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Washington, D.C. - The FINRA Investor Education Foundation
today released
survey results that measure the financial capabilities of
American adults and reveal in detail how Americans save, borrow
and plan for their financial future. The National Financial
Capability Survey, the first of its kind in the United States,
was developed in consultation with the U.S. Department of the
Treasury and the President's Advisory Council on Financial
Literacy. In an event today at the U.S. Treasury, U.S. Secretary
of the Treasury Tim Geithner, U.S. Secretary of Education Arne
Duncan and FINRA CEO and FINRA Foundation Chairman Rick Ketchum
all met with financial literacy and community leaders as well
local high school students to announce the results.
By exploring how people manage their resources and how they
make financial decisions, this national survey allows the FINRA
Foundation to extend the reach of financial education programs
in communities across the country. The FINRA Foundation today
announced a new partnership with United Way Worldwide to reach
low- and middle-income Americans and also announced a
significant expansion of its Smart investing@your library(R)
partnership with the American Library Association, which reaches
23 million people in 26 states. In total, the FINRA Foundation
is funding 31 new grants to help community-based organizations
provide effective and unbiased financial education.
The release of this survey comes at a critical moment for
many American families. For example, the survey found that:
- only 41 percent of parents have set aside
money for their children's college education;
- the majority of Americans do not have a
"rainy day" fund for unanticipated financial
emergencies and are not adequately preparing for
their children's college education and their own
retirement;
- more than one in five survey respondents use
high-cost, alternative borrowing methods, such
as payday loans or pawn shops; and
- fewer than half (46 percent) of those
surveyed correctly answered two basic questions
about how interest rates and inflation work.
"These survey results highlight just how important it is to
give people the information and resources they need to make
sound financial decisions. The FINRA Foundation will use this
important information to help focus its efforts to address the
financial education needs of underserved Americans," said FINRA
Foundation Chairman Rick Ketchum.
An executive summary, as well as a longer survey report, is
available on the
FINRA Foundation Web site. The Foundation will also make the
survey data available to the public and to researchers.
The National Survey is one of three linked surveys that
comprise the National Financial Capability Study. In early 2010,
the FINRA Foundation will release the other two components: a
State-by-State Survey and a Military Survey.
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About the ICFE:
About the
ICFE:
The Institute of Consumer Financial Education (ICFE), founded in 1982 by the
late Loren Dunton (creator of the “certified financial planner” (CFP)
designation) and it is dedicated to helping consumers of all ages to improve
their spending, increase savings and use credit more wisely. The ICFE trains and
certifies Personal Finance Instructors for its own curriculum. It also trains
and certifies Credit Report Reviewers and Identity Theft Prevention Specialists.
The ICFE is an award winning, nonprofit, consumer education organization that
has helped millions of people through its education programs and resources. It
publishes the Do-It-Yourself Credit File correction Guide, now in its 16th
printing and has distributed over one million “Credit/Debit Card Warning Labels”
and “Credit/Debit Card Sleeves” world wide.
The ICFE became an official partner with the Department of Defense/Financial
Readiness Campaign in June of 2004.
The ICFE is also a partner in the national Jump$tart Coalition for Financial
Literacy and the California Jump$tart chapter. The ICFE staff is also active
with San Diego Saves, an offshoot of America Saves, and the California Student
Debt Resource Awareness Project (CASDRAP) (studentdebthelp.org).
The ICFE’s on-line help for consumers who spend too much was featured in PARADE
Magazine in the Intelligence Report section. The money helps and tips are from
“The Money Instruction Book,” a course in personal finance, positioned to become
among the premier programs in the new bankruptcy and debtor education
initiatives.
The ICFE Web site at:
http://www.icfe.info helps consumers with mending spending, learning about
the proper use of credit, budget and expense guidelines, how to set up and
implement a spending-plan and also how to access financial education courses and
videos and how to teach children about money. Other ICFE services include a free
eNewsletter, and an online resource center of financial education learning
tools, including videos, books, software and personal finance courses.
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