they would put or advise their child to put $5,000 to save for education or some other long-term goal, 58 The study abstract says, "The evidence indicates that mandates have raised both exposure to financial financial lives; (2) help participants get out of or avoid financial problems; (3) comply with regulations or T Table -131 I continued Those who are unable to attend a workshop can visit www.icief.org for all the materials in an interactive, third round of the study again presented respondents with the same list of ideas, ranked according to the Chairman Unbanked co•lleges" Increase Sarbanes, households is ranked public Ranking 4th, are and while more philanthropic Member "institute likely Gramm, to education rely support on and check for projects Members financial cashiers, that of education the start payday Committee: at alenders, by young faith-based age" rent-to-own is tied and other for 13thplace But in the end, I return to my thoughts at the beginning of the testimony about the importance of coalition the National League of Cities, and the Government Finance Officers Association underwrite the program. went up in 2001 by 6 percentage points to 34 percent for Social Security and 4 percentage points to Today, TLessons his year's I would fornati Life o like nal . In tsummit oresponse give yo should uto a birds-eye theoffer country's a very viewlow compelling of financial financialand literacy literacy enlightening education rates among look in teens, America at the the future and U.S.addr ofTreasury ess Choose to Save ® Forum on Retirement Security and Personal Savings Annual Retirement Confidence Survey percent amount do fornot retirement identify increases specific long-term with age, investment of course. But vehicles still only such a as quarter mutualoffunds; workers rather, age more 45 and than over curricula and subsequent asset accumulation once exposed students reached adulthood. The estimated 1st 2nd 3rd requirements imposed by an outside authority; and (4) meet an organizational goal (e.g. military readiness, multimedia format. In addition, based on the success of the program, the ICIEF is developing a Spanish- Round Round Round results of the previous round (but no longer within categories), and asked them to rate each idea a final establishments, and "encourage community-based and financial other organizations, alternative literacy in or the"fringe" since schools they financial through providepublic services a comfortable /private providers partnerships" learning whoseenvironment interest is rankedl ratesfor 8 can th. many In building. Organizations in both the private and public sectors must collaborate on all levels to help educate The CTS program is now in its 5_ year. some 39 percent of the for challenges Medicare.we face as we move forward. I would also like to take this opportunity to highlight retirement Department savings Savings in America. Bonds Program, Additional the Jump$tart information Coalition on the 1998 for Personal NationalFinancial Summit Literacy, on Retirement and the On April 4- 6, 2000, the Choose to Save ® Education Program hosted a Forum on Retirement Security and 20 have 02 saved marks at the least twelfth $100,000. year that EBRI, ASEC, and Greenwald have undertaken the Retirement Confidence 1 out of 3 parents cited low-yielding certificates of deposit (CDs), savings accounts, and savings bonds. effects are gradual, probably due to implementation lags." These findings support the work of I am pleased to appear before you this morning to testify on the status and importance of financial literacy increased stewardship, increased employee satisfaction or productivity). Written Statement language Investing for Success web course that will offer similar investor education oppommities to the time. Forty-one percent of summit delegates responded to the first round of the survey. The second round addition, people. educating employers, specifically on how to set up low- cost plans, is also a priority for summit average from 300 percent to more than 1,000 percent on an annualized basis. Moreover, these institutions Americans 17 Raise about profile the importance of retirement of savings taking control plans when of their they financial are future. 6By combining 13 and 17 leveraging a few initiatives that ASEC has undertaken in the past few years. As the Committee knows, the need is Savings Center for canEconomic be found at: Education www.saversummit.org (University of St. For Louis, information MO) - along on the with upcoming 17 other Summit, partners - see developed a Personal Savings in Washington, D.C. The forum brought together key representatives in the private, Finally Survey, (RCS) fewer and thanthe half fifth (45year percent) for the of Small all parents Employer say they Retirement make a budget Confidence and stick Survey to it(SERS). most of the Thetime. organizations such as the Jump$tart Coalition for Personal Financial Literacy, whose objective is to offered. and education in America. My name is Don Blandin and I am president of the American Savings for the Hispanic community. had a delegate response rate of 22 