Financial Literacy and Education Commission Focusing on Starting Financial Literacy Early

Blog from Louisa Quittman, Department of Treasury

Secretary Lew

The U.S. Department of Treasury today hosted representatives from the 21 other agencies that make up the Financial Literacy and Education Commission (FLEC).

To kick off the meeting, Secretary Lew emphasized the Administration’s commitment to helping young people get the skills and knowledge they need to pursue successful careers and contribute to our economy. Describing the positive reverberations that financial education can have throughout life, Secretary Lew reminded everyone in the room why it’s so important to invest in the financial literacy of children:

It is critical to begin building these financial skills early in life. By starting young, children can learn the difference between wants and needs, the importance and power of saving, and the positive and productive role carefully managing money can play in their lives.

“Starting Early” was the focus of today's FLEC meeting and this theme will guide the Commission’s efforts in the months and years ahead. That commitment was on display this morning as FLEC’s Children and Youth Committee discussed its work to identify areas where federal agencies can better support the financial education efforts of parents and teachers.

The Commission also invited outside organizations to discuss outreach to young people. A representative of Sesame Workshop, the team behind Sesame Street, gave a presentation on incorporating financial literacy into early education at home and in –pre-school settings. Researchers from the Urban Institute informed the Commission of their recent findings on young adults and economic insecurity.

In his remarks, Secretary Lew added how essential it is for all Americans to develop the basic financial knowledge to navigate a complex financial system. Equipping everyone with these resources and tools will not only financially empower them but also make the economy stronger.

More About the Financial Literacy and Education Commission

Freddie Mac Announces Immediate Availability of Streamlined Modification for Delinquent Borrowers

Freddie Mac today announced it is making its new Streamlined Modification program immediately available to all eligible borrowers nationwide in order to expedite financial relief for potentially thousands of distressed families.

Freddie Mac's Streamlined Modification program had originally been scheduled to start on July 1, 2013.

Under the Streamlined Modification program, servicers are required to send modification offers to borrowers who are at least 90 days, but no more than 720 days, delinquent on mortgages that are at least 12 months old and meet other eligibility criteria.
The modification becomes permanent after the borrower demonstrates their ability to pay making on-time payments during the three month trial period.

The Streamlined Modification offers the same mortgage terms as Freddie Mac's Standard Modification which enables servicers to reduce monthly mortgage payments by adjusting interest rates, extending payment terms to 40 years, and, in certain cases, provide principal forbearance.

Freddie Mac’s Streamlined Modification Program

Investor Alert on Pension or Settlement Income Streams

The Securities and Exchange Commission and the Financial Industry Regulatory Authority (FINRA) have issued an alert regarding pension or settlement income streams.

The alert warns investors about the risks involved when selling their rights to an income stream or investing in someone else’s income stream.

About Income Streams
Anyone receiving a monthly pension or regular distributions from a settlement following a personal injury lawsuit may be targeted by salespeople offering an immediate lump sum in exchange for the rights to some or all of the payments the person would otherwise receive in future.

Typically, recipients of a pension or structured settlement will sign over the rights to some or all of their monthly payments to a factoring company in return for a lump-sum amount, which will almost always be significantly lower than the present value of that future income stream.

The alert includes more information about pension or structured settlement income streams and contains a checklist of questions to ask before selling away an income stream.

View Investor Alert (pdf)

Resource for Educators: Money as You Learn

The President’s Advisory on Financial Capability recently went live with www.moneyasyoulearn.org, a new financial education resource for K-12 educators.

Money as You Learn offers educators tools to integrate personal finance into the teaching of the Common Core State Standards in Mathematics and English Language Arts (coming soon), as well as into other classes and after-school programs.

Website Features

• Personal Finance Big Ideas
  These describe grade-by-grade foundational understandings of personal finance that would lead students to an action or a higher level of function and that can be integrated into teaching the Common Core.
• Mathematics – Financial Literacy Tasks and Lessons
  A listing, by grade band, shows which Common Core Mathematics Standards can benefit from contexts and applications based on the grade-appropriate Personal Finance Big Ideas. The list leads to mathematical tasks and lessons for use in the classroom and can be sorted by Common Core Mathematics Standard or by Personal Finance Big Ideas.

www.moneyasyoulearn.org 

Bank on North Sound Launches Today

The latest Bank On initiative in Washington launched this morning in Mount Vernon.

Bank On North Sound is a new initiative seeking to provide banking services to those in the north sound currently in need of a first-time or second-chance account.

The partnership will work together to connect those in need of banking services with financial institutions ready to develop a banking relationship.

Bank On North Sound is a partnership between banks, credit unions, community organizations, and government agencies. Bank On North Sound serves residents of Island, San Juan, Skagit, Snohomish and Whatcom counties.

For more information on the program, visit the Bank On North Sound website at www.bankonwashington.org/north-sound or call me at the Opportunity Council at 360-734-5121, extension 232.

Bank On North Sound Website