It’s Never Too Early to Learn Financial Literacy

WASHINGTON, April 2 — Rep. Geoff Davis, R-Ky. (4th CD), issued the following column:

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Maintaining good personal financial practices and planning for the future can provide the foundation for lifelong security and stability. National Financial Literacy Month is a great time to learn more about ways to make these important habits easier.

By establishing good habits, individuals can protect and maximize the value of their dollars. A number of public and private organizations provide a wealth of tools to aid the learning process.

MyMoney.gov, the Financial Literacy Education Commission's website, is an online handbook that helps consumers handle financial decisions both big and small. One of the website's most useful tools is the "Life Events" page (http://www.mymoney.gov/life-events.html), which categorizes financial information by personal circumstances. Whether planning for the birth of a child or the end of a career, MyMoney.gov can advise people of all ages.

While financial education is important at any age, our nation's youth face particular challenges. Young Americans are entering adulthood in uncertain economic times, and beginning their adult lives with knowledge of responsible money management is crucial. Mismanaging income and debt early in life are hindrances that can plague a young person for decades.

The Federal Deposit Insurance Corporation (FDIC) has a program entitled "Money Smart" that caters to individuals ages thirteen and over. This guide lets users learn at their own pace the basics of handling money and interacting with financial institutions. The FDIC offers the self-taught program on CD-ROM free of charge.

Other free resources include the instruction guide "Banking Basics" from the Federal Reserve Bank of Boston, which provides an overview of the banking system for young people; and the National Public Radio series "Money Counts: Young Adults And Financial Literacy," which has a vast collection of articles on personal finance that detail real-world stories and the importance of budgeting.

Monitoring your credit record is also a key component of personal finance for all ages. In 2003, Congress passed a law that allows every American to annually obtain one free credit report from each of the three top credit reporting agencies: Equifax, Experian and TransUnion. In addition to providing an overall picture of your financial standing, reviewing your credit report regularly can help you detect identify theft and fraud if something unfamiliar shows up on the report.

Unfortunately, there is a degree of risk in a world where many financial transactions take place online and technology is rapidly changing. That is why the FDIC has an Identity Theft & Fraud page (http://www.fdic.gov/consumers/theft/) to help individuals guard against criminal behavior before it happens. In the unfortunate event that a person falls victim to identity theft, the Federal Trade Commission has a how-to guide for fighting back (http://www.ftc.gov/bcp/edu/pubs/consumer/idtheft/idt04.shtm). While vigilance alone cannot stop criminals from bad behavior, it can help reduce instances of identity theft

Financially-sound households contribute to family stability, personal responsibility and solid footing for your family's future. Financial literacy is worth it — and April is a great time to learn why.

For more tips on financial literacy, visit:

U.S. Financial Literacy and Education Commission

http://www.mymoney.gov/

888-MyMoney (696-6639)

Jump$tart Kentucky

http://www.jumpstart.org/states-kentucky.html

502-573-3390

Federal Deposit Insurance Corporation (FDIC) http://www.fdic.gov/consumers/consumer/moneysmart/index.html 877-275-3342

TNS 23SQ120406-MJ88-3832977 StaffFurigay