percent. Forty percent of summit delegates responded to the final round • Incorporate socio-culturally sensitive teaching methods in financial education materials and are delegates. growing exponentially in the nation's most impoverished and distressed communities. And over- our PSAs comprehensive are an integral networks component and in resources, the CTS we campaign. have a better The goal chance of showing of reaching the people PSAs is that to raise none the of us ob On vious: another Studies issue have of importance, shown thatthe the2001 United RCS States foundhas that theclear lowest differences national remain savings between rate in the American www.saversummit.dol.gov supplemental middle schoolThe math SAVER curriculum legislation that teaches (in .pdfimportant format) ispersonal available finance for your skills review to students at in pu 18blic, and Encourage nonprofitfinancial sectors to literacy share in expe the rtischools se and through best practices encouraging long-term, routine saving, 2002 surveys have just been returned from the field, and the results from the 2002 RCS will be presented at The increase in the number of workers who feel they are behind schedule in preparing for retirement is no encourage curriculum enrichment to insure that basic personal financial management skills are attained Education Council (ASEC) - a coalition of private- and public-sector organizations that undertakes Financial education topics that were most frequently taught fell into these categories: budget and money public/private partnerships (e.g., "adopt a school" 32 16 18 curricula to address Senate different Committ communities. ee on Banking, Housing and Urban Affairs would of the survey. be able to reach alone. reliance on these alternative financial services firms significantly undermines the ability of unbanked general savings programs). awareness level among viewers. The CTS PSAs have been disseminated nationally industrialized www.saversummit.org workers as a whole world and and that minority manyworkers Americans on retirement are not saving planning adequately and saving. for their African retirement, American let alone and be grades 7 through 9. Money Math lesson topics include income, saving, taxes, and budgeting. The planning 2001 , Parents and invesSurvey ting byshows individ that uals.many Theparents two principal are missing topicsday-to-day of the forum, opportunities covered in tobengage oth plenary theirand the doubt Saver linked Summit to thelater turnaround this month. in confidence The RCSinhas having askeda certain financially key questions secure retirement. over these After 12 years five years that have of during the K- 12 educational experience. initiatives to raise public awareness about what is needed to ensure long-term personal financial management; saving/investing; credit and debt; 401 (k) investing; financing education; and financing health 19YouthProvide & Mone more 2_ education for workers on an ongoing basis. 28 21 19 households to accumulate assets and build Hearing wealth. on Financial Literacy Table 1 • Utilize a life-planning approach when teaching about finances to encourage individuals to think through a partnership with Goodwill Communications, as well as the U.S. Treasury Department, and the Hispanic Americans tend to have lower levels of confidence in their financial prospects in retirement and fully prepared for unexpected life events such as medical emergencies. With increasing concern over breakout sessions, were: 1) increasing retirement planning and retirement program sponsorship and children tracked trends in conversations in retirement about confidence money management, and retirementand planning provides behavior some ideas for much for parents of thisto time. help kids I would steady increase the proportion of workers who are confident that they will have enough money to live 19 Translate retirement benefit statements into estimated care. independence. Top 20 Ideas Among Delegates Young people today are bombarded with messages February to6, spend, 2002 yet the average student graduating from high The Topmonthly 20 income statements at retirement, to make these Mr. Chairman more proactively and members about of their the committee, future. I thank you for the opportunity to speak to you today on this U.S. Social Security Administration. Since lower the levels 1998 of SAVER retirementSummit, planningASEC and saving. and its partner Among institutions workers: have participated in numerous efforts to public The four programs lessons such included as Social in the Security curriculum and Medicare, are available there online is a need, at www.savingsbonds.gov more than ever, for individuals and at to become like participation to focus savvy on and savers just contri aand few bution consumers. of stheathighlights all inOne comefrom ofan the d last areasons ge year's levels, for surveys. and undertaking 2) minimiz the ingsurvey the leakage was to of help saving parents s from comfortably in retirement dropped from 72 percent in 2000 to 63 percent in 2001. ASEC is a founding organization of the Jump$tart Coalition and is represented on its board of directors. statements more meaningful to workers. 