Winter 2001

FINANCIAL LITERACY : A SPECIAL ISSUE

Photo by John Nation

High school freshmen (from left) Mallory Moore, Justin Bilyeu and Karen Delaney all feel a little wiser about their finances since they attended the Money Management for Savvy Students presentation at their school in Louisville.

A nationwide educational effort is sweeping across the country--one that goes beyond the three Rs but is just as important. It's called "financial literacy"--the ability to understand financial conditions that affect personal material well-being and to manage those conditions in an effective manner.

The effort is welcome in the Eighth Federal Reserve District, where more than 140,000 people filed for personal bankruptcy in the first six months of 2001. And they are not alone: According to the American Bankruptcy Institute, the number of personal bankruptcies nationwide has risen since 1990, and Fed research indicates that household debt is at a record high, financial stress is up and delinquent payments on bills are more common.

The Federal Reserve is committed to promoting personal finance education for people of all ages. In this issue of Bridges, the St. Louis Fed highlights a small sampling of the hundreds of financial literacy programs available around the Eighth District. (Full text of introduction.)

• St. Louis Adults Step Through Gateway to Financial Fitness
• Ozark Residents Improve Money Skills
• Illinois Children Learn to Bank at School
• Indiana's Amish Communities Embrace Saving Program
• Memphis' Public Housing Residents See Saving on the RISE
• Consumers Get a Fresh Start in Louisville
• Kentucky Teens Taught to Handle Money Wisely
• Arkansas Community Finds Hope in the Workplace
• Students in Arkansas Are Banking on the Future

Information about a variety of educational programs from the St. Louis Fed can be found on the Internet at http://www.stlouisfed.org/education/. For a listing of nationwide financial literacy programs, go to http://www.chicagofed.org/cedric/federalagencies.cfm.