While Americans from Wall Street to Main Street focus on much-needed financial reforms that will set and enforce clear rules across the financial marketplace, we also need to recognize that most Americans don't have the knowledge and skills they need to make the right financial decisions for themselves and their families.
Last year, the FINRA Investor Education Foundation's National Financial Capability Study, conducted in consultation with the Department of the Treasury, found that too many Americans are giving away their hard-earned dollars to bank and credit card fees. Most don't maintain a rainy-day fund for emergencies.
Few are able to perform basic interest calculations necessary to compare the cost of a loan or to figure out how much to try to save. On just about all measures, the study found young adults are the least money-savvy.
In December, the administration announced the National Financial Capability Challenge, a partnership between the Departments of Treasury and Education focused on promoting financial education among high school students and assessing their knowledge of personal finance. The results are in. More than 2,500 teachers and 76,000 students in all 50 states participated in the voluntary exam, which shows interest is strong. But the scores were disappointing. The average student is just squeaking by with 70% correct. Students failed to answer basic questions about credit cards, car insurance, and compound interest. This shows we have a lot of work to do.
Luckily we have important models to follow. For example, at Stonewall Jackson High School in Manassas, VA, teacher Terri Carson helps students manage the student-run credit union and includes a financial literacy boot camp in all her classes. She had over 100 students take the Challenge. Over half of them scored in the top 20% nationally; 17 had perfect scores. Those results are commendable, and Carson is working to replicate them. She is hoping to work with her school and the Prince William County School District to make sure that all students demonstrate a basic understanding of personal finance in order to graduate.
Today we are recognizing Carson and many teachers and students who participated in the National Financial Capability Challenge, for their commitment to financial education. We hope to see more locally driven efforts to make youth financial education a priority in schools across the country. At the same time, we'll be doing our part at the federal level. In our schools, we will promote a well-rounded education that includes financial literacy. We will give consumers the information and education they need to make smart financial choices. And we will work to provide all American families with access to the bank accounts they need to manage their daily finances.
The agenda is clear. Let's pass serious financial reform. Let's promote financial access. And at the same time, let's make sure that we are providing all Americans -- especially our youth -- with the financial education they need to succeed in this increasingly complex, fast-moving economy. Their futures -- and ours -- depend on it.
Timothy Geithner is the current U.S. Secretary of the Treasury. Arne Duncan is the current Secretary of Education. And Valerie Jarrett is an Obama White House Senior Advisor.
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Tim Geithner makes good points on improving financial education.
However, the young adult demographic has one of the highest rates of unemployment. You must first have money, in order to spend it wisely. Lets focus on getting young adults back to work, in meaningful positions, and at living wages!
It ought to be entitled Loser#1, Loser#2, and Loser#3. The only one missing to round out the column would have been Obama.
Arne, I can see through you & your boss' "blame the victim" rhetoric - that jobs are going abroad because Americans are not educated enough while it is your boss' & Timmy's buddies who send jobs abroad and also gamble with other people's money. . While conveniently ignoring the social aspects of poor urban neighborhoods. It is a matter of time when people become aware of your corporatisation of public schools in Chicago. You are kicking people who are already down , just like Turbo tax Timmy is fighting sensible Wall street regulations while letting his welfare buddies off the hook.
I am waiting to see Timmy fired in November after Obama's accountability happens at the polls (isn't it what Obama preaches to teachers?).
You both preaching about eductaion is like devils quoting scriptures.
Timmy, you and your bosses have made the system SO complex, deliberately I must add, that who CAN figure it out.
Especially when you change rules mid game and protect only those at the top.
"Education", you trot out as the usual canard.
What a joke.
I'm sitting here in Research Triangle North Carolina in the shadow of 3 major universities, supposedly "Educated" people.
Know what I see?
Lots of people who are "educated" to be good at exactly one thing in life and make a ton of loot doing it.
So don't preach to me about "Education" as you stand there with 10,000 page US tax code in hand.
I did enjoy his bit of self loathing when he admired his accountant now.
I would encourage all Americans to Geithner their tax returns. Starve the big bank bailouts Geithner and Rubin and the rest of the Goldman Sachs alumni have forced down our throats.
Okay. Timmy G and company, who put you up to this? Whoever it was clearly doesn't understand HP if they thought this would be accepted here. Exactly who is the audience you hoped to manipulate with this platitudinous refuse?
Second, where is POTUS? Notice how he is out of town during the hearings.
He and his cronies took more money from GS than any other candidate.
Time to end the charade, the narrative, the script, the theater.
Just because money freaks revere money and excess and subsequently engage in careers that offer the highest monetary reward doesn't mean that everyone does. I could be wrong, but I believe that a healthy percentage of Americans realize that under a capitalist system we must "earn a living". Therefore, we find employment, perform our duty with integrity and good intent, and get on with OUR lives. To suggest that we ought to be a little more concerned about money implies that you, Mr. Geitner, don't really understand the values of the working class.
This perpetuates the myth that capitalism is the only way to go. It fails on a regular basis, the wealthy prosper, everyone else pays the price, and class division widens. Life is not about money, Mr. Geitner, and the people's ignorance is not the problem. Put your cell phone down, shut off your spreadsheet, stop schemeing, and go for a walk in the woods, and see what the rest of America sees.
The whole game is rigged.
If you buy your house at 8% and your neighbor does at 0% it's just a matter of time before your neighbor has bought out your house, your car and your business.
The whole game is rigged.
When are the sheeple going to figure that out and revolt?
When oh when?