1
Money Smart News Winter 2012
IN THIS ISSUE
Message from the FDIC
New Resource for Organiza-
tions Conducting Train-the-
Trainer Workshops
Our Latest Success Stories:
How Community Banks Are
Strengthening Their Communi-
ties with Money Smart
FDIC Consumer Newsletter
Offers Strategies for Building a
Better Financial Future
Helping Consumers
Understand How FDIC Deposit
Insurance Works
Advisory Committee Examines
Trends in Mobile Banking,
Prepaid Cards
Make the Most of America
Saves Week
Message from the FDIC
This edition of Money Smart News is being published in advance of two
key events for financial educators. One is America Saves Week (February
19-26), a nationwide annual campaign through which thousands of organ-
izations promote good savings behavior. The other is Financial Literacy
Month (April), when government agencies, private organizations and com-
munity groups make a concerted push to raise consumers’ awareness
about the benefits of learning more about their financial matters.
While these are annual events, our messages as financial educators -- in the class-
room and in the community -- shouldn’t be the same year after year. In other words,
because of changes in the economy or the way people do business, our messaging
needs to fit the current times. Don’t dust off the same approaches and delivery strate-
gies from last year -- and the year before last -- and assume that they are timely again
this year
What do we see as being new and informative in 2012? Many of the recent trends in
personal financial management involve technology. For example, as part of the U.S.
Treasury’s “all-electronic initiative,” all new Savings Bonds (not including those pur-
chased using part of a tax refund at tax time) are only being issued electronically. In
addition, people eligible to receive federal benefits such as Social Security and, in cer-
tain states, benefits such as unemployment insurance, must receive their money elec-
tronically instead of by check.
At the same time, commerce has caught up with how people communicate and seek
information, leading to a new term: social commerce. How so? Consumers are increas-
ingly targeted for special offers via e-mail or smartphones, and they must be vigilant to
not let the promise of a “discount” lure them into an unnecessary purchase or, even
worse, a fraudulent transaction. And, trends in the falling volume of U.S. mail reflect
that many consumers are opting to handle their basic financial needs online -- some-
times exposing themselves to unnecessary risks and fees. That may be the case if, for
example, a consumer deals online with a third-party account manager without review-
ing its security and privacy policies first, or if the individual pays substantial fees to get
a money advance online.
While the ways finances are handled have evolved from past years, core financial edu-
cation concepts still hold true. Among them: comparison shopping for financial ser-
vices, taking steps to avoid identity theft, and using a budget to manage spending.
And, from a delivery standpoint, the Money Smart curriculum is regularly updated to
reflect the times and is still a great tool and catalyst for bank and community partner-
ships to equip consumers with the knowledge and skills they need to navigate chang-
ing financial times.
This edition of Money Smart News highlights how community depository institutions
have used our financial literacy curriculum to both help local residents and create new
business opportunities – important and timely topics especially given that Money
Smart was rolled out in 2001 as a tool for partnerships between banks and communi-
ties.
And for anyone who has a question, a recommendation or a Money Smart success
story to share with us, please send an e-mail to communityaffairs@fdic.gov.
Mark Pearce
Director
FDIC Division of Depositor and Consumer Protection
Money Smart News Winter 2012
IN THIS ISSUE
Message from the FDIC
New Resource for Organiza-
tions Conducting Train-the-
Trainer Workshops
Our Latest Success Stories:
How Community Banks Are
Strengthening Their Communi-
ties with Money Smart
FDIC Consumer Newsletter
Offers Strategies for Building a
Better Financial Future
Helping Consumers
Understand How FDIC Deposit
Insurance Works
Advisory Committee Examines
Trends in Mobile Banking,
Prepaid Cards
Make the Most of America
Saves Week
Message from the FDIC
This edition of Money Smart News is being published in advance of two
key events for financial educators. One is America Saves Week (February
19-26), a nationwide annual campaign through which thousands of organ-
izations promote good savings behavior. The other is Financial Literacy
Month (April), when government agencies, private organizations and com-
munity groups make a concerted push to raise consumers’ awareness
about the benefits of learning more about their financial matters.
While these are annual events, our messages as financial educators -- in the class-
room and in the community -- shouldn’t be the same year after year. In other words,
because of changes in the economy or the way people do business, our messaging
needs to fit the current times. Don’t dust off the same approaches and delivery strate-
gies from last year -- and the year before last -- and assume that they are timely again
this year
What do we see as being new and informative in 2012? Many of the recent trends in
personal financial management involve technology. For example, as part of the U.S.
