Scanning the headlines for interesting news on financial literacy:
- Business Week highlights a start-up called HelloWallet which will go live in early 2010 and provide independent advice on checking, saving and investing and was recently featured at the Clinton Global Initiative due to its commitment to the working poor:
"It’s a simple self-service site without any business affiliation or
hidden arrangement with established financial institutions that helps
users identify their financial goals while providing real-time
comparisons of virtually all available checking, savings, and loan
products from 80,000 institutions—and at a relatively low cost to HR
departments... That stems from HelloWallet's determination to donate one of every five
subscriptions to the nation's working poor, who may benefit from its
use at inner-city financial counseling centers."
- The Philadelphia Inquirer in an article titled "Financial Illiteracy is All Too Common" included this advice from Dartmouth economics professor, Annamaria Lusardi:
"I've made this point many times. If we are thinking we are going to
address the lack of financial literacy by informing people at one
seminar, let's not even start that discussion. You don't cure pneumonia
with an aspirin," said Annamaria Lusardi, professor of economics at
Dartmouth College...Her prescription: Start with financial education programs that aren't a
one-size-fits-all. First, she says, educators at schools and any
other institution should listen to what consumers want to know, which
problems they'd like to solve. Let the consumer needs guide the
educational program. Then provide solutions to their specific issues.
And do all this in a clear and simple format."
- The Green Bay Press Gazette notes that Wisconsin is first state to have a curriculum planning guide for financial literacy:
"And he mentioned that the Department of Public Instruction has
published the nation's first curriculum planning guide for financial
literacy, getting students much-needed knowledge to cope in this
economy and the future."
- For start-up junkies, here are some interesting companies that were scheduled to present at Finovate, a personal finance and technology conference in NY (from WSJ):
"SimpliFiis the home of Sophie, a
virtual financial adviser who guides you through the financial planning
online. After users enter their budget numbers, the site grades them on
their commitment to financial goals. Like Mint, MoneyStrandsoffers budgeting tools and recommendations for spending and saving. TILE Financial also serves up pie charts that show where we waste our dollars. (And offers suggestions for what to do about it.)
CentsCity looks like the cutie-pie of the bunch — the site is aimed at kids and parents looking to build financial literacy and accumulate allowance dollars."
- Oregon's state treasurer hopes to again make financial literacy a high school graduation requirement, according to the Oregonian (The state had scrapped this requirement back in 1997):
"We definitely want to get the graduation requirement back," says state
Treasurer Ben Westlund, who calls financial literacy one of his top
public policy objectives. "... If you want to (characterize) our
economy, it's consumerism. We'd better have a fundamental understanding
of how money works."
- On the topic of state requirements, The Oklahoman lists whats ahead for Oklahoma high schoolers when it comes to financial literacy education:
"By 2014, Oklahoma’s graduating seniors must have competed coursework in
the basics of balancing a checkbook, budgeting and saving, investing,
Internet shopping, gambling and other financial matters that most
adults need to know."
- Marketplace's economics editor, Chris Farrell calls for simpler financial products:
"The new requirement is that banks have to offer consumers the choice
of simple products. That doesn't mean they can't sell as many liar
loans and option ARMs as their heart's desire. So, what's the problem
with offering us simple products that are understandable and make for
easy comparison shopping?
You guessed it. Industry is opposed, because the rule would lead to increased competition, smarter consumers and, by definition, more ephemeral profits. Why should bankers make life harder for themselves just to benefit consumers?"
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