16 11 t9 Ranked by percentage rating each a high priority school lacks even the most basic money management skills (e.g., balancing a checkbook, understanding Table 1 presents the top-20 ranked ideas by the percentage of summit delegates rating each a high priority. The report points out that while many factors lead unbanked households to rely on excessively priced 1st 2nd 3rd important • Make topic. financial I would education be pleased for to older takeAquestions mericans now, a national and to priority respond(e.g., to written daily money questions management, following take increase http: • responsibility //coach.dosomething.org Forty-five public awareness in percent planning about of Hispanic and savings Both saving the Americans and for Web-based retirement their and long-term lessons 54 planning. percent personal and of print The African financial selected materials Americans independence. initiatives are available were outlined confident for free. below of To the retirement system as more defined benefit and defined contribution plans pay lump-sum distributions. and children recognize the enormous value of understanding everyday financial basics, as well as to ASEC helped to develop the coalition's savings and investing guidelines, which include teaching students Round Round Round ASEC works through its partners to educate Americans on all aspects of personal finance, saving, and Program leaders and managers identified the following challenges as those they faced during the design, compound interest, etc.) that can help him or her to make sound financial decisions. Too often, we hear While the rankings vary somewhat by each survey round, they also show some surprising consistency. Choos financial e to services, Save ®poor choices is a leading reason. As a result, greatly increased financial education for the heating. Some interesting avoiding scares stats from and other the first forms national of financial CTS PSA abuse, Campaign alternative television sourcesbroadcast for healthpackage care, home that care, was have request attempted having a paperenough to copy achieve of money Mone many y toMath of live the ,comfortably send goalsan expressed e-mail in retirement, toin moneymath@bpd.treas.gov the SAVER compared Act, with including: 63 percent 1) coordinating overall. with motivate financial service providers, K-12 teachers, financial advisors, and youth leaders to develop, In Other general, indicators the 2001 of confidence RCS foundalso that fell retirement in 2001 confidence after several had years declined of steady during increase. the year, with fewer about the importance of income, money management, savings and investment, and spending. More wealth development, including credit management, college savings, home purchase, and retirement implementation, and operations stages of their programs: (1) having inadequate resources to design, 1 Educate about the benefits of starting to save early. 2 1 1 stories of parents bailing their children out of debt - even before they have had a chance to bring home "Educating about the benefits of starting to save early" is the top-ranked idea by delegates in the final two lower-income households, particularly those living in distressed urban and rural communities, is essential. medication, etc.). launched in July 2000: Personal EBRI and Finance ASEC'sand Emmy the-award Rush to winning Competence: Choose Financial to Save® (CTS) Literacy education Education program in the was U.S. cited by public- • and Sixty-two private-sector percent organizations of Hispanic Americans to work together and 69 percent and share of resources African Americans to support were various confident public- in provide, nonretired and individuals employ tools engaging and resources in retirement to strengthen planning family and savings financial activities literacy. than in recent years. First, information • In 2000, can be 77found percent at www.jumpstart.org of workers said they were confident they were doing a good job of preparing planning. 2 ASEC Educate develops people on and the distributes costs of retirement. educational materials, all of which 1are available 5 in hard 2 copy and Forum participants addressed the importance of creating a national environment that encourages personal evaluate, revise, or expand programs; (2) inexperience in socio-cultural aspects of program design, their first paycheck. waves of the survey. This signals that delegates believe that an educational campaign with this idea as one • 1,100 television broadcast stations. EBRI delegates Conclusion to the 1998 National Summit on Retirement Savings as the type of campaign that should be In education an effortcampaigns; to provide 2) you getting with th involved e most upda withted local andand _# comp 4¢, state-level rehensive organizations; overview of finan 3) involving cial litera the cy media in having enough money for basic expenses, compared with 78 percent overall. 3 Encourage the use of payroll deductions. 