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Money Smart News Winter 2011
IN THIS ISSUE
Message from the FDIC
FDIC Releases New National
Survey of Unbanked and
Underbanked Households
Advisory Committee Discusses
“Safe Accounts” and Other
Efforts to Enhance Access to
Mainstream Banking
Our Latest Success Stories:
How Money Smart Educators
Are Helping Former Offenders
and High School Students
Prepare for Financial
Independence
Newsletter Features Tips on
Getting the Most From a Bank
Account
Getting Ready to Go Direct
Deposit for All Federal Benefit
Payments
Message from the FDIC
This edition of Money Smart News starts with the recent results from the
FDIC Survey of Unbanked and Underbanked Households. It is disap-
pointing, but not surprising, to find that there are still more than one in four
people in the United States who are either unbanked or un-
derbanked. While there is no single solution to increase participation in
the mainstream banking system, financial education clearly has an im-
portant role to play in providing people with knowledge they can use to
achieve their financial goals -- wherever they are in life.
This edition of Money Smart News features a success story involving the use of our
curriculum by correctional institutions as a component of their programs to help those
transitioning back into society learn a variety of positive life skills. Our other success
story in this edition revolves around enabling teenagers to become more financially
savvy.
Financial education and information are important, whatever stage of life you’re
in. This edition provides an important news item for seniors receiving paper federal
benefits checks who may need assistance to determine their best option as the U.S.
Treasury Department begins to issue all federal benefits payments electronically March
1, 2013.
While there is a lot of work ahead for financial educators, it’s important to acknowledge
the successes already achieved, often on shoestring budgets amidst advertising en-
couraging consumers to make financial decisions that are not necessarily in their long-
term best interest. We appreciate your efforts to use Money Smart to help consumers
learn to effectively manage their financial future.
As always, if you have 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 2011
IN THIS ISSUE
Message from the FDIC
FDIC Releases New National
Survey of Unbanked and
Underbanked Households
Advisory Committee Discusses
“Safe Accounts” and Other
Efforts to Enhance Access to
Mainstream Banking
Our Latest Success Stories:
How Money Smart Educators
Are Helping Former Offenders
and High School Students
Prepare for Financial
Independence
Newsletter Features Tips on
Getting the Most From a Bank
Account
Getting Ready to Go Direct
Deposit for All Federal Benefit
Payments
Message from the FDIC
This edition of Money Smart News starts with the recent results from the
FDIC Survey of Unbanked and Underbanked Households. It is disap-
pointing, but not surprising, to find that there are still more than one in four
people in the United States who are either unbanked or un-
derbanked. While there is no single solution to increase participation in
the mainstream banking system, financial education clearly has an im-
portant role to play in providing people with knowledge they can use to
achieve their financial goals -- wherever they are in life.
This edition of Money Smart News features a success story involving the use of our
curriculum by correctional institutions as a component of their programs to help those
transitioning back into society learn a variety of positive life skills. Our other success
story in this edition revolves around enabling teenagers to become more financially
savvy.
Financial education and information are important, whatever stage of life you’re
in. This edition provides an important news item for seniors receiving paper federal
benefits checks who may need assistance to determine their best option as the U.S.
Treasury Department begins to issue all federal benefits payments electronically March
1, 2013.
While there is a lot of work ahead for financial educators, it’s important to acknowledge
the successes already achieved, often on shoestring budgets amidst advertising en-
couraging consumers to make financial decisions that are not necessarily in their long-
term best interest. We appreciate your efforts to use Money Smart to help consumers
learn to effectively manage their financial future.
As always, if you have 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
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Money Smart News Winter 2011
FDIC Releases New National Survey of Unbanked and Underbanked Households
On September 12, 2012, the FDIC released its second biennial national survey of unbanked and underbanked house-
holds, the most comprehensive survey of its kind in the United States. The survey, conducted in June 2011, indicates
that more than one in four U.S. households (28.3 percent) are either unbanked or underbanked, a slight increase from
the findings of the FDIC's 2009 inaugural survey. FDIC Acting Chairman Martin J. Gruenberg said the results “indicate
that insured financial institutions have an important chance to grow their customer base by expanding opportunities that
bring unbanked and underbanked individuals into mainstream banking." The survey, conducted in partnership with the
U.S. Bureau of the Census, provides the banking industry and policymakers with insights and guidance on the de-
mographics and needs of the unbanked and underbanked. It was released at a meeting of FDIC's Advisory Committee
on Economic Inclusion (see next item). To read or download a copy of the survey and additional information, go to http://
www.fdic.gov/householdsurvey.
Advisory Committee Discusses "Safe Accounts" and Other Efforts to Enhance Access to
Mainstream Banking
The FDIC’s Advisory Committee on Economic Inclusion (ComE-IN) met September 12, 2012, and discussed new initia-
tives relating to the agency’s model “safe accounts” program that promotes low-cost transaction accounts with electronic
access for underserved and low- and moderate-income consumers. At the meeting, a panel of financial services provid-
ers and experts discussed the work they are doing to promote safe accounts. In addition, the ComE-IN’s Mobile Finan-
cial Services Subcommittee presented an update on its examination of how evolving technologies can be used to en-
hance access to mainstream banking institutions. To watch a video or access handouts from the meeting, visit http://
www.fdic.gov/about/comein.
