2011 National Strategy for Financial Literacy

1. 2011 National Strategy for Financial Literacy Family and Consumer Economics Division of Family and Consumer Sciences USDA-NIFA Response

2. Division of Family and Consumer Sciences Strengthening Families, Farms, Communities and the Economy

3. Changing the Consumer Mindset

4. Statement of NeedNational Strategy for Financial Literacy 2011 Introduction “The recent economic crisis has highlighted how essential it is that Individuals and families have the information, education and tools they need to make good financial decisions in an increasingly complex U.S. and global financial system.”

5. Financial Literacy and Education Commission (FLEC) USDA – NIFA is one of the 22 Government Agencies serving on the FLEC Commission

6. Financial Literacy and Education Commission (FLEC) & President’s Advisory Council on Financial Capability FLEC Commission • FLEC Commission members represent the public sector (Government Agencies) President’s Advisory Council • Advisory Council members are from the private sector (Business Owners and CEOs) • The President's Advisory Council members are appointed and serve as advisors to United States President Barack Obama. Together • The FLEC Commission and President’s Advisory Council work together on sub-committees.

7. Bulletin - National Strategy for Financial Literacy 2011 • http://www.mymoney.gov • http://www.mymoney.gov/sites/default/files/downloads/NationalStrategyBook_12310.pdf

8. Promoting Financial Success in the United States • Vision: Sustained financial well-being for U.S. individuals and families • Mission: Set strategic direction for policy, education, practice, research, and coordination so that U.S. individuals and families make informed financial decisions.

9. Promoting Financial Success in the United States Goals: • Increase Awareness of and Access to Effective Financial Education • Determine and Integrate Core Financial Competencies • Improve Financial Education Infrastructure • Identify, Enhance, and Share Effective Practices

10. Financial Capability Framework • Financial knowledge & understanding 2) Financial skills & competence 3) Financial responsibility

11. Five Core Competencies • Earning income, • Spending, • Saving and Investing, • Borrowing and • Protecting your finances.

12. Message from Family and Consumer Economics National Program LeaderSusan Shockey “These five areas are critical to the nation’s financial stability as individuals and families can dramatically affect the financial health of their local communities and regional markets.”

13. Implementation: Action Areas • Policy • Education • Practice • Research • Coordination 2011 National Strategy for Financial Literacy suggests that each partner find its own action plan.

14. Working Together as Partners(Federal, State, & Local)

15. Education

16. Partners in Education

17. NIFA-USDA Impact Measures • Short-term: Quantitative and qualitative measures of Financial Knowledge, Attitude, and Behavior • Long-term: Assess how education affected financial skills and competences using established scales

19. NIFA-USDA Research Efforts • Health and financial well-being • Behavioral economics of saving • Psychology of money • Cultural perspectives on money • Factors affecting retirement planning • Costs of elder care

20. NIFA-USDA Research Efforts • Youth money management • 4-H Youth development • Comparing financial capabilities of college students from states with varying financial education policies

21. Resources • www.nifa.usda.gov/financialsecurity • http://www.nifa.usda.gov/directories/economics/list.cfm#WA • www.extension.org/personal_finance

22. Message from NIFA DirectorRoger Beachy “The Cooperative Extension System (CES) helps families to learn from our consumer economic programs, which were designed specifically to help people living in rural and urban America manage their money. In an increasingly complex financial system, programs like this help equip Americans with the information, education and tools to make smart financial choices.”

23. Message from Family and Consumer Sciences Division Director Caroline Crocoll “The nation’s financial attitude, behavior, and knowledge starts with the family unit. Individuals and families communicate and make informed economic decisions based on their own values. Children learn these values, attitudes, behaviors, and money management practices from their parents.”

24. Identify State Program of Pride • Ask each state to submit one or two Family and Consumer Economics programs • Programs should be peer-reviewed, include education and research • Document program efficiency and visibility

25. End Results • Visibility • Program Efficiency • Program Accountability

26. To Do: Identify Programs of Pride • Each State submit one or two programs • Programs should be peer-reviewed, evidenced-based, and include education and research • Encourage program efficiency and visibility

27. FiveCore Competencies • Earning income, • Spending, • Saving and Investing, • Borrowing and • Protecting your finances.

28. Division of Family and Consumer Sciences Strengthening Families, Farms, Communities and the Economy

29. Contact Information Susan S. Shockey, Ph.D., CFCS USDA – NIFA National Program Leader Family and Consumer Economics sshockey@nifa.usda.gov 202-690-2674

30. Discussion What does the National Strategy for Financial Literacy mean for me at the state and local level?