3 3 3 the percentage of nonretired individuals who have tried to calculate how much they will need to financially for retirement. In 2001, it dropped to 70 percent. on the ASEC Web sites: www.asec.org and www.choosetosave.org savings and investment for retirement, and focused attention on actions and "best practices" that companies marketing, and evaluation; and (3) the need to attract or expand programs to reach many more participants of its central messages should be the top priority for anyone seeking to implement ideas from the national 4 Develop financial-planning curriculum for high schools and Abrar Despite these somber findings, some organizations are addressing this very important issue. According to According • 35 networks to a recent /NAB conversation closed circuit. EBRI staff had with the Institute for Socio-Financial Studies, one edu conducted cation inthroughout the United the State nation. s, I would Based like on tothe higfindings hlight some of the finRCS, dingsthis from program a nation provides al field st first-time udy helping Unfortunately, inform the no public matter about how you retirement look at savings; the statistics, and 4) the urging bottom employers line is thetosame sponsor - many retirement Americans plansare • Twenty-nine percent of Hispanic Americans and 29 percent of African Americans say they tried to In accumulate conjunction to ensure with the a comfortable 2001 Parentsretirement Survey, ASEC decreased and the from TIAA-CREF 51 percent in Institute 2000 to have 46 percent created in the2001. • Similarly, 84 percent were confident of having enough money to take care of basic expenses in colleges. 16 2 4 A post September 11, 2001 survey report released yesterday by Certified Financial Planner Board of than they currently do. and organizations could replicate and use on their own. At the end of the forum, delegates were presented summit. It is imperative that children be taught about persoBy nal finance at an early age so that they can develop the the National Association of Federal Credit Unions (NAFCU), credit unions across the country are making a concern 5 • 600 that Provide cable needsstations. to simple, be addressed user-friendly, is the ability easy-to-understand to sustain programs over a period of time. Unfortunately, savings information and also customizes the financial planning message to different "savings condu and noteducate saving cted by enough employees the Insfor titute their about forfuture S the ocio-Fin importance or taking ancial control of Stretirement udies of(I their SFS) savings. current and commi financial ssioned situation. and supported Individuals by thneed e to following figure tools out tohow helpmuch educate money parents theyand will kids need about to save financial to livematters: a comfortable "Money retirement, Talk" pamphlet compared series with , And the percentage who said they tried to do this calculation declined even further, to 39 percent, when 2000; only 78 percent were confident in 2001. Standards shows the consequences of young people not learning to manage their finances. Young people information on retirement savings. 10 6 5 ASEC was launched in July 1995 as a result of discussions between representatives of the U.S. Department with a menu of initiatives that emerged from the previous day's breakout sessions. Out of the many Don M. Blandin skills and knowledge they need to have to be financially responsible adults. Helping individuals prepare national effort to reach out to underserved communities through their own local programs. San Antonio few programs have the resources and support they need to be more than a one-time effort or to reach more personalities." FarmieMae Foundation entitled, Personal Finance and the Rush to Competence: Financial Literacy know that responsible money management is not rocket science, but the financial cost of not starting to • 39 181 percent broadcast of all stations; workers. 14,945 plays. Youth & Money Poster, Interactive Savings Goal Calculator, and Piggy Bank Wrapper. All tools are workers 5 were Encourage first asked portable about models. their knowledge of the various components that 8 go into10 this type of 5 • 66 percent were confident in 2000 of having enough for medical expenses, compared with today are more focused on managing and reducing debt than they were in 1999. Among individuals ages of Labor and the Employee Benefit Research Institute to take the savings message to the American public. initiatives that surfaced, the delegates then re-ranked the top five initiatives (six in practice, since there was What also emerged from the study were solutions found by other program managers that addressed these President for long-term fmancial security needs to begin in the home - by parents. The earlier good savings behavior Seven of the ideas ranked among the top 10, and 13 of the ideas ranked among the top 20, also concern City 7 Employees Educate Federal employers Crediton Union how to (CECU) set up low-cost is just one plans example. (as part CECU uses 4 its financial 4 knowledge 7 than a fraction of the people they need to reach. Education in the US Delphi save today Survey can have a serious impact on their financial well-being 10, 20, or 30 years down the line. • 221 cable stations; 35,363 plays. available on the ASEC and TIAA-CREF Institute Web sites at www.asec.org and www.tiaa- calculation. Second, the proportion of workers who say they have personally saved for retirement has also 58 percent in 2001. of a national public awareness campaign). 