Treasury’s “all-electronic initiative,” all new Savings Bonds (not including those pur-
chased using part of a tax refund at tax time) are only being issued electronically. In
addition, people eligible to receive federal benefits such as Social Security and, in cer-
tain states, benefits such as unemployment insurance, must receive their money elec-
tronically instead of by check.
At the same time, commerce has caught up with how people communicate and seek
information, leading to a new term: social commerce. How so? Consumers are increas-
ingly targeted for special offers via e-mail or smartphones, and they must be vigilant to
not let the promise of a “discount” lure them into an unnecessary purchase or, even
worse, a fraudulent transaction. And, trends in the falling volume of U.S. mail reflect
that many consumers are opting to handle their basic financial needs online -- some-
times exposing themselves to unnecessary risks and fees. That may be the case if, for
example, a consumer deals online with a third-party account manager without review-
ing its security and privacy policies first, or if the individual pays substantial fees to get
a money advance online.
While the ways finances are handled have evolved from past years, core financial edu-
cation concepts still hold true. Among them: comparison shopping for financial ser-
vices, taking steps to avoid identity theft, and using a budget to manage spending.
And, from a delivery standpoint, the Money Smart curriculum is regularly updated to
reflect the times and is still a great tool and catalyst for bank and community partner-
ships to equip consumers with the knowledge and skills they need to navigate chang-
ing financial times.
This edition of Money Smart News highlights how community depository institutions
have used our financial literacy curriculum to both help local residents and create new
business opportunities – important and timely topics especially given that Money
Smart was rolled out in 2001 as a tool for partnerships between banks and communi-
ties.
And for anyone who has a question, a recommendation or a Money Smart success
story to share with us, please send an e-mail to communityaffairs@fdic.gov.
Mark Pearce
Director
FDIC Division of Depositor and Consumer Protection
2
Money Smart News Winter 2012
New Resource for Organizations Conducting Train-the-Trainer Workshops
For years, the FDIC has made available a brief train-the-trainer video to quickly acclimate prospective instructors to
the Money Smart curriculum. The FDIC also conducts full-day train-the-trainer workshops on a limited basis to provide
further guidance on implementing the curriculum. Recognizing that many Money Smart partners conduct their own train-
the-trainer workshops for their staff or stakeholders who will be using the curriculum, the FDIC now offers a CD that con-
tains useful resources for partners to use when conducting their own train-the-trainer workshops. To order the new CD,
which is called “Train-the-Trainer (in-a-box) Resources,” go to the FDIC’s online product catalog.
Our Latest Success Stories: How Community Banks Are Strengthening Their Communities
with Money Smart
Ten years ago, Money Smart was released as a tool for banks to “strengthen their communities.” This issue of our Suc-
cess Stories highlights how community banks are using Money Smart to build new relationships. (Read the stories.)
FDIC Consumer Newsletter Offers Strategies for Building a Better Financial Future
Consumers have important decisions to make when it comes to managing money and saving for their future, particularly
in a tough economy when every dollar counts. To help consumers make choices based on practical information from
reliable sources, the Fall 2011 issue of FDIC Consumer News offers simple strategies in three areas: saving for retire-
ment, improving credit scores, and buying vs. renting a home. In addition, the issue offers new tips and information relat-
ed to Internet banking. Financial educators are encouraged to use FDIC Consumer News as a supplemental handout for
students. See this issue of the newsletter and subscription information (the newsletter is available free) at www.fdic.gov/
consumers/consumer/news/cnfall11.
Helping Consumers Understand How FDIC Deposit Insurance Works
Financial educators can introduce students to deposit insurance using a variety tools provided by the FDIC. For exam-
ple, the FDIC’s Web site at www.FDIC.gov/deposit/deposits includes a series of videos on deposit insurance coverage
and a three-minute video describing how the insurance fund works. Also available through the Web site are the FDIC
brochures “Insured or Not Insured?,” a guide to what is and is not protected by FDIC insurance, and both “Deposit Insur-
ance Summary” and “Your Insured Deposits,” which describe deposit insurance coverage with helpful examples. For
answers to specific questions, consumers can call toll-free 1-877-ASK-FDIC (1-877-275-3342) or e-mail a question using
the online form at www2.fdic.gov/starsmail.
