The Department of Treasury wants to distill the basics of financial literacy into a “food pyramid” for personal finance that makes cash management as simple to understand as eating right. . Public comments are being requested on a set of “financial education core competencies” the Treasury Department is proposing for use in financial education programs across the country.
Personal finance meltdowns a national issue
The Good Recession taught us one valuable thing when it comes to personal finance. There are too many financially illiterate Americans. The meltdowns that occurred in the finance, housing and credit show us that there just is not enough knowledge out there on budgeting, investing, credit, lending and saving. Investment Advisor reports that the Treasury Department’s Economic Literacy and Education Commission is conducting an annual review of its national strategy to promote basic financial literacy and education as mandated by the Fair and Accurate Credit Transactions Act of 2003. The Commission hopes to be able to help everyone simply understand economic literacy basics by using the “food pyramid” as the basic example.
Financial education basics
You are able to comment on this to the Treasury Department if you would like. You just have to do it before September 12. ”Every American should have command of” five proposed personal finance concepts of “financial education core competencies.” The Federal Register notice released these on August 26. In them are:
Earning: Understanding the primary difference between gross pay and net pay, employee benefits and taxes and also the importance of training.
Spending: The difference between needs and would like, learning how to create a spending budget, tracking spending and living within one’s means.
Saving: Understanding how saved money grows, how to meet long-term goals and wealth building, learning concerning bank accounts, understanding financial assets, for instance savings accounts and investments.
Borrowing: Understanding the cost of borrowing and the role of credit scores.
Protecting: Learning how to protect assets, choosing the right insurance coverage and knowing how to guard against identity theft.
Seeking consensus on financial education
Expectations within the economic schooling field is what the real difficulties are. This comes from the Treasury Department as reported by the Federal Register. Financial literacy and education content is what it wants agreement upon. The National Endowment for Financial Education has Ted Beck who the Dallas Morning News reports having saying that in schools, “there’s a wide variance in different kinds of programs, the quality of programs”. “The idea of having a really straightforward checklist about the basics is something we think is really significant.” . He considers something significant for students to be aware of are the good and bands of all varieties of borrowing, including charge cards mortgages, and pay day loans.
Investment Advisor
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Dallas Morning News
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