Cafoundationfund's Blog

The National Financial Capability Challenge

cafoundationfund — Wed, 06 Oct 2010 20:52:38 +0000

http://www.cafoundationfund.org

What is the National Financial Capability Challenge?

The National Financial Capability Challenge is an awards program designed to increase the financial knowledge and capability of high school aged youth across the United States so they can take control over their financial futures. It challenges high school teachers and other educators to teach the basics of personal finance to their students, and rewards students, educators, schools, and states for their participation and their success. Educators and top-scoring students will receive award certificates, and schools and states with the highest participation rates will earn special distinction.

Why is financial capability important?

The recent economic crisis and the increasing complexity of our financial system make it clear that strengthening the financial knowledge and skills of our young people is critical to their future success and to the future financial stability of our country. To better navigate their financial futures and be prepared to make smart choices, students need to learn more about earning and spending, saving and investing, using credit wisely, avoiding fraud, paying for college, and more.

Who can participate?

All high school teachers and other educators working with U.S. high-school aged students (ages 13-19) are encouraged to register for the Challenge, download the Educator Toolkit, prepare their students, and administer the online exam. Educators who have been teaching students about personal finance for years as well as those who never have before are urged to join this national initiative.

How does the challenge work?

This is a free program.

Registration: Educators are encouraged to go to challenge.treas.gov to sign up.
Educator Toolkit: Educators will have access to a free Educator Toolkit that includes ready-to-use lesson plans (in PDF format) that cover all the core concepts students need to learn to take the Challenge. Educators are encouraged to use whichever modules they like, use other existing resources, or create their own innovative approaches to teaching these concepts in an effort to help students increase their financial capability.
Best Practices: Throughout the Challenge period and beyond, we encourage educators to share ideas and suggestions about effective ways that they have found to help increase their students’ financial capability.
Challenge Exam: The Challenge online exam, which is designed to illustrate the relevance of financial topics to students, as well as to assess their learning, will be offered from March 7 – April 8, 2011. It took the average student less than 30 minutes to complete. Over 76,000 students participated in the spring of 2010.
Awards Program: The top two scorers at each school, plus all students scoring in the top 20%, will receive National Financial Capability Challenge Award Certificates. All participating educators will receive an official certificate, and educators from schools and states with the highest proportion of participating students will be recognized as well.
Educators – Sign up now to be part of the Challenge

When the economy recovers, will you be ready?

cafoundationfund — Mon, 04 Oct 2010 21:13:04 +0000

It feels like we are still in the worst recession and perhaps too slow of a recovery for many. Others say it’s just right and that we should set our expectations towards what is more realistic. After all, a faster recovery really indicates unsustainable consumer purchasing. For too long we have viewed bank saving as a poor way to invest in ourselves. Today, 80% of our workforce is in the blue collar sector and most are making ends meet with frustration. In the U.S. 70% of people are living paycheck to paycheck. If you are looking for happy consumers, you will see that most of them own a late model car and have little in credit payments. They purchase at the least expensive stores and do so because they understand how to be frugal and how to survive. Unfortunately, too many still do not know how to be successful.

When it comes to being realistic about money matters, we don’t seem to get the real picture. Recently, banks have been blamed for the poor economy, when they only did what we asked of them and what we allowed them to do. Others, blame industry greed, or poor regulations. What is universal is that most people don’t buy the notion that banks are more than for-profit financial institutions, with a responsibility to depositors, stockholders and regulators. Simply put, banks are businesses that do best for their stakeholders just as individual do what’s in the best interest of their estates. However, what is “best” should also be socially right. When financial institutions works towards improving their communities that care about a just partnership, everyone wins. Today, banks are working harder at educating low to moderate income communities with improved financial curriculum that motivates people to manage money wisely.

Banks are investing in the next generation by setting a good example today and expanding their financial literacy programs. Most successful banks contribute to one fundamental rule, that we must look back at our most recent activities to improve on the next. Let’s take this example and apply it to our personal budgets. When asking successful executive to share their secrets to success, one resonates most today. “To be successful, one must do the following exercise; every 50 minutes, take 5 to see what was done and 5 to make it better”. If we looked at our personal budgets consistently, on a weekly or monthly basis, we too would be successful.

Later, I will write about what your personal budget should look like and why you should use a mentor to implement it.

California Foundation Fund takes on the economy with education

cafoundationfund — Mon, 04 Oct 2010 05:25:00 +0000

California Foundation Fund (CAFF) mission is to educate the public on financial topics that are current and relevant. Our programs engage in economic self-sufficiency one community at a time. Each program maintains a focus on Financial Education, Financial Management and Asset Transference. CAFF’s directive is to help improve the methods in which Financial Education is developed and implemented. Our goal is to standardize the State’s financial education while improving economic self-sufficiency for low to moderate income communities. Our programs create opportunities for all major financial institutions to implement curriculum that maintains a minimal set of standards in an effective and inspirational manner. Our work helps underserved communities develop their own micro credit services, initiate banking for the underserved, improve small business growth and sustain economic vitality. We foster collaborative relationships between communities and financial institutions to improve the State’s economy. Why is financial education needed in California?

8 of 10 identify money as a source of stress.
70% of Americans are living paycheck to paycheck.
52% of Americans are distressed over financial matters.
42% of American adults don’t follow a budget.
26% don’t pay all of their bills on time.
32% have no savings.
29% handle emergency by using a credit card.
33% haven’t allocated anything for retirement.
41% admit limited knowledge of personal finance.
100% of our State’s public schools do not have a financial literacy standard.

Workforce Financial Pain Cost to Employers

Financial issues are the #1 cause of workplace stress. The Cambridge Human Resource Group states that a lack of financial education for workers is “the most critical unaddressed workplace issue.” As reported in USA Today, financial stress “is having an impact on the workplace, potentially draining productivity and increasing emotional stress on the job.”

How many times have you asked yourself if there was a way you could use your knowledge to help our economy? CAFF is looking for financial planners, bankers and attorneys to become financial coaches. Through this effort, we can bring educational resources to the current workforce and improve our economic outlook.