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ICFE
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.

Most 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 present.

3) Begin saving early to take advantage of compound interest.

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.

7) Focus on the relationship between the risk and projected return of investments.

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 decisions.


Paul S Richard PhotoICFE eNEWS is available FREE upon request by visiting our Web site and filling out the contact form, and selecting "Yes" for "Add to Mailing List. Please pass this eNEWS on to your peers and interested others and invite them to subscribe for free. Also, visit the ICFE's new Web site: StudentDebtHelp.org

Sent by:

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).  The ICFE is dedicated to helping consumers of all ages to improve their spending, 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 education programs and Resources. It 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 became an official partner with the Department of Defense/Financial Readiness Campaign in June of 2004.The ICFE was an active partner in the California Student Debt Resource Awareness Project (CASDRAP) which resulted in a new web site: (studentdebthelp.org).  CASDRAP disbanded in 2010, shortly after the web site project was completed.  In 2011 the ICFE assumed the single sponsorship of the (studentdebthelp.org) web site and is now responsible for its content and operation.

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.

Visit the ICFE's other web sites at: www.financial-education-icfe.org and studentdebthelp.org.  Both sites 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,  a free eNews, and an online resource center for students, parents and educators, plus financial education learning tools and a book store.

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