FROM THE OFFICE OF PUBLIC AFFAIRS

Good afternoon.  Let me begin by saying thank you to Dr. Martin and the Southwestern Indian Polytechnic Institute for hosting today’s meeting of the Native Financial Education Coalition, and thank you to all of you who made this meeting happen.  I am pleased to have this opportunity to speak to you about the Treasury Department’s financial education initiatives, and more importantly, to hear about your efforts to bring financial education to the Native American communities here in New Mexico.

Through his Jobs and Growth Package, President Bush has put the economy firmly on the road to recovery.  He did this because he knows with economic growth comes more ownership, more independence, and more financial security, and these are the hope of every American.  But hopes and ambitions are not enough without the knowledge to take advantage of financial opportunities. 

Unfortunately, though, many Americans have an inadequate knowledge of personal finance and lack the skills to make informed financial decisions throughout their lives.  The lack of information about personal finance and credit is even more of a problem for Native American communities.  With poverty rates more than double the national average, Native Americans face even greater challenges in overcoming economic barriers.

When we do not understand the most important and fundamental concepts of finance, we are less likely to achieve our full economic potential as individuals, as communities and as a nation.  Recognizing the important role that financial education plays in preparing Americans to make informed financial decisions every day, the Department of the Treasury, demonstrating its long-term commitment to financial education, established the Office of Financial Education in 2002. 

The Office’s mission is to ensure that Americans have access to financial education programs that help them obtain practical knowledge and skills to make informed financial choices throughout their lives.  We have high expectations of those organizations like your own that are providing tailored financial education programs within your communities because we believe that the most successful programs are those that form a partnership, or bond, with the local community so as to best relate to the specific needs and characteristics of the communities they serve. 

Earlier this year, the Treasury Department published a list of eight elements of a successful financial education program.  The success factors relate to the program’s content, delivery, impact, and sustainability, and I suspect that upon closer inspection, many of the programs offered by those of you in this room are already well on their way to meeting these success factors.

Our first element states that a successful financial education program is one that focuses on one or more of the four basic tenets of financial empowerment:  basic savings, credit management, home ownership and retirement planning.  While there are other worthwhile financial education topics, these four areas are the basic building blocks to achieving financial security and are therefore the primary focus of the Office of Financial Education.

Our second element points out that a successful program is tailored to its target audience, taking into account its language, culture, age and experience, a point most certainly not lost on this group.  Cultural biases, language differences, and other related factors play an important role in the development of any educational program, but become even more pronounced when tribal heritage and time honored traditions interact with the complexities of commerce, banking, and basic finance.

Our third element of a successful financial education program recognizes that programs having the most profound impact are delivered through a local distribution channel that makes effective use of community resources and contacts, again a point that I am sure will not be lost on this group.  Partnerships with local organizations that are already ingrained in the community are one of the most effective means of garnering support and acceptance within a community and will result in the more effective delivery of information.

Our fourth element is demonstrated when a financial education program follows up with participants to reinforce the message and ensure that participants are able to apply the skills taught.  These actions serve to further break down those barriers and to pave the road to better access to financial services.

Our fifth element requires that a successful program establishes specific program goals and uses performance measures to track progress toward meeting those goals.  To achieve goals, you must set goals.  It is important that financial education providers set a standard of excellence and track progress toward achieving their missions.

Our sixth element states that successful programs can prove their worth, by demonstrating a positive impact on participants’ attitudes, knowledge or behavior through testing, surveys or other objective evaluation.  Did participants increase their savings?  Did they open bank accounts?  Did they save for a home and qualify for a mortgage?  These are all measures of success and ways that a financial education program can demonstrate impact on its community

Our seventh element inquires whether a financial education program can be easily replicated on a local, regional or national basis so as to have broad impact and sustainability. 

And finally, under our eighth element we ask whether a financial education program is built to last as evidenced by factors such as continuing financial support, legislative backing or integration into an established course of instruction.  This element simply recognizes that good programs must have the ability to survive if they are to have a strong impact.

I hope this discussion of the eight elements of a successful financial education program will be helpful as you continue your great work within the Native American community

Financial education is extremely important for all Americans, and I applaud the efforts of those of you here today and the organizations that you represent for the work that you are doing to bring financial education to Native American communities.  Working together, we can provide the programs and resources to all people so that they can take full advantage of the opportunities offered by this country’s great and diverse economy.  On behalf of President Bush and Treasury Secretary Snow I would like to thank you for all that you are doing to advance the cause of financial education within your community. 

Thank you for the opportunity to be with you today, and I look forward to hearing more about your efforts to bring financial education to the Native American community.