PRESS RELEASE
Federal Deposit Insurance Corporation
FOR IMMEDIATE RELEASE
June 13, 2002
Media Contact:
Rosemary George (202) 898-6530
Congress created the Federal Deposit Insurance Corporation in 1933 to restore public confidence in the nation's
banking system. It promotes the safety and soundness of these institutions by identifying, monitoring and addressing
risks to which they are exposed. The FDIC receives no federal tax dollars — insured financial institutions fund its
operations.
FDIC press releases and other information are available on the Internet at www.fdic.gov, by subscription electronically
(go to www.fdic.gov/about/subscriptions/index.html) and may also be obtained through the FDIC's Public Information
Center (877-275-3342 or 703-562-2200). PR-66-2002
FDIC CHAIRMAN ANNOUNCES MONEY SMART ALLIANCE PROGRAM TO
PROMOTE FINANCIAL EDUCATION IN UNDERSERVED COMMUNITIES ASSETS
FDIC Chairman Don Powell today announced the formation of an alliance program
designed to increase financial literacy in communities where it is most needed.
"Today I want to announce the creation of the Money Smart Alliance Program," Powell
said. "Building on our existing partnerships, the FDIC is setting an aggressive goal of
establishing partnerships with 1,000 organizations and institutions, in all 50 states, to
distribute 100,000 copies of our Money Smart financial education curriculum and
expose one million consumers to our financial education program over the next five
years."
Speaking before a meeting of the National Association of Affordable Housing Lenders,
Powell stressed that financial education — particularly of those who are outside the
financial mainstream — is a matter of critical importance both to regulators and the
American people as a whole.
"Currently, millions of Americans do not have a banking relationship with any traditional
financial institution. These 'unbanked' — estimated at anywhere from 10 to 13 percent
of U.S. households — are primarily low to moderate income, minorities, and/or recent
immigrants," Powell said. "There is also a deep divide along educational lines."
"There are scores of financial education curricula available today, but Money Smart is
uniquely designed to address the needs of low- and moderate-income people and bring
them into healthy banking relationships," Powell said. "I see Money Smart as a tool kit
to help folks begin building a more secure financial future for themselves."
"Of course, the existence of unbanked households is not new," said Powell. "What is
new is an agreement among the public and private sectors that improving access to
affordable and convenient financial services is good public policy."
Federal Deposit Insurance Corporation
FOR IMMEDIATE RELEASE
June 13, 2002
Media Contact:
Rosemary George (202) 898-6530
Congress created the Federal Deposit Insurance Corporation in 1933 to restore public confidence in the nation's
banking system. It promotes the safety and soundness of these institutions by identifying, monitoring and addressing
risks to which they are exposed. The FDIC receives no federal tax dollars — insured financial institutions fund its
operations.
FDIC press releases and other information are available on the Internet at www.fdic.gov, by subscription electronically
(go to www.fdic.gov/about/subscriptions/index.html) and may also be obtained through the FDIC's Public Information
Center (877-275-3342 or 703-562-2200). PR-66-2002
FDIC CHAIRMAN ANNOUNCES MONEY SMART ALLIANCE PROGRAM TO
PROMOTE FINANCIAL EDUCATION IN UNDERSERVED COMMUNITIES ASSETS
FDIC Chairman Don Powell today announced the formation of an alliance program
designed to increase financial literacy in communities where it is most needed.
"Today I want to announce the creation of the Money Smart Alliance Program," Powell
said. "Building on our existing partnerships, the FDIC is setting an aggressive goal of
establishing partnerships with 1,000 organizations and institutions, in all 50 states, to
distribute 100,000 copies of our Money Smart financial education curriculum and
expose one million consumers to our financial education program over the next five
years."
Speaking before a meeting of the National Association of Affordable Housing Lenders,
Powell stressed that financial education — particularly of those who are outside the
financial mainstream — is a matter of critical importance both to regulators and the
American people as a whole.
"Currently, millions of Americans do not have a banking relationship with any traditional
financial institution. These 'unbanked' — estimated at anywhere from 10 to 13 percent
of U.S. households — are primarily low to moderate income, minorities, and/or recent
immigrants," Powell said. "There is also a deep divide along educational lines."
"There are scores of financial education curricula available today, but Money Smart is
uniquely designed to address the needs of low- and moderate-income people and bring
them into healthy banking relationships," Powell said. "I see Money Smart as a tool kit
to help folks begin building a more secure financial future for themselves."
