek 2008 ed the online calculators more educato Web site. Addition Choose to Save rs encouraged th ally, more than 9, em PSAs. to participate. 735 Hispanics have downloaded the Spanish NEFE defines its action areas as: “Improving Consumer Financial Literacy financial literacy th the W an heretofore feasible. W eek. e can also compare respondents’ self- • • Parents are the num Take control of their circum ber one source of stances, financial advice (70% say parents are a reaching into their kid's pockets to pay daily household expenses, according to a new th IV. The Canadian In ®vestor Education Fund f experts, and less likely to rely on family/r socialization. (page 10) but if it has not focused on the X. technical expertise can be hi financial education across the popul results of the 19 (on behalf of Divided We Fail) comm independent consum on behalf of ING DIRECT between April study to loo inancial ser available to the public. Between the third quarter of 2006 and th “The CFPA should play a leading role Evaluation: Behavior.” Eighth Define positiv Financial Maturity S o Som k at the con v ices, no e feeling of community am GICs & Savings Bonds e of these fairs are provided by fede annual Retirem er fi t ju nection st t nancial protection hose who design or provide them red, but policy direction from us between fi issue—and it (and the Congress) rvey d Contribution Survey. Boston, MA: John Hancock ent Confidence Survey (RCS). The RCS is the country' ation is well established, issi oned Mathew Greenwald & Associates to ong the partners elativ 6-8, 2009 am nancial su agency if the “con in efforts to educate consum es or co-workers e second quarter of 2007, the Treasury ral governm ccess and well- ong 2,123 adults hip. the . and I will not repeat data appointed leadership and sum e . The differences in should do so as details of nt agencies for their staff er” is th bein age 18+, 535 of g in a diverse e dom ers about inant s feel for what each organ available on FLEC’s W 5-5 miization can b n segm eb site, som ents of the ring to the table (if som e from educational program other organizations’ W eone cannot Mission eb Over the course of Am than 893,152 tim erica Saves W es since June 2005. eek, conducted Feb. 24 – March 2, 2008: Ballpark E$ timate . • • Education Programs Furthermore, advice from superiors (16 perc . Although not restricted to ent) and peers (14 pe a particular age group, the rcent) also leads assessed financial knowledge levels with objec tive measures of financial literacy, and EBRI provi • Im major or m d prove their qua es “just the fa inor source of financial cts”: objecti lity of life, and ve research, data, educati advice). 36% say parents are their on and insight to iprimary nform In consultation with the U.S. Treasury survey released by ING DIRECT. The new surv Under the New Regulatory System” Department an ey also showed while parents are tapping d the President’s Advisory Council on ® whom planning behavior play an im advisors will dete presence on the board an F group of first-year conduct a survey with m most established and comprehensive study of CFPA are developed. A here, but have included summary data in m ull State were parents of a child 2000 Choose to Save Financial Services, 2002. Recommendation: f The Summ Departm Goal was met, as Treasury partnered w inancial m m and som oent Inform RRSPs ent will host an international rm it brought together m atte college students: A eine ultim are events that are not fo rs, to im ation Sect tem d on advisory council the sam bers of these portant role in explaining di ate res under 18 years old. No estim Forum prove the eio tim u ns Follow lts. : rizona Pathways to Life Success fo e, consultation with G ore than 200 ir ab younger generations to y full subm ility summit on financial edu the attitudes and behavior of Am cused on financial literacy but are ith ASEC to rele Bio po to m sition statutory and appointed delegates as aission. nage their own financial affairs, s. For exam fferences in savings and why atAO (based upon the work es of theoretical sam ase th profile and better ple, “deep experien ecation. To b aforem r University entioned erican pling ring ce attend, a sub sites, and so stitu m te is usu e is si Retiremen mally s ply tnot available at all. ent in their place), and work well together; decision mak • Radio: • More than 6 i ng. The over 14 brochures giving readers valuable 00 hundred organization all EBRI mission is “to con s, agencies, financial ins tribute to, to information on savings issues. encourage, a titu ntions, no d to enhance n- Local Efforts: Education P service members to participate. rogram s area has been oriented primarily to providing financial most valuably, we can investigate prior financial training which permits us to identify key Financial Literacy • Ensure a sta source, com , the FIN pared, for exam ble fuR ture f A Investor Educa or them ple, to 20% w selves tion Fo and their f undation ho say a financial professional is their am is conductin ilies. g a national and state- into their kid's savings accounts, they're more prepared to talk to their children about ® ® Students understand their current and future financial st error can be calculated; a fu The “plain language” financial products proposed in financial services” should workers and retirees tow the devel som Way, W CashCourse GAO has already com e people have very little wealth in reti PSA. a nonpartisan group with diverse expertise. about th Please see Addendum and to m The Choose to Save Post the sum In a m I look forward to workin e (APLUS). op ndy; Holden, Karen; (200 m gatherings of large am o ent of sound empl oRESPs (for Education) re recent in is multi-national dialogue th ake their own judgm ma pleted) for insights ry and recommendations to the W ards all aspects of itiativ ll m Forum be interpreted broadly enough to s B and C for the agenda oyee b ethodology is available. e, Treasu g with your co ounts of people, su 8). Teach on Retir eenefi nts about the appropriateness of t programs and sound publ ron how legislation on the new financial rem y c saving, retirem e Treas ers em onducted that Nation eate. This base line understanding can be mm nt (Am ’ent Security Backgroun also need to be what my Grandm The delegates represented state and ittee and all o ur ch as T y Departm e and attendees list from riks, Caplin, Leahy, 2003; Lusardi ee b site as we nt planning, and long-term a d and Capacity to Teach and Personal Savings, held ste of DC. These fairs give include lifetim ent will inv thers a ic poli l Financial Literacy on these importan certain financial ll, as it will enable cy through ite th e consumers the Spring e central other t o Over 725 individuals have viewed the 92 PSAs more than • 2) Increase communications GIG is a trusted, non-threatening forum beyond the meetings. for infor mation exchange ? III. The FINRA Investor In 2007, ASEC developed, for the U.S. Office of Personnel Managem planning inform profits and com • All of Choose to Save More than 88,331 visitors have acc ation to youth, including panies participated by Education Foundation television PS NEFE’s longest-standing public service reach As have been converted for use on ing ou essed the brochures page of the t to employees, custom ent, a ers, causal links. ASEC supports financial literacy effort at By every measure, and in every sam the s ple we examine, f tate and local level. Two exam inancial literacy ples by-state survey of American adults’ financial capability. primary source and 16% who say the internet is their primary source of financial drugs and alcohol or sex and da ting than money and finances. objective research and education.” EBRI has earne ® d widespread regard as an organization that Thursday, June 25, 2009 and Mitchell, 2007). instrum financial security. of financial services. I would personally pref CashCourse is a financial education Web s would have term The Am issues in the future. I thank you again for th Personal Finance: Results of a National Lusardi, An regulatory structure can most effectively addr 2009 Partners Meeting, which was held on April 15, 2009. non-profits, governm local governm April 4-6, 2000, focused on the im Challenge f governm products. A eerican Savings Education C ntal in helping these generations atta o ASEC staff nam Mutual Fun a e ed “plain vanilla”. For ex ria, and Olivia S. Mitch nt authorities responsible for fi or high school students in ddition ents, profe the invalu d ally, the CFPA should re s & ETFs ent organization ssionals working in able exper ouncil is Study; F eportance of increasing planning and saving for ll. “Baby Boom ite directed at college studen am ie invitation to testify ence the prim s, and ot in g er regulation and protec May and Nove ess ple, a 20 percent down, 30 year fixed rate nancial literacy in financial ed of r inal Report. Research funded by eater financial s interac v the fields of em iher partners to a ary vehicle through which EBRI ew and stream er Retirem tin m ucation acro g with the p ber of 2008. The and look forward to ecurity as they age. their respective line exis ployee benefits and ent Security: Th tion by an entity that ccess th ts and recen ss the executive ublic, the en ting financial e resources first t e d o As part of their m 3,501 times since the videos were posted last year. andate to ‘encourage the synchronization of efforts version of the Ballpark E$tim members or the general public; people are very com Web site at least 102,850 tim fortable sharing ate for federal governm es. their ideas and opinions, asking for ent employees. For Sources of Education and Advice: effort, tradio and are available on NAB and he NEFE High School Financial P lanning Program the Associated Press Network radio ® (HSFPP). proves to be a key determ are the State of Wa inant of retirem shington and the City of Houston. ent planning. We also find that respondent guidance. "tells it like it is.” Guiding Principles Investor Education Fund http://www.investored.ca/ ® about/Pages/default.aspx 2:30 p.m. is not governed by the regulated, or “captu National Endowm conducts its financial education activities. APLUS exam mortgage, with clearly specified closing costs, your comm I. The American Savings Education Council grads. Key benefits of the program branch, could prove invaluable for literacy and education in challenge (May 2008) attracted 46,000 st nations to convene and discuss recen retirem to address the issue head- retirem Recommendation: Roles of Planning, Financial L user of the financial inform o e nts and questions. ines the factors that h ent. ent savings, pr Stocks ent for Financ ivate se iti ial Education® (NEFE)®. on. As Governor Schw atives governm include: both Congress and the adm elp shape ctor in iteracy, and