Erven A, Samsel, senior vice president, American Express (NAPSA)—-Economic literacy, for too long relegated to the bottom of educators’ and government officials’ wish lists, is coming out of the shadows and winning recognition as a prerequisite to realizing national and individual financial goals. Scores of organizations— including the National Council on Economic Education, Foundation for Economic Education, National Endowment for Economic Educa- tion, Center for Economie Edueation—are vigorously churning out educational materials. We see major opportunities for business to help bring millions of previously excluded individuals and families into the American mainstream. Chief among the ingredients warranting optimism is the grow- ing awareness of the problem. Economic illiteracy negatively affects productivity and standards of hving. Tt leaves too many people ill-prepared to grow their assets, and it virtually ensures there will always be individuals with financial problems. Second, goals are being set. The economic literacy movement is targeting an educational mind- set that has, wp to now, tolerated the fact that only 14 states require high school students t ake an economics course in order to graduate. Also being targeted are adults who missed economics in bigh school but whostill can be reached via continuing and/or employee education programs. Third, technology brings invaluable information to people through the pressing of computer keys—and allows Nobel laureates te address thousands simultaneously, If it’s this easy to share information, how can we, as a nation, fail ta do se? And fourth, there are the countless financial planning examples that turned middleincome savings and investments into six- and seven-figure portfolios over time. The major difference between these farnidies and those with similar incomes is they have a financial plan. To fill the need, corporations throughout the country are promoting financial literacy programs-—especially as an economic development tool. The American Express Foundation’s Economic Independence Fand, piloted in 2000 and expanded toe $506,000 in 2001, is taking an innovative direction in economic literacy education by supporting the delivery of financial literacy education to under- served segments ofsociety, inchading newly employed people, young workers, individuals moving from welfare to work, immigrants and refugees. Projects supported through the Economic Independence Fund range from initiatives created to assist low-income women in starting sraall businesses, to the translation of financial education curriculum into Hmong, Russian and Spanish. As the concept for the Fund was developed, American Express became aware of the abundance of personal financial literacy curriculum material and the lack of a central repository, or even public listing of what’s available. To meet this need, American Express pro- vided funding for the National Endowment For Financial Education to develop a clearinghouse for financial literacy programs and eurricula. The clearinghouse inchides more than 90 resources hat provide education in the fundamentals of business, economics, the importance of savings, the basics of personal financial man- agement, and related consumer issues. The clearinghouse is available at www.nefc.org, Resistance to educational reform, language difficulties for neweomers to the United States, he absence of computers in every home or classroom in certain neighborhoods, and competing demands for funding preclude major overnight changes. But the motivation to take positive steps for economic literacy is in place. So are the necessary tools. These ingredients will add up to a more sophisticated consumer public. It’s a win-win-win for people, businesses and the economy.