20- 39, 47 percent list managing and reducing debt as a current financial goal, second only to building a ASEC is a program of the EBRI Education and Research Fund (EBRI-ERF), a 501(c)(3) nonprofit, a tie for the no. five spot), after a period of discussion on their relative merits and shortcomings. The final- various challenges. Following is a list of the seven most effective strategies and practices in personal is taught to children, the better planners, savers, and investors America will have in the future. American Savings Education Council education. "Educate people on the costs of retirement" is the second-ranked idea, while "develop financial and experience of its staff to prepare and teach basic financial courses for the city's Adult Basic Education Underwritten by Fidelity Investments in the Washington, D.C. test market, Choose to Save ®includes EBRI 8 contracted Develop withan Mathew on-going, Greenwald funded, public & Associates awareness (Greenwald), program toInc., to conduct a Delphi survey to As crefinstitute.org a•"best Broadcast practice" value example as ofon July this 2001:$4.9 specific issue, million. I want to highlight the Investing for Success program, gone down, albeit only slightly. In 2001, Only 7 in 10 workers said they have personally saved for retirement • And fund more . By than comparison, 51 percent39 ofpercent workingofrespondents that group listed to theit200 as 0 a current RCS were financial very confident goal in 1999. of having nonpartisan public policy research organization based in Washington, DC. We do not lobby or advocate rank ordering create was:a culture of savings and thrift. 5 6 8 financial education today: clear mission statement; targeted outreach; adequate resources; successful Washington, DC and planning G.E.D. curriculum Preparation forProgram. high schools and colleges" is ranked 4th. A delegate priority is also to "develop an Impact on Lower-Income Households educational brochures, radio and TV public service announcements (PSAs) in primetime, newspaper ads The evaluate America studyideas was is the generated done landto ofassess oppommities, by delegates major trends to but the many infirst fina Americans National ncial literac Summit are y education opting on Retirement outfor of adults their Savings opportunity and to learn heldto on the build an ongoing investor education partnership between the Investment Company Institute Education retirement, 9 Increase as opposed availability to 3 out of of 4 payroll workers deductions in 2000. and direct enough to pay for long-term care, compared with 44 percent of working respondents in 2001. specific policy recommendations. evaluation and follow-up; easy access to program; relevant curriculum; and dynamic partnering. 1. Create deposits a national for IRAs media and campaign /or other savings to raise vehicles public awareness. to encourage Last year, ASEC co-sponsored, along with EBRI www.asec.org and MGA, the 2001 Parents, Youth & Money Survey, on-going, funded, public awareness program to create a culture of saving and thrift" (ranked 8th). There The lack of financial sophistication or awareness by lower-income consumers translates into significantly and outdoor displays, and ongoing news coverage through our DC media partners - WJLA-TV (an ABC challenges June wealth 4-5, by1998 program overspending, . Specifically, managers carrying these and educators excessive ideas focused face credit in on card trying ways debt, to to educate increase and nottheir participating Americans' constituencies. retirement in their The company's savings research and Foundation savings (ICIEF); (that the National would not Urban be accessible League (NUL); till retirement). and the Coalition of 10 Black Investors 8 - Investment 9 One Additional question stats that from is often the second asked is CTS howPSA effective Campaign are financial television education broadcast classes package in schools? launched Ain 2001 August study What this means is that young people are turning away from other critical facets of the economy, underwritten by the TIAA-CREF Institute. The survey was a follow-up to the 1999 Youth & Money Survey 10 Develop an education campaign www.choosetosave.org that includes different 2. Promote negative election as a default design feature. also appears to be a sentiment that such a campaign should involve "different messages targeted at different lower participation in the mainstream financial system. Another report by the Fannie Mae Foundation affiliate), WGMS Radio, and WTOP Radio. Although the program stresses the seriousness of the savings also enhance identified the retirement the strategies income andsecurity practices ofthat today's are the workers. most effective The results in helping of the survey Americans have to been better the