Housing W ation produ ASEC was launched in 1995 through the joint red” stitu t developm st b and that can be paid off with no penalties. u tion d udents and the second (Novem y the regu ents’ f ent-wide.” ced by A s, em ents, innovative m inan arzenegger and President Clinton ployers, th lated, a problem found at the Scial at EC and the coalition partners. ealth.” inistration. titudes and behaviors e genera Journal of Monetary ethods, and l pub blic and er 2008) • assistance/counsel, and providing m Choose to Save between the public and private sect PSA Player: ateors,’ FLEC could distribute a rials and support to assist each The prim October 1, 2007 through Septem ary survey working group is comprised of: ber 30, 2008, the number of views for the Federal The FINRA Investor Education Foundation is th Not only are • • Strategic • Over 75,000 people attended over 1,800 events; servic Savings tips on a wide ra feeds. Programs an e members m d Alliances ore likenge of savings topics. ly to . This action area works to help Am use the advice of a financial professional e largest foundation in the U.S. dedicated ericans literacy is higher when they were exposed to economics in school and to company-based According to the survey results, one in th • “Some of the questions designed to gauge ree parents (34 percent) have reduced the financial literacy replicated questions NEFE’s guiding principles are stated in eight initiatives. ® 2128 Rayburn HOB and, in tu Federal Res efforts of the U.S. Departm The RCS da The Am One striking finding of this re Or, a three year fixed rate car loan that can Planning is shaped by past own personal expe attracted 75,000 students. Results rel Economics Communication Conduit: m Resurrect the m noted in their January 28 successful strategies for improving financ It is free of charge to universities and students. erican Savings Education C rn, how those attitud embers of Congress. The goal of the Su o ASEC staff has participated in erve and o ta highlights the need for financia Bonds . Vol. 54 (2007): 205-–224. th yer exis money.gov PSA for ent of La search is that m eting agencies s and b , 2008 newspape ouncil (ASEC) bor, U. ehaviors fa S. Departm be paid off anyti . I currently see no such independent irs a airing a eased in January 2009 revealed that 362 rience as well as the experience of other l literacy. Note the f ny young adul affect th tmm r ed the f ial literacy in th ( nationwide, as Am www.asec.org itorial, over $40, it was to explore ways to help all o eeir current and future success in llowing locations nt of the Treasury, EBRI, and m ts have yet to align their e without the com eir hom o ) is the prim llowin 000 will be spent by ericans are looking e countries. : g statistics ary vehicle plexity of : EBRI is supported financially by for-pr VIII. Military RCS (sponsored by FINRA and fielded October– Applied Research & Consulting other’s events/initiatives; and monthly electronic newsletter, cr o All of the aforem ofit and no entioned PSAs n-profi eate a blog space, and distribute t corporati are posted to the PSA player, ons of all types, foundations, to invesBallpark E$ tor education. Its timate m on OPM’s web site was 225,680 and the num ission is to provide investors with high-quality ber of visits was , easily when mim aking decisions about th prove the quality of their lives th A minimueir retirem m of 188,982 people have visited e rough financial education provided in nt savings and investments (68 percent), they financial education program • Over 25,000 enrolled as “Savers” thr • o State of Washington American Arm s. ed Forces Radio Services ough Am have been updated with all of the erica Saves or affiliated local contributions they m used in the 2003 Financial Industry Regul ake to their children's savings, and nearly one in five (18 percent) atory Authority’s (FINRA’s) Investor These initiatives: unions, government organizations, ® and international organizations seeking to better life. Using data from regulator, w through which EBRI ( Background: As part of a national study W m Congress has acted m Based upon my work on savings and retirem individuals (Lusardi, 2003). In the “rule of 78”. Or, a charge or credit card actions with their financial va any other public and private organizations, at Dartm students received perfect or The program was created with signifi The two principal topics covered in bot for available, helpful resources to guide them an unbanked, full-tim In addition, ASEC serves as the co Americans retire with security and dignity. oh ich if properly im outh College Econo Real Esta 2,000 students, this awww.ebri.org ny tim te e es, as have va lues and goals. These young adults worker, to cha plem particular, unp mics Professor Annamaria Lusardi near-perfect scores. e ) conducts its financial literacy nted, the CF report summ alition fa a rious adm y that tells you any and all e cant practical input from students and nge their paycheck into cash. These nt leas and Holden analyzed responses from h plenary and breakout sessions were: th issues beginning in 1975, when I joined PA could becom e tim ant even cilitator. As ASEC staff learn as they im inistrations, to m arizes our e that the s ts, such as finan prove their financial findings to date feel that they should be ecretaries of Treasury e initiative and efforts. . If the fees in advance, and ove the ball c consum ial difficulties, s of er is 504 • In 2009, 69 percent of workers say they are • U.S. Department of Labor very or somewhat confident that they information in e-m as are educational segm ail alerts. Ma ents ny organizations currently perform Mission Retirement, The Savings accessible in 179,224. 3) for The group has provided effective tim m ation and tools to better understand the m e manage arkets and the basic principles ment ?a lot of work can be are a November 2008) lso m cooperation oWashington State is very ac Saves cam re like Choose to Save ly to c with other nonprofit organizati paigns, or took the Military Saves Pledge; www.choos onsider this source PSAs. etosave.org/tips and viewed the helpful hints m tive in prom of guidance to be most helpful (37 percent). ons and foundations, and occasional oting financial literacy throughout the ore than parents who have savings set aside for th WP 2007-157 Literacy survey, conducted am ong 1,086 inve eir children have taken m stment decision-m oney from akers ages 21 to their • Describe how NEFE achieves its mission, and understand U.S economic security programs. FINRA Investor Education Foundation not dom _______. “Financial Literacy and Planning: forward on financial education: The Financia ASEC was launched in 1995 thr and Labor launched a national cam cannot change fees without what is now the Em K-12 in-serv regarding how students spend their tim can provide incentives toward for planni saving m universities. individu journey during these difficult tim new initiativ Evaluation: inant at CFPA, however, CFPA woul ore, both in general and specifically 1) o i ce teachers and 627 pre-service te Increasing retirem Bank Accounts als need to be reached so th ployee Benefit Security es, tools, stu giving you notice and the opport ough the joint efforts of the dies, research, etc ent planning and re paign for savings education. e and mo ng. Lusardi (2003) found that respondents who es. at Adm Im l Literacy and E d likely be a waste of tim for retirem they can o plications for Retirem achers (e.g. yo ney, financial literacy inistration at the U.S Departm ., an e tirem pen a bank account and start to - em nt. For exam ent program ail alert is sent to all p U unity to cancel the card and ducation Improvem ung adults finishing co .S. Department of Labor, ent Wellbeing.” spons ple, they place high and practices, debt e, money and orship and ent of e ant Act; rtner llege s. and their spouse are doing a good job in financially preparing for retirement. • U.S. Departm such functio Game, Happily Ever After, ns; for example, the ent of Transportation Ofin addition to recent news segm fice of the Comptroller of the ents of saving and investing. To further this corporate sponsors. accomp254,128 times. lished in a short period of mission, the Foundation awards grants to fund time (e.g., ASEC updates all the state throughout the year. These efforts are conducted in partnerships. Some • Over half a million people saw information about America Saves Week on the children' 69 who had com s savings to cover bills or pay off debt. pleted at least one stock, bond, or mutual fund transaction within About Us • Outline the goals and standards that guide the foundation’s activities. U.S. Department of Treasury, Office of Financial Education effort, and would only serve to m Labor, giving one agency the absolute respons get a pro-rata refund for any annual card fee. m the 1997 SAVER Act (The Savings Are Vital fo and taking their teach experienced those negative past shocks are m U.S. Departm im aportance on workplace benefits, especially nage Working Paper, Pension Research Signing up for the program Partner feedback has re-em Under the th In May of 2008, Departm m Recommendation: ma eke good financial decisions. nt o and well-being. ent of the Treasury, E participation, and contributions Pensions em ine “Saving for Your Go g practicum e islead the public nt of the is easy and efficient. phasized that ). BRI, and C Treasury and OECD co- ouncil, The Wharton School. , 2006. m Research has found that individuals make u lden Years: Trends, Challenges and he ibility for direction of ch more likely to plan for retirem at all incom aalth insuran ny other public and private organizations. r Every American Ac comm into thinking they will be protected. unication is the key to creating a e and age levels. ce and retirem hosted the all executive branch t); the creation of ent savings ent. She Yet… Currency has an electronic news featuring ASEC Chairman Da letter on f llas Salisbury on P inancial literacy, wh BS’NewsHour. ile New • agencies about upcom Media: U.S. Department of Health and Human Services ing opportunities and events that we know about on educational program • Multimedia Access s and research aim . This action area repres ed at segments of the inves ents NEFE’s commit ting public who could ment to sharing Most Approxim The Institute does not l aof the organizations involved in these • Intern tely half of service m Links to related resources arranged et: obby and does not advocate embers are very (11 percent) or som or oppose an efforts are: Gover alphabetically and by y policy posi nor Chris Gregoire, ewhat (36 percent) subject category. tion. The task of web; six months of participating in the survey. When comparing FINRA’s results to Every project or program undertaken by NEFE must fit within the scope of