Pub. 3 2014 Issue 7

l e a d i n g a d v o c a t e f o r t h e b a n k i n g i n d u s t r y i n k a n s a s 14 W HEN THE GALLUP ORGANIZATION released its annual Economy and Personal Finance Poll earlier this year, the results confirmed a growing year-to-year concern for young adults: how to pay for college tuition or pay off college loans. More than one in five adults aged 18 to 29 identified these college costs as the biggest financial challenge their families were dealing with. Among the other issues young adults cited were: lack of money/low wages (15 percent); housing costs (14 percent); and bills/credit cards/debt (10 percent). The good news is that these are personal financial management issues that are in the wheelhouse of ABA’s Get Smart About Credit program. Now in its 12th year, Get Smart About Credit brings volunteer bankers like you together with young people to help them develop responsible credit habits. Our industry’s financial education efforts are much needed. According to the Organization for Economic Cooperation and Development, more than 40 percent of U.S. students – more than in any other country – reported receiving financial education in their classrooms from private-sector individuals, such as bankers or other volunteers. On Get Smart About Credit Day – Oct. 16 – and throughout the fall, bankers will be doing just that. They’ll be delivering lessons to teens and young adults on managing three financial challenges: paying for college; building good credit habits; and protecting their identity. These life lessons are designed to give young adults an edge in mastering personal finance and taking control of their financial futures. For example, we’re encouraging them to: • Take control and responsibility over their finances by creating budgets and sticking to them, including planning for unexpected expenses such as car repairs. • Understand the responsibilities and benefits of credit. • Utilize their bank and valuable services, such as check- cashing, debit cards, online banking, balance alerts, personal loans and direct deposit, as well as asking for help and advice from parents or their banker. Paying for college and managing college loan debt are significant concerns. So, too, are meeting housing costs and managing personal debt, and these are all linked. Bankers can fill a need – and groom a new generation of bank customers – by providing wise counsel on these personal financial management issues. If your bank hasn’t participated in any young adult financial education program before, please consider doing so this year. The need seems to grow every year. So, too, must our industry’s response. E-mail Frank Keating at keating@aba.com © 2014 American Bankers Association. All rights reserved. Reprinted with permission. A GROWING NEED By Frank Keating, President and CEO American Bankers Association