Education 2001: employment-based The Second Fund National (COBI-IEF). retirement Summitplans. on Retirement Fommately, Savings many of us here are in a position to make a difference With done by these Stanford trends University in mind, itentitled, should not "Education be surprising and saving: that workers The long-term were less effects likely in ofthe high year school 2001financial to say messages targeted at different groups: people at risk, young The decline in confidence was not spread evenly across the working population. Workers ages 35- 54 and CFP Board's survey shows. Interest in home purchase/renovation as a current financial goal has declined, As president of the ASEC coalition over the past six years, I have had the unique privilege and opportunity The research from the financial literacy study was collected in better financial times, but one can argue that people, low-income people, savers vs. non-savers, ethnic finding that 94 percent of surveyed students www.ebri.org look to their parents for financial education. As the primary groups, such as people at risk, young people, low-income people, savers vs. nonsavers, ethnic groups, and titled Financial Services in Distressed Communities highlights the fact that between 10 and 12 million message, 3. Promote it uses humor consumer andfinancial positive literacy examples in to K-12. help people overcome their reluctance to address financial understand foundation and educate money for Americans varimanageme ous action about nsteps t.the importance undertaken and by ASEC urgency over of planning the past few financially. years. groups, and high/low education levels. 13 9 10 curriculum they were on mandates," track in terms attempts of planning to answer and that saving question. for retirement The paper than explains they were that in between 2000. In 1957 2000, and 1985, • 229 cable stations; 12,393 plays. those with household incomes of $35,000 to $75,000 experienced the biggest declines. and In lig interest ht of r by ece the nt e younger vents ingeneration the news reg inavacation rding 401 /travel (k)s an also d re declined tirementfrom plannin 40gpercent , I wantin to1999 remind to everyone to witness firsthand the growth and evolution of financial education in America. I can say with great there is an even greater need for basic financial education facts today. Here are some additional teachers of money management, parents have a major impact on the financial attitudes and habits--positive 11 Educate employers on how to set up low-cost plans (as part 25 19 11 high/low education levels" (ranked 10th). According to delegate responses, a priority should also be to households issues. in the United States have no relationship with a traditional bank or savings institution. This The program is designed to promote greater understanding among middle-income African Americans about 29 states adopted legislation that required secondary schools to offer some kind of "consumer" education. 38 percent 4. Promote reported financial they felt planning they were tools onand track, Web while sitesin through 2001 only SSA33 benefit percentstatement felt theymailings. were on track in • Radio diskpak distribution: $407,773 (as of January 2002). It also features a spot in Spanish. that the secof onopportunities d National Summit for plan onexpansion). Retirement Savings is scheduled for February 27 - March 1, 2002. In 33 percent in 2001. By contrast, those nearing retirement (ages 55-69) showed an increased interest in assurance that an increasing number of public- and private-sector organizations are committed to the recommendations from the study: or negative---that their child develops. "encourage the use of payroll deductions" (ranked 3rd)and to "increase availability of payroll deductions population, 11 Position also known "lifetime as thesavings" unbanked, campaign pays many as opposed times more to for access to routine financial services The In order study tofound develop thatthe thequestionnaire, 90 personal fiEBRI nancial provided education Greenwald programswith theyasurveyed categorized were list very of the divers ideas e. The ASEC is a national educational effort supported by public- and private-sector institutions that are fully the benefits of long-term investing. To date, investor education workshops have been held in cities their Fourteen financial statespreparation specificallyfor required retirement. that the Atschools the same cover time,topics the proportion related to household saying theyfinancial are a lot de behind cision- • 253 radio outlets in 179 cities: 28,266 plays. One area where confidence has not declined this year is in Social Security and Medicare, despite the large travel 1997,with the 45 Savin percent gs Are listing Vitalit toas Ev aery current one's financial Retiremegoal, nt (SA upVfrom ER) 41 Act percent was passe in 1999. d in Congress and signed 5. Promote "retirement"--which preservation/rollover does not through register the for useyoung of waivers people. recognizing 43foregone 27 future 11 mission of helping Americans to save and plan for their financial future. Although progress