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Chairman Johnson Highlights Role of Financial Literacy at Treasury Unbanked Conference in Texas

December 6, 2006, Alexandria, VA – National Credit Union Administration (NCUA) Chairman JoAnn Johnson joined U.S. Treasurer Anna Escobedo Cabral; Deputy Assistant Secretary Dan Iannicola Jr.; and other government, including staff members from the Office of Congressman Ruben Hinojosa (D-TX), private sector, and non-profit officials on Monday at the Southwest Regional Conference on Reaching Unbanked People.

The Conference consisted of a variety of financial literacy events which highlighted best practices in helping families take control of their finances, save for retirement, and understand the importance of establishing credit. The Conference was held at the University of Texas-Pan American, located in Edinburg, Texas, which is a rural and immigrant community in South Texas. An estimated 23 percent of families living in rural U.S.-Mexico border communities are unbanked, representing more than twice the national average.

During her remarks, Chairman Johnson focused on the importance of financial literacy in the ongoing effort of serving unbanked communities. “During my tenure on the NCUA Board, and particularly as Chairman, I have made financial literacy a priority, “stated Chairman Johnson. “Financial education fosters financial stability for individuals and for entire communities. As a former teacher, I fully understand the value of education, and I strongly believe that achieving the American Dream of financial self-sufficiency is not based on obtaining a loan or buying a new car – rather, it is the very basics of education – knowing the importance of saving, how to balance a checkbook, budgeting, or investing for retirement. The more people know about credit and financial services, the more likely they are to increase savings, become homeowners, and improve their financial health and well-being. ”

The Conference was organized by the U.S. Department of Treasury’s Financial Literacy and Education Commission (FLEC), upon which Chairman Johnson serves as a member. “I am honored to serve as a member of the Financial Literacy Education Commission since it was created by Congress in 2003. Together, the members of that Commission, which includes representatives from the credit union, banking and thrift industries, have accomplished a great deal, including making the MyMoney.gov website available to the public. Incidentally, I was recently asked by the President to serve as Chairman of the MyMoney.gov website subcommittee, and I can assure you that increasing access to that website, in ways as simple as enhancing the bi-lingual features, will be a priority of mine.”  

Staff members from the Office of Ruben Hinojosa (D-TX) participated during the Conference, which was the second of four events called for by the FLEC’s National Strategy on Financial Literacy. Released last April, the National Strategy is a blueprint for improving Americans' understanding of issues like homeownership, credit management, and retirement savings. “The National Strategy for Financial Literacy is a concrete action plan to increase America's financial IQ in ways that mean something to the average consumer,” said Chairman Johnson. “This conference is a direct result of that strategy. There is a lot more work to do, however, and I look forward to working with my fellow Commission members to accomplish more in the future.”

Chairman Johnson emphasized the necessity of establishing and strengthening partnerships at the local, state, and federal level in order to help unbanked communities enter the financial mainstream, and cited NCUA’s Access Across America as an effective initiative in this effort. “Access Across America is a hands-on workshop that provides credit unions the tools to reach out, to make their services available to everyone who they can legally serve, and to give consumers better access to fairly-priced financial services, “ said Chairman Johnson. “NCUA conducted a very successful Access session here in Texas in April, and I see many familiar faces here today who took advantage of that event. By integrating the resources of a broad-spectrum of the federal government, Access Across America is a working example of how institutions can be encouraged to serve individuals who don't have immediate access to traditional financial services.” 

Chairman Johnson concluded her remarks by commending the audience for their dedication to serving the unbanked community, while calling for more volunteers to join the cause, “I can’t emphasize enough the importance of volunteerism of to the effort of helping our fellow Americans become more educated about their finances. I commend all of those who have given so generously of their time and energy in this vital effort. In the classrooms, and in the lobbies of your institutions, you have an opportunity to make a difference in the financial lives of millions of Americans.  This is a down payment on the future of our country.” 

The National Credit Union Administration is the independent federal agency that charters and supervises federal credit unions. NCUA, with the backing of the full faith and credit of the U.S. government, operates the National Credit Union Share Insurance Fund (NCUSIF), insuring the savings of nearly 85 million account holders in all federal credit unions and many state-chartered credit unions. NCUA operations are funded by credit unions, not tax dollars.