at least one The Investor Education F Employee Benefit Research Institute (E und helps people m BRI) ake effective use of financial information. ® the sam activities in this area could possibly add n the President’s Adviso ASEC conducts its work through partnership 2. Homeow exam ASEC’s efforts a plans. Overwhelm • ined the responses to a question of “in th It is essen Second, the “plain language” financial pr Opportunities,” the Summ International Conference on Financial E While in-service teachers are m Branding of the school can be integrated sense of community. We have been e choices with a one page dis 2) onership RRIFs & Annuities Minim rtia e con ingly, however, the m l fio zing the leakage of savings from ry Council on Financial r f ducted th inancial lite rough partnerships of indivi it sought to e closure as racy ef ore likely th ajority eeded coordination and f inform o with public and private organizations as it e last 20 years there we rt multip ducate and m Literacy in 2008; a believe they are not currently saving as ducation. FLEC’s W s to beg into the W oducts proposed need to be what m ed an is the average for US hous le page that the e-m the retirem in at the earli eotivate people to develop b site through the school’s duals and organizations that s of fconsistency—but that nd this year with ails are be ie ne print. Thus, requ nt system as m est stages in life. ere any really large b site posts the ing eholds to ore y ire EBR • I is t Forty-eight percent report th o provide ob ASEC sends jeco tiv e in Over 58,770 individuals have vi form out e-m atioat th n reag e statem il alerts to arding the empl ent, “I enjoy its partners on new initiatives, oyee benefi ewed the PSAs more than financial planning” applies t system and related ASEC provides inform the local, state, and natio ation to the ge nal lev neral public through use of new m els and agency representatives are quick to edia benefit from additional resources. To its expertise in f • Financial Literacy Day on the Hill inancial planning education with all t date, the Foundation has hose who m approved $Use Helpful ight benefit from 10.4 million in confident that they will ha Washington State Departm At least 96,930 visitors ha ve enough m eoney to live co nt of Finave utilized the resources page of the site, ncial Institutions, W mfortably throughout their ashington State • All of Choose to Save PSAs are available through the PSA viewer on the "It's clear th • the findings of this study, it becom Millions were reached through press in at parents are struggling with their expenses es clear m tha atjor markets including W financia during these difficult tim l literacy increases with ashington, es, but initiative. American Institute of Certified Public Accountants (AICPA) The Investor Education Fund was established by the Ontario Securities Commission, the financial security issues, to achieve its primary goal: “that policy and design decisions be creation of the Advisory Comm one page with all key facts. Lusardi, Annam Read m encourages savings, debt m would only occur if the leadersh 4. Multilin Grandm expenses or events that have m encourage financial education, much as they should. People in these younger ge agenda but no additional content. Ho their own personal retirem logo, color schem Goal: forwarded beyond the immediate ASEC contact Since every child is requ o othe re of the o gual/Multic r would have term defined benefit and defined c Insuranc aria. “Planning and Saving fo Executive Summ e u ltural Pop e, and resources. anage ® ed “plain vanilla”. For exam a retirem ittee on Investor de it very di ired to and g ip of m eary nt saving strate e unt, fina lations the agency was comm or the ent plan sponsorship, and participant & beneficiary ncial planning, financia ontribution plans pay lum fficult to m e wever, a search on OECD’s W final report of the study r Retirem nerally does attend school, elem Education at the SEC. The recently nerations tend to feel that assum gies. Delegates participated in breakout e eet your financial goals” from s, thus ensuring a greater reach of nt.” Working paper, Dartm itted to the is ple, a 20 percent down, 30 l education, health . p sum sue and to th e b site entary and ing adult outh e the VI. 2009 Retirement Confidence Survey – practice financial behaviors that are typically recomm EBRI Issue Brief ended to ensure financial no. 328, well or very well to them. program Testimony by Dallas L. Salisbury 65,752 tim updates, and research developm es since tracking began in m ents. id-2005. grants and an additional $10.2 m technologies such as Twitter (Chooset express an interest and often offer th illion in direct in oSave), Facebook (Choose to Save fan vestor edu eir assistance/input on a project). cation programming. The advice of a financial it, including consum professional ers, educators, and the media. 68% 37% retirement years. Departm Choose to Save • Taste of DC ent of Retirem which consists of free partner tool We eb site. nt Services, Washington Society of CPAs, Jum s such as calculators, brochures, p $tart DC, New York City, Los Angeles, Chicago, Phoenix, Miami, among many tapping m experience. The investors in FINRA’s st oney put aside for their kids will only e udy are significantly more likely than the xacerbate a family's problems when it University of Michigan Research Professor Robert Willis based on veri NEFE accomplishes its m fiable facts.” Research ission prim ers, pol arily by icymakers and the medi partnering with other organizations to: a rely heavily on EBRI province's securities regulator, and is funded by OSC enforcement settlements. It operates enacted cred education, health and retirem approach set out in the legislation. year fixed rate m education for the entire popul responsibilities, like purchasing a hom first wave (a representative sam College, 2003. Prom Goal: sessions focusing on four specific targeted reveals a detailed agenda with links to Between the second quarter of 2006 and the second quarter of 2007, the U.S. secondary schools are one of the surest ASEC initia o it card law also requ otional m distributions. Advanced Investm ortgage, with clearly specifi tives. aterials are provided a e ation, regardless of age, em nt plan ple of i ires the ents sponsorship, for the entire population. e ndividuals born in the y a developm nd supporting a family, nd can be custom ed closing costs, and the speak venues to provide all Am groups: Low-Incom ent of ne ers’ presentations, a summ ploym w inventories of what ized (although schools ear from ent status, etc. is m that can be paid off ore difficult for e 1931–-1941) of Workers, Sm ericans with ary all- security (Page 61), pre-service teache ™ rs were more likely than the average April 2009 • Twenty-one percen page), and YouTube (ctspsas). It is t report that the statem too soon to know any tracking statistics for ent, “I think preparing for retirement Inform • ation from Innovative Thinking Washington, and Consum the Thrift Savings P quizzes, m . The goal of ore than 114,8 er University to nam lan (TSP), such as benef this ac 94 tim tion a es. rea is to inspir e just a few. There are m it statem e crea ents, tive ideas and any • NBC 4 Health and Financial Fair others; • ASEC Savingsman PSAs with the Military Saves’ “Take the Saver com research. Dall es ti young adults in this study to provide th me to pay for college," said Arka as regularly testifies at congressi di Kuhlm onal e correct response to each of these ana d commi nn, President of ING DIRECT USA, ssion hearings and appears in • Provide practical, reliable, and unbiased financial education to members of the separately from the OSC with its ow ® n Board of Directors. protections currently exist. with no penalties. Or, a three year fixed ra Our nation needs to m If you would like the APLUS final report m Health and Retirem them • than it was for prior generations. Neve record of the two day conference, using the m Popular Questions Business E Departm Between the fourth quarter of 2006 and financial education. Age- ent of m a ent Study. She also found that terials cover the printing costs). ployees, New Entrants to the W Housing and Urban Deve andate financial liter And the Social Security Ad appropriate and segm and conference video-casts. acy education in K to 12 public and private te car loan that can be paid off anytim a rtheless, there is a iled the fourth quarter of 2007, the Treasury lopm to you for future reference, please let one could learn from ork-force and Workers Nearing ent will join w ented ministration has announced its financial curricula could strong positive outlook, ith th the m e Treas istakes of ury e household to pay bills on time and pay credit cards in full each month, but less 2. Make Financial Litera Ballpark E$timatecy a Prior Worksheet: Presiden ity t and CEO ( Form other http://www.ebri.org erly known as the NASD Investor E GIG attendees leave the m new perspectives on personal finance, to takes too m these app written licmua ations (othe terials, ch tim /publica e and effort” a or tions the TSP Web site r th /ib eetings knowi an aforementioned the YouTube fi /index.cfm pplies well or v ducation Foundation, the FINRA Investor ?ng what all the other agencies are fcomm a=ibDisp&content_id=4293 unicate them ery well to th 62% broadly, and to assist gures). However, at em. ) 10 Calcula print and broadcast medi ting how m more organizations at the state, local, uch they will ne a around the worl ed in re d. EBRI is one of the 20 most freq tirement: and national level working to promote uently cited The overarching research objectives are t Pledge” logo as an end s o: late are currently posted on the Military Saves the nation' • questions. In both studies, sim s largest direct bank. "Parents A new website, www.AmericaSavesWeek.or ilar shares need to set an exam of respondents offer incorrect answers. g, provided info and advice to ple by setting up an ® public. ® intent to fund at least one “F Our Choose to Save without the com m Madrian, Brigitte C., and Dennis F. Shea. Over the past decade and Over the pas with a tendency to believe, especially am others. Respondents are more likely to plan fo education program e know. • ASEC W Forum Departm Departm Five workshop kits that cover key fina Featured To Retirem include m t 34 years, I have watche participants addressed the importa ent. The delegates developed e ent will host a s pe nt to host a series of m a lexity of the “r b Site: tters such as budget crea s. And, as long as we have pics public service announcem a half, ASEC has inancial Literacy Research Consortium eries of ule of 78”. Or, a charge or cr d roun m eetings ong the u“Preaching to the Conve ltiple a tion, com brought together p dt im ncial topics, and include PowerPoint