Pub. 11 2014 Issue 3

O V E R A C E N T U R Y : B U I L D I N G B E T T E R B A N K S - H E L P I N G N E W M E X I C O R E A L I Z E D R E A M S 6 “ These life lessons are designed to give young adults an edge in mastering personal finance and taking control of their financial futures. ” GOV. FRANK KEATING, PRESIDENT AND CEO American Bankers Association W hen the Gallup Organization released its annual Economy and Personal Finance Poll earlier this year, the results confirmed a growing year-to-year concern for young adults: how to pay for college tuition or pay off college loans. WASHINGTON UPDATE More than one in five adults aged 18 to 29 identified these college costs as the biggest fi- nancial challenge their families were dealing with. Among the other issues young adults were cited were: lack of money/low wages (15 per- cent); housing costs (14 percent); credit cards/ debt (10 percent). The good news is that these are personal fi- nancial management issues that are in the wheelhouse of ABA’s Get Smart About Cred- it program. Now in its 12th year, Get Smart About Credit brings volunteer bankers like you together with young people to help them devel- op responsible credit habits. Our industry’s financial education efforts are much needed. According to the Organization for Economic Cooperation and Development, more than 40 percent of US students-more than in any other country-reported receiving financial education in their classrooms from private-sector individucals, such as bankers or other volunteers. On Get Smart About Credit Day-October 16- and throughout the fall, bankers will be doing just that. They’ll be delivering lessons to teens and young adults on managing three financial challenges: paying for college, building good credit habits, and protecting their identity. These life lessons are designed to give young adults an edge in mastering personal finance and taking control of their financial futures. For example, we’re encouraging them to: • Take control and responsibility over their finances by creating budgets and sticking to them, including planning for unexpected expenses such as car repair • Understand the responsibilities and bene- fits of credit • Use their bank and valuable services, such as check-cashing, debit cards, online bank- ing, balance alerts, personal loans, and di- rect deposit, as well as asking for help and advice from parents or their banker. Paying for college and managing college loan debt are significant concerns. So, too, are meet- ing housing costs and managing personal debt, and these are all linked. Bankers can fill a need- and groom a new generation of bank custom- ers-by providing wise counsel on these person- al financial management issues. If your bank hasn’t participated in any young adult financial education program before, please consider doing so this year. The need seems to grow every year. So, too, must our in- dustry’s response. n A Growing Need