Importance of Financial Literacy in America: Implications for China-an emerging global economy <ul><li>Dr.Tahira K. Hira <...
OUTLINE Iowa State University   Financial Literacy in America: Implications for China   July 2007 <ul><li>Implications of ...
Financial Literacy is <ul><li>“ The ability to make informed judgments and to take effective actions regarding the current...
Major Trends That Require  Financial Literacy <ul><li>Changing Demographics </li></ul><ul><li>Changing Economic Environmen...
Changing Demographics -U.S. <ul><li>Age :   </li></ul><ul><li>Family Status:  </li></ul><ul><li>Education:  </li></ul><ul>...
Changing Demographics -China <ul><ul><li>Age:  </li></ul></ul><ul><ul><li>Family Status:  </li></ul></ul><ul><ul><li>Educa...
Changing Economic Environments Iowa State University   Financial Literacy in America: Implications for China   July 2007
United State’s Income <ul><li>Median Household income in 2006:  </li></ul><ul><ul><li>$46,000 USD </li></ul></ul>Iowa Stat...
United States Saving Rate <ul><li>In 2006, The U.S had a negative 1% saving rate.  The lowest it’s been since 1933. </li><...
Borrowing:  United State’s Overall Debt <ul><li>Total debt is 48 Trillion </li></ul><ul><ul><li>$161,287 per person </li><...
<ul><li>$12.8 trillion outstanding </li></ul><ul><li>household debt in 2006 </li></ul><ul><li>Mortgage Debt: $9.7 trillion...
<ul><li>The annual disposable income of urban households has continuously increased in the last two decades. In constant 2...
China’s Saving Rate Iowa State University   Financial Literacy in America: Implications for China   July 2007
Iowa State University   Financial Literacy in America: Implications for China   July 2007 Borrowing: China’s Debt
Borrowing: China’s Household Debt Iowa State University   Financial Literacy in America: Implications for China   July 2007
Shift in Responsibility for Financial  Well-being Iowa State University   Financial Literacy in America: Implications for ...
Expectations of Retirements Iowa State University   Financial Literacy in America: Implications for China   July 2007
Major Components of Financial Literacy Education <ul><li>Cash Flow Management </li></ul><ul><li>Banking </li></ul><ul><li>...
Sources of Financial Education <ul><ul><li>Family </li></ul></ul><ul><ul><li>Educational Institutions </li></ul></ul><ul><...
Role of Family in Proving Financial Education Iowa State University   Financial Literacy in America: Implications for Chin...
Non-Profit and Governmental Organizations Providing Financial Education <ul><li>National Endowment for Financial Education...
Businesses Providing Financial Education <ul><ul><ul><li>VISA </li></ul></ul></ul><ul><ul><ul><ul><li>www.mymoneyskill.com...
Role of Technology in Financial Education <ul><li>Communication Tool </li></ul><ul><ul><li>More people are being reached v...
Technology: Access to Financial Information <ul><li>Easy 24/7 access to information </li></ul><ul><li>Easy information sha...
Importance of Literacy <ul><li>Households:   Higher standards of living leads to  higher confidence in the home. </li></ul...
Challenges of Providing Financial Literacy Education <ul><li>Efforts to increase financial literacy are resource-and-time-...
Strategies to Enhance Financial Literacy Among all Consumers <ul><li>Promoting awareness of the importance of financial li...
Lessons Learned and Implications for the United States and China Iowa State University   Financial Literacy in America: Im...
References <ul><ul><li>Basu, S (2005).White Paper Financial Literacy and the Life Cycle, White House Conference on Aging. ...
<ul><li>(2007). Economy of the United States. Retrieved June 6, 2007 from Wikipedia, Web </li></ul><ul><li>site:http://en....
<ul><li>Saxton (R-NJ), J (2006, July). &quot;Five Challenges That China Must Overcome To Sustain Economic Growth.&quot;  J...
<ul><li>2007). NEFE news and articles, NEFE educational programs. Retrieved May 11, 2007 from National Endowment for Finan...
<ul><li>Braunstein, S, & Welch, C (2002). Financial Literacy: An Overview of Practice, Research, and Policy.  Federal Rese...
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  • Quote taken from: Basu, S (2005).White Paper Financial Literacy and the Life Cycle, White House Conference on Aging. Financial Planning Association (TM) . 6. Financial literacy cont…The ability to read, analyze, manage, and communicate about the personal financial conditions that affect material well-being. It includes the ability to discern financial choices, discuss money and financial issues without (or despite) discomfort, plan for the future, and respond competently to life events that affect everyday financial decisions, including events in the general economy. “ The ability to discern financial choices, discuss money and financial issues with out discomfort, plan and respond to life events that affect everyday financial decisions, including events in the general economy” -Lois Vitt, Project Director, et all., Personal Finance and the Rush to Competence: Financial Literacy in the U.S., A National Field Study Commissioned and Supported by the Fannie Mae Foundation, Institute for Socio-Financial Studies, Middleburg, VA 2000.” “ Our aim is to arm people with basic financial knowledge and the tools to make informed decisions about their finances at key stages of their lives” Liza Vizard, Prudential’s Global Head of Corporate Responsibility. - (2004, December, 26). prudential.com.uk. Retrieved May 11, 2007, from prudential.co.uk Web site: http://www.prudential.co.uk/prudential-plc/cr/crnews/cr2004/2004-12-26Prudential Asia, “Prudential plc (UK) Helps Female Employees with Financial Literacy Education” press release, December 26, 2004, Beijing, China.
  • “ Development is all about creating an enabling environment for people to enjoy long, healthy and creative lives so that they can develop their full potential and lead productive, creative lives in accord with their needs and interest.”- Malik, Khalid (2005, Dec.16). Launch of the China Human Development Report 2005: UNDP Resident Representative, United Nations Resident Coordinator in Beijing, China. Retrieved May, 11, 2007
  • Lynch, M (2001). The 20th Century Tectonic Shifts of the Demographic Landscape. Retrieved June 6 2007, from Allen Academy of e-learning Inc. Web site http://www.allenacademy.com/eleraning/about/pages10.htm: Age: The Baby Boom is probably the most significant demographic phenomenon of 20 th century, shaping all aspects of our economic lives. The aging of the 76 million Baby Boomers has major implications not only for them, but for the following generations of workers who must support them as they retire. Family : the “disinigration” of the nuclear family began in 1970 and has only begun to stabilize. The rise in single parent families has, unfortunately, been a major factor in rising child poverty rates; 20% of young children are poor-Combined, an almost unbelievable 80% of U.S. families are either dual-income of single-parent household. Early education that used to take place in the home with the child’s mother is now being outsourced to a relative or childcare provider. Thus, making the need for educationally enriched, high-quality and affordable childcare a high priority.” Ethnicity examples- one fourth of California students are limited-English proficient. In many Lost Angeles schools, Spanish is the predominant language. Education : “Non-tradition students are going back to school in record amounts. Adults age 25 and over represent 43%(6.1 million students) of all post-secondary enrollments, up from 28% in 1970. Rates of teens graduating high school and going to college are higher than ever Continual training and retraining is essential to prolonging the workplace longevity of the Baby Boomers and to ensure that Generation X and Y are as productive as possible to support the lengthy retirment of the boomers and provide for their own. Economy : These changing demos and the shift to a knowledge-based economy have widened the gap between the gave and have-nots.”
