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Recent research findings describe a challenging financial situation for many
individuals and families in the present, but of greater significance, a more
dire projection of the situation in the future. During one of the richest times
in United States history, the economic divide has widened for families. The
rich have gotten richer. The poor have gotten poorer. Consumer credit indebtedness
is rampant and the number of personal bankruptcies continues to rise. The personal
savings rate is lower than in any other industrialized nation. Few have adequately
prepared to achieve financial goals to fund higher education, retirement, and
long-term health care.
Today, the complexity of the financial products and services industry, along
with the rapid changes in technology, information availability, and public
policy, demands a financially literate consumer. Family financial security
contributes to emotional stability in families, strengthened communities, and
a nation better able to leave a thriving economic legacy for future generations.
A new five-year National Initiative entitled Financial Security in Later Life addresses this broad societal issue.
Managing money effectively to meet present needs and future goals is a learned
skill. Working as learning partners with adults and youth, as individuals and
families, the Cooperative Extension System has the capacity and expertise to
be key contributors to a financially literate America. The Cooperative
State Research, Education, and Extension Service (CSREES) unites the
research, higher education, and extension education, and of the United
States Department of Agriculture (USDA). The Economics & Commerce
Program of CSREES provides a national scope for the efforts of over
130 colleges and land-grant universities and 3,150 county offices across the country.
Through its base program, Family Development and Resource Management, Extension
pledges to “strengthen the capacity of families to establish and maintain
economic security . . .” The Cooperative Extension System has eight decades
of experience in personal and family money management education.
The National
Extension Money Management Education Framework clearly and succinctly
articulates the core and common ground of Extension’s work in this area.
It is designed to be equally illustrative for Extension educators, university
administrators, public and private collaborators, decision-makers, researchers,
mass media representatives, and community partners. The framework can be a
foundation for program development, a marketing tool, and a guidepost for tracking
program impacts. Most importantly, the framework summarizes what Extension can and does deliver.
Certainly, Extension money management educators do not do this work alone.
Community economic development creates jobs so individuals have money to manage.
Money decisions for families have psychological and sociological impacts as
well as economic ones. The educational agenda informs research, and vice versa.
Extension works with private, public, and nonprofit groups to be effective
money management educators. Join Extension in working toward a financially
literate nation.
Financial security is the ability to meet future needs while keeping pace with day-to-day obligations. Preparing for retirement and potential long-term care costs takes planning, saving, and debt control. This cooperative extension initiative seeks to help people improve personal finance behaviors leading to financial security in later life, enhance the capacity of local educators and their partners to deliver effective programs, and increase economic vitality and quality of life for families and communities. This educational initiative offers a toolkit of web-based and face-to-face programs designed to encourage participants to:
As of January 2005, 24 states reported 36,563 individuals enrolled in one of more of 8 educational program curricula. Among key findings are:
The FSLL initiative has also had a direct economic impact on those who have completed initiative programs. A group of 7,574 individuals who completed Initiative-related programs reported a total of $6,307,708 of annual financial impact (such as dollars saved, debt reduced, new dollars invested). This is an average of over $833 per person per year.
Cooperative Extension is a partner in many “America Saves” campaigns across the country. The Consumer Federation of America conducted a survey in the summer of 2003 of 198 American Savers in 5 locations. When asked about increases in interest, knowledge, and confidence in wealth building, 80.3% indicated increased interest, 78.8% increased knowledge, and 75.5% reported increased confidence.
“Cooperative extension leaders are organizing the most
rapidly growing segment of ‘America Saves.’
I am extremely optimistic the programs led by cooperative extension will achieve
great success.”
- Stephen Brobeck, Executive Director, Consumer Federation of America
Some typical comments from program participants on post-program evaluations included:
“I learned things . . . and feel better about how I am financially.” - Missouri participant
“I wish I had known this 10 or 20 years ago.” - Hawaii participant
“I thought the whole program was great. This should be a required course in college. I would have liked to learn more about this sooner.” - California teacher
“I plan to take an active role in our finances. Up to now I’ve always totally relied upon my husband, as my mom did with my dad! I now see that I need to change!” - Ohio participant
“It is amazing how a few changes made me feel empowered. I made a “to do” list and I am determined to get them all checked off.” - Kansas participant.
You can view the Financial Security in Later Life initiative online.
In South Carolina, families at all income levels need educational information
on managing their resources more effectively. Resource management programs
during 1997 - 2000 focused around the Money 2000™ concept,
which enhanced the economic capacity of our families, communities, state, and
nation. The basic Money 2000™ personal
financial management program was designed to increase the financial stability
and economic well-being of South Carolinians through reduced household debt
and increased saving. The Money 2000™ for
the Not-Yet-Wealthy program provided a curriculum designed specifically
for limited resource audiences. Money 2000™ for
Youth encouraged youth to set and achieve financial goals and increase
their consumer and financial literacy. Money 2000™ for
Housing Goals focused on helping families set and achieve desired shelter goals.
Beginning in 2002, financial management programs in South Carolina focused
on Financial Security in Later Life and Resource
Management for Youth, including the South
Carolina 4-H Mini-Society program, Financial
Champions, and the High School Financial Planning
Program.
At the end of the fourth and final year of the South Carolina Money
2000™ program , a randomly-selected sample
of the active participants was surveyed. Telephone interviews yielded 179
useable responses (51.7%). This follow-up survey documented savings goal
achievement of $424,576 and debt reduction goal achievement of $385,602
for the 179 useable responses or $2,372 saved and $2,154 of debt reduction
per participant. Generalizing these results to all participants enrolled
at the end would estimate total savings of $6.7 million and total debt
reduction of just over $6 million or a documented total economic impact
of $12.8 million through the Money 2000™ program
in four years. (The sampling methodology yields a 5% sampling error according to Krejcie & Morgan, 1970.)
A cost-benefit analysis of the South Carolina Money
2000™ program revealed that $131,885 provided over
four years from Program of Work funds and grant sources (not including salaries)
produced a $12.8 million impact. For every dollar invested in the program there
was a $97.05 impact.
For more information on financial resource management, contact Nancy
Porter.
The South Carolina Association of Family & Consumer Sciences is a state affiliate of the American Association of Family & Consumer Sciences (AAFCS). The AAFCS is recognized as “the comprehensive and integrative source of knowledge and the primary voice focusing on family, individual and community well-being.”
Visit the SCEAFCS webpage. This site is devoted to the South Carolina Extension Association of Family & Consumer Sciences, a state affiliate of the National Extension Association of Family & Consumer Sciences (NEAFCS).
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