"Of course, the existence of unbanked households is not new," said Powell. "What is
new is an agreement among the public and private sectors that improving access to
affordable and convenient financial services is good public policy."
Powell said that the FDIC made a decision to develop a financial education product
called Money Smart after holding forums on predatory lending nationwide. Forum
attendees included bankers, community leaders, city and state officials, and local
residents. Participants identified problems in their particular area and recommended
solutions ranging from more legislation to better enforcement of existing regulations.
"But there was one recommended solution that remained constant no matter where we
went or who we talked to," said Powell. "That recommendation was consumer education
— equipping consumers to help themselves."
The Money Smart financial education curriculum was introduced in the summer of 2001.
Since then model programs have been established under FDIC guidance in the
agency's Atlanta, Kansas City, San Francisco, and Chicago regions.
In addition, partnerships have been established with the Department of Labor's One-
Stop Centers, the Neighborhood Reinvestment Corporation, Operation Hope, the Office
of the White House Initiative on Asian Americans and Pacific Islanders, the Mississippi
Housing Initiative, the IRS's Voluntary Income Tax Assistance (VITA) centers, the Texas
Cooperative Extension, the Georgia Community Bankers Association, Korean Churches
for Community Development, and the National Coalition for Asian Pacific American
Community Development, among others.
Powell outlined ten features that have made Money Smart popular:
• Money Smart was designed by educational experts;
• It is easy to teach and easy to learn;
• It is targeted to low- and moderate-income adults;
• It was designed to be flexible; it can be taught in its entirety, or specific modules
can be used to fill in the gaps in other financial education programs;
• It carries the FDIC seal;
• It is not copyrighted, thus encouraging reproduction and wide dissemination;
• It is designed to move adults into healthy banking relationships;
• Banks can receive Community Reinvestment Act (CRA) credit for their
involvement in offering Money Smart in their communities;
• It is currently available in English and Spanish; Korean and Chinese versions are
now being tested; and
• It is free to users.
"Money Smart combines many pluses in one easy-to-use package," said Powell. "But
the product is only useful if it gets where it needs to go — into the communities that
need it.
"That is why we are rolling out the Money Smart Alliance Program," Powell told the
group. "Working together, we can reach the unbanked and underserved population in
called Money Smart after holding forums on predatory lending nationwide. Forum
attendees included bankers, community leaders, city and state officials, and local
residents. Participants identified problems in their particular area and recommended
solutions ranging from more legislation to better enforcement of existing regulations.
"But there was one recommended solution that remained constant no matter where we
went or who we talked to," said Powell. "That recommendation was consumer education
— equipping consumers to help themselves."
The Money Smart financial education curriculum was introduced in the summer of 2001.
Since then model programs have been established under FDIC guidance in the
agency's Atlanta, Kansas City, San Francisco, and Chicago regions.
In addition, partnerships have been established with the Department of Labor's One-
Stop Centers, the Neighborhood Reinvestment Corporation, Operation Hope, the Office
of the White House Initiative on Asian Americans and Pacific Islanders, the Mississippi
Housing Initiative, the IRS's Voluntary Income Tax Assistance (VITA) centers, the Texas
Cooperative Extension, the Georgia Community Bankers Association, Korean Churches
for Community Development, and the National Coalition for Asian Pacific American
Community Development, among others.
Powell outlined ten features that have made Money Smart popular:
• Money Smart was designed by educational experts;
• It is easy to teach and easy to learn;
• It is targeted to low- and moderate-income adults;
• It was designed to be flexible; it can be taught in its entirety, or specific modules
can be used to fill in the gaps in other financial education programs;
• It carries the FDIC seal;
• It is not copyrighted, thus encouraging reproduction and wide dissemination;
• It is designed to move adults into healthy banking relationships;
• Banks can receive Community Reinvestment Act (CRA) credit for their
involvement in offering Money Smart in their communities;
• It is currently available in English and Spanish; Korean and Chinese versions are
now being tested; and
• It is free to users.
"Money Smart combines many pluses in one easy-to-use package," said Powell. "But
the product is only useful if it gets where it needs to go — into the communities that
need it.
"That is why we are rolling out the Money Smart Alliance Program," Powell told the
group. "Working together, we can reach the unbanked and underserved population in