  • Age: Pethokousis, J (2007). Changing Demographics in China Factor Medical Products Supplier. Retrieved June 6, 2007 from Investor&apos;s Business Daily Web site: http://biz.yahoo.com/ibd/070531/newamer?.v=1 Qao, Q (2006, August). Demographic Changes and Household Income in Urban China Paper prepared for the 29th General Conference of the International Association for Research in Income and Wealth, Retrieved June 6, 2007 from http://www.iariw.org/papers/2006/gao.pdf: Age/Family: the implementation on the nation one-child police was carried out more strictly in urban areas than in rural, thus causing fertility rates to be low, while longevity rates continue to increase. The percentage of 0-14 year-old children has declined since the mid 1960’s, 1964: 40.69%, 2002: 21.29% Elderly-65+ has increased- 1964: 3.56%, 2002:8.16%-Aging will be one of the critical social problems for China to deal with in the coming decades, especially considering the rapid decline in fertility.- (6) the number of workers per retiree in China dropped tremendously from 30.3 in 1978 to 2.0 in 2002.(6) “ There will be fewer young people to support the growing elderly population” Riley, N.E. (2004). China’s Populations: New Trends and Challenges. Population Bulletin, 59 (2), 1-36 Education : China has made progress in improving its education, the overall education, however, is still low. Those having received primary or junior secondary school education have taken up 2/3 to ¾ of the population of 6 and up years since 1980s, while college grad. only account for a low proportion of the pop. Of school-age and above.”(7-8) Economy: Treasury Department of the United States of America, (2006, December 2006). The U.S.-China Strategic Economic Dialogue and The Importance of Continued Financial Sector Reform in China. Retrieved June 7, 2007, Web site:http://www.engagechina.com/research/US_Financial_Services_Industry_SED_Paper.pdf 400 million out of poverty and economy is growing at an annualized rate of 10.9% Having a more modern, open, and competitive financial system would greatly enhance the productive capacity and stability of the Chinese economy and facilitate the achievement of China&apos;s economic goals. (6) Qao, Q (2006, August). Demographic Changes and Household Income in Urban China Paper prepared for the 29th General Conference of the International Association for Research in Income and Wealth, Retrieved June 6, 2007 from http://www.iariw.org/papers/2006/gao.pdf: Household per capita real income almost doubled between 1988 and 2002- 4,656 yaun to 9,232 yaun”-(10) Puru, S (2006). Time to Go Shopping. Retrieved June 7, 2007, from Financial Sense Guest Editorial Web site: http://www.financialsense.com/editorials/saxena/2006/1120.html: China’s household debt levels are low compared to developed nations. Consumer debt represents 12% of the GDP. When the Chinese banking system matures and credit becomes more easily available, there will be a big surge in Chinese consumption. Millions of Chinese are likely to migrate to urban areas in search of a better life. People in cities consume more goods and this additional demand will generate gigantic profits over the years ahead. Household per capita real income almost doubled between 1988 and 2002- 4,656 yaun to 9,232 yaun”-(10)
  • (2007). Economy of the United States. Retrieved June 6, 2007, from Wikipedia, Web site: http://en.wikipedia.org/wiki/Economy_of_the_United States 2007). Wikipedia. Retrieved June 6, 2007, from Median Household Income, Web site: http://en.wikipedia.org/wiki/Median_household_income
  • Graph: (2007). Economy of the United States. Retrieved June 6, 2007, from Wikipedia, Web site: http://en.wikipedia.org/wiki/Economy_of_the_United States Fact: (2007). Findlaw- for the Public U.S Has Negative Savings Rate for 2006. Retrieved June 6, 2007, from Web site: http://commonlaw.findlaw.com/2007/02/us_has_negative.html
  • Hodges, M (2007, March). America&apos;s Total Debt Report. Retrieved June 4, 2007, from The Grandfather&apos;s Economic Reports Web site: http://mwhodges.home.att.net/nat-debt/debt-nat/a.htm: Graph 1: T his is A SCARY CHART - showing trends of total debt in America (the red line, reaching $48 trillion in 2006 vs. growth of the economy as measured by national income (blue line) . (adjusted for inflation). That debt increased $3.9 Trillion (9%) in the past year. Last year&apos;s total debt of $48.4 Trillion was 11 times higher than the $4.6 Trillion debt in 1957 (both measured in inflation-adjusted 2006 dollars). Last year&apos;s total debt per person was $161,287 (up $11,379 over prior year&apos;s $149,908); this compares to $28,905 in 1957 (both measured in inflation-adjusted 2006 dollars). Last year&apos;s debt per family of four increased $45,514 to $645,148. Graph 2: Red line: (financial sector debt) Blue line: (household debt ratios) Black line: (Fed. Government) Yellow (business sector) Rapidly rising component is the blue line, or Household debt (today at 122% debt ratio, or $12.1 trillion) - from 43% of national income to today&apos;s 122% debt ratio, nearly three times  the prior ratio - meaning it, too, has increased much faster than general growth of the economy. Household debt is made up of consumer debt plus mortgage debt. The Family Income Report shows real median family incomes stopped growing in 1970 , and thereafter families tried to keep up by going deeper and deeper into debt ever since - at near 3x the rate of national economic growth - to an all-time high today . Consumer debt payments % disposable income are at historic highs. The Family Income Report cites the reason, with dramatic pictures. The fact household debt ratios have reached historic highs during the so-called boom years of the 1990s proves that the economy was more driven by debt than anything else - - and households have excessive debt instead of reduced debt at end of an expansion period.