Our Latest Success Stories: How Money Smart Educators Are Helping Former Offenders and
High School Students Prepare for Financial Independence
This edition of our "Success Stories" includes a collection of stories about how the Money Smart curriculum is being
used to give individuals with criminal backgrounds the financial education they need to begin a better life. Another story
describes how two high school seniors used Money Smart for Young Adults to educate their fellow classmates about
making informed financial decisions and won state and national recognition for their efforts. (Read the stories).
Newsletter Features Tips on Getting the Most From a Bank Account
The Summer 2012 issue of FDIC Consumer News features tips on how to choose and effectively use a bank account
for routine financial needs. Also in this issue are practical suggestions for navigating the mortgage process -- from be-
fore a consumer buys a home through the final loan payment -- and a look at potential risks when adding other people to
a deposit or loan account. 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 http://
www.fdic.gov/consumers/consumer/news/cnsum12.
Getting Ready to Go Direct Deposit for All Federal Benefit Payments
Beginning March 1, 2013, all federal benefits payments including Social Security income, will be made electronical-
ly. This move is expected to save taxpayers $1 billion over the next 10 years, while ensuring that all federal benefit re-
cipients receive their money in the safest, most reliable way possible. Those who are currently receiving a paper check
should arrange by March 1st to have their funds direct-deposited into an account of their choice. People who have not
chosen an electronic payment option by that date will receive their money via the Direct Express® card, a prepaid debit
card that can be used to pay for purchases and access cash at ATMs. Financial educators can use Money Smart as a
resource to help consumers select the best bank account for their needs, particularly for those who may choose to open
a new account. To learn more about this change, go to http://www.godirect.org/media/about/fact-sheet-direct-deposit-
federal-benefits.
Money Smart News Winter 2011
FDIC Releases New National Survey of Unbanked and Underbanked Households
On September 12, 2012, the FDIC released its second biennial national survey of unbanked and underbanked house-
holds, the most comprehensive survey of its kind in the United States. The survey, conducted in June 2011, indicates
that more than one in four U.S. households (28.3 percent) are either unbanked or underbanked, a slight increase from
the findings of the FDIC's 2009 inaugural survey. FDIC Acting Chairman Martin J. Gruenberg said the results “indicate
that insured financial institutions have an important chance to grow their customer base by expanding opportunities that
bring unbanked and underbanked individuals into mainstream banking." The survey, conducted in partnership with the
U.S. Bureau of the Census, provides the banking industry and policymakers with insights and guidance on the de-
mographics and needs of the unbanked and underbanked. It was released at a meeting of FDIC's Advisory Committee
on Economic Inclusion (see next item). To read or download a copy of the survey and additional information, go to http://
www.fdic.gov/householdsurvey.
Advisory Committee Discusses "Safe Accounts" and Other Efforts to Enhance Access to
Mainstream Banking
The FDIC’s Advisory Committee on Economic Inclusion (ComE-IN) met September 12, 2012, and discussed new initia-
tives relating to the agency’s model “safe accounts” program that promotes low-cost transaction accounts with electronic
access for underserved and low- and moderate-income consumers. At the meeting, a panel of financial services provid-
ers and experts discussed the work they are doing to promote safe accounts. In addition, the ComE-IN’s Mobile Finan-
cial Services Subcommittee presented an update on its examination of how evolving technologies can be used to en-
hance access to mainstream banking institutions. To watch a video or access handouts from the meeting, visit http://
www.fdic.gov/about/comein.
Our Latest Success Stories: How Money Smart Educators Are Helping Former Offenders and
High School Students Prepare for Financial Independence
This edition of our "Success Stories" includes a collection of stories about how the Money Smart curriculum is being
used to give individuals with criminal backgrounds the financial education they need to begin a better life. Another story
describes how two high school seniors used Money Smart for Young Adults to educate their fellow classmates about
making informed financial decisions and won state and national recognition for their efforts. (Read the stories).
Newsletter Features Tips on Getting the Most From a Bank Account
The Summer 2012 issue of FDIC Consumer News features tips on how to choose and effectively use a bank account
for routine financial needs. Also in this issue are practical suggestions for navigating the mortgage process -- from be-
fore a consumer buys a home through the final loan payment -- and a look at potential risks when adding other people to
a deposit or loan account. 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 http://
www.fdic.gov/consumers/consumer/news/cnsum12.
Getting Ready to Go Direct Deposit for All Federal Benefit Payments
Beginning March 1, 2013, all federal benefits payments including Social Security income, will be made electronical-
ly. This move is expected to save taxpayers $1 billion over the next 10 years, while ensuring that all federal benefit re-
cipients receive their money in the safest, most reliable way possible. Those who are currently receiving a paper check
should arrange by March 1st to have their funds direct-deposited into an account of their choice. People who have not
chosen an electronic payment option by that date will receive their money via the Direct Express® card, a prepaid debit
card that can be used to pay for purchases and access cash at ATMs. Financial educators can use Money Smart as a
resource to help consumers select the best bank account for their needs, particularly for those who may choose to open
a new account. To learn more about this change, go to http://www.godirect.org/media/about/fact-sheet-direct-deposit-
federal-benefits.