June 15, 2006
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Remarks of Anna Escobedo Cabral
U.S. Treasurer
U.S. Department of the Treasury
Before West Virginia Teachers Finance Academy

Charleston, WV- Thank you so very much for your invitation and for that kind introduction.   I truly appreciate your welcome to West Virginia.  I am really thrilled to be here in your State's largest city and capital of Charleston today.  It is also of course an honor to represent President Bush's Administration and to stand before you in my capacity as the 42^nd U.S. Treasurer.

I have to say – it is really great to be back in the State.  I was actually here just a couple of weeks ago visiting Treasury's Bureau of Public Debt in Parkersburg, Virginia.  I can honestly say that I'm most pleased to witness first-hand that not only the federal government continues engaged in the important work of improving financial literacy, but also that State governments, the private and non-profit sectors, as well as the education community understand the value of developing strong personal money management skills.

That is why I want to begin today by expressing my heartfelt thanks to Auditor Glen Gainer III and his staff, particularly Justin Southern, as well as West Virginia's Jump$tart for working so diligently to put this fantastic event and learning opportunity together. 

I personally think that this Finance University for teachers is an absolutely fantastic idea! The coursework which focuses on economic and financial education helps each and every one of you in your important profession as educators to strengthen your own personal finance skills, not to mention, your ability to teach and inculcate some good habits in your students.  What a formidable opportunity and responsibility you have before you!  And how timely and important your work is!

You as educators know best that our young people are going to be confronted with some pretty difficult issues as adults.  They will be particularly challenged and have important choices to make with regards to budgeting and credit management as soon as they enter college or graduate from high school and pursue a trade.  So I appreciate the time you've dedicated over the past few days to hone in on these important skills.  Thank you for caring enough and understanding the importance of using the classroom as a venue to improve financial literacy.

Today, I want to share with you how the value of an education and how one caring teacher can change lives for the better.  I will also share with you some of the federal resources available to you for free, which can help you in your efforts to integrate financial education lessons into the classroom.  And finally, I will highlight how a growing and burgeoning economy can help improve lives, especially when that growth is coupled with job creation and the proper know-how about how to best manage one's hard-earned money.

First, let me ask: Who better than you – teachers, educators – is there to impart not only smart money skills to our future leaders, but also inspire them to build good personal finance habits?  I can tell you from personal experience that I believe it is professionals like you who can make a significant and positive difference in a young person's life.

To illustrate this point, I want to share with you just a little bit about my background, and why I believe that the work you are doing today is so important. 

I am originally from California and my great grandparents came to the United States from Mexico.  Although my siblings and I grew up rich in love, for most of my young life I also grew up being very poor.  Most of the time, we had to scrape by because we had very little money.  That was our reality and we learned to deal with it – we learned to manage and survive.  In fact, my great grandparents worked in the fields, my grandparents worked in the fields, my parents worked in the fields and for a very little while, we kids worked in the fields.

Now, my father and mother ended up leaving school early and so they did not graduate. They dropped out of high school fairly early in their lives to go out and get jobs and make a way for their family.  Eventually, my father decided that he should move out of the fields and into more traditional work.  But, because he lacked an education, it forced him to travel to wherever job opportunities existed.  I remember switching schools more times that I can or care to remember.

By my junior year of high school I was doing exceedingly well.  And right before I was getting ready to graduate from high school, I decided I could graduate early, so I started thinking about working at a fast-food restaurant, which in many ways could be a very good career option.

But, my high-school algebra teacher, Philip Lamm, heard I was leaving early and asked me if I had ever given some thought to attending college.  Well, of course I had not.  We just simply didn't have the money.  And, of course I never had those conversations with my parents about the possibility of going to college.  My parents dream was that their kids graduate high school because they had not done so themselves.  Unfortunately, that was the limitation of their exposure. 

But here is the important part of the story – because one caring teacher paid a little extra attention – well; I can tell you that it opened a whole new world of astounding opportunities for me.  That teacher helped me understand the power of an education – his name was Phillip Lamm.

Mr. Lamm did so much as to help me fill out the college entrance application and visited my parents to explain why going to college was a better and more profitable option – not just for me but also for the whole family.  He also helped me find the dollars to help pay for school. 

In effect, Mr. Lamm not only taught me mathematics and algebra, more importantly he also inspired me to think bigger – to think about what was possible if only I would take the chance and step out of my comfort zone. 

I want to urge you to continue to do that throughout your careers – to inspire your students and push them a little out of their own comfort zones – particularly as you teach your students how to plan for the future and better manage their future finances and lives. 

You are tremendously qualified and uniquely positioned to teach them the skills it takes to be successful.  But more importantly, you can inspire them to think big – inspire them to think about what is possible if they set goals and create a plan to attain those goals. 

You have the power to convert an abstract concept into reality for many of your students so that they one day can experience the sense of pride of paying their way through college successfully, purchasing their first home, or setting enough money aside to maybe even start a small business or retire with security and in comfort.

Programs like the one you have participated in these last couple of days provide you with a solid base to do just that.  But you're caring heart and your unwavering commitment to education is what really provides you with the drive and impetus to succeed in touching your students' lives in deep and meaningful ways.

