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News You Can Use: Financial Capability Resources

November 28, 2012

FSA released the following publication on the President’s Advisory Council on Financial Capability.

The President’s Advisory Council on Financial Capability was created January 29, 2010, by Executive Order to advise the President and the Secretary of the Treasury on ways to empower Americans to better understand and address financial matters in order to improve their financial well-being. The White House recently hosted a Summit on Financial Capability and Empowerment, aimed at empowering Americans to make informed financial decisions. As part of the proceedings, the Administration released a new resource guide and toolkits for schools, colleges and universities, employers, and community leaders to help them create their own capability initiatives aimed at empowering Americans to better understand and address financial matters from budgeting to saving for retirement.

Studies show young Americans, low-income households, Latinos and African-Americans present particular vulnerabilities in financial capability. Approximately one in three Latinos and African-Americans do not have a bank account and nearly a quarter approach retirement with less than $1,000 in total net worth, excluding pensions and Social Security. Young adults, ages 18-29, are more likely to pay the minimum payment only on their credit cards, rapidly accruing debt. And, every year, nearly 2 million low- and moderate-income undergraduates do not submit a FAFSA to apply for federal financial aid, even though many of them are eligible for Pell Grants, which they would not have to repay.

The Guide to Increasing Financial Capability among Students in Higher Education focuses primarily on students, and the entire toolkit provides some useful information and thought provoking questions on ways to contributing to students’ financial capability.

Download the financial capability guide and toolkits and provide feedback on how the documents informed your plans to improve students’ financial capability.

Read the FACT SHEET: Helping Americans Manage Student Loan Debt with Improvements to Repayment Options

 

Pam King, Midwest Regional Director, Nelnet Partner Solutions

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