No Child Left Behind exam r retirem able highlighting the work of successful portant recomm e younger Generation Y, that they will n nce of creating a na gts have ency progr s on f pound interest, savings goal ent if the fi inancia run nationally since the first am edit card that tells you any ublic- and private-sector l educ endations to help s and priorities on nancial situation of rted and Converting ,” and possible m tional environm ation topics of s, testing for ent ore “think-tanks” like The Ballpar ly to pr in the nat ak E$tim ctic ion Em e othe usi ployee Benefit Research Institute (EBRI ate ng ww r p com ositiv w.f ea e f s in two for ir.org meth inancial b m ods. ehavio ats, 1) an easy-to-use, two-page rs (page 84) curren the motly do ment we have over 115 followers on Twitter and m ing in the area of financial education. Those seek ore than 30 fans on ing assistance with The advice of fa Education F • in the In 2009, 44 percent of workers reported they oundation is a nonprofit, ir ac m tu ily, fr alization wh iends, or co-workers ere app 501(c)(4 ropriate. This action are ) organization established in did a retirem a sup 59% ent needs calculation. ports fellowships Decem 12 ber Forty-three percent of servi As our W financial literacy eb tracking re ce m throughout the state su elts revea mbers report they and/or l, ASEC of W reaches m ashington. their spouse have tried to illions of individuals, both in 1. Bench At these events ASEC staff speaks with mark the distributions of key measures of financial capabilit 150 to 500 individuals, depending on y However, for each of the five investm Web site. ent concepts tested, experienced investors automatic savings plan. A ' individuals and organizations; and, set it and forget it' savings mentality makes it easy for parents • Accomplish research in the field of financial literacy education. Paul Bates, chair of the Board of Directors of the Investor Education Fund, discusses how ( eventually achieve financial security. Thei basic knowledge should be included. Th and all fees in advance, and cannot cha PSA was shown at the National Summit partners to share inform sibling is worse than financial education shift dram Federal Register • that encourages personal savings and i The W presentations and facilitators guides. Recommendation: individu Those Taught: Finan partnerships that have ad Tools and Calculators specia formoation, cash versus credit, and long- le conc 44.1% of pre-service and 48.9% of b site, www.asec.org, serves as als in each of th , Vol. 74, No. 76, April 22, 20 ern to spe their current situation. ation on best practi c ial Education in the W c atica ifese groups o ic comm vanced homeownership. lly as political leadership cha nge fees without giving you notice and the on Retirem unities. The goa e basics of m r optimism ces an ver nvestm term a portal where ASEC partners com com 09, page 18424). W d to collaborate on finan in-service k-12 teachers were e planning. Any education program ent Savings in 1998, and our o obstacles and take advantag e rkplace.” W is not unfounded: The data suggest nt for retirem oney, interest, com l of each rou nges. This is not just true orking paper. Chicago, ent, and focused ith each passing ndtable will be to cial security pounding, e of e worksheet, and 2) an on-line interactiv ® and ™e worksheet. Both help you quickly • a proje Facebook. As we have only been on these two new m The current economy escalates the need ct usually come out with valuable con for financial literacy in the United tacts of people a edia tools for a little m nd agencies willing ore Attitud An objective financial edu 2003 in response to both the current environm 2. es ab Evaluate how those ke program out f s, inancia grantm l planning aking cation website y m , and easures vary : research with and strateg ent in the m underlyin ic activities ga dem rkets and a survey showing ographic, behavioral, 54% . 12 calcu • late ho In 2009, among workers who did a retirem the United S w much m tates and in 203 countries oney they will need to have saved by the tim around the world, such as Canada, ent needs calculation: 14 percent e they retire so that the length of the event; some events are held on more than one day. All of the to save, while teach are significantly less likely to say they ar • Choose to Save ing their child Savingsman ren about the importance of putting som PSAs with the A e uncertain of the answer. This suggests merica Saves W e money aside eek.org • Saves Week was recognized with a resolution in the U.S. House of TM Dallas serves on a number of advi • Create demand for financial education. sory groups and boards. He is currently a member of the both the Fund and the Ontario Securities Commission help investors. Watch the video. week, the need grows for m NEFE Sy that likelihood of saving for re opportunity to cancel the card and get a pro- when party control changes, but occurs within Savingsm initiatives su budgeting, saving, debt, living within your m • together to share inform opportunities to save A link to the posted results on OECD’s W Investm NEFE is committed to m IL: University of Chicago, 2001. designed for schoolchildren could have a co raise awaren atten mp antion on action ch as: osium character was featured on PBS in ent News : ess of the im Financial Realities of Young Adu s and “best practices” eaningful coordi for their futures. tirem ation on events, a portan intaining the W ent increases with age an t financial education topics within th nation to avoid overla rata refund for any annual card fee. eans, a party with new sta resources, and best that companies and organizations could 2009 and received an Emmy Award in eeb site in the f b site should be included on F the virtue of thrift, stock, bonds, loans, mpanion “Parents Guide,” designed to lts: Building a Financial Education d fu inancial literacy im tur p and the waste of ffing as well. Thus, e p. ractices con e spec cerning LEC’s if proves ic concerned about whether they would have enough for retirement. (pg 85) identify approximately how much you Chairm need to save to fund a comfortable an that investors still have fundam attitudinal, and literacy to imm than a m States. ediately help. O onth, this is excellen cha v eerall, it is tr racteristi ntal ques t prog cs tions and ress. W uly a win-win arrangem em hope isunderstandings about im to not only “teach o ent for everyone. ld d portant ogs Inform • ation from Over the long run – 10 to 20 years – you be the media, such as newspapers, m lieve stocks in general will be a very agazines, they can live comfortably, which is in line reported they guessed at the am Germ ASEC’s role in W fairs listed above are annual or sem any, Japan, the United Kingdo ashington is a suppor ount they with the general popul m, I i-annual events that ASEC gets invited ndia, Australia, Iraq, Philipp would need, 46 percent did their own t role. ASEC m ation (44 percent of aterials such as th ines, and e Securi for futture needs." ies and Exchange Commi that with m logo are currently posted on the Am ore experience (i.e., having m ssion Investor Advisory Comm ade a recent transaction and/or being the erica Saves W ittee, the Board of Advisors eek.org Web site. to Representatives, sponsored by Congresswoman Stephanie Tubbs Jones (D- NEFE’s activities place special emphasis on th ® ose who face financial challenges that are For more information about the Fund, please contact us ® resources. I encourage you to address this Research has found that individu Currently, over 260 colleges and universitie Fram In sum with experience. Clearly, these young people 2008. and m the ro • ework that le bein u,ch more. Nation retirem Evaluation: page. Follow-up to last year’s financial literacy. Since m Glossary community highlighted. either inform the parents about what th replicate and take on their own. Over 150 g set out f ent planning is closely relate is Relevant and Accessible or th al survey e CFPA may or m als m s o id-2005, th ver m conference would ake the sam a need as you reform financial regulation. ny years m s across the country are enrolled in d to f a e page was viewed over 734,446 tim recognize what they should be doing; the y not add value in this area, depending eir child is learning in school or of inancial literacy and past negative e individuals from choices with a one page disclosure as ake it clear that this basic be ideal. federal, state, and fer es by • Partnering in the developm o The percentage of pre-service and ent of the federal governm K-12 teachers who expressed concern ent’s Savings Matters retirement. The Ballpark E$tim American Savings Education Council (ASEC) ate ® takes complicated issues like projected Social investmnew tricks” but to educate the young ent issues. In 2007, the Foundation' o Americans need to chang s parent, NASD, c e their ac professionals and teenagers on the tions by creating w onsolidated with NYSE ealth, not debt, NEFE has worked innovatively on the issue of the Comptrol television or radio estim good investm South Korea. Since we began tracking vis Ballpark E$timate le ate, 33 percent asked a financial advi r General ent. In 2009, 17 percent of work of the Uni , PSAs, and brochures are used ted States, and the Board of Di spending in retirem sor, 9 percent read or heard how m itors to our site in June 2005, we have ers stated that described them well by various organizations at rectors of t 48% ent. It established a he FINRA Investor 5 uch 2008 RCS workers). back. household investment decision-maker) comes greater investment knowledge. For • OH), proclam All of the Choose to Save ations by the Governor PSAs are currently available on Y s of Tennessee and Washington, and ouTube. not being addressed by others. Among our target audiences are: The key m CashCourse. More inform From multiple p events from 2) Outreach challenge ahead of them knowledge is m upon the specificity of the legi • Nove Funding Financial Literacy Two roundtables were held (one in Ju more than 400,485 unique visitors. local governm suggestions on how they can integrate eaasures of g mber 12-14, 2008, NEFE brought toge own personal experience and/or to General Public: es of issing. While we need to find fine print. Thus, re financial capability ents; unions; trade, prof is put ation about this program can be found at ting these values into action. slation, the attitudes and pr are: quire one p observations of other people. Furtherm ly 2006 the other in June 2007) but no essional, education, and research these lessons into m ways to increase the lain English summary page with all k ther an eclectic m iorities of the board and the anaging their own financial literacy of i www.CashCourse.org x of financial ore, ey Education Foundati campaign; about retirem