  • Hodges, M (2007, March). America&apos;s Total Debt Report. Retrieved June 4, 2007, from The Grandfather&apos;s Economic Reports Web site: http://mwhodges.home.att.net/nat-debt/debt-nat/a.html: Auto loans In addition to soaring home equity mortgages which consume owner stakes in their homes, according to USA Today (2/16/04) the average automobile loan today is for 63 months, with some going as high as 80 months , compared with an average of less than 48 months five years ago - - and about 24 months in the 1950s. In 1997, banks financed an average 89% of a new vehicle&apos;s price. Last year, it was 101% since consumers borrowed to cover the amount they were upside down on their trade-in. And get this…40% of all trade-ins involve upside-down car loans. (this author recalls when he entered the workforce in the late 1950s normal down payment was on-third cash for a car, with 18 month financing for the balance. Quite a contrast to current times.) Household debt is primarily made up of mortgage debt and credit (credit cards, auto loans, etc.). In 2006 household debt increased 9% over the prior year to $12.8 trillion, incl. $9.7 trillion mortgage debt and $2.4 trillion credit debt. The chart shows today&apos;s household debt ratio at 122%, soaring above the past, with the debt ratio more than double that of 1985 A massive 42% of Americans are making just minimum payments or no payments on their credit card balances , according to the Cambridge Consumer Credit Index in March 2004.  Of those respondents surveyed with revolving balances on their credit cards, 39% made only the minimum payment due and 3% made no payments at all last month. Another 39% paid less than half the balance owed but more than the minimum, while 19% paid more than half their balances. In 2003, the average credit-card debt of US households with at least one card was $9,205, up from $2,966 in 1990, according to the research firm CardWeb.com - - that&apos;s 310% higher. The same firm in 2004 said, &amp;quot;About 51 million households carry credit-card debt at an average balance of nearly $12,000.&amp;quot; (http://www.hillnews.com/thehill/export/TheHill/News/Frontpage/031005/creditcard.html) - - that totals $612 billion in total debt for those households.
  • Qao, Q, Zhai, F (2006, August). Demographic Changes and Household Income in Urban China. Paper prepared for the 29th General Conference of the International Association for Research in Income and Wealth, Retrieved June 6, 2007 from http://www.iariw.org/papers/2006/gao.pdf: Y1631.5 in 1978 Y2973.9 in 1988 59% increase - 1988-Y4730.8 in 1995 to Y7702.8 in 2002 A 63% increase from that of 1995 Household per capita income has been rising continuously over the years.( 2) Noticeably, there has been an increase in economic resources and living standards among Chinese families, especially those in urban China. Reasons for income growth: The age of the household head shows consistent positive effects on household per capita total income (25). 1988: households with heads age 18-29, gains in income were 6.9%, age 50-59, gains were 22.4 % (25) 1995: Head 30-39- 14.3%, Head age 40-49-25%Head and 50-59-27.3%, 60+ 32.3% (25)
  • Saxon, Jim. &amp;quot;Five Challenges That China Must Overcome to Sustain Growth.&amp;quot; Joint Economic Committee United States Congress July 2006 1-34. 06-05-07 &lt;http://www.house.gov/jec/publications/109/07-27-06china_economy.pdf&gt;: “ The lack of a gov’t social safety net and the limited availability of consumer credit, insurance products, and private retirement plans drive Chinese households to save prodigious sums. In 2005, the PRC’s gross saving rate was 49.1 % of the GDP (graph 10). The saving’s rate is extraordinarily high compared to other major economics (graph 11). Until the PRC develops a comprehensive social safety net and deepens its market for financial services, Chinese households are likely to reduce their extraordinarily high saving rate. Consequently, the PRC may incur difficulties shifting from export-led to domestic consumption driven economic growth. (9)” Shiller, R (2006, August,26). Sublime to the ridiculous:savings rates in China and U.S.. Taipai Times , Retrieved May, 28,2007, from http://www.taipiatimes.com/News/editorials/archives/2006/08/26/2003324931: Believed reasons for high savings rate: Because of the one-child policy. It prevented the birth rate from rebounding after the Cultural Was from 1966-1976. Franco Modigliani, Nobel laurate economist believes that the Chinese substituted “investment capital for the investment in children. The Chinese are not accustomed to a the higher standard of living they are experiencing and there for accept maintaining a lower life style.
  • Saxon, Jim. &amp;quot;Five Challenges That China Must Overcome to Sustain Growth.&amp;quot; Joint Economic Committee United States Congress July 2006 1-34. 06-05-07 &lt;http://www.house.gov/jec/publications/109/07-27-06china_economy.pdf SOEs- state-owned enterprises SIEs- state-influenced enterprises State-owned enterprises receive more than a third of bank credit and account for nearly all equity and bond issues- ( U.S. and Chinese EconomicDialogue,2006) pp .5 Of China’s 1.3 billion people, 480 million use cell-phones, but less that one million currently have a credit card. ( The U.S. and Chinese Economic Dialogue, 2006) pp.5- taken from “China’s Credit Card Industry is Set to Take Off”,” The Wall Street Journal, August 31,2005
  • Puru, S (2006). Time to Go Shopping. Retrieved June 7, 2007, from Financial Sense Guest Editorial Web site: http://www.financialsense.com/editorials/saxena/2006/1120.html Graph: Consumer debt represents 12% of the GDP
  • (2007). 2007 Fidelity Research Institute Retirement Index: Americans on Track to Replace 58 Percent of Income In Retirement. Retrieved June 14, 2007, from Fidelity Research Institute Web site: http://www.fidelityresearchinstitue.com 2007 Fidelity Research Institute Retirement Index: Americans on Track to Replace 58 Percent of Income In Retirement The third annual Retirement Index found that the typical working American household is on track to replace 58 percent of their income in retirement - a slight increase from last year&apos;s Index level of 57 percent.Only 23 percent of those surveyed believe they are saving enough for retirement and the Index found that this group is on track to replace a significantly higher percentage of their pre-retirement income, 68 percent, due in large part to better savings habits. Additionally, 42 percent of workers said they took action to improve their retirement readiness over the past six months. As part of the study, many retirees reported that their expenses went up (39 percent) when compared to pre-retirement levels. This is in contrast to most retirees expectations that monthly expenses in retirement would either stay the same (34 percent) or go down (48 percent). ( 2002, Oct.). Financial Literacy in America: Individual Choices, National Consequences. National Endowment for Financial Education , Retrieved May 2, 2007, from http://www.nefe.org/pages/whitepaper2002symposium.html: For many, the idea behind retirement is understood; set a steady amount of money aside for the future. However; with the U.S.’s saving rate less than 1%, that understanding is not being put into action. A scary thought considering retirement funding has shifted. Decades earlier, benefit plans (pensions) were provided and managed by employers. Now, contribution plans- 401(k) and 403 (b) accounts are funded and managed by the individual employees Stone, G (2004, June). Financial Literacy: Financial Services Companies are Taking Many Steps to Educate Their Employees in Personal Finance Topics. Retrieved June 12 2007, from: LOMA Web site: http://www.flma.com/res-06-04-literacy.asp: In 2003 a survey, administered annually by the Employee Benefit Research Institute, American Savings Education Council (ASEC) and the Mathew Greenwald &amp; Associates, called the Retirement Confidence Survey showed that one-quarter of respondents age 45 and older plan to postpone their own retirement because of insufficient savings Educating individuals on the proper ways to plan for retirement, discussing proper investment choices, and distributing knowledge on how to make their money work for them, will reduce individual fears concerning personal finances. Thus, producing internal confidence so reliance will not be placed in the hands of employers or the mass public, but on the individual themselves. Qao, Q (2006, August). Demographic Changes and Household Income in Urban China. Paper prepared for the 29th General Conference of the International Association for Research in Income and Wealth , Retrieved June 6, 2007 from http://www.iariw.org/papers/2006/gao.pdf: China may be faced with a different problem when regarding retirement. Even though historically Chinese households save more, a third of their income, than the U.S. and Europe, they depend heavily on their families and private savings to pay for retirement and healthcare (The Dialogue, 2006). Because of the increase in the elderly population, and a decrease in birth rate, impart because of the one-child policy implemented in 1979, more social support from the government, communities and miscellaneous organizations will be called to share the elder-caring responsibilities with families (Qou, Q 2006).
