August 16, 2006
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Remarks of Anna Escobedo Cabral U.S. Treasurer
U.S. Department of the Treasury
At the Treasurer’s Forum on Financial Literacy and Education
Before the American Numismatic Association World’s Fair of Money

Thank you.  I am thrilled to be in Denver today.  I greatly appreciate your interest and thank you for taking time out of your busy schedule to join me. 

I am also especially grateful to the American Numismatic Association and to Chris Cipoletti for this fantastic opportunity – an opportunity to tell you a little bit about some of the financial education initiatives in Treasury's focus– efforts that provide access to tools that can help people make wiser money management decisions for each stage of their life.

I will just spend a few minutes highlighting our work in this area – and then I would of course invite you to ask me any questions related to the Department's Financial Education efforts.

Quite frankly, Treasury is greatly involved in questions of managing money – our agency is involved in collecting and distributing public funds.  So, it is no wonder that this function provides us with a unique and ideal opportunity to be a significant voice and provide education to the public in this area.  In fact, this opportunity has created an ideal platform for Treasury to advance the task of enhancing federal financial education materials, as well as enhancing coordination of federal efforts focused on improving financial literacy levels across the country.  Here are just a few ways we are doing so.

Treasury's financial education team understands that maintaining an open discussion about this issue is one important way to improve our efforts in this regard.  And we acknowledge that it is crucial for the federal government to maintain that open line of communication with state and local governments, as well as the nonprofit, private and public sectors.  It is necessary if we are to continue to work together toward building our knowledge about the personal finance needs of the people of this country, particularly in the context of our growing economy.

Treasury takes a lead role in facilitating a national dialogue on improving financial education.  Working in concert with other federal agencies, we are working hard to provide our citizens with the right tools that can teach them how to make sound financial decisions – decisions that can help people prepare for a secure financial future.  How?

Here is one significant way.  Treasury leads the efforts of a federal commission comprised of twenty federal agencies – the Financial Literacy and Education Commission.  This Commission is tasked with harnessing existing federal financial education resources to improve financial literacy for all Americans.

There is general agreement among financial education advocates and many government and community leaders that education, and in particular personal financial savvy, can significantly help improve individual lives.  Not only that, it is also important to helping our economy to continue to thrive.  

That is why in December 2003, President Bush signed legislation establishing this federal commission – the Financial Literacy and Education Commission.  As part of its work, in 2004 it launched a national financial education web site and national toll-free number – www.mymoney.gov and 1-888-mymoney. 

I hope you take a moment to check out the mymoney.gov website.  The information provided on that site is available in both English and Spanish.  I encourage teachers, volunteers and community-based organization heads present here today to add this link to your websites.   

There you will find a multitude of free federal resources on a whole host of personal finance topics including: budgeting, taxes, credit, financial planning, paying for education, retirement planning and more to just name a few. 

Through the website and through the toll-free number, you have the option of ordering a sample of some of the publications that are available on the web. We call this package the "My Money Tool Kit".  It has information to help you choose and use credit cards, get out of debt, protect your credit record, understand your Social Security benefits, insure your bank deposits, and start a savings and investing plan. 

I should also mention that the Financial Literacy and Education Commission is led by the Secretary of the Treasury, Hank Paulson and this spring, Treasury and the 19 other members of this commission also released a strategy for financial education – "Taking Ownership of the Future; The National Strategy for Financial Literacy."  This national strategy will be implemented through various Calls to Action at the end of each chapter at a separate portion of this conference.

The strategy looks at a variety of important topics, such as homeownership, credit management, retirement savings, and "banking the unbanked" – an issue that my office has currently been particularly focused on and is researching extensively. 

It also describes the challenges and guideposts for possible solutions.  Sometimes the solutions come from the Federal government, but often nonprofit organizations, businesses and other private sector players provide important resources for those wishing to learn more about financial matters. 

It also puts forward 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. 

And at the end of each chapter in the strategy, you will notice that Calls to Actions are highlighted.  It is our hope that these calls to Actions will provide a springboard for further open and inclusive discussion on a whole myriad of issues.

Finally, I'd like to share with you information about another very special campaign my office has been involved in – the Go Direct campaign.

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.    Its focus is to motivate seniors to receive their Social Security benefits by direct deposit.  

As the U.S. Treasurer, it has been a real privilege to be part of Go Direct and to teach eligible citizens about it.

Again, 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. Since July 2005, almost 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.

It's a known fact that direct deposit is not only the most secure way for receiving Social Security benefits; it is also the most convenient way for all beneficiaries to have immediate access to their benefits.  However, despite 95 percent of Americans having heard or read about identity theft, a survey sponsored by the U.S. Department of Treasury and the Federal Reserve Banks revealed that many are unaware of the security benefits of direct deposit over paper checks. 

That is why I urge you to help us spread the word about this great free service.  Keep in mind that direct deposit can also provide seniors receiving SSA payments with a sense of control of their money.  This is true even under the most difficult circumstances.  As you know Hurricane Katrina displaced tens of thousands of beneficiaries just days before their checks arrived in the mail.  In uncertain times like these, enrolling in direct deposit can offer a much needed peace of mind to federal benefit recipients.      

I hope this has provided you with some basic information for you to share with your friends, families and colleagues.  I encourage you to help us get the word out about these valuable resources.  Now, I won't ask you to share the money you've purchased and collected here today, but please do share the financial education information you've collected and share it with others.  Education is an asset we should definitely help circulate too!

Thank you again for your time and attention.  Now I would like to open up the floor to questions.

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