Ben S Bernanke: The importance of financial education and the National
Jump$tart coalition survey
Speech by Mr Ben S Bernanke, Chairman of the Board of Governors of the US Federal
Reserve System, at the Jump$tart Coalition for Personal Financial Literacy and Federal
Reserve Board Joint News Conference, Federal Reserve Board, Washington DC,
9 April 2008.
* * *
Good morning. It is my pleasure to welcome you to today's briefing on the results of the
Jump$tart Coalition's biennial financial literacy survey of America's high school seniors.
The financial preparedness of our nation's youth is essential to their well-being and of vital
importance to our economic future. In light of the problems that have arisen in the subprime
mortgage market, we are reminded of how critically important it is for individuals to become
financially literate at an early age so that they are better prepared to make decisions and
navigate an increasingly complex financial marketplace. Choosing a credit card, saving for
retirement or for a child's education, or buying a home now requires more financial savvy
than ever before. Financial literacy and consumer education - coupled with robust consumer
protection - makes the financial marketplace effective and efficient, and better equips
consumers to make tough yet smart financial decisions. Today, only eight states across the
U.S. require personal finance before middle or high school graduation. I believe more states
should consider making personal finance a requirement for all students who seek a high
school diploma. I am personally convinced that improving education is vital to the future of
our economy and all its citizens, and I strongly believe that promoting financial literacy, in
particular, must be a high priority. I know that those of you here today join me in this
conviction.
The Jump$tart Coalition is a leader among organizations seeking to improve the personal
financial literacy of students from kindergarten to the university level. In particular, through its
biennial survey of high school seniors - the results of which you will hear about shortly -
Jump$tart has brought increased attention to the need for greater financial literacy among
the youth of our nation. During the Jump$tart survey's 12-year history, the data gathered
have served as the basis for useful measures of what young adults do and don't understand
about finances. Undoubtedly, we will soon learn that there is plenty of work to be done and
that our students have much to learn.
The Federal Reserve is strongly committed to Jump$tart's mission to better educate
America's youth about personal finance. On the regional level, many Federal Reserve Banks
work closely with the state coalitions to help achieve this worthy mission. In fact, there is at
least one economic education specialist at each of the Reserve Banks and their branches.
Many of these specialists offer training seminars to help educators teach vital economic and
personal finance topics in their classrooms. The Federal Reserve also continues to support a
variety of programs and initiatives to increase financial literacy. These include:
•
Money Smart Week, an annual week-long program coordinated by the Federal
Reserve Bank of Chicago, which educates consumers about money management
and promotes financial education awareness in 20 cities across the 7th District;
•
Building Wealth, a resource developed by the Federal Reserve Bank of Dallas to
help consumers develop a personal plan for building wealth;
•
"Life Smarts", a national quiz-based competition for high school students sponsored
by the National Consumer League and promoted by many Reserve Banks;
•
Educational web sites, such as the Federal Reserve Bank of San Francisco's
"FedVille," where students actively learn more about financial concepts such as
spending, saving, and earning interest; and
•
FederalReserveEducation.Org, our system-wide education web portal offering easy
access to a host of beneficial resources geared toward students, parents, and
teachers.
In addition to these and many other Federal Reserve resources, we will continue to work to
expand the resources and programs devoted to the important public policy challenge of
improving financial literacy.
I want to take this opportunity to thank the Jump$tart Coalition and their partners for their
continued support and commitment to furthering the financial education of our youth. Now, it
is with great pleasure that I introduce Laura Levine, executive director of Jump$tart and
appointed member of President Bush's recently formed Council on Financial Literacy, who
will give a report on the status of financial education of youth in this country.