OLYMPIA – The Washington State Department of Financial Institutions (DFI) is pleased to be one of the many partners celebrating April 2015 as Financial Capability Month in our state. Understanding the importance of financial education, Washington Governor Jay Inslee proclaimed April as Financial Capability Month.
This month presents opportunities for partners like DFI, the Jump Washington Coalition and the Financial Education Public-Private Partnership (FEPPP) to collectively highlight and support the work being done in our state to increase and improve financial education - and urge that more be done to improve the financial capability of all Washington residents.
“As a state agency working to promote a more prosperous economy and better quality of life for Washington residents, we understand the need for families to know how to prepare budgets, have emergency savings and plan for retirement,” DFI Director Scott Jarvis said. “The many partners promoting Washington’s Financial Capability Month will help residents access the tools they need to reach those goals.”
With organizations regularly assessing our nation's financial literacy, results continue to illustrate the need for personal finance education both in and outside of the home:
Results from the Financial Industry Regulator Authority (FINRA) Foundation’s 2012 State-by-State Financial Capability Survey reveal that:
- Fewer than half (41%) of Americans surveyed reported spending less than their income.
- Over a quarter (26%) reported having unpaid medical bills.
- More than half (56%) do not have rainy-day savings to cover three months of unanticipated financial emergencies.
- Over a third (34%) reported paying only the minimum credit card payment during the past year.
- On a test of five basic financial literacy questions, the national average was 2.88 correct answers.
[FINRA Investor Education Foundation, FINRA Foundation Releases Nation's State-by-State Financial Capability Survey, May 29, 2013, www.finra.org/Newsroom/NewsReleases/2013/P268095, www.usfinancialcapability.org]
"If we want Washington residents to be able to make sound financial decisions, we have to start with education, and we have to start with our youth," FEPPP Chair Representative Sharon Tomiko Santos said. "Financial Capability Month provides an opportunity for us to share information and resources with educators, and for educators to share that knowledge with their students."
Representatives from local community groups, financial institutions, not-for-profit organizations, businesses, schools, libraries, government agencies and media outlets will conduct classes, seminars and other activities to educate consumers about money management and generating awareness of financial education available on a wide range of topics.
“In addition to providing free online information and workshops in communities throughout Washington,” Jarvis added, “we continue to seek additional collaborative partnerships to foster further implementation of financial education for all residents at every stage of life, from pre-K to assisted living.”
DFI’s Financial Education Clearinghouse www.dfi.wa.gov/financial-education provides access to resources - from budgeting and saving, credit and debt, to health care and mortgages, and has a special section on avoiding scams – into a single site.
For more information about DFI outreach, workshops, partners, programs and information, visit www.dfi.wa.gov/financial-education/ and follow our Twitter @DFIConsumers and @FinEd4All blog www.finlit.blogspot.com and Facebook page www.facebook.com/wadfi.