  • (2007). 2007 Fidelity Research Institute Retirement Index: Americans on Track to Replace 58 Percent of Income In Retirement. Retrieved June 14, 2007, from Fidelity Research Institute Web site: http://www.fidelityresearchinstitue.com 2007 Fidelity Research Institute Retirement Index: Americans on Track to Replace 58 Percent of Income In Retirement The third annual Retirement Index found that the typical working American household is on track to replace 58 percent of their income in retirement - a slight increase from last year&apos;s Index level of 57 percent.Only 23 percent of those surveyed believe they are saving enough for retirement and the Index found that this group is on track to replace a significantly higher percentage of their pre-retirement income, 68 percent, due in large part to better savings habits. Additionally, 42 percent of workers said they took action to improve their retirement readiness over the past six months. As part of the study, many retirees reported that their expenses went up (39 percent) when compared to pre-retirement levels. This is in contrast to most retirees expectations that monthly expenses in retirement would either stay the same (34 percent) or go down (48 percent). ( 2002, Oct.). Financial Literacy in America: Individual Choices, National Consequences. National Endowment for Financial Education , Retrieved May 2, 2007, from http://www.nefe.org/pages/whitepaper2002symposium.html: For many, the idea behind retirement is understood; set a steady amount of money aside for the future. However; with the U.S.’s saving rate less than 1%, that understanding is not being put into action. A scary thought considering retirement funding has shifted. Decades earlier, benefit plans (pensions) were provided and managed by employers. Now, contribution plans- 401(k) and 403 (b) accounts are funded and managed by the individual employees Stone, G (2004, June). Financial Literacy: Financial Services Companies are Taking Many Steps to Educate Their Employees in Personal Finance Topics. Retrieved June 12 2007, from: LOMA Web site: http://www.flma.com/res-06-04-literacy.asp: In 2003 a survey, administered annually by the Employee Benefit Research Institute, American Savings Education Council (ASEC) and the Mathew Greenwald &amp; Associates, called the Retirement Confidence Survey showed that one-quarter of respondents age 45 and older plan to postpone their own retirement because of insufficient savings Educating individuals on the proper ways to plan for retirement, discussing proper investment choices, and distributing knowledge on how to make their money work for them, will reduce individual fears concerning personal finances. Thus, producing internal confidence so reliance will not be placed in the hands of employers or the mass public, but on the individual themselves. Qao, Q (2006, August). Demographic Changes and Household Income in Urban China. Paper prepared for the 29th General Conference of the International Association for Research in Income and Wealth , Retrieved June 6, 2007 from http://www.iariw.org/papers/2006/gao.pdf: China may be faced with a different problem when regarding retirement. Even though historically Chinese households save more, a third of their income, than the U.S. and Europe, they depend heavily on their families and private savings to pay for retirement and healthcare (The Dialogue, 2006). Because of the increase in the elderly population, and a decrease in birth rate, impart because of the one-child policy implemented in 1979, more social support from the government, communities and miscellaneous organizations will be called to share the elder-caring responsibilities with families (Qou, Q 2006).
  • (2007). Asia Pacific. Retrieved May 11, 2007, from Visa-Asia Pacific Web site: &lt;http://corporate.visa.com/av/commitment/literacy/asia_pacific.jsp&gt;. Retrieved June 7, 2007, from prweb.com Web site: http://www.prweb.com/releases/2005/12/preweb323264.htm (2005, Dec. 16). Paradigm Learning and Intellexis China, &amp;quot;Partnership Brings Paradigm Learning&apos;s &amp;quot;Zodiak(r) to China: Intelleixis China Will Distribute Paradigm&apos;s Flagship Financial Literacy Program&amp;quot;. press release, Beijing, China, Retrieved May 11, 2007, from Web site: http://www.prudential.co.uk/prudential-plc/cr/crnews/cr2004/2004-12-26 and http://www.prweb.com/releases/2005/12/preweb323264.htm
  • (2007). NEFE news and articles, NEFE educational programs. Retrieved May 11, 2007, from National Endowment for Financial Education Web site: http://www.nefe.org/pages/educational.html: NEFE High School Financial Planning Program (HSFPP): 2007 Edition- Program is intended to help nation’s youth adopt positive financial behaviors that will lead to a life of financial responsibility. Through the curriculum, students learn money management skills by: setting goals, budgeting, saving and using debt wisely, and learning about investing and protecting assets. “ Money Speaks” CD-ROM : ( Parents and Teens(Family)) Tool/Reality Game Show used to break down communication barriers between parents and teens when dealing with money related issues. Topics of Discussion: Dealing with conflict, Managing Financial stress, Distinguishing needs versus wants, Understanding credit and how to use it. NEFE Teen Resource Bureau online (NTBRonline) :On-line recourse developed by young people to help teens improve their money management skills. Tools to learn how to save and spend wisely. Information about investments, savings, college, jobs and more. (2007). Jump$tart Coalition for Perosnal Finance Literacy. Retrieved June 8, 2007, from Jump$tart- Financial Smarts for Students Web site: http://www.jumpstart.org/ (2006). CSREES. Retrieved June 8, 2007, from www.csreess.usda.gov Web site http://www.csrees.usda.gov/newsroom/newsletters/familyeconnes/06_may.html#resources : Financial Planning The Financial Planning Association® connects those who need, support, and deliver financial planning. Tools on how to locate and choose a financial planner are available on their Web site. Prepaid Cards To help consumers understand prepaid cards, the National Consumers League has developed a simple, bilingual brochure in English and Spanish, &amp;quot;Prepaid Cards: What They Are, How They Work.&amp;quot; Hard copies of the brochure are being distributed by the Federal Citizen Information Center. To order a single brochure or a bulk quantity of 100, visit their Web site and look for brochure 638N, or call (888) 878-3256 and follow the automated instructions to place your order. Wi$e Up Women The Wi$e Up Program, targeted for women ages 22-35, features an interactive curriculum, suggestions from financial experts, and compelling statistics on women and money. Learn more about this program, offered by the U.S. Department of Labor Women’s Bureau. Get the Facts on Saving and Investing &amp;quot;Get the Facts on Saving and Investing&amp;quot; offered by the U.S. Securities and Exchange Commission, covers the topics of defining your goals, making a financial plan, determining your risk tolerance, avoiding problems, investment choices, and choosing a financial professional. Treasury Department:: ( 2006, Nov. 14). What the Federal Government is Doing to Improve Financial Education. United States Department of the Treasury , Retrieved June 18, 2007 from http://www.treas.gov/press/releases/docs/fined.pdf Operation HOPE- bringing financial literacy to the inner cities. HOPE is a provider of financial literacy and economic programs in urban America The Hope Center model offers financial literacy and economic education, as well as hands-on financial case management and wealth building through homeownership and small business ownership. (2005, Dec. 15). Treasury Officials Support Financial Literacy Efforts in Washington, DC Neighborhood. United States Department of the Treasury , Retrieved June 18, 2007, from http://www.treas.gov/press/releases/docs/fined.pdf Money Math- Through the Bureau of Public Debt (PBD)- launched in 2001 to teach the importance of savings and financial literacy. It is a kit for grades 7-9 that focuses on investing, money, management, and spending and credit.
