FINANCIAL EDUCATION:
PROTECTING
YOUR FUTURE
Managing Your Money
Managing money can be a challenge for many reasons. A failure
to budget carefully and spend accordingly can result in financial
hardship. Loan offers arrive daily. As technology advances,
electronic transfers are increasingly used and cash is being
replaced by plastic -- credit cards, debit cards, pre-paid
cards. Now it is more important than ever for consumers to
understand fundamental principles of money management.
Avoiding Debt and Bankruptcy
Each year, more than one out of every 70 households in the
United States enters bankruptcy. Basic financial education
can help protect your future by enabling you to avoid stressful
debt and possible bankruptcy.
Improving Financial Knowledge and
Skills
Many governmental agencies, professional associations, and
non-profit organizations provide valuable financial education
programs to help consumers learn to manage their money.
Programs and Volunteers Make A Difference
“Bankruptcy judges and attorneys across the country
have become a part of the CARE Program to alert middle school,
high school, and college students to the serious consequences
of abusing consumer credit. In just two years, volunteers
have provided financial education workshops to more than 10,000
students in the Rochester, N.Y., area.”–The Honorable
John C. Ninfo II, Chief Bankruptcy Judge
“With so many technological developments in the world
of personal finance, it’s more important than ever that
consumers have a firm understanding of where their money goes
and how to save and spend wisely.”– Kathleen D.
Schmitt, Assistant U.S. Trustee, Rochester, NY
“Volunteering to teach financial literacy courses in
local high schools gives us the opportunity to impress upon
students the essential concepts of personal finance.”–U.S.
Trustee Staff, Los Angeles, CA
Money Management Tips
Simple steps can improve your financial future:
- Start a Savings Plan. Pay yourself first. By saving as
little as $100 a month at 5 percent interest compounded
monthly, you will have more than $40,000 in 20 years.
- Follow a Budget. Create and follow a monthly budget or
“spending plan,” even if it is as simple as
setting aside cash for regular expenses in separate envelopes.
- Monitor Your Spending. Track your spending for a week.
You may find that you can reduce your spending on many items.
- Don’t Buy on Impulse. Separate “needs”
from “wants.” Make a shopping list of the things
you and your family need, and stick to it when you go to
the store.
- Use Credit Wisely. Try to pay off your credit card balance
each month. If you owe $10,000 in credit card debt at an
annual rate of 16 percent, you will pay $133 in interest
every month.
The U.S. Trustee Program Helps Consumers
The United States Trustee Program promotes financial education
programs that help consumers improve their money management
skills. The Program works with judges, bankruptcy trustees,
lawyers, and others to encourage educational programs for
consumers. For example, the Credit Abuse Resistance Education
(CARE) Program developed by Bankruptcy Judge John C. Ninfo
II in the Western District of New York provides outreach to
students while they are learning life-long financial practices.
Other educational sessions provided by private bankruptcy
trustees teach financial management skills, including those
required to successfully emerge from bankruptcy.
... and Collaborates with Other Agencies
and Groups
The U.S. Trustee Program partners with other government agencies
and community groups to promote financial management education.
Whatever your stage of life or degree of financial know-how,
there is an educational program that can help you learn more.
Financial Literacy Education Commission
The Financial Literacy Education Commission was created in
2003 to encourage government and private sector initiatives
to promote financial literacy and to coordinate the federal
government’s financial education efforts. For more information
on the Commission, visit the web site of the Department of
the Treasury’s Office of Financial Education at www.treasury.gov/financialeducation.
Financial Education Resources
There are many resources for helpful information about consumer
money management. Here are just a few:
Federal Citizen Information Center
www.pueblo.gsa.gov
Federal Reserve
www.federalreserve.gov
Credit Abuse Resistance Education (CARE) Program
www.careprogram.us
Cooperative Extension
www.csrees.usda.gov
Federal Trade Commission
www.ftc.gov
Small Business Administration
www.sba.gov
Social Security Administration
www.ssa.gov
National Credit Union Administration
www.ncua.gov
The U.S. Trustee Program is the component of
the Department of Justice that protects the integrity of the
bankruptcy system by overseeing case administration and litigating
to enforce the bankruptcy laws. For more information on the
Program, visit our web site at www.usdoj.gov/ust.
|