on. He is a Fell ent-related issues (e.g., ow of the National Academy of knowing whether I will have enough Human Resources and a Security benefits and earnings assum www.ebri.org and www. ptions on savings, and turns them choosetosave.org into Milita Mem one of a kind website, ber Re ry f Please see Addendum imiportance of saving for a secure financial future. The promotion of sound na gulation to form ncial educator or m through savings efforts. The plat www.decumlation.org FINRA, the Fina A for a copy of the ilitary Personal F ncial Industry Regulator which has a w ireport from nancial form must be heightened and the last GIG m hite paper link: y Authority. A eeting. t that com record is needed, 16 percent used an on-line their events. For W pared with 28 percent in 2000. ed over 5.6 millioa n visito shington Save rs and slightly fewer than 11 calculator, and 11 pe s Week 2008, Washington Society of rcent filled out a 4 million hits. • 39 percent of service members (vs. 19 percent of workers in general) calculated Even as parents tap their child the respondents in this study, ren's savings theoretically, that m accounts, many are not prep eans that with m aring for their ore experience other county and m Our account nam ayoral proclam e is ctspsas. ations and statements of support. • Youth, member of the Board of the NAHR Foundation. He has served on the Secretary of Labor's ® The Investor Education Fund is guided by an independent team of Directors. “banked” status (i.e., having a checking and/or savings account) past negative experiences m The FINRA Investor Education Foundation 8 education leaders and young adult experts. Th adults, the long term As an example of our partnership approac facts. director, and adequate staff . Academic Research and Program Evaluation Evaluation: results of those roundtables are available, only an agenda. associations; businesses; and tax exempt household finances. Children o How To Apply for Funding cost effective strategy is and budget resources being prov ay be interrelated learn their financial habi h, ASEC was one of the founding organizations National Baseline Financial Capability to begin when for e event drew attenti with financial literacy. For exam institutions participated in various ided for funding. I provide ts from their parents and mal on to the financial education begins. ple, past • Serving as a m language and m money for retirem aa jor resource for Congre thematics that are easy to understand. ent and understanding insurance options and costs ss as it drafted the SAVER Act of 1997 financial platten anning will b tion draw en to this is utilized through both Choose to Sav sue. e and ASEC http://www.nefe.org/LinkClick.aspx? tim e, the NASD Investor Educatio Manager (PFM) n Foundatio fileticket=sTqM6em n became the FINRA Investor Education ZXgI%3d&tabid=529 41% 11 worksheet o CPAs conducted an essay contest in r form. the schools of Washington. Students • their own estim You think anyone can have a com ate. fortable retirement if they plan and save. In their responses should change from “not sure” to correct.” – Pg. 50 of Financial child ren's financial future. ERISA Advisory Counc • Washington State Departm il, the presi ® dentially appoi ent of Fi nted PBGC A nancial Institutions has created a dvisory Committee, Board of • Low-income individuals and families, and access to and participation in pension and/or retirement savings plans ® In addition, our earlier of Then, people m negative events m realities of the nation’s young people betw Survey, developed inform the Jum ation below on the Ontario, C Four roundtables were held focusing Third, the P breakout sessions. The three keynote sp other adu po star Projects W t Coalitio ight at least be able to lt r i ght provide incentives in co ro esiden le-m Ynsulta outh and Money n f odels in their liv et’s Ad Have Funded or tion w Youth Financial Literacy, and s visory Coun ith th anada I understand the plain language products. and for putting effort in trying to increaseing e U.S. Treas es. een the ages of 18-34 and challenged nvestor Education Fund, for exam on African-Am cil Parents, Youth and Money eakers were Secretary of the Treasury on Financial L ury Departm ericans, Asian/Pacific till serves on its board. I iteracy has proven to be a ent and the President’s surveple, which ys See pages 8 and 9 of the docum Goal: Retire Choose to Save during retirem ment Summits Program ent) was surprisingly sim ent at : ilar; this finding suggests students (Savings Are Vital to Everyone’s Re tirement), organizing the 1998 National partner resources ASEC Coalition: and tools. Online professional investm with recom Foundation—but its m mendations on financial liter ission of servi ent advice services ng investors rem acy in this critical lif ains the sam e stage. ® 34% e. 3 Many of the resources posted to the Choose to Save were to write a 500 word essay on a personal experience site are provided by ASEC with saving. The Directors of t • 2009, 24 percent of workers stated that Among all workers in 2009, 47 percent repo he Society for Human Resources Mana described them gement, the U.S. Adv rted they will need less than $500,000 well com isory pared with 35 Panel on • 24 percent of service m Maturity report embers (vs. 7 percent of workers) report using an on-line II. Financial Literacy and Education Commission (FLEC) America Saves Week 2009 YouTube page that includes the Choose to Save ® PSAs and Mission • People in difficult or unusu ® al life circumstances. home ownership personally serve on the FINRA Investor Educ participants to re-think fina worthy effort. It has also provi underlined the influence of parents on thei financial knowledge by participating in re Advisory Council on Financial Literacy, is is funded by enforcem • Islande 1998 National Summ The U.S. De Developed by EBRI and ASEC, Choose to Save Recommendation: Teachers' Lawrence H. Summ rs, Hispanics, and Corner partm ent settlem ent of the Treasury ncial education assumptions, m ers, Representative Be it on Retirem ded direct input to the Treasu Native Am ents from tirem ent Savings: r children’s m th a national and state-by-state survey of er , along with the U.S. Departm e Ontario Securities Regulator, and which ation Foundation Board of Directors, the icans. The agenda and a brochure ent sem njam iin L. Cardin, and Representative nars in the workplace. Many oney knowledge and savings and utilizes the power of the m essages, m ry and the Financial Literacy edia, and attitudes ent of edia Find out m http://www.nefe.org/LinkClick.aspx? ore about the content on our website. are future oriented and would welcom fileticket=sTqM6em e assistance in addressing personal ZXgI%3d&tabid=529 The Summ Ballpark E$timate it on Retirement Savings and activ continues to be a popular t ely participating in the 2002 and 2006 ool for retirement planning. Medi 3. care Edu Work Cooperatively with Other Gover Coalition Partners: cation, the Board of Di rectors of the Nati nment Agencies and Non-Profits onal Academy of Social Insurance, and Inform ation from seminars 32% 3 partners. percent in 2000. in total savings to live com winners were given savings bonds. fortably in retirem The savings bonds were donated by ent. One in four (27 percent) pa calculator to predict how m rents with children under th uch they will need to accum e age of 18 do not have any ulate for retirement. In 2009, nearly 650 national, state, and local organizations participated in the Retirement. NEFE’s partnerships and the foundation’s own ef debt burden, with particular focus on mortgage and credit card debt forts result in a wide range of free and SEC Investor Advisory Comm Am Education C 6. Coordination Efforts about today’s young people transitioning to adulthood. studies (e.g., Bayer, Bernheim credit behavior. Thus, it is im The President’s Advisory Council on Financial numerous other commi has a single purpose. erican adults’ financial capability. W prom Agriculture Cooperativ Post results of the roundtable to the F The Summ to prom Rob J. Portm oo oting the African-Am mm Guides and Activities ote the idea that saving today is ission. Long term it represented an unus an. ssions and advisory groups. portant for all , and Scholz, 1996; ittee, and th e State Research, erican Roundtable value will ual public-private partners hen e Advisory Committee to the Com generations to be m LEC W results are available later th depend upon som vital to a secure f Literacy has proven to be a worthy effort. Education, and Extension Service, will Madrian and Shea, 2001 e are posted on FLEC b site, below the agenda, so the oney and credit sm e inan for hip. ASEC served as cial f malization of role ; is year, th ’s W Clark et al., utup re. e troller b site, but e art. financial issues using long-term as well as short term planning Below are som events; e of the tool’s latest uses: FINRA and the FINRA Investor The ASEC c America Sa oalition consists of for-prof ves Week: Education Foundation do not it, nonprofit, and governm sell investm ee nt entities. nt products, The think tank on decumulation produced graphi ASEC. ASEC provides contacts for acs that m dditional resources. F ake clear how com or exam plex a topic ple, in • Have you tried to calculate how much you will need to save for retirement? In savings se • Only 33 percent of service t aside for their children. members (vs. 49 percent of workers) simply guess at As stated on the FLEC hom Week. From January 1, 2009 throu insurance participation e page: gh March 25, 2009, over 27,000 individuals low-cost activities and materials, including: ® General of the United States. 