  • (2007). Asia Pacific. Retrieved May 11, 2007, from Visa-Asia Pacific web site: http://corporate.com/av/commitment/literacy.asia_pacific.jsp VISA: My Money Skill s : www.mymoneyskills.com Introduced to the Asia Pacific in 2002 and aimed at consumers of all ages. Program offers six modular topics that cover the most relevant financial issues such as: budgeting, savings, banking services, using credit and debit cards wise. More than 200 tips are provided with in each section (2004, Dec. 24). Prudential plc(UK) Helps Female Employees with Financial Literacy Education. Prudential Corporation Asia , Retrieved May 11, 2007, from www.prudential-asia.com: Prudential plc (UK) Women’s Program: “Investing in Your Future&amp;quot; Prudential plc (UK) Helps Female Employees with Financial literacy Education Beijing, December 26, 2004 (2005, Dec. 16). Paradigm Learning and Intellexis China, &amp;quot;Partnership Brings Paradigm Learning&apos;s &amp;quot;Zodiak(r) to China: Intelleixis China Will Distribute Paradgm&apos;s Flagship Financial Literacy Program&amp;quot;. press release, Beijing, China, Retrieved May 11, 2007, from Web site: http://www.prudential.co.uk/prudential-plc/cr/crnews/cr2004/2004-12-26 and http://www.prweb.com/releases/2005/12/preweb323264.htm Paradigm learning/ Intellexis China Paradigm Learning/Intellexis China: “Zodiak®: The Game of Business Finance and Strategy.” Tampa, FL and Shanghai, China (PRWEB) December 16, 2006 (2007). The Wall Street Journal online. Retrieved June 7, 2007, from The Wall Street Journal online Web site: http://online.wsj.com/public/us The Wall Street Journal. Complete Personal Finance Guidebook (paperback). By Jeff D. Opdyke ICBA: Promoting financial education programs for youth- Hope Coalition of America: Emergency Financial First Aide Kit- Financial Literacy and Educational Commission: http://www.mymoney.gov (2007). Merrill Lynch. Retrieved June 6, 2007, from Merrill Lynch &amp; Co., Inc Web site: http://www.ml.com/index.asp?id=7695_15125 Programs and products are placed under categories that fit each individuals needs. Categories consist of; individual, small and midsize businesses, and institutions and corporations Free web site that offers public with a variety of financial resources. Resources help consumers cope with many financial challenges and help them gain control of their finances and Provides consumers with advice about money management Special Needs Financial Services: offers financial tools and services for disabled clients and their families
  • Braunstein, S, &amp; Welch, C (2002). Financial Literacy: An Overview of Practice, Research, and Policy. Federal Reserve Bulletin , Retrieved June 18, 2007, from http://federalreserve.gov/pubs/bulletin/2002/1102lead.pdf. : Advancements in technology have given consumer a vase rang of financial products and services. Because of the internet, financial service providers have chosen better marketing strategies on how to market their pruducts and services to consumers. Technology advancements have also allowed products and services to be properly matched to household. With more product, competition is promoted and there for customer service is improved. Market inovation with in financial services can increase the variety of pruducts. For example, credit products have now because highly specialized. There are many non bank entities that provide financial services such as pay day loans and check cashers. New databases allow individuals to develop guidelines for credit, increasing credit scored technology. All these new developments and developers have given consumers more options and greater flexibility regarding the products and services they choose. The downside to advancement in technology is that more individuals will need to take on the responsibilities to become more aware of financial products being afford.
  • (2005, Dec. 16). Paradigm Learning and Intellexis China, &amp;quot;Partnership Brings Paradigm Learning&apos;s &amp;quot;Zodiak(r) to China: Intelleixis China Will Distribute Paradigm&apos;s Flagship Financial Literacy Program&amp;quot;. press release, Beijing, China, Retrieved May 11, 2007, from Web site: http://www.prudential.co.uk/prudential-plc/cr/crnews/cr2004/2004-12-26 and http://www.prweb.com/releases/2005/12/preweb323264.htm “ Chinese companies are realizing that the business acumen of employees is critical to a company’s success, and are hungry for better understanding of finance and its impact on business performances.” Dr. Richard Lai, Chairman of Intellexis China (PRWEB, 2005) Tampa, FL and Shanghai, China
  • Qao, Q, Zhai, F (2006, August). Demographic Changes and Household Income in Urban China. Paper prepared for the 29th General Conference of the International Association for Research in Income and Wealth , Retrieved June 6, 2007 from http://www.iariw.org/papers/2006/gao.pdf : “ Overall, residents in urban China have become older, more educated, and their employment has shifted almost entirely concentrating in the public sector to working much more likely in the private sector. At the household level, household size has been decreasing, with fewer children and more elder members, while the shares of nuclear families with only one child as well as couples without children have been increasing. More social support from the government, communalities and organizations are called to share the elder-caring responsibilities with families. (31)”
  • Tahira K. Hira 1 Iowa State University Financial Literacy in ...

