State looks to financial literacy training as economy struggles
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WisBusiness: State looks to financial literacy training as economy struggles 2/25/2008 By Brian E. Clark WisBusiness.com MADISON – With savings rates in negative territory, the economy teetering on recession and “unprecedented” access to credit, experts say the need for personal financial literacy is greater than ever before. “What we are trying to do as a state and a nation is catch up to the changes in our financial system, which has evolved rapidly,” said David Mancl, who was recently appointed by President Bush to a two-year term on a national advisory council on financial literacy. “If you look at the Internet, you can now literally type in your Social Security number and be trading on the New York Stock Exchange in five minutes,” said Mancl, an Appleton native. To catch up, many schools and some workplaces are offering programs so students and employees can be better informed about credit, 401(k) investments and other money issues, added Mancl, who holds an MBA and is director of the state Department of Financial Institutions' Office of Financial Literacy. "We know that regulation and licensing can only go so far in protecting consumers," said Mancl, who explained that the national council’s aim is to improve financial education efforts for young people, while bolstering public and private sector financial education programs. “We need to be proactive and do more in the way of education so people don’t get in financial trouble," said Mancl, who praised Gov. Jim Doyle’s Council on Financial Literacy, which is chaired by Doyle’s wife, Jessica. Mancl said the Badger State got the president’s attention because Wisconsin has been “ahead of the curve” with initiatives such as a statewide campaign called Money Smart Week each fall and teacher training courses dealing with personal financial literacy. As part of Money Smart Week last October, he said 600 organizations “stepped up to provide financial education around the state.” Together they put on 700 events and reached 8,000 attendees in one week alone, he said, “We are beyond awareness, I think, that we need more financial literacy and are starting to get into ‘how do we implement it,’and get it to folks so they have the tools they need to realize their own goals for themselves or their families,” he said. Another reason people need to be more aware of finances is because many companies no longer offer pensions, he said. Instead, employees often have self-directed 401K plans. But if they don’t participate in them, they may discover in their 40s or 50s that they have little set aside for retirement, he said. Mancl said the need for a better understanding of money and credit should start in the schools, where teachers are incorporating financial literacy into math classes. “If you ask how many seniors in high school today how many of them have pre-approved credit cards, a third will raise their hands,” he said. “Credit isn’t good or bad, it’s just a tool,” he said. “It’s just like a car. “We don’t just tell kids to hop in, drive around until they figure it out and then come back to me and tell me how you did,” he said. Unfortunately, that’s what many families do with credit cards, he said. But people, of all ages, need to understand what carrying a balance will cost them, he said. “We especially need to do a better job of preparing our youth to enter the financial system,” he said. “There is clearly a lot to be done. I’m just glad to be part of the effort.” |
How to Get Good Credit Gab is holding an online video contest to raise awareness for financial literacy. The prize is $200 cash! Create a 30 or 60 second video that answers the question “How do I get good credit?” and highlights the benefits of obtaining good credit. Videos must not contain adult content such as nudity, profanity, drugs and alcohol. Videos must also be posted on You Tube, so that we may obtain embedding code to showcase your video. Videos will be viewer rated using a scale of 1-low to 5-high. A viewing schedule will be posted on the blog.
Contest begins and entries are accepted beginning April 1st thru April 30th 2008.
Each week new entries will be displayed on the blog at http://www.HowToGetGoodCredit.blogspot.com. On May 1, 2008, the scores received will be counted and totaled. The video with the highest total rating number wins.
Contact Alton J. Jones, How To Get Good Credit Expert, at AltonJJones@msn.com with questions and notification that your video is available on You Tube.
Good luck.
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