WASHINGTON, D.C. – Reaching the mid-point of Financial Literacy Month, U.S. Senators Thad Cochran and Roger Wicker (R-Miss.) today highlighted the need for children to become more familiar with the benefits of personal savings.

The Senate in March approved a resolution cosponsored by Cochran and Wicker designating April 2011 as Financial Literacy Month to increase public awareness about the importance of personal financial education among all Americans.  In conjunction with Financial Literacy Month, the American Bankers Association (ABA) Education Foundation is today celebrating the 15th anniversary of “Teach Children to Save Day,” an initiative by banks throughout the country to encourage students to become lifelong savers.

“Personal savings accounts can give a child a chance to begin learning more about the value of money, savings and, ultimately, financial literacy.  These savings accounts can be part of broader efforts in states like Mississippi to improve financial education among students and people of all ages,” Cochran said.  “The economic downturn prompted some families to be more serious about savings and understanding their finances, but more progress would be beneficial to the long-term economic wellbeing of individuals and our nation.”

“A lack of financial knowledge can lead to devastating money problems, including unmanageable debt or even home foreclosure,” said Wicker.  “This is an opportunity to emphasize the importance of financial literacy and good money management skills in students’ curriculum as well as in outreach initiatives for individuals of all ages.”

The Senate resolution (S.Res.121) cited the National Foundation for Credit Counseling’s final 2010 Consumer Financial Literacy Survey that showed 3 in 10 adults in the United States have no savings and that 24 percent of adults are now saving more than they did a year ago because of the current economic climate.

The ABA Education Foundation is using April 12 to launch “Race to Save” to encourage students across the nation to open personal savings accounts to link savings education with real-life practices.  This Foundation hopes to use “Race to Save” to open 15,000 children’s savings accounts nationwide.  Banks in 38 Mississippi communities are part of the Foundation, a nonprofit subsidiary of the American Bankers Association.

The Magnolia state is among states that require students to take an economic education course and encourage school districts to offer high school courses in personal finance education.

Cochran and Wicker have supported efforts by the Mississippi Council on Economic Education (MCEE), a nonprofit organization that provides training and resources to improve economics and personal finance education courses by public and private K-12 educators.

In partnership with the Mississippi Department of Education, MCEE professional development workshops for teachers are provided through three Centers for Economic Education located at Mississippi State University, the University of Southern Mississippi and Mississippi College.

In 2003, Congress passed legislation establishing the U.S. Financial Literacy Education Commission within the Department of the Treasury to begin a more concerted effort to provide Americans with more information about personal finance management.

On Tuesday, Cochran also joined with Senator Patty Murray (D-Wash.) to introduce the Financial Literacy Improvement Act of 2011.  This legislation would authorize annual formula and competitive grants to states to support teaching financial literacy in K-12 and two and four-year colleges. The grants would be used to improve financial literacy by enhancing student knowledge of consumer, economic and personal finance concepts.

Links:
• Race to Save (participating banks)
• ABA Education Foundation
• Mississippi Council on Economic Education
• U.S. Financial Literacy Education Commission

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