    1. 1. Importance of Financial Literacy in America: Implications for China-an emerging global economy <ul><li>Dr.Tahira K. Hira </li></ul><ul><li>Professor and Executive Assist. to the President </li></ul><ul><li>1750 Beardshear Hall </li></ul><ul><li>Iowa State University, Ames, Iowa 50010 </li></ul>Iowa State University Financial Literacy in America: Implications for China July 2007
    2. 2. OUTLINE Iowa State University Financial Literacy in America: Implications for China July 2007 <ul><li>Implications of Financial Literacy </li></ul><ul><li>Major Trends </li></ul><ul><li>Role of Consumer Debt </li></ul><ul><li>Shift in Responsibility from Government/ Employer to Individuals </li></ul><ul><li>Major Components of Financial Education </li></ul><ul><li>Sources of Financial Literacy Information </li></ul><ul><li>Promoting a Financial Literate Friendly Environment </li></ul>
    3. 3. Financial Literacy is <ul><li>“ The ability to make informed judgments and to take effective actions regarding the current and future use and management of money. It is the effective use of information in the decision making process that separates the more literate from the less literate decisions .” </li></ul><ul><li>- The U.S. Financial Literacy and Education Commission, 2005 </li></ul>Iowa State University Financial Literacy in America: Implications for China July 2007
    4. 4. Major Trends That Require Financial Literacy <ul><li>Changing Demographics </li></ul><ul><li>Changing Economic Environments </li></ul><ul><li>Shifts from Financial Responsibilities to Individual Finances </li></ul><ul><li>Sources and Complexities of Financial Products and Services </li></ul><ul><li>Role of Technological Advancements in Financial Education </li></ul>Iowa State University Financial Literacy in America: Implications for China July 2007
    5. 5. Changing Demographics -U.S. <ul><li>Age : </li></ul><ul><li>Family Status: </li></ul><ul><li>Education: </li></ul><ul><li>Ethnicity: </li></ul><ul><li>Economic: </li></ul><ul><li>76 million baby boomers on the verge of retirement in the U.S. </li></ul><ul><li>Rise in single parent families are leading to a rise in child poverty rates. </li></ul><ul><li>Adults age 25 and over represent 43% of all post secondary school enrollments. </li></ul><ul><li>By 2050, the minorities in the US will represent 40% of the population. </li></ul><ul><li>By 2010 baby boomers will start to retire and rely heavily on social security </li></ul><ul><li>Source-Merrill Lynch as of 2001 </li></ul>Iowa State University Financial Literacy in America: Implications for China July 2007
    6. 6. Changing Demographics -China <ul><ul><li>Age: </li></ul></ul><ul><ul><li>Family Status: </li></ul></ul><ul><ul><li>Education: </li></ul></ul><ul><ul><li>Economy: </li></ul></ul><ul><ul><li>Chinese over the age of 65 will increase from 7% of the population in 2000 to 20% over the next three decades. </li></ul></ul><ul><ul><li>Because of the one-child policy launched in 1979,one child or no child houses are on the rise. As of 1980, 250 million births have been prevented. </li></ul></ul><ul><ul><li>2002-19% of the population attended a two-year college - only 6% attended in 1988. In 2002, 19% of the population attended a two-year colleges. Only 6% </li></ul></ul><ul><ul><li>attended in 1988 and 8% attended in 1995 </li></ul></ul><ul><ul><li>In 2006, the Chinese economy had growth rate of 10.4%, and </li></ul></ul><ul><ul><li>transformed China into the world’s fourth largest economy. </li></ul></ul><ul><ul><li>400 million have been lifted out of poverty and family incomes in urban areas are increasing. </li></ul></ul><ul><ul><li>China’s banking system is maturing and more credit is becoming available. </li></ul></ul>Iowa State University Financial Literacy in America: Implications for China July 2007
    7. 7. Changing Economic Environments Iowa State University Financial Literacy in America: Implications for China July 2007
    8. 8. United State’s Income <ul><li>Median Household income in 2006: </li></ul><ul><ul><li>$46,000 USD </li></ul></ul>Iowa State University Financial Literacy in America: Implications for China July 2007
    9. 9. United States Saving Rate <ul><li>In 2006, The U.S had a negative 1% saving rate. The lowest it’s been since 1933. </li></ul>Iowa State University Financial Literacy in America: Implications for China July 2007
    10. 10. Borrowing: United State’s Overall Debt <ul><li>Total debt is 48 Trillion </li></ul><ul><ul><li>$161,287 per person </li></ul></ul>Iowa State University Financial Literacy in America: Implications for China July 2007
    11. 11. <ul><li>$12.8 trillion outstanding </li></ul><ul><li>household debt in 2006 </li></ul><ul><li>Mortgage Debt: $9.7 trillion </li></ul><ul><li>Credit Debt: $2.4 trillion </li></ul><ul><ul><li>Including auto loans </li></ul></ul><ul><ul><li>Credit Card debt: </li></ul></ul><ul><li>Avg. credit card debt per household with at least one card was $9,205. </li></ul>Iowa State University Financial Literacy in America: Implications for China July 2007 Borrowing: United States Household Debt
    12. 12. <ul><li>The annual disposable income of urban households has continuously increased in the last two decades. In constant 2002 values, the per capita annual disposable income in urban China increased 82%: </li></ul>Iowa State University Financial Literacy in America: Implications for China July 2007 China’s Income
    13. 13. China’s Saving Rate Iowa State University Financial Literacy in America: Implications for China July 2007
    14. 14. Iowa State University Financial Literacy in America: Implications for China July 2007 Borrowing: China’s Debt
    15. 15. Borrowing: China’s Household Debt Iowa State University Financial Literacy in America: Implications for China July 2007
    16. 16. Shift in Responsibility for Financial Well-being Iowa State University Financial Literacy in America: Implications for China July 2007
    17. 17. Expectations of Retirements Iowa State University Financial Literacy in America: Implications for China July 2007
    18. 18. Major Components of Financial Literacy Education <ul><li>Cash Flow Management </li></ul><ul><li>Banking </li></ul><ul><li>Managing Credit Card Use </li></ul><ul><li>Managing Overall Debt </li></ul><ul><li>Managing Financial Risks </li></ul><ul><li>Savings and Investing </li></ul><ul><li>Retirement Planning </li></ul><ul><li>Estate Planning </li></ul>Iowa State University Financial Literacy in America: Implications for China July 2007