To help you in that task, the federal government too is engaged in a variety of efforts to provide the public with the tools and resources necessary to help improve financial education of all people across the country.  I'd like to now share with you some of the financial education efforts Treasury is engaged in.

Some of you may already be aware that the Treasury Department takes a lead role in the efforts of a federal commission created by legislation which was signed into law by President Bush in 2003 – Title V of the Fair and Accurate Credit Transactions Act.  This federal commission is commonly known as the Financial Literacy and Education Commission or referred to as the Commission. 

Treasury and 19 other federal member agencies have played a significant role in developing a financial education web site, toll-free hotline and the first ever national strategy for financial education.

In October 2004 the Commission launched the MyMoney Web site and MyMoney hotline.  The public can now visit MyMoney.gov or call 1-888-MyMoney and access free information in English or Spanish to help them better manage their money.  I urge you to visit and spread the work about MyMoney.gov.  It has been recently updated to include an interactive quiz called the "Money Twenty." 

The strategy, Taking Ownership of the Future: The National Strategy for Financial Literacy, which was recently unveiled in April of this year, is also now available at MyMoney.gov.  I encourage you to share this information with your community partners and tell them it is available and downloadable at MyMoney.gov.

I think this is a good time to very quickly highlight a few examples of how the Strategy will be implemented through various Calls to Action listed at the end of each chapter of this document.

The strategy focuses on a variety of important topics, such as banking the unbanked, homeownership, credit management, and retirement savings – to name a few.  It also describes the challenges and guideposts for possible solutions to challenges associated with these topics.

Sometimes the solutions come from the Federal government.  However, often nonprofit organizations, businesses and other private sector players provide important resources for those wishing to learn more about financial matters.  These strategies can be very helpful to community organizations that are committed and working to improve delivery of financial education resources and tools.

In effect, the document puts forth examples of financial education programs that community leaders, business people, and volunteers can all look to as they design programs of their own to enhance financial literacy.  It will not only be important to provide encouragement – it will also be important to facilitate easier and more convenient access to tools that can help people improve personal finance management skills, and as I mentioned earlier hopefully influence the adoption of good personal finance habits by the general population – including young adults.  Again, that is why we are counting on all of you to help us spread the word.

We've already begun the important work of implementing this strategy.  In May of 2006, work began on a Call to Action focused on the topic of banking the unbanked.  The Treasury Department partnered with the Federal Deposit Insurance Corporation, Office of the Comptroller of the Currency, National Credit Union Administration and the Federal Reserve Bank of Chicago to host a regional summit on this topic.  And in another Call to Action the Treasury Department and the Commission will also work to launch a multimedia public service announcement campaign focused on improving credit literacy. 

In addition to these efforts, I want to take this opportunity to share with you some information about another very special campaign my office has been involved in – Go Direct.

About a year and half ago, the Treasury and Federal Reserve Banks launched a campaign called Go Direct, in Spanish known as Directo A Su Cuenta.    The focus of this campaign is to motivate seniors to receive their Social Security benefits by direct deposit.  

It has been a real privilege to be part of Go Direct and to teach eligible citizens about it.  Go Direct focuses on motivating federal benefit recipients to sign up for direct deposit.  It not only communicates the importance of direct deposit – it also provides the means by which seniors can make the switch from a paper check to direct deposit. We have a dedicated call center staffed by bilingual personnel ready to assist all beneficiaries – and since July 2005, about 400,000 beneficiaries have signed up for direct deposit through the call center alone.

The call center is only one of many ways we are helping beneficiaries sign up for direct deposit. Our Web sites: www.GoDirect.org and www.DirectoASuCuenta.org, allows beneficiaries to access a step-by-step online tool to sign up – either on their own or through their bank or credit union.

I hope you take advantage and make use of these resources – I certainly appreciate you sharing and passing this information along to your students, colleagues, community partners and friends and family.

Before closing, I would like to add one additional comment: I am very confident that if we continue to harness improvements in education and amazing talent like yours, and if we continue to take steps to create the conditions the President has made a priority over the last few years to spur continued economic growth – well, we can truly remain optimistic about the future of this country – of our children's future. 

If we could achieve this growth in recent years despite the significant challenges our President and our nation faced – a declining economy, the aftermath of the 9/11 terror attacks, devastating natural disasters, as wells as corporate scandals – I am confident we can do so in today's resilient and growing economic environment.

Consider how just in a few short years our economy is back and stronger than ever thanks to the extension of tax cuts and sound monetary policy – factors which have also helped generate new jobs.

The most recent employment report is good news for American families, showing that the American economy is expanding steadily, with 33 straight months of job growth and unemployment now at a very low rate of 4.6 percent.  When Americans have jobs and keep more of the hard-earned money to invest and have the skills to do so wisely, this scenario provides a further catalyst for growth.

Minority communities are also benefiting and experiencing the positive effects of this economic surge.  For instance, the unemployment rate for Hispanic Americans is now at a record low of five percent.

Again, thanks to the President's sound economic policies, and his concern for improving education at all levels, the promise of the American dream is alive and well.

In closing, I want to again thank every teacher here today and congratulate you on your achievements thus far.  You are doing wonderful work and you ought to be recognized for taking your skills and talents to the next level – for not only educating, but also inspiring – challenging – your students to imagine all that is possible.

Again – congratulations to all and thank you for your time and attention.