Greenspan stressed the importance of beginning the learning process as early as possible. Greenspan said in a speech to a Fed-sponsored conference on community development. In his speech, Greenspan made no comments about the state of the nation's economy or the future course of interest rates. The central bank has cut rates three times this year in an effort to stave off recession.
Economists think more reductions are on the way.
Having a financial education could be particularly helpful in stemming predatory lending, Greenspan said. That includes abusive mortgage lending, which Greenspan has criticized as unfair to minorities and the elderly. But financial literacy can be useful in more basic ways giving people the knowledge to create household budgets, initiate savings plans and make strategic investment decisions for their retirement or children's education, he said. Research by Freddie Mac, one of the nation's largest purchasers of home mortgages, found that home buyers who obtained a homeownership education have reduced rates of loan delinquency, he said. Other research, Greenspan said, shows that financial planning courses helped high-school students improve their personal finances, with many of them saving more.