2003) found dem nation will h by the W Given no full tim no results from convene a sym results are available to the public. Financial security is one private-s Goal: hite House and som o ave the m Multim ector co-org onstrated the positive effect e staffing, and 18 months of tenure, it has begun a num posium o edia Resources the roundtables have st com anizer of the Su e of researchers who level of de prehensive pic of the m o dicated funding and staffing. The current st im As the housing situation has changed been m mm ts of financial education program urportant issu e e it with the Departm specialize in financ ver of ade public on the dom the is es for m sue, which will prov oest Am nt of Labor. The ial education. The ber of efforts in ain. ericans. s on ide an horizons. (page 86) Find out who our valued project, conten America Saves Week is a social m t, education and linking partners are. arketing tool designed to promote a savings prom this a • ote products or firm ll is f Helping the U.S. Securities & 14 organizations are paid partners, 61 • • oIdaho Public Em FLEC cannot work alone r the individus, or al. ployees Retirem offer specific investm Exchange Comm ent System are mie ssion partners (consisting of non- nt a is (IPERS) asked ASEC in Fall dvice. For m sion develop the ore inform Facts on ation 2008, W Choose to Save ashington Society of CPAs conduc Public Service Announcements: ted an essay contest in Tacoma, Over the years, a number of sub-set surveys have been conducted using the RCS and 2009 44 percent of workers reported they have compared with 43 percent in 2007. how much they will need to accumulate. He has been honored wi enrolled as a “Saver” in the Am th the Award for Profe erica ssi Saves Cam onal Excellp ence fr aign. W om the Soci e are still com ety for Human piling • Resources for consum Other Outlets: ers. ® invaluable baseline for future financial educa Programs: The gathering included presentations and pane NEFE has a program We have recent experience in the United States participan approach of heavily depending upon those a partnership with private organi goal of the s 2002 National Summ Whether it is putting kids through colle The Office of Personnel Managem significantly in the two y Departm ts’ o participa Com ent of Labor shared the direct y p, CashCourse, directed m etition tio posium n and contr s and Presen it on Retirem i zations. It has also provided s to raise aw ears since the last roundtab ibutitations on rates. Thus, m ent Savings: ent and th towards college students, we recently aren ppointed to donate tim tion of the adult population. costs of ge, saving for an em l discussions devoted to o ess of existing acad f the dif e T th reasury Departm e fa Summ iculty in m ny people experiencing the le, a follow-up roundtable direcit equally with ASEC, t inpu e, m er em eetin gency, buying a the developm t to ic research and to one ent will partner to g objectives in It will assist all the Trea y and other sur ental, y profits and universities), and m Saving and Investing essage to encourage individuals 2008 for permission to reprint the Campaign 22 are governm in 1998 to encourage Am to take inf Ballpark E$ o erm nt partners. ed action to timate for use during their ericans to get the facts Build Wealth, Not about the Foundation, please visit o The bulk of the successes it has www.finrafoundation.org had are a result of working CTS educational m WA. ASEC provided the connection w aterials include radi ® ™ o and TV public service announcem ith Bank of America who donated the ents Resource Ma applied to specific groups. These include: nagement, the Plan Sponsor Lifetime Achievement Award and the Keystone The underl • Am yiong wor ng demographic characteri kers who reported they did a stics are standard (e.g., age, race and et retirement needs calculation the hnicity, education, The num The Financial Literacy and data from ber increases to one in the participating organizations. Education Comm three (33 percent) for parents ission (the Co We do have results from in the 35 to 44 age bracket mmission) was estab 20 percent of lished • Materials for • Choose to Save educators and facilitators Savingsman PSAs with the M . ilitary Saves’ “Take the resources, or to raise it from recen Your request m ASEC achieves its goals through several progr of us in working toward our comm the area of financial education. The F econom and the Financial L t reces def establish a network of state and lo should be held to address how the econo ASEC participated in and contributed house, or saving for retirem and m ic, social, and political io ne questions tha sion would be likely to plan for ajor addition Professional Developm ade specific reference to iteracy Education Co al co t others, leads to req jungle transitioning adults m ntribu uire add on goal ent—havi tions o ie nanc nt imm the financial regulation reform tion cal governm of enhanced financial literacy, so that ial Literacy and Education Commission (the retirem f po ission. Long term value will depend upon staf al ng enough money for life’s dem funding for the Summ ana am te m ntia fs and initiatives which fall into two tim ic crisis has im lent and thereby in ysis. The sym l conf e were m ent officials to improve lic uts of interest and confusion st navigate as they pursue ade by the Am pacted hom posium itcrease saving , which was held pr will re oposals eownership, a erican nds is sult in a s for Gutter, Michael; E conducted a Sym Recommendation: posium isen, Joseph; W on the Financial Real ay, Wendy L.(2009—final report pending). ities of young adults, and we have three Financial Award of Worl about how to achieve Debt. workshops. IPERS serves over 100,000 participants. The long-term d at Work. Dallas was a goal is to join toge financial security; delegate to tther thousands of employers, financial he 1998, 2002, and 2006 National Summits cooperatively with government agencies and non-profits, such as Check out the latest news here. geograph (PSAs) in prim y, marital status, income, occupational status). savings bonds for that contests winner. etime. Although the program stresses the seriousness of the who typically have children • following are the reported m Iowa RCS: 1999. approaching college age. ethods used: Service m under Title V, the Financial L the participating organizations. embers are more likely than work iteracy a Thes nd Education Im ers overall to provide e preliminary results in provem a realistic response ent Act, which was clude: • NEFE High School Financial P Saver Pledge” logo as an end slate ar lanning Program® e currently available on all m ilitary ® their futures in a world that is m retirem of roles. Related to FLEC, I find m announced by the president last week. The president has called for the creation of a grant pro on Reti individuals can be better prepared to see distinct categories: professi Comm some for rement S ission, or FLEC) was established under Ti ent. white pape am from especially given developm Society of Pension Actuaries and EBRI. Again, posting the results of collaboration on financial education efforts m jects that are ong our biggest concerns. And yet, m alization of role by the W o February 27-March 1, 2002 in Washington, DC. The gathering Teacher Recognition avings and to the 200 r that will su also of relevance. onal partnerships and outreach rv uey curr ch different ents concerning m y these co 5 Whi hite H self ent f through sales sm in agr te Hous ouse and som nferences will enab ina from that of their pare ee ncial edu a e Conference An additional two dozen ASEC partners tle V, of the Financial Literacy and m ny Americans have not yet taken even ent with a critica am ortgages and other outlets. ong federal, state, and local levels. ecation rese level of dedicated staffing. oke screens and avoid fraud. to the general public. on A le fin ging. ar nts or grandparents. l rev a ch and will also ncial education Dall iew as accepte by the d a Management Practices of College Students from States with Varying Financial Education ASEC Leadership Roles institutions, government leaders, nonprof : it networks, and other organizations to • • Working with the Social S Jean Chatzky’s new book, ASEC, to release finan ecurity Adm The Diffe cial literacy resources su inistration on the rence: How Anyone Can Prosper Ev Save for Your Future ch as PSAs, surveys, en in savings m essage, it uses humor and positive examples to help people overcome when asked how m • Florida RCS: 2003. o Guess – 14 percent uch money they will need to accum ® ulate fo ® r a comfortable retirement. part of the F air and Accurate Credit Transactions (FACT) Act of 2003, to improve • Joint efforts with num bases and navy vessels around the world. erous nonprofit, fo r-profit, and government entities to National Emmy Award for Savingsman and the ChoosetoSave org public education program. ® General Accountability Office. The adm Education Improvem Consum Depending upon those appointed to identify areas of potential future research. the f also provided Summ successfully prom institutions to access h The first m er Financial Protection Agency to “giv oi rst step Student Awards eeting of the network will s toward a s ent Act, which was pa oted the im it funding. Over e lpful resources to ecure f donate tim portance of savi inanc inist rt of the Fair and Accurate Credit ial f be held by the third quarter of 2007. ration m 185 delegates attended the June 4-5 e e consum , m ube d tur oney and other resources, or to raise it e. ng for the future of every Am ia stributed to these groups, as well as y already contem er protection an independent seat plate integerican. ration Mandates. Research funded by National Endowment for Financial Education® The underl ASEC Chairm use the ying behavioral characteri Week to persu an Dallas ade tens of Salisbury stics cover a range of practices mse illions of rves on the Board of FINRA Investor Americans to s that m ave and build ight be positively wealth or national education cam their reluctance to address financia o the Toughest Times City of Houston brochures, and other helpful content. paign, , will feature th launched in 2003, that prom l issues. Through e Ballpark E$timate. local and national oted use of the Social Information on how our funding program can help your stakeholders increase their When it com Only 10 percent cite an am o es to speaking to children about finances: Did your own estim ount under $250,000, ate – 46 percent while 32 percent expect to need $1 • financial literacy and education of pers Texas RCS: 2003. Total Audience Reach ons in the United States. The FACT Act develop financial literacy resources for specific audiences. • The Washington State Department of Financial Institutions utilizes the ® at the table in our regulatory system Transactions (FACT) Ac Dr. Jeffrey Arnett, known for defining the The University of Arizona just released of FLEC into CFPA, but from others, leads to poten A) Professional Partnerships: gathering. evaluate current ou o Student Resources if t of 2003, to im treach efforts so that tia it has not focused on the issue, l conf licts of ,” and added com their first report on th prove fi inte term res “em follow-up actions m nancial literacy and t and confusion of roles. erging adulthood” in several books plem the Adm enta eir longitudinal study on ry program ia nistration and the education of persons y be taken to assist efforts. negatively correlated with (NEFE)®. financial capability: more effectively. This “fiscal fitness” will range from paying off high-cost debt, Security Statem Education Foundation. In this capacity, ent; he makes funding decisions on financial • • partnerships, the PSAs now run on radio “ ASEC and its partners w FC&A Publishing is recommending the Money Week Houston” ould happily assist is a financial education and public awareness and television stations in hundreds of Ballpark E$timate FLEC with