A recent national survey found that basic financial literacy is low across the United States, especially among racially underrepresented populations.
According to the U.S. Financial Literacy and Education Commission's 2021 report, it's important to tailor financial literacy education to your specific financial situation. Additionally, there is always a need for education to help underserved communities avoid financial exclusion and predatory credit card offers.
In response to the nation's lack of financial literacy, the American Bankers Association Foundation (ABA Foundation) is working with the American Retired Persons Association (ARA) to recruit selected ARA members to provide financial education in schools across the country. helped spread the word.
The ABA Foundation uses ARA to help educate students across the country about budgeting, financial literacy, and retirement options. ARA members share their knowledge.
“At the ABA Foundation, we believe financial literacy is the key to helping students and young people achieve their financial goals,” said Lindsey Toriko, Executive Director of the ABA Foundation. “We are grateful that ARA and its members will join us in this decades-long commitment to educating students across the country.”
ARA members are already jumping at the opportunity. Jennifer Ingham Shelley of Ingham Retirement Group, a member of the National Association of Plan Advisors (NAPA), is volunteering with the program.
“Financial education shouldn't start until you're in the workforce,” says Ingham-Shelly. “No one taught me how to be financially secure in school, so the opportunity to share my story with them was really great.” [an] It's a wonderful and empowering experience. ”
Ingham Shelley's presentation helped educate students about talking freely about money and understanding the importance of long-term markets.
“People don't like to talk about money and think it's wrong to want money,” she continued. “They can be loved and nurtured, but they prioritize economic gain and form basic instincts for survival.”
Ingham Shelley touched on the history of retirement savings and what students can do today.
“I had my registration number 101, my retirement history, my Social Security history, my pension, the list goes on and on,” she added.
Student feedback on Ingham-Shelly's presentation showed its positive impact, with one student commenting that despite not having invested yet, “Jennifer… [Ingham Shelley] You have successfully highlighted the important principle of saving 10%. ”
Another student said the presentation was their first “real” opportunity to learn about financial literacy, and that the “advice about paying off credit card debt each month” was especially helpful.
The communities with the greatest disparities in financial literacy are Blacks, Hispanics, and Native Americans. A recent Voya Financial study found that Black and Latinx workers have lower participation rates in retirement plans, especially when it comes to retirement planning, with 53% of Black employees and 45% of Latinx employees not participating. It is reported that there are.
By comparison, the participation rate for white workers was 66% and for Asian Americans 62%. Average account balances reflect similar disparities, with white and Asian American savers holding higher balances than black and Latino savers: $99,000 for whites and $80,000 for Asian Americans. $6,000, blacks $45,000, and Latinos $43,000.
For NAPA members Andy and Bill Busch of Horizon Financial Group, the opportunity to teach financial literacy in their Louisiana backyard was just right. Louisiana has one of the worst growth rates in personal income of all states.
”[For the kids to] Bill Bush said of his and his brother's presentation goals, “From a young age, just having someone come and talk about a topic like that, you understand the value and importance of it.It's all about budgeting.'' It starts with that,” he said. -Then use those skills to pay for college and leverage them into a career in finance. ”
Brother Andy agreed, adding the importance of teaching financial behavior and the math behind saving.
“It's mainly about how you behave and understanding the X's and O's, right?” “Financial planning calculations are easy. It's the behavior that gets people into trouble. So what I really want to convey is “Here are some simple things that will help you understand your ABCs.'' [of finance]”
Andy and Bill Busch deliver financial literacy presentations to parents and students ages 8 to 18 at schools in Baton Rouge, Louisiana, and translate their advice directly into the classroom.
The ABA Foundation recruits ARA members at opportunity in different cities each year. ARA members help prepare and educate students in their communities.
ARA members interested in participating in the program should contact Madison Oakley for more information.