    19. 19. Sources of Financial Education <ul><ul><li>Family </li></ul></ul><ul><ul><li>Educational Institutions </li></ul></ul><ul><ul><li>Non Profit Organizations </li></ul></ul><ul><ul><li>Government Agencies </li></ul></ul><ul><ul><li>Business </li></ul></ul>Iowa State University Financial Literacy in America: Implications for China July 2007
    20. 20. Role of Family in Proving Financial Education Iowa State University Financial Literacy in America: Implications for China July 2007
    21. 21. Non-Profit and Governmental Organizations Providing Financial Education <ul><li>National Endowment for Financial Education </li></ul><ul><li>Jump$tart </li></ul><ul><li>USDA/Extension and CSRESS </li></ul><ul><li>Treasury Dept. of the United States </li></ul>Iowa State University Financial Literacy in America: Implications for China July 2007
    22. 22. Businesses Providing Financial Education <ul><ul><ul><li>VISA </li></ul></ul></ul><ul><ul><ul><ul><li>www.mymoneyskill.com </li></ul></ul></ul></ul><ul><ul><ul><li>Prudential </li></ul></ul></ul><ul><ul><ul><ul><li>“ Investing in your Future”-China’s Women’s Program </li></ul></ul></ul></ul><ul><ul><ul><li>Paradigm Learning/Intellexis China </li></ul></ul></ul><ul><ul><ul><ul><li>“ Zodiak®: The Game of Business Finance and Strategy” </li></ul></ul></ul></ul><ul><ul><ul><li>Wall Street Journal </li></ul></ul></ul><ul><ul><ul><ul><li>The Wall Street Journal: Complete Personal Finance Book (paperback) By: Jeff D. Opdyke </li></ul></ul></ul></ul><ul><ul><ul><li>Merrill Lynch </li></ul></ul></ul><ul><ul><ul><ul><li>Special Needs Financial Services </li></ul></ul></ul></ul>Iowa State University Financial Literacy in America: Implications for China July 2007
    23. 23. Role of Technology in Financial Education <ul><li>Communication Tool </li></ul><ul><ul><li>More people are being reached via the internet concerning new financial educational programs and services </li></ul></ul><ul><ul><li>Articulating communication styles to fit certain demographics </li></ul></ul><ul><li>Specialized Marketing </li></ul><ul><ul><li>Fitting the product or service to the individual’s needs </li></ul></ul><ul><ul><li>Providing target markets with a variety of products </li></ul></ul><ul><li>Individual Control </li></ul><ul><ul><li>New developments give consumers more options and greater flexibility on the products and services they want to use </li></ul></ul><ul><ul><li>Individuals must take responsibility on becoming aware of products available and how to use properly them </li></ul></ul>Iowa State University Financial Literacy in America: Implications for China July 2007
    24. 24. Technology: Access to Financial Information <ul><li>Easy 24/7 access to information </li></ul><ul><li>Easy information sharing across institutions and borders </li></ul><ul><li>Nontraditional Learning approaches to teaching and learning </li></ul><ul><ul><ul><ul><ul><li>Games </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Simulations </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Storytelling </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Discovery learning techniques </li></ul></ul></ul></ul></ul>Iowa State University Financial Literacy in America: Implications for China July 2007
    25. 25. Importance of Literacy <ul><li>Households: Higher standards of living leads to higher confidence in the home. </li></ul><ul><ul><ul><ul><ul><li>Sound planning decisions for retirement, funding children’s education and accumulating more assets . </li></ul></ul></ul></ul></ul><ul><li>Communities: Financial service firms will provide better products at better prices because of market pressures by informed consumers. </li></ul><ul><ul><ul><ul><li>Stable communities with a stronger, safer banking system. </li></ul></ul></ul></ul><ul><li>Nation: Baby Boomers are potentially independent on social security and other parts of the government’s social safety net, which may pose a very expensive fiscal dilemma for the federal government. </li></ul>Iowa State University Financial Literacy in America: Implications for China July 2007
    26. 26. Challenges of Providing Financial Literacy Education <ul><li>Efforts to increase financial literacy are resource-and-time-intensive </li></ul><ul><li>Programs requires well trained educators and advisors </li></ul><ul><li>Education must be available to consumers near the time at which they are making an important financial decision i.e., buying a home </li></ul>Iowa State University Financial Literacy in America: Implications for China July 2007
    27. 27. Strategies to Enhance Financial Literacy Among all Consumers <ul><li>Promoting awareness of the importance of financial literacy </li></ul><ul><li>Increasing access to information about financial products and services </li></ul><ul><li>Collaborating with educational and community organizations </li></ul><ul><li>Supporting research and identifying best practices </li></ul><ul><li>Providing financial education at the work place to all employees </li></ul>Iowa State University Financial Literacy in America: Implications for China July 2007
    28. 28. Lessons Learned and Implications for the United States and China Iowa State University Financial Literacy in America: Implications for China July 2007
    29. 29. References <ul><ul><li>Basu, S (2005).White Paper Financial Literacy and the Life Cycle, White House Conference on Aging. Financial Planning Association (TM). 6. </li></ul></ul><ul><ul><li>Vitt, Lois (2000).Personal Finance and the Rush to Competence: A National Field Study Commissioned and Supported by The Fannie Mae Foundation, Institute for Socio-Financial Studies, Middleburg, VA </li></ul></ul><ul><ul><li>(2001). Merrill Lynch. The 20th Century Tectonic Shifts of the Demographic Landscape. </li></ul></ul><ul><ul><li>Retrieved June 6 2007 from Allen Academy of e-learning Inc. Web site: </li></ul></ul><ul><ul><li>http://www.allenacademy.com/eleraning/about/pages10.htm </li></ul></ul><ul><ul><li>Pethokousis, J (2007). Changing Demographics in China Factor Medical Products Supplier. </li></ul></ul><ul><ul><li>Retrieved June 6, 2007 from Investor's Business Daily Web site: http://biz.yahoo.com/ibd/070531/newamer?.v=1 </li></ul></ul><ul><ul><li>Qao, Q, Zhai, (2006, August). Demographic Changes and Household Income in Urban China. Paper prepared for th29th General Conference of the International Association for Research in Income and Wealth, Retrieved June 6, 20 from http://www.iariw.org/papers/2006/gao.pdf </li></ul></ul><ul><li>Riley, N.E. (2004). China’s Populations: New Trends and Challenges. Population Bulletin, 59 (2), 1-36 </li></ul><ul><li>(2000, Sept. 25). China steps up 'one-child‘ policy. Retrieved June 11, 2007 from BBC News Web site: </li></ul><ul><li>http://news.bbc.co.uk/2/hi/asia-pacific/94151/stm </li></ul>Iowa State University Financial Literacy in America: Implications for China July 2007
