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The Money Smart Initiative

Beginning in the second quarter of 2001, Money Smart will be available through a national network of more than 800 One Stop Centers, which provide employment and training services for persons seeking new jobs or entering the workforce, including individuals participating in Welfare-to-Work programs. The program also intends to give financial institutions a new tool to use in serving their communities.

Developed by the FDIC, Money Smart is designed to help adults currently outside the financial mainstream build financial knowledge and develop positive relationships with financial institutions.

The Curriculum: FDIC developed materials on a variety of financial education issues that are consistent with adult learning principles, covering the following topics:

• Bank On It - an introduction to bank services
• Borrowing Basics - an introduction to understanding credit
• Check It Out - how to open and maintain a checking account
• Pay Yourself First - the importance, benefits, and methods for saving money
• Money Matters - preparing a personal budget
• Keep It Safe - consumer rights and responsibilities
• To Your Credit - the importance of credit history
• Charge it Right - the costs and benefits of using a credit card
• Your Own Home - an introduction to home loans

DOL's role: Once developed, ETA will coordinate the dissemination of the curriculum through regional orientation sessions targeted at State Coordinators and local One-Stop staff. The Office of Welfare-to-Work developed a technical assistance booklet for practitioners, Teaching Dollars and Sense, Implementing Financial Education in a One-Stop Setting. This booklet was developed by Technical Assistance and Training Corporation (TATC) for the U.S. Department of Labor, Employment and Training Administration, Office of Adult Services, Division of Welfare-to-Work. Click here to download a printer-ready copy or call the WtW representative for your State to request printed copies.

ETA is also working with the Pension and Welfare Benefits Administration within DOL that has expertise in financial literacy as a result of the "Savings Matter" financial literacy program they have been operating for the past several years. DOL will also be working with the National Association of Workforce Boards to ensure training opportunities for Board staff around the country. ETA will also coordinate with the Welfare to Work Partnership and the US Chambers of Commerce to involve local financial institutions in the delivery of training.

Who benefits: Low income populations (including WtW and TANF participants, youth, and dislocated workers) who are accessing services through the One-Stop will have access to basic financial education that is not otherwise available. The workforce system will develop a capacity for providing financial education and will forge new relationships with their local financial institutions as potential employers. Financial institutions who participate in training sessions will be able to get new customers, and will receive credit towards meeting their responsibilities under the Community Reinvestment Act.

Resources Required: FDIC will develop the products at no cost to DOL or the workforce system. The curriculum and the orientation sessions will be free. The FDIC Toll-Free number is already a resource available to the public through FDIC. One-day orientation sessions around the country can be coordinated to coincide with other meetings to minimize cost. Since the actual delivery of the curriculum will be at the local level, One-Stops will have to provide a room for the sessions and a facilitator, but will probably be able to rely on financial and community organizations to deliver the training, depending on what resources are already available in their community.

Timeframe: The first orientation session was June 19-20 in Arlington, Va. Other train-the-trainer sessions will follow during the summer and fall 2001. You may contact your reginal representative to coordinate for the next available session.

Roll-Out: The development of the curriculum and the partnership between FDIC and DOL were announced in a Press release on January 19, 2001. We are tasked with gauging the level of interest in the field, either at a State or local level. If you need more information on this initiative, you may direct your inquiries to nmartin@doleta.gov or call Nayda Martin with questions at (202) 693-3381.