Why teach financial literacy?
For the last few years, Utah has been one of the nation's
leaders in bankruptcies. Given that, it's not surprising that
each year Utah's credit unions write off millions of dollars
in bad loans. This is a dubious distinction at best.
We hope that bankruptcy legislation on a national level will
help reduce the number of bankruptcies, but the fact remains
that many of Utah's consumers just don't know how to manage
their finances. They receive little training in public schools,
and often must learn their lessons from the infamous school
of hard knocks.
Credit unions have a natural interest in educating their
members about financial issues. Not only does it make for
fewer charge-offs, but it's also in line with credit union
philosophy. From day one, credit unions existed in part to
promote thrift and wise consumerism.
There are many ways to get involved in financial education.
It can be as simple as printing an article about managing
credit in your newsletter, or as involved as going to classrooms
to teach children about money management. Whether you spend
less space promoting your products and promoting
financial responsibility, teach NEFE,
participate in the Jump$tart Coalition,
or do anything else, the League encourages your credit union
to help your members become financially literate.
NEFE High School Financial Planning Program
 Credit
unions throughout the nation are participating in the NEFE
High School Financial Planning Program. They send their professionals
into classrooms to teach children about managing money with
the help of a comprehensive instructor's manual and fun student
guidebook--all available for free. The book provides lesson
plans on topics ranging from credit cards to checking accounts
to budgeting or finding a suitable career. The manual provides
activities and tips for teaching in a way that will make it
fun for students.
It's easy start teaching the NEFE material. Preparing lessons
is fast and easy, and finding a classroom to teach in is equally
simple. Many high schools are anxious to have people come
in and teach their students. If you want to teach at your
local high school, the best thing to do is just call and explain
to the secretary or principle what you want to do. They'll
put you in contact with the right person, often a teacher
or counselor.
Additionally, you can adapt the NEFE curriculum to meet the
needs of your members, young or old.
For more information about NEFE, visit the NEFE web site
(http://www.nefe.org/),
or contact Stephen Nelson at the League, (800) 662-8684, or
887-2335.
Junior Achievement
A national organization bent on teaching kids about personal
finance, Junior Achievement (JA) is a popular choice among
credit union professionals who want to teach children in classrooms.
JA offers teaching materials for children of all ages, from
elementary school to high school. They'll even find a local
classroom for you to teach in!
According to the JA website, "We are a growing number
of volunteers, educators, parents, and contributors who reach
out to more than 4 million students, each year, in grades
K-12. Together, we believe there's a lot that's right with
today's kids. Kids crave opportunity. Kids want to be successful.
And kids dream big about the future. Really big. We like that."
For more information, visit the JA web site at http://www.ja.org.
National Youth Involvement Board (NYIB)
According to its web site, "The National Youth Involvement
Board exists to generate enthusiasm and excitement for credit
union youth marketing and education; and to develop leaders
for the credit union movement."
 Many
credit union professionals in Utah are a part of NYIB. In
fact, Utah traditionally ranks high in the NYIB statistics
when it comes to presentations made in classrooms. Additionaly,
Julia Pehrson of Hercules Credit Union is the regional coordinator
for NYIB.
For more information about NYIB, contact Julia Pehrson at
julia@herculescu.com
or (801) 968-9011. Also, you can visit the NYIB web site at
http://www.nyib.org/.
Jump$tart Coalition for Personal
Financial Literacy
 According
to the Jump$tart web site, "First convened in December,
1995, the Jump$tart Coalition for Personal Financial Literacy
determined that the average student who graduates from high
school lacks basic skills in the management of personal financial
affairs. Many are unable to balance a checkbook and most simply
have no insight into the basic survival principles involved
with earning, spending, saving and investing."
The Utah Jump$tart Coalition for Personal Financial Literacy
was formed in late 2000, largely as a result of the efforts
of credit union professionals. People from many industries
participate in the coalition, including banks, counseling
services, and government agencies.
Jumpstart's web site continues, "Many young people fail
in the management of their first consumer credit experience,
establish bad financial management habits, and stumble through
their lives learning by trial and error. The Coalition’s
direct objective is to encourage curriculum enrichment to
insure that basic personal financial management skills are
attained during the K-12 educational experience. The wheels
of education do not need to be reinvented, they simply require
balance."
The League is an active participant in the coalition, and
encourages credit unions to get involved. For information
about how you can participate, contact Preston Cochrane,
chair of the coalition, at (800) 351-4195 extension 356,
or prestonc@aaafaircredit.org. Or, you can visit the coalition's
web site at http://www.utjumpstart.org.
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