Apr 13, 2009: Financial Education Empowers Consumers to Set and Achieve Goals

It was my honor and pleasure to join Lt. Governor Diane Denish and Attorney General Gary King at the Lt. Governor’s Third Annual Summit on Financial Education on April 10, 2009. I want to thank the Lieutenant Governor, the Attorney General, and the coordinators and sponsors of the summit for inviting the State Treasurer’s Office to participate in such a rich educational opportunity for New Mexico consumers.

What does financial literacy or financial education mean to you? The National Endowment for Financial Education defines personal financial literacy as “… the ability to read, analyze, manage and communicate about the personal financial conditions that affect material well being.” I think a simple definition is: Knowing enough about managing money to make wise decisions and to avoid fraud. That means understanding how to balance your checkbook; understanding the basics of savings and investing; obtaining and using credit wisely; developing a budget; understanding professional financial services; and seeking out opportunities to enhance your awareness as a consumer.

Who should focus on financial education? Everyone. I believe learning is life-long because we encounter new things at different stages of our lives. Financial education is important for children from the time they earn their first allowance. A basic knowledge of budgeting, saving and using credit can help high school and college students avoid debt and become savvy consumers. And in this difficult economy, financial education is invaluable if you are planning to purchase a home or planning to retire. Financial knowledge empowers you to set and achieve your goals.

The National Association of State Treasurers (NAST) is working in various capacities to address the issue of financial education in all 50 states and the District of Columbia. As senior vice president of NAST, I look forward to working with other state treasurers in developing financial education programs and furthering outreach efforts.

NAST’s focus on financial education mirrors the recommendations of the U.S. President’s Advisory Council on Financial Literacy. In its first annual report to President Obama, the financial literacy advisory council’s recommendations include mandating financial education in schools for students in Kindergarten through 12th grade; exploring tax incentives to encourage financial education in the workplace; increasing access to bank accounts for tens of millions of unbanked and underserved Americans; conducting research on the state of financial literacy in America and the most effective ways to improve financial knowledge; and increasing awareness among Americans of the state of their own financial literacy and providing access to information to help fill in the gaps.

As we talk about economic stimulation, recovery and reinvestment, every consumer has an important role in these efforts. Understanding the basics is the place to begin. If you have any questions or need assistance finding resources, please contact the State Treasurer’s Office. We are here to serve you through information and education.