Understanding how to budget, save, invest, access credit, think about debt, pay taxes and read paychecks is critical to functioning as a productive member of society. But we are clearly not there yet.
By Kelsey Havemann and Sam Kunjukunju
It’s that time again, the beginning of another set of transitions. Daylight savings time is about to end and spring is about to begin. We are also coming upon a particularly important celebration. Financial institutions, non-profit organizations, national coalitions, and the like will be observing the 20th anniversary of National Financial Literacy Month in April, begun when the U.S. Senate passed Resolution 316 in 2004 to help raise awareness about personal finance and educating Americans on healthy financial habits.
RESOURCES > Established by Congress in 2004, Financial Literacy Month is April and the ABA Foundation offers plenty of tools and multiple programs for banks and communities to inform learners of all ages about financial topics. Check it out.
It’s not surprising when only eight states have fully implemented financial literacy programs in schools, according to Next Gen Personal Finance. By the time students graduate high school, they need to know key money management concepts. Understanding how to budget, save, invest, access credit, think about debt, pay taxes and read paychecks is critical to functioning as a productive member of society. But we are clearly not there yet.
There is good news, however. Even as schools and states catch up, banks are well positioned to make an impact. After all, banks and finance go together like peanut and butter jelly. If your bank does not yet have a financial education program, now is the perfect time to begin. And it’s OK to start small. Try simply adding a tab or line item on your website containing links to turnkey resources from financial literacy experts. Several sources are available. The ABA Foundation, Consumer Financial Protection Bureau and Next Gen Personal Finance — just to name a few — provide free lessons, informational pages, infographics and more covering a plethora of topics.
Looking to expand and move to the next level? Consider creating an engaging, easy-to-navigate financial education hub on your website. For instance, Oxford Bank in Oxford, Michigan, recently launched its “Money Masters” program that provides tools to educate and coach consumers over six financial life stages — from a Smart Starter to Business Builders. Building on resources from the FDIC and GreenPath Financial Wellness, they share information on a number of different topics, and present them to users of all ages to help guide people on a well-rounded financial journey through life.
If you want to take it another step further, consider volunteering to lead presentations in schools or community centers like TowneBank, which is based in Portsmouth, Virginia. TowneBank offers a Financial Literacy Engagement Program through which businesses, colleges and nonprofit organizations can request presentations. One branch also has a standing commitment to provide presentations in elementary schools nearly every day of the school year, an initiative that has reached more than 76,000 second grade students since 2010.
Banks have plenty of options. At the ABA Foundation, we offer several national campaigns, including Get Smart About Credit, Teach Children to Save and Safe Banking for Seniors, through which we provide materials to help banks educate customers and communities across the age spectrum. Visit aba.com/FinEd to register for free to access ABA’s free programming.
Kelsey Havemann is senior manager, youth financial education and community engagement at ABA. Sam Kunjukunju is VP consumer education at ABA.