any of their endeavors. to their readers in Dallas has written and lectured extensively on economic security topics. His most recent books financial know-how. million or more. named the Secretary of the Treasu o Ask a financial advisor – 33 percent ry as head of the Commission and mandated the • Two in five (39 percent) pare The following is the number of individuals nts are more prepared to ta ® reached through various m lk to their children about edia. These • • Minority R Research, conferences, and think tanks CS in which an oversampling of on a variety of financ African-Americans, Asian ial literacy to -Am pics. ericans, PSAs for some of their financial literacy events across the state. Conclusion The views expressed in this statement are solely those of Dallas Salisbury and should not be attributed to the Employee in the United States. The FACT Act and articles, provided his in young adults and the forces that shape their at Congress should do so as details 1. “The CFPA would be the prim Over 250 statutory and appoi As part of its m credit card pay each group. o Globe and Mail Classr ment habits ission, Choose to Save sight and analysis of this of CFPA are developed. nam nted delegates were brought oom ary federa References e Edition d thtitudes and behaviors, e secretary of the Treasu develops user-f l consum audience by presenting his er protection supervisor to riendly, together to form influencing them in rm y as head of th ultimedia a e are: Retir literacy p to ensuring adequate emergency s ement Security in the United States: Current Sources, F rojects. avings, to accumulating ho uture Prospe me equity, to saving cts, and Likely • Acting as the lead resources organiza cities in all 50 states. In cam an upcom o paign scheduled for April 19-25, 2009. Money W Oftentim ing book, es the best work Retiring Well on a Poor Man’s Budget addition, CTS PSAs are shown on m is a result o tion for the 2005 W f cooperativ h eite House Conference ek Houston is designed e efforts on multiple ilitary bas . The book will es and o Read or heard how much is needed – 9 percent drugs and alcohol than money and finances. Comm num ission include 19 othe bers will be revised upward as we get results from r federal agencies and bureaus. T mohe Comm re participating ission and Hispanics were surveyed: 1998, 1999, 2001, 2003, 2007. • Grant awards to organizations and academic institutions whose work can Benefit Research Institute (EBRI), the EBRI Education and Research Fund, any of its programs, officers, trustees, • Local Saver Cam paigns solicited local television and radio stations to play Thousands of organizations are involved in financial education across the nation. The Comm Outcomes of Current Trends Regarding the broad issue of avoiding th research. • ission and m bipartisan group with diverse expertise. saving and pl Fourth, as your request letter notes th protect consum Ho Historic in m maClick here to access a sum terials to help individuals plan and sa me | a anning ndated the Comm any ways, the Summ ers of , The Future of Retirement Income in America credit, savings, mission to ary of his e “regu it was a tr e Presiden paym include 19 other federal agencies and Delegates represented state and local ve for their financial future, including: lpresentation & presentation m atoent, and other consum uly bi-partisan effort ry captu ts docum re” m ent states: “the CFPA entioned in the , The to draw national er financial Future of aterials. Background: In advance of conducting a su 3. Unbanke ways that will de Governmen d termine their f t Interagen inancia cy Group l success or failure as adults. rvey of more than 15,000 college students for retirement. on Aging Mini-Summ navy ships worldwide. Below is a listing have an initial print run of 50,000 copies to help consum levels between individuals and orga ers better m it on “Financial anage thei Literacy Throughout the Lifecycle.” r personal finances. This is achieved of where our PSAs are being broadcast: . Readers who do not have access to nizations with similar missions and sponsors, or other staff o Used an on-line calculator – 16 percent . The Employee Benefit Research Institute is a nonprofit, nonpartisan, education and research Knowledge of Thrift Savings Plan: coordinates the financial organizations. education efforts throughout the federal governm ent, For classroom • Nearly three -ready resources and more to in ten (27 percent) parents are m help your students develop their m ore prepared to talk to their child oney ren Social Insurance: Increme • contribute to the field of Women RCS: 1998–2000. ntal Action or financial lite Fundamenta racy. l Reform?, IRA and 401(k) Investing and usage of expensive non-ba the PSAs with the nk b America Saves Week orrowing mechanisms end slate during the Week. Internet has provided a way to link them together, and much has been done, but m ® ore Michael To bureaus. The Comm 5. Kindergarten – Postsecondary Financial Education should review and stream Adm Ameriks, John, Andrew Caplin, and John Leahy. “ • inistration docum governm About Us Evaluation: Goal: The ASEC Governm products and services, and to regulate provi Evaluation: attention to the need to build a secu wnsend pres e | nts, professionals, and other i ission was intended to c ent, personally, I w ented Charles Schwab line existing fina ent Interagency Group (GIG) was created in 1996 to ould suggest that ownership of, and ncial literacy and e re financial foundation for our country’s oordinate the financia & Com ndividuals working in the fields of W ders of such products and services.” ealth Accum pany’s resear ducation initiatives u l education efforts lation and the ch on Generations X nationwide, Gutter analyzed • Public service announcem the data set collected by ents (PSAs) using humor, powerful im Angela Lyons (circa 2005) ages, and organization A founding m established in Washington, DC, in ember of the Jum 1978. Th p$tart Coal e American Savings Edu ition for Personal Fi cation Counnancial Literacy, cil, a program of EBRI- through the collaboration and coordinate a computer can order a hard copy of the passions. Working cooperatively is Ballpa d effort of hundreds of organizations a way to divvy up responsibility rk E$timate by sending a self- W Managing Mo hile a largoe m ney in Retirement Filled ou ajority ot a worksheet o f service m . embers are a r form – 11 percen ware of the m t ilitary pension (86 percent) supports the promotion of financial literacy by the private sector while also manage about the birds and bees or da ment • skills. Marketing posters, flyers, etc ting than m - oney and finances. 10,706,451 • Pro bono financial assistance to individuals who cannot afford a financial advisor • Sm decision influencers (e.g., usage of financial advisers) all Employer Retirement Survey: 1998–2003. • ASEC provides DVDs of our PSAs for the NAB Show in Las Vegas, NV, remains to be accomplished. The partners of ASEC provide linkages into communities & Y from m Financial Managem throughout the federal governm governm ERF, is embership on the regional Federal Rese 2. • a nonpro em Propensity to Plan.” Contact Us FLEC hosted two m “The establishm Goal: Between the second quarter of 2006 and facilitate coordination and open the In October 2008, U.S. Departm retirees. This was m e the perspective of financial m nt-wide.” Based upon m ployee benefits and retirem fit nation ae l coalition of nt Practices of College St ent of a Financia eetings of this netw Quarterly Journal of Economics. ade abundantly public- ent, and support th y work on savi and private-se ent savings, ent of the Treasury and U.S. Departm a l Consum rke rve Bank Boards, be included in this lines of communication between our clear during a keynote ting. Research findings u ctor ork in A dthe third quarter of 2007, the U.S. ents f organizations u ngs and retirem er Coordinating C private sector institutions, em e prom rom pril and October of 2007. No otion of financial literacy by the State Vol. 68 (2003): 1007–1047. ndertak s with V ent issues beginning in session attended by ing in showed 45 percent of ouncil.” itiatives arying Fin ent of to r ployers, aise pub ancial lic comprised of 8,861 college students from compelling information to encourage vi two land grant universi ewers and listeners to take charge ties who responded to ASEC holds a seat on their Board of Directors. ASEC benefits from addressed stam across Houston and surrounding areas and resources—and because each o the world class research ped envelope to EBRI. of the Em including businesses, financial rg ployee Benef anization has its own co it Research Institu ntacts te, and what it takes to qualify for it (94 percen o Advice of friends/family – 1 percent t of those aware), knowledge of the Thrift encouraging the synchronization of efforts between the public and private sectors. or who are facing an immediate or unusual financial need. awareness about what • Wis needed eb sites to en - 4,520,858 sure long-term personal financial independence. Neither EBRI nor ASEC takes • Military RCS: 2008. during NAB’s annual convention, and many local broadcasters attending across the nation, and seek to leverage each other, rather than to compete with each o th ther. Gen X & Y think th exam private sector, while also encouraging the Education Mandates. 