Financial Institution Letter

FIL-80-2010

November 17, 2010

FINANCIAL INSTITUTIONS ENCOURAGED TO WORK WITH SCHOOLS 

TO PROMOTE YOUTH FINANCIAL EDUCATION 

Summary: On November 15, 2010, FDIC Chairman Sheila C. Bair signed a partnership agreement with 

U.S. Department of Education Secretary Arne Duncan and National Credit Union Administration (NCUA) 

Chairman Debbie Matz to promote and enhance financial education and access for low- to moderateincome students and families. For additional information on partnerships to promote youth financial 

education, institutions can contact the FDIC Outreach and Program Development Section at 

communityaffairs@fdic.gov.

Distribution: 

FDIC-Supervised Banks (Commercial and Savings) 

Suggested Routing: 

Chief Executive Officer 

Chief CRA Officer 

Attachments: 

None 

Contacts: 

Luke W. Reynolds, Chief, Outreach & Program 

Development, Division of Supervision and 

Consumer Protection, at LuReynolds@FDIC.gov 

or (202) 898 6724 

Note: 

FDIC financial institution letters (FILs) may be 

accessed from the FDIC's Web site at 

www.fdic.gov/news/news/financial/2010/index.html. 

To receive FILs electronically, please visit 

http://www.fdic.gov/about/subscriptions/fil.html. 

Paper copies of FDIC financial institution letters 

may be obtained through the FDIC's Public 

Information Center, 3501 Fairfax Drive, E-1002, 

Arlington, VA 22226 (1-877-275-3342 or 703-562-

2200).

Highlights:

 FDIC Chairman Sheila C. Bair, Department of Education 

Secretary Arne Duncan, and NCUA Chairman Debbie 

Matz signed a partnership agreement on November 15, 

2010, to foster collaboration between the agencies to 

promote youth financial education and financial access. 

 FDIC’s free Money Smart for Young Adults curriculum is 

one tool financial institutions and schools can use to 

promote youth financial education. See 

www.fdic.gov/moneysmart. 

 In addition to supporting the delivery of financial education 

instruction, financial institutions should consider promoting 

school-based savings programs. 

Federal Deposit Insurance Corporation 

550 17th Street NW, Washington, D.C. 20429-9990
Financial Institution Letter 

FIL-80-2010 

 November 17, 2010 

FDIC CHAIRMAN JOINS WITH EDUCATION SECRETARY TO ENCOURAGE 

FINANCIAL INSTITUTIONS TO WORK WITH SCHOOLS TO PROMOTE 

YOUTH FINANCIAL EDUCATION 

Federal Deposit Insurance Corporation (FDIC) Chairman Sheila C. Bair joined U.S. 

Department of Education Secretary Arne Duncan and National Credit Union Administration 

(NCUA) Chairman Debbie Matz at a press conference on November 15, 2010, to sign a 

partnership agreement between the agencies designed to promote and enhance financial 

education and access for low- to moderate-income students and families. The partnership, in 

part, is designed to lead to more collaboration between financial institutions and schools to 

deliver financial education to students and to provide safe, affordable banking products 

responsive to the needs of students and their families. 

Financial institution staff can support the delivery of financial education in ways such as: 

 Teaching financial education as a guest instructor in the classroom; 

 Serving as a subject matter resource for educators on personal finance and bankingrelated topics, or hosting a field trip to a branch so that students can see how a bank 

operates; 

 Supporting the delivery of financial education through after-school programs or in 

collaboration with other organizations; and 

 Facilitating or providing support for in-school student savings programs. These can 

range from the collection of savings deposits to school-based bank branches.1

Bankers and educators may find the FDIC’s free Money Smart for Young Adults curriculum a 

valuable resource. The curriculum provides unbiased, objective information that is aligned 

with state educational standards. It is based on the award-winning Money Smart adult 

financial education curriculum, which was designed to help low- and moderate-income 

individuals enhance their financial skills and create positive banking relationships. Money 

Smart has been shown to bring sustainable improvements in participants’ knowledge and 

financial behaviors. Visit http://www.fdic.gov/consumers/consumer/moneysmart/young.html

to order a free copy or read success stories and strategies on youth financial education 

delivery. 

Financial institutions can also consider partnering with schools to encourage participation in 

and support financial education efforts in conjunction with the National Financial Capability 

Challenge. The Challenge is a voluntary program coordinated by the U.S. Department of the 

Treasury with support from the U.S. Department of Education to increase the financial 

knowledge and capability of high school-aged youth. See http://challenge.treas.gov/. 

 

1

 FDIC regulations permit state nonmember banks to provide certain banking programs in schools without 

submitting a branch application to the FDIC, provided certain conditions are satisfied. See §303.46 of FDIC 

Regulations. 
Financial education enables young people to start positive habits, such as saving money and 

budgeting, and learn how to use mainstream banking services effectively. The need for youth 

financial education is well-documented—FDIC research indicates that younger adults are 

more likely to be unbanked and incur sizable fees in automated overdraft programs. 

For additional information on partnerships to promote youth financial education, please 

contact the FDIC Outreach and Program Development Section at 

communityaffairs@fdic.gov. 

 Sandra L. Thompson 

 Director 

 Division of Supervision and Consumer Protection