    30. 30. <ul><li>(2007). Economy of the United States. Retrieved June 6, 2007 from Wikipedia, Web </li></ul><ul><li>site:http://en.wikipedia.org/wiki/Economy_of_the_United States </li></ul><ul><li>(2007). Wikipedia. Retrieved June 6, 2007 from Median Household Income, Web site: </li></ul><ul><ul><li>http:// en.wikipedia.org/wiki/Median_household_income </li></ul></ul><ul><li>Graph: (2007). The Bureau of Economic Analysis. Personal Savings Rates-National Economic Accounts. Retrieved June 7, 2007 from Web site: http:// www.bea.gov/brieffrm/saving.htm </li></ul><ul><li>Fact: (2007). Findlaw- for the Public U.S Has Negative Savings Rate for 2006. Retrieved June 6, 2007 from Web site: http://commonlaw.findlaw.com/2007/02/us_has_negative.html </li></ul><ul><li>Hodges, M (2007, March). America's Total Debt Report. Retrieved June 4, 2007 from The Grandfather's Economic Reports Web site: http://mwhodges.home.att.net/nat-debt/debt-nat/a.htm </li></ul><ul><li>Hodges, M (2007, March). America's Total Debt Report. Retrieved June 4, 2007 from The Grandfather's Economic Reports Web site: http://mwhodges.home.att.net/nat-debt/debt-nat/a.htm </li></ul><ul><li>Qao, Q, Zhai, F (2006, August). Demographic Changes and Household Income in Urban China. Paper prepared for the 29th General Conference of the International Association for Research in Income and Wealth , Retrieved June 6, 2007 from http://www.iariw.org/papers/2006/gao.pdf </li></ul>Iowa State University Financial Literacy in America: Implications for China July 2007
    31. 31. <ul><li>Saxton (R-NJ), J (2006, July). &quot;Five Challenges That China Must Overcome To Sustain Economic Growth.&quot; Joint Economic Committee United States Congress , Retrieved June 5, 2007 from:<http://www.house.gov/jec/publications/109/07-27-06china_economy.pdf>. </li></ul><ul><li>Shiller, R (2006, August,26). Sublime to the ridiculous: savings rates in China and U.S. Taipei Times , Retrieved May, 28, 2007 from http://www.taipiatimes.com/News/editorials/archives/2006/08/26/2003324931 </li></ul><ul><li>Saxton (R-NJ), J (2006, July). &quot;Five Challenges That China Must Overcome To Sustain Economic Growth.&quot; Joint Economic Committee United States Congress , Retrieved June 5, 2007 from:<http://www.house.gov/jec/publications/109/07-27-06china_economy.pdf>. </li></ul><ul><li>Puru, S (2006). Time to Go Shopping. Retrieved June 7, 2007, from Financial Sense Guest Editorial Web site: http://www.financialsense.com/editorials/saxena/2006/1120.html </li></ul><ul><li>(2007). 2007 Fidelity Research Institute Retirement Index: Americans on Track to Replace 58 Percent of Income In Retirement. Retrieved June 14, 2007, from Fidelity Research Institute Web site: http://www.fidelityresearchinstitue.com </li></ul><ul><li>(2007). Asia Pacific. Retrieved May 11, 2007 from Visa-Asia Pacific Web site: </li></ul><ul><li><http://corporate.visa.com/av/commitment/literacy/asia_pacific.jsp>.Retrieved June 7, 2007 from prweb.com Website: http://www.prweb.com/releases/2005/12/preweb323264.htm </li></ul><ul><li>(2005, Dec. 16). Paradigm Learning and Intellexis China, &quot;Partnership Brings Paradigm Learning's &quot;Zodiak(r) to China: Intelleixis China Will Distribute Paradigm's Flagship Financial Literacy Program&quot;. press release, Tampa Florida and Shanghai, China Retrieved May 11, 2007 from </li></ul><ul><li>http://www.prudential.co.uk/prudential-plc/cr/crnews/cr2004/2004-12-26 and http://www.prweb.com/releases/2005/12/preweb323264.htm </li></ul>Iowa State University Financial Literacy in America: Implications for China July 2007
    32. 32. <ul><li>2007). NEFE news and articles, NEFE educational programs. Retrieved May 11, 2007 from National Endowment for Financial Education Web site: http:// www.nefe.org/pages/educational.html </li></ul><ul><li>(2007). Jump$tart Coalition for Personal Finance Literacy. Retrieved June 8, 2007 from Jump$tart- Financial Smarts for Students Web site: http:// www.jumpstart.org / </li></ul><ul><li>(2006).CSREES.Retrieved June 8, 2007 from www.csreess.usda.gov Web site: </li></ul><ul><li>http://www.csrees.usda.gov/newsroom/newsletters/familyeconnes/06_may.html#resources </li></ul><ul><li>( 2006, Nov. 14). What the Federal Government is Doing to Improve Financial Education. United States Department of the Treasury , Retrieved June 18, 2007 from http://www.treas.gov/press/releases/docs/fined.pdf </li></ul><ul><li>(2005, Dec. 15). Treasury Officials Support Financial Literacy Efforts in Washington, DC Neighborhood. United States Department of the Treasury , Retrieved June 18, 2007, from http://www.treas.gov/press/releases/docs/fined.pdf </li></ul><ul><li>(2007). Asia Pacific. Retrieved May 11, 2007 from Visa-Asia Pacific Web site: <http://corporate.visa.com/av/commitment/literacy/asia_pacific.jsp>. </li></ul><ul><li>(2004, Dec., 26). Paradigm Learning and Intellexis China, &quot;Partnership Brings Paradigm Learning's &quot;Zodiak(r) to China: Intelleixis China Will Distribute Paradigm's Flagship Financial Literacy Program&quot;. press release, Beijing, China, Retrieved May 11, 2007, from Web site: http://www.prudential.co.uk/prudential-plc/cr/crnews/cr2004/2004-12-26 and http://www.prweb.com/releases/2005/12/preweb323264.htm </li></ul><ul><li>(2005, Dec. 16). Paradigm Learning and Intellexis China, &quot;Partnership Brings Paradigm Learning's &quot;Zodiak(r) to China: Intelleixis China Will Distribute Paradigm's Flagship Financial Literacy Program&quot;. press release, Tampa, Florida and Shanghai, China. Retrieved May 11, 2007 from http://www.prudential.co.uk/prudential-plc/cr/crnews/cr2004/2004-12-26 and http://www.prweb.com/releases/2005/12/preweb323264.htm </li></ul><ul><li>(2007). Merrill Lynch. Retrieved June 6, 2007 from Merrill Lynch & Co., Inc Web site: http:// www.ml.com/index.asp?id =7695_15125 </li></ul><ul><li>(2007). The Wall Street Journal online. Retrieved June 7, 2007 from The Wall Street Journal online Web site: http:// online.wsj.com /public/us </li></ul>Iowa State University Financial Literacy in America: Implications for China July 2007
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