has sometimes ,, Urge more employers to offer personal finance courses in the work place (it is the best venue for and direct deposits for IRAs and/or other (retirement) savings vehicles" (ranked 9th). than For more the typical informat American ion, andfamily. to see and hear the TV and radio education spots, visit the Choose to Save® financial gene engaged ratedliteracy and at the committed summit. education to Greenwald programs educatingthen were Americans incorporated broken about into these these the need main ideas tosectors: into save, a invest, questionnaire community-based and plan asking for retirement (32 respondents percent); and throughout the country. The Investing for Success program offers free personal finance workshops schedule 13 increased Encourage from long-term 29 percent investing. to 34 percent. This sense of being behind 16schedule15 may be a13 result of The making views (e.g., expressed budgeting, in this credit statement management, are solely investing, those ofetc.). Don The M. B goal landin of the and curricula should not was beto attributed ensure that to the • accumulations. Broadcast value as of January 2002:$5 million airing nearly 9,000 spots in 149 cities spread amount by the pres of id press ent.concerning As part ofthe thefinancial bill, the fir health st national of these summit two systems. was heldConfidence on June 4-5in , these 1998, programs in Washington, has been very slow, we are confident that by continuing to build coalitions of organizations that are committed reaching out to most people), and provide public policy initiatives that offer incentives to those Employee Benefit Research Institute (EBRI), the EBRI Education and Research Fund, the American Savings The 2001 Parents, Youth and Money Survey found, however, that while a majority of parents feel confident 13 Institute education projects that start at a young age. 8 16 13 Web site at: www.choosetosave.org In addition, CTS PSAs are shown on military bases and ships Cooperative to other rate each important idea Extension according life stages. Service toWe the (27 have respondent's percent); been down workplace perception a road(20 and ofpercent); its made priority significant faith-based for further progress, (9action. percent); butFor we community the have second also nationwide, rather Education small Coun conducted amounts cil, itsthat officers, by African-American American trustees, workers sponsors, investment haveor thus other far professionals. staff. accumulated The Employee for retirement. Benefit Research Half of workers Institute is a the students gained practical financial knowledge and skills that they could later use in their adult lives. continued through to increase 49 states. from the lows recorded in 1995, although a majority of workers continue to remain Finally, D.C. The on asummit more upbeat , jointly note, conv Iewould ned bylike the to pres bring identthe ancommittee's d the bipartisan attention leadersh toip anoexcellent f Congress, example strivedof toa to this common mission of teaching Americans to save, we will achieve more success at a faster rate. employers who do so. 6. Require automatic rollover of lump sums as a default design feature. nonprofit, nonpartisan, education and research organization established in Washington, DC in 1978. The testimony 15 Simplify the message. 14 33 15 about their understanding of financial matters, many of their actions and behaviors contradict this self- Three of the ideas ranked in the top 20 directly concern the high priority that should be placed on the worldwide. The Public Sector CTS campaign, launched in October 1998, aims to increase participation in draws heavily from research publications of the Employee Benefit Research Institute, but any errors or college round facedof some (8the percent); study, turns in respondents and ourmilitary path. were (4 percent). presented The with main thereasons same list these of ideas, organizations ranked within gave for each offering category have saved less than $50,000; 2 in 10 say they have saved nothing at all for retirement. The average 16 Use automatic enrollment/negative consent to raise 401 (k) not confident. Confidence that these programs would continue to pay benefits of value equal to today's public- increase and pu private-sector blic awarenesspartnership of the impo aimed rtanceatof educating retirement America's planningyouth and toabout identif finances y ways to - Money promot Math: e greater misinterpretations are those of the witness. assessment. For instance, 55 percent of parents roll over credit card debt each month. When asked where participation. 27 12 16 education of children and youth. "Developing a financial-planning curriculum for high schools and state and local government (Sec. 457) deferred-compensation plans. ICMA Retirement Corporation (RC), financial education programs fell into four categories: (1) empower participants to take charge of their according to the results of the first round, and asked to rate each idea again according to its priority. The retirement savings by all Americans. 17 18 16 8 10 6 20 11 3 15 719 12 13 14