The following excerpt is from a FDIC e-mail:
Message from the FDIC
This edition of Money Smart News is being published in advance of two key events for financial educators. One is America Saves Week (February 19-26), a nationwide annual campaign through which thousands of organizations promote good savings behavior. The other is Financial Literacy Month (April), when government agencies, private organizations and community groups make a concerted push to raise consumers’ awareness about the benefits of learning more about their financial matters.
While these are annual events, our messages as financial educators -- in the classroom and in the community -- shouldn’t be the same year after year. In other words, because of changes in the economy or the way people do business, our messaging needs to fit the current times. Don’t dust off the same approaches and delivery strategies from last year -- and the year before last -- and assume that they are timely again this year
What do we see as being new and informative in 2012? Many of the recent trends in personal financial management involve technology. For example, as part of the U.S. Treasury’s “all-electronic initiative,” all new Savings Bonds (not including those purchased using part of a tax refund at tax time) are only being issued electronically. In addition, people eligible to receive federal benefits such as Social Security and, in certain states, benefits such as unemployment insurance, must receive their money electronically instead of by check.
At the same time, commerce has caught up with how people communicate and seek information, leading to a new term: social commerce. How so? Consumers are increasingly targeted for special offers via e-mail or smartphones, and they must be vigilant to not let the promise of a “discount” lure them into an unnecessary purchase or, even worse, a fraudulent transaction. And, trends in the falling volume of U.S. mail reflect that many consumers are opting to handle their basic financial needs online -- sometimes exposing themselves to unnecessary risks and fees. That may be the case if, for example, a consumer deals online with a third-party account manager without reviewing its security and privacy policies first, or if the individual pays substantial fees to get a money advance online.
While the ways finances are handled have evolved from past years, core financial education concepts still hold true. Among them: comparison shopping for financial services, taking steps to avoid identity theft, and using a budget to manage spending. And, from a delivery standpoint, the Money Smart curriculum is regularly updated to reflect the times and is still a great tool and catalyst for bank and community partnerships to equip consumers with the knowledge and skills they need to navigate changing financial times.
This edition of Money Smart News highlights how community depository institutions have used our financial literacy curriculum to both help local residents and create new business opportunities – important and timely topics especially given that Money Smart was rolled out in 2001 as a tool for partnerships between banks and communities.
