Financial Institutions Encouraged to Work With Schools to Promote Youth Financial Education

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 moderate-

income 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

on

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

ent 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 banking-

related 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

s/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