1975, giving one agency the abso Hom 3.e ination of financial regulation and “captu > the general public, and m governm Agriculture convened a national research “A perm In 2006, the U.S. Departm results of th Departm President Clinton, Vice President Gore, About ane e ent of the Treasury, along w nt partners. As adm ese m nt role for the SEC’s Investor Advisory Comm ey have too m eetings are av elute responsibility for direct mb e unt of the Treasur ch debt to s ers of Congress. The inistrations ailab synchronization of efforts between the public le. One outcom ith the Federal Deposit Insurance re av House Speaker Newt Gingrich, Senate , sym com e and 35 per ” since a m y will partner with the Departm posium e and go and personnel turn over at common goal of the S e from a . The results of this ion of all executive branch cent th jority of these m ittee.” ink th those directo ey will be in eetings is the umm r es are nt of it survey questions about their credit card use a Dallas is intervieof we their f d reguila na rlncial f y by au ll m ture; edia, hasnd behaviors. To the extent that college appeared in all major media and on all major ASEC’s role in America Saves Week its parent, including the annual institutions, schools, libraries, not- and networks, they are able to branch out and spread the word to an Retirement Confidence Survey for-profits, faith based organizations, (now in its 19 year) and • The International Foundation for Retirement Education requested permission policy positions, nor do they lobby or receive fed eral funding. Savings Plan (TSP) is lower: • How much do you think you will need to save for retirement? Among all workers The underlying attitudinal characteristics fall into two categories: Although a large num • Resources for the ber of parents feel they are press. not prepared to talk about finances with Find out mo •re about the Onta Postal mail - 46,055 rio Securities Commission. networks, specia the show pick up the DVD of the PS lty channels such as CNN, CNBC th , MSNBC, Fox, F As for use on their TV and/or radio ox Business, and PBS, as well ASEC and its activities have proven to be a ® useful “bridge of continuity” for the public debt forever. Schwab has used this research and private sectors. Back Bayer, Patrick J., B. Douglas Bernheim now appointed by the financial institutions 1 activities in the area of fina 4. the agencies, GIG provides a consistent m delegates w creation of the National Fi “an outside advisory panel, akin to th Education to host a summ sym Corporation, the National Credit Uni Major posium ity Le are availab a ader Tren s to seek w ncial literacy and educati t L le on the FLEC ao ys to help all Am tt, House Minor it focused on integr nancial Education Network Database for State and , and J. Karl Scholz (1996). “The Effects of the F to shape their outreach, and retirem on Adm e Federal Reserve’s Consum We e ity Leader Richard Gephardt, and other deral Reserve regulates, and it is eeting forum ericans retire with security and dignity. b site in a one-page docum on, could possibly add needed iation of financial education into the nistration, and the Office of the . er Advisory ent ent tools students who dem • Choosetosave.org—a W onstrate the riskiest credit card behavior eb site completely devoted to financial education. s can be compared to the ASEC partners with the Consumer Federation of America’s America Saves • ASEC works as a coordinator, partnering with the Consumer Federal of the NoHealth C te: Tracking governm onfidenc for thexponentially greater am e Choose to ent agencies, and the m e Survey Sav (now in its 12 e Web site bee ount th gdia. a year), and acces n in Juan if FLEC worked alone. ne 2005. All statistics listed s to analysis from represen the t the to reprint the Ballpark E$timate as part of a tool kit for retirement personal engagem percentage who reporte ent with financial d they will n matt eed: ers (e.g., willingness to refinance, attention to their children, nearly all (94 percent) parents believe that they are primarily accountable as radi New activities are covered in each is o and on-line networks and programs. sue of the foundation Plan Sponsor magazi ’s newsletter, ne recognizes hi NEFE Digest m as “o, ne ©Copyright 2009, Investor Education Fund Preparing for Their Future: A Look at • Emails - 358,514 the Financial State of Gen X and Gen Y and private sectors when adm stations. inistrations change, appointees change, and priorities ® infrequent that any f Council….Mem Financia Local Governm core schoo highlighting 10 research prio members of Congress. As Rep. Harris Fawe l Ed l curriculum ucation in th inae ncial serv bers of this Council should nts (http://www.flecnationalnetwork.org/ . The group also e W ices consum rities, along with a longer, m orkplace: Evidence f ers (who are no will su have deep experience in financial ll, the principal author of the Saver rvey prom rom t af a Survey of Em fising practices in iliated with a f ore detailed report. ). This Web site was ployers.” inancial total numprogram ber of view to prom s, visits, ote hits, America Saves Week downloads, etc. to that par and ticuM larilitary Sav aspect of the site b es Week etw . See een June 2005 America’s America Saves Program. ASEC works to get the partners of the world’s largest database on 401(k) plan participants. Our Ballpark E$timate retirement rates and fees, keeping professionals. up with financial news) of fifteen legends”; 401(k) WIRE as “one of the ten most influential”; and Pension & o Less than $250,000 – 28 percent for educating their children about the importance of money and responsible spending. 3 2 and in the New at NEFE section. • Terms of Use | • Ads, PSA, media appearances - 15,380,393 an No Th d e wo Mar te: Th crd hese reco 2 ing 009 of th . mmen e listed da tions refer t goals comeo s d th irectly fro e FLEC site, no m FLEC’s t myW mo en be site. y.gov Subcomm Subcomm Subcomm Subcomm Subcomm Subcomm Subcomm Subcomm Subcomm Subcomm Subcomm Subcomm Subcomm Subcomm Subcomm Subcomm Subcomm Subcomm Subcomm Subcomm Subcomm Subcomm Subcomm Subcomm Subcomm Subcomm Subcomm Subcomm Subcomm Subcomm Subcomm Subcomm Subcomm Subcomm Subcomm Subcomm Subcomm Subcomm Subcomm Subcomm Subcomm Subcomm Subcomm Subcomm Subcommittee on Financial Institutions a ittee on Financial Institutions a ittee on Financial Institutions a ittee on Financial Institutions a ittee on Financial Institutions a ittee on Financial Institutions a ittee on Financial Institutions a ittee on Financial Institutions a ittee on Financial Institutions a ittee on Financial Institutions a ittee on Financial Institutions a ittee on Financial Institutions a ittee on Financial Institutions a ittee on Financial Institutions a ittee on Financial Institutions a ittee on Financial Institutions a ittee on Financial Institutions a ittee on Financial Institutions a ittee on Financial Institutions a ittee on Financial Institutions a ittee on Financial Institutions a ittee on Financial Institutions a ittee on Financial Institutions a ittee on Financial Institutions a ittee on Financial Institutions a ittee on Financial Institutions a ittee on Financial Institutions a ittee on Financial Institutions a ittee on Financial Institutions a ittee on Financial Institutions a ittee on Financial Institutions a ittee on Financial Institutions a ittee on Financial Institutions a ittee on Financial Institutions a ittee on Financial Institutions a ittee on Financial Institutions a ittee on Financial Institutions a ittee on Financial Institutions a ittee on Financial Institutions a ittee on Financial Institutions a ittee on Financial Institutions a ittee on Financial Institutions a ittee on Financial Institutions a ittee on Financial Institutions a ittee on Financial Institutions and Consum nd Consum nd Consum nd Consum nd Consum nd Consum nd Consum nd Consum nd Consum nd Consum nd Consum nd Consum nd Consum nd Consum nd Consum nd Consum nd Consum nd Consum nd Consum nd Consum nd Consum nd Consum nd Consum nd Consum nd Consum nd Consum nd Consum nd Consum nd Consum nd Consum nd Consum nd Consum nd Consum nd Consum nd Consum nd Consum nd Consum nd Consum nd Consum nd Consum nd Consum nd Consum nd Consum nd Consum nd Consumer Debt – June 25, 2009 Hearing er Debt – June 25, 2009 Hearing er Debt – June 25, 2009 Hearing er Debt – June 25, 2009 Hearing er Debt – June 25, 2009 Hearing er Debt – June 25, 2009 Hearing er Debt – June 25, 2009 Hearing er Debt – June 25, 2009 Hearing er Debt – June 25, 2009 Hearing er Debt – June 25, 2009 Hearing er Debt – June 25, 2009 Hearing er Debt – June 25, 2009 Hearing er Debt – June 25, 2009 Hearing er Debt – June 25, 2009 Hearing er Debt – June 25, 2009 Hearing er Debt – June 25, 2009 Hearing er Debt – June 25, 2009 Hearing er Debt – June 25, 2009 Hearing er Debt – June 25, 2009 Hearing er Debt – June 25, 2009 Hearing er Debt – June 25, 2009 Hearing er Debt – June 25, 2009 Hearing er Debt – June 25, 2009 Hearing er Debt – June 25, 2009 Hearing er Debt – June 25, 2009 Hearing er Debt – June 25, 2009 Hearing er Debt – June 25, 2009 Hearing er Debt – June 25, 2009 Hearing er Debt – June 25, 2009 Hearing er Debt – June 25, 2009 Hearing er Debt – June 25, 2009 Hearing er Debt – June 25, 2009 Hearing er Debt – June 25, 2009 Hearing er Debt – June 25, 2009 Hearing er Debt – June 25, 2009 Hearing er Debt – June 25, 2009 Hearing er Debt – June 25, 2009 Hearing er Debt – June 25, 2009 Hearing er Debt – June 25, 2009 Hearing er Debt – June 25, 2009 Hearing er Debt – June 25, 2009 Hearing er Debt – June 25, 2009 Hearing er Debt – June 25, 2009 Hearing er Debt – June 25, 2009 Hearing er Debt – June 25, 2009 Hearing Subm Subm Subm Subm Subm Subm Subm Subm Subm Subm Subm Subm Subm Subm Subm Subm Subm Subm Subm Subm Subm Subm Subm Subm Subm Subm Subm Subm Subm Subm Subm Subm Subm Subm Subm Subm Subm Subm Subm Subm Subm Subm Subm Subm Submission of Dallas L. Salisbury – Washington, DC, - ission of Dallas L. Salisbury – Washington, DC, - ission of Dallas L. Salisbury – Washington, DC, - ission of Dallas L. Salisbury – Washington, DC, - ission of Dallas L. Salisbury – Washington, DC, - ission of Dallas L. Salisbury – Washington, DC, - ission of Dallas L. Salisbury – Washington, DC, - ission of Dallas L. Salisbury – Washington, DC, - ission of Dallas L. Salisbury – Washington, DC, - ission of Dallas L. Salisbury – Washington, DC, - ission of Dallas L. Salisbury – Washington, DC, - ission of Dallas L. Salisbury – Washington, DC, - ission of Dallas L. Salisbury – Washington, DC, - ission of Dallas L. Salisbury – Washington, DC, - ission of Dallas L. Salisbury – Washington, DC, - ission of Dallas L. Salisbury – Washington, DC, - ission of Dallas L. Salisbury – Washington, DC, - ission of Dallas L. Salisbury – Washington, DC, - ission of Dallas L. Salisbury – Washington, DC, - ission of Dallas L. Salisbury – Washington, DC, - ission of Dallas L. Salisbury – Washington, DC, - ission of Dallas L. Salisbury – Washington, DC, - ission of Dallas L. Salisbury – Washington, DC, - ission of Dallas L. Salisbury – Washington, DC, - ission of Dallas L. Salisbury – Washington, DC, - ission of Dallas L. Salisbury – Washington, DC, - ission of Dallas L. Salisbury – Washington, DC, - ission of Dallas L. Salisbury – Washington, DC, - ission of Dallas L. Salisbury – Washington, DC, - ission of Dallas L. Salisbury – Washington, DC, - ission of Dallas L. Salisbury – Washington, DC, - ission of Dallas L. Salisbury – Washington, DC, - ission of Dallas L. Salisbury – Washington, DC, - ission of Dallas L. Salisbury – Washington, DC, - ission of Dallas L. Salisbury – Washington, DC, - ission of Dallas L. Salisbury – Washington, DC, - ission of Dallas L. Salisbury – Washington, DC, - ission of Dallas L. Salisbury – Washington, DC, - ission of Dallas L. Salisbury – Washington, DC, - ission of Dallas L. Salisbury – Washington, DC, - ission of Dallas L. Salisbury – Washington, DC, - ission of Dallas L. Salisbury – Washington, DC, - ission of Dallas L. Salisbury – Washington, DC, - ission of Dallas L. Salisbury – Washington, DC, - ission of Dallas L. 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Volume T-161

Pages 46

EBRI Testimony

June 25, 2009

Dallas Salisbury

Financial Wellbeing Retirement