Final Washington Financial Literacy Work Group Report
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December 1, 2008 Dear Governor Gregoire, In the following pages you will find an overview of the work completed by the Washington Financial Literacy Work Group, supporting documentation for the group’s nine recommendations to improve financial education for all Washington State residents and several reference documents in the attached appendices. Acting on the requirements cited in SB 6272 (Chapter 3, Laws of 2008), the group was tasked to: 1. Identify current state funded efforts to support financial literacy; 2. Assess whether there are opportunities to create a centralized location of information regarding these existing state efforts; and 3. Identify whether there are opportunities for expanding partnerships with other community entities also providing financial literacy services. Members of this group answered your directive, completed the tasks and provided additional research and data in an effort to present you with the most comprehensive report possible on financial education in Washington State. The Work Group was careful to ensure their nine recommendations address the needs of all Washington residents and recognize existing works to improve financial education for Washington’s K-12 students by groups such as the Financial Literacy Public Private Partnership and Jump$tart Washington Coalition. A diverse group of more than 30 financial education advocates in Washington State gathered to address the importance of financial education – as it pertains to individuals as well as our state and national economy. The full Work Group met seven times — from April through October. Additionally, subcommittees formed and met on numerous occasions. Meeting notes and audio files are available on the Work Group Web site: www.dfi.wa.gov/work-group. The group developed and distributed five surveys to educators, non-profit organizations, private sector businesses, state agencies and state schools. The surveys have garnered 749 responses to date, resulting in one of the most comprehensive state-wide surveys ever conducted on financial education in this state. This group’s work paralleled the President’s Advisory Council on Financial Literacy and resulted in very similar recommendations. Since the passage of SB 6272 (Chapter 3, Laws of 2008), the importance of financial education has become a higher priority and a topic of discussion on a global level. National financial education organizations and partners recognize Washington as a leader in the financial education arena – the directive establishing and tasking this Work Group emphasizes that fact. We commend you for your foresight in activating this talented and dedicated group of individuals that comprise the Washington Financial Literacy Work Group and for asking us to focus on this most important issue. We thank you for giving us the opportunity to serve the people of Washington. Sincerely, Scott Jarvis, Director Department of Financial Institutions Letters of Support “A strong and effective system of education is one fundamental way to strengthen our economy and raise living standards. And education about personal finance that helps consumers of all ages meet the challenges and demands of our increasingly knowledge-based economy is one important component of such a system... Children and teenagers should begin learning basic financial skills as early as possible. Indeed, improving basic financial education in elementary and secondary schools can help prevent students from making poor decisions later, when they are young adults, that can take years to overcome… Building bridges between community organizations, educational institutions, and private businesses is essential to increasing familiarity with new technological and financial tools.” — Chairman Alan Greenspan, September 26, 2003, at the 33rd Annual Legislative Conference of the Congressional Black Caucus, Washington, D.C. Washington Financial Literacy Work Group z “Putting The Pieces Together” Final Report November 24, 2008 Governor Christine Gregoire Office of the Governor P.O. Box 4002 Olympia, WA 98504-0002 Dear Governor Gregoire: I am writing to offer AARP’s support of the Washington Financial Literacy Work Group’s nine recommendations to improve financial education for all Washington residents. The overarching goal of providing the people of our state with the skills and knowledge to manage their financial resources effectively for lifetime financial security is of utmost importance, especially at a time when there is unprecedented insecurity in our financial markets. In these difficult economic times, significant numbers of people are being forced to make difficult decisions about daily living. Implementing the recommendations of the Financial Literacy Work Group would be an excellent opportunity to help the people of our state. AARP believes that Americans of all ages should have access to tools to help manage their finances and save for the future, as well as easy to understand information to help them increase their financial literacy and manage their money wisely. Thank you for your leadership in directing the work of the Financial Literacy Work Group and asking the members to focus on this most important issue. It was an honor for our organization to participate in the work group and serve the people of Washington State. Sincerely, Doug Shadel, Director AARP Washington November 21, 2008 Scott Jarvis, Director Department of Financial Institutions P.O. Box 41200 Olympia, WA 98504-1200 Dear Director Jarvis: The Financial Literacy Work Group you and your staff directed will soon be submitting its 2008 Final Report to the Governor. I am pleased to submit this letter on behalf of Washington Jump$tart in support of the findings and recommendations set forth in that report. As you probably know, Washington Jump$tart is a coalition of individuals and organizations dedicated to promoting financial education and literacy in Washington. The Legislator Awareness Committee works with the state coalition to raise awareness of financial literacy among legislators—specifically Education Committee members—and how it impacts their constituents’ lives. We believe access to financial education should be a right, not a privilege. Financial education should be particularly important to state government as training in the basics of financial education supports the goals of Washington’s Basic Education Act {RCW 28A.150.210} which states that “The goal of the basic education act for the schools of the state of Washington set forth in this chapter shall be to provide students with the opportunity to become responsible global citizens, to contribute to their economic well-being and that of their families and communities, and to enjoy productive and satisfying lives.” It is clear to us that we have already made the promise of accessible and affordable financial education to our children. We must now implement this promise and provide the same for adults in the workplace (and beyond) who are already out of school or unable to attend. Everyone seems to agree on the importance of a financially literate society. Indeed, this country’s current economic crisis and subsequent recession and record high unemployment might have been avoided had Americans been aware of the basic fundamentals affecting their personal finances. Questions invariably arise when the financial literacy discussion turns to the best method of delivery. We believe implementing a statewide financial education plan providing policy and guidance for standards, assessments, training, certification, a central clearinghouse, consistent outreach, and of course, funding, would yield the best results, especially in regards to financial education in schools. The FLWG’s report is comprehensive, thorough, focused, and characterizes the diverse background of the work group’s members. Their recommendations are visionary, on-target, and are in line with and increased national focus regarding the importance of financial education. We applaud your efforts to put this report together, and we urge the Governor and the Washington State Legislature to champion the financial literacy cause in our state, especially on behalf of our children and future generations. With the current state of the economy, prioritizing will be crucial in the next budget cycle. We urge you to consider implementing the recommendations of the FLWG as one of your priorities for 2009. On behalf of Washington Jump$tart, thank-you for the opportunity to voice our support for the Washington State Financial Literacy Workgroup 2008 Final Report. Sincerely, Members of the Washington Jump$tart Board of Directors and the Washington Jump$tart Legislator Awareness Committee Washington Jump$tart Board of Directors Scott Kinney – President Chris Conway WaMu Northwest Education Loan Association Kimberly Scott – Co-Vice President Washington Society of CPAs Tony Leahy CENTS – King County Bar Association Amy O’Donnell – Co-Vice President Washington Society of CPAs Leslie Lum Bellevue Community College Melanie Hess – Secretary Junior Achievement of Washington Lyn Peters Washington Department of Financial Kristin Mowat – Treasurer Institutions Washington Bankers Association Will Rