Financial Education

FEW, IF ANY, would disagree that Americans could use some financial education. Steep levels of credit-card debt, inadequate retirement savings and even rising bankruptcy filings during good economic times indicate we can use some help with understanding finances. Nevertheless, bankruptcy legislation that requires debtors to undergo credit counseling and financial education - believed to be the first federal mandate for financial lessons - raises some questions. Who will provide the counseling and education?

Parents and educators agree that financial education starts at home, but for parents who never were taught money skills, the prospect of teaching kids can be overwhelming. M-tPeople are wrestling with how to make it happen,M-v said Susan Beacham, founder of Illinois-based Money Savvy Generation, an organization that offers resources to parents and students. M-tWhatM-Fs that first line? What do I say? People still donM-Ft feel comfortable talking about money.M-v And many agree that the sooner parents start, the better.

OFTEN, IT'S some major financial decision appearing on the horizon that causes do-it-yourself investors to throw in the towel and seek professional help. And once they decide to hire an adviser, they typically ask friends, family and co-workers for the name of a broker or financial planner and consider their homework done. Far from it. "If your entire financial future rests on somebody, it doesn't hurt to do as much research as you would to buy a car," said William Droms, a finance professor at Georgetown University.

Most high schools don't spend much time teaching financial literacy, which could explain the reason why personal bankruptcy rates among 25-year-olds have been climbing at an alarming rate. To help combat that situation, the National Endowment for Financial Education has created a virtual course for students and teachers on its Web site: www.nefe.org/hsfppportal/index.html. Called the NEFE High School Campus, the program offers a six-part lesson plan that covers the importance of financial planning, having a career, creating a budget, understanding credit and getting insurance.

Class of 2003 wins Leadership Carroll challenge The Carroll County Chamber of Commerce's Leadership Carroll recently held Alumni Challenge Part I to highlight the program. Since 1992, budding leaders have participated in the 10-month program to enhance their knowledge of the community, government and business. With more than 130 graduates, each class was challenged to send the highest percentage of alumni to the Leadership Carroll alumni luncheon April 29. The Challenge Part I winner was the Leadership Carroll Class of 2003.

Citigroup, the country's largest financial institution, launched a $200 million campaign yesterday to support consumer education programs in nearly 100 countries around the world over the next decade. The new financial education program will create an Office of Financial Education to coordinate programs globally and add a volunteerism initiative, which has been designed to encourage Citigroup's 275,000 employees to devote time to supporting financial education and other charitable causes.

YOU DON'T hear many good things about Enron Corp. these days. But if there's one positive aspect, says AARP's president, it's that the Enron debacle has highlighted the need for Americans to understand the investment process. Numerous studies and surveys in recent years have revealed that Americans' financial knowledge is inadequate for a world where they must fund their own retirement and face a growing choice of mortgages, credit cards and investments. The consequences of not knowing financial basics are costly, according to statistics compiled by the Senate Committee on Banking, Housing and Urban Affairs: As many as half of those who borrow from subprime lenders could actually qualify for cheaper conventional loans.