Advisory Committee Examines Trends in Mobile Banking, Prepaid Cards
The FDIC Advisory Committee on Economic Inclusion (ComE-IN) met December 1, 2011, to discuss innovations in the
delivery of financial services such as mobile financial services and prepaid cards, which may provide opportunities and
challenges for the underserved. Two FDIC pilot programs also were discussed. One is the model “safe accounts” pilot, in
which nine financial institutions offer safe, low-cost transaction and savings accounts for low- and moderate-income con-
sumers. The other initiative, the Adopt-a-School Pilot Program, gives FDIC employees the opportunity to teach the es-
sentials of money, banking and personal finance to students at schools in underserved communities on official time. To
watch a video or access handouts from the meeting, visit http://www.fdic.gov/about/comein.
Make the Most of America Saves Week
America Saves Week is an annual campaign that provides an opportunity for organizations and professionals to promote
good savings behavior by individual consumers. The theme of this year’s campaign (February 19-26) is “Set a Goal,
Make a Plan, Save Automatically.” The FDIC is one of the many partners supporting the program. To learn more about
how or your organization can get involved, visit http://www.americasavesweek.org.
Money Smart News Winter 2012
New Resource for Organizations Conducting Train-the-Trainer Workshops
For years, the FDIC has made available a brief train-the-trainer video to quickly acclimate prospective instructors to
the Money Smart curriculum. The FDIC also conducts full-day train-the-trainer workshops on a limited basis to provide
further guidance on implementing the curriculum. Recognizing that many Money Smart partners conduct their own train-
the-trainer workshops for their staff or stakeholders who will be using the curriculum, the FDIC now offers a CD that con-
tains useful resources for partners to use when conducting their own train-the-trainer workshops. To order the new CD,
which is called “Train-the-Trainer (in-a-box) Resources,” go to the FDIC’s online product catalog.
Our Latest Success Stories: How Community Banks Are Strengthening Their Communities
with Money Smart
Ten years ago, Money Smart was released as a tool for banks to “strengthen their communities.” This issue of our Suc-
cess Stories highlights how community banks are using Money Smart to build new relationships. (Read the stories.)
FDIC Consumer Newsletter Offers Strategies for Building a Better Financial Future
Consumers have important decisions to make when it comes to managing money and saving for their future, particularly
in a tough economy when every dollar counts. To help consumers make choices based on practical information from
reliable sources, the Fall 2011 issue of FDIC Consumer News offers simple strategies in three areas: saving for retire-
ment, improving credit scores, and buying vs. renting a home. In addition, the issue offers new tips and information relat-
ed to Internet banking. Financial educators are encouraged to use FDIC Consumer News as a supplemental handout for
students. See this issue of the newsletter and subscription information (the newsletter is available free) at www.fdic.gov/
consumers/consumer/news/cnfall11.
Helping Consumers Understand How FDIC Deposit Insurance Works
Financial educators can introduce students to deposit insurance using a variety tools provided by the FDIC. For exam-
ple, the FDIC’s Web site at www.FDIC.gov/deposit/deposits includes a series of videos on deposit insurance coverage
and a three-minute video describing how the insurance fund works. Also available through the Web site are the FDIC
brochures “Insured or Not Insured?,” a guide to what is and is not protected by FDIC insurance, and both “Deposit Insur-
ance Summary” and “Your Insured Deposits,” which describe deposit insurance coverage with helpful examples. For
answers to specific questions, consumers can call toll-free 1-877-ASK-FDIC (1-877-275-3342) or e-mail a question using
the online form at www2.fdic.gov/starsmail.
Advisory Committee Examines Trends in Mobile Banking, Prepaid Cards
The FDIC Advisory Committee on Economic Inclusion (ComE-IN) met December 1, 2011, to discuss innovations in the
delivery of financial services such as mobile financial services and prepaid cards, which may provide opportunities and
challenges for the underserved. Two FDIC pilot programs also were discussed. One is the model “safe accounts” pilot, in
which nine financial institutions offer safe, low-cost transaction and savings accounts for low- and moderate-income con-
sumers. The other initiative, the Adopt-a-School Pilot Program, gives FDIC employees the opportunity to teach the es-
sentials of money, banking and personal finance to students at schools in underserved communities on official time. To
watch a video or access handouts from the meeting, visit http://www.fdic.gov/about/comein.
Make the Most of America Saves Week
America Saves Week is an annual campaign that provides an opportunity for organizations and professionals to promote
good savings behavior by individual consumers. The theme of this year’s campaign (February 19-26) is “Set a Goal,
Make a Plan, Save Automatically.” The FDIC is one of the many partners supporting the program. To learn more about
how or your organization can get involved, visit http://www.americasavesweek.org.