ICFE eNEWS #17-24 - June 25th 2017
ICFE Showing Young People How to Spend!
The National Center for Education Statistics, U.S. Department
of Education recently presented the U.S. findings for 15
year-old youths at a meeting on financial literacy. Treasury
Secretary Steven T. Mnuchin emphasized the importance of
financial education at all stages of life in helping Americans
make "independent financial decisions and informed choices" and
to become "financially capable, at all ages and life stages." He
called upon the Commission (FLEC) to work together to meet the
financial education needs for Americans. The study assesses the
level of financial literacy of the youth, which reflects the
knowledge and understanding of financial concepts and risks, and
the "skills, motivation and confidence to apply this knowledge.
The 2015 results found no measurable change in the U.S.
score from the 2012 assessment and noted significant disparities
in performance in the U.S. by socioeconomic status. For example,
45% of students in higher income schools were top performers,
compared to just 3% of students in lower income schools. The
data also showed a positive relationship between bank account
ownership and financial knowledge.
While younger people
say they know it is important to save, many simply state they
don't know how to save. The nonprofit Institute of Consumer
Financial Education, based in San Diego, CA changes that by
helping to change their focus to their daily spending decisions.
"Everyday spending decisions will do far more harm to one's
financial future than any investment decision they will likely
ever make," says Paul S. Richard, ICFE president, adding,
"spending is the key to savings."
A key component of the
ICFE's approach is raising the spending awareness level among
the nation's young people through inter-active spending quizzes
and practical application of newly learned spending techniques
that will yield greater value for the money spent.
spending done by young people is "impulse" driven with no regard
to price comparisons or value. For example, a bottle of water
(8oz) retails anywhere from 75 cents to $1.99 each in stores and
as high as $2.99 at a sporting or concert event. Comparison
spending means looking for a good value. In grocery stores, the
same 8oz water bottle sells for as little as 10 cents each or
about $2.50 for 24 bottles.
Ten Commandments of Personal Finance for Young People
1) Manage your expenses so they don't exceed your income.
2) Spend money thinking of your future as well as your
3) Begin saving early to take advantage of
4) Avoid collecting credit cards and
using them for borrowing.
5) Always honor your debts and
other financial obligations.
6) Project your income and
expenses for the next 12 months and track variances.
Focus on the relationship between the risk and projected return
8) Maintain organized records for tax and
general financial planning purposes.
9) Have a plan and a
purpose for your investing.
10) Obtain a financial
education to be in a position to make intelligent financial
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Also, visit the ICFE's new Web site: StudentDebtHelp.org
Paul S. Richard
President - Executive Director
Institute of Consumer Financial Education (ICFE)
About the ICFE:
The Institute of Consumer Financial Education (ICFE) was founded in 1982 by
the late Loren Dunton (creator of the Certified Financial Planner (CFP)
designation and founder of the College for Financial Planning in Denver, CO.)
The ICFE is dedicated to helping consumers of all ages to improve their spending
practices, increase savings and use credit more wisely.
The ICFE is an
award winning, nonprofit, consumer education organization that has helped
millions of people through its financial continuing education courses programs
and resources. In addition to eight Certification courses covering identity
theft, credit files, credit repair and credit scoring, among others, it also
publishes the Do-It-Yourself Credit File correction Guide, which is updated
annually. The ICFE has distributed over one million Credit/Debit Card Warning
Labels and Credit/Debit Card Sleeves world wide.
The ICFE is a partner
with the national Jump$tart Coalition for Financial Literacy and the California
Jump$tart chapter. The ICFE staff is also active with San Diego Saves and
Military Saves, both offshoots of America Saves.
The ICFE is also an
on-line help for consumers who spend too much. ICFE's spending help was featured
in PARADE Magazine in the Intelligence Report section. The money helps and tips
are from the ICFE's Money Instruction Book, our course in personal finance.
The ICFE helps consumers and students with mending spending, learning about
the proper use of credit, budget and expense guidelines, how to set up and
implement a spending-plan and also how to access financial education courses and
how to teach children about money. Other ICFE services include: Ask Mr. G
library, a free eNews service, and an online resource center for students,
parents and educators, plus financial education learning tools in the ICFE Book