October 6, 2006
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Remarks of Dan Iannicola, Jr.
Deputy Assistant Secretary for Financial Education
U.S. Department of the Treasury
Before the National Association of State Boards of
Education

Washington, DC.--Good afternoon, it is great to be here to discuss such an important topic with some of the nation's thought leaders on youth financial education. Congratulations on completing your report and for your work to encourage financial literacy in our schools. At Treasury, we have been deeply committed to this issue for some time and that's why we are happy to see an increasing amount of attention paid to financial education.

Financial literacy has an important place in all Americans' lives, so it should have a place in our schools as well. When young people are in school we may not know what roles they will ultimately play in our workforce, but we know that all of them will spend much of their lives in the role of a consumer. Therefore our kids should be taught not just the skills that will help them make money, but the skills that will help them manage that money once they've earned it. By putting financial education in our schools we can do just that.

Our marketplace of financial services offers a vast array of choices for consumers - and these choices start early. America's young people are quickly faced with decisions about things like credit cards, student loans and car loans, while also trying to figure out how to save and invest towards a first home or take part in an employer's retirement savings program. Each of these decisions can have long lasting effects and each would be made better by financially literate young people.

Across America many are helping meet this need. Teachers, administrators and state and local education policy makers have wisely begun to make financial literacy a priority for their students. But there are still many places where this has not yet happened. That's why today's report from the National Association of State Boards of Education comes as good news. By calling for an increased emphasis on financial education in our schools, the report represents an important next step toward making all our kids financially literate.

Flexibility is key in helping young people gain exposure to financial topics. While the NASBE report focuses on state school boards, the decision to introduce kids to financial topics is appropriate at any level. The decision can also be made by local school board members, building-level administrators, classroom teachers or parents at home. Similarly, financial education can be offered as a stand alone class or it can be integrated into existing curricula, based on the needs of the school or the class. The important thing is that young people learn these lessons at school or at home, before they have to learn them in the marketplace.

And young people are curious about financial issues. I've been in classrooms across the country helping teachers get this message across and I've seen firsthand how students of all ages take to this issue. Even if young people don't know a lot about money, they know it is important and are eager to learn more.

In April the Treasury Department and the 19 other federal agencies which comprise the federal Financial Literacy and Education Commission released a national strategy for financial literacy entitled Taking Ownership of the Future. In that document the Commission put forth analysis and recommendations in support of increasing financial education in America's schools. It is therefore encouraging to see organizations like NASBE join with us in this effort. While we all have much more to do, it is important to recognize the significance of today's report and to note NASBE's work to bolster financial education in schools. Working together all of us can turn a good start into a positive national trend.

Congratulations on today's release. We look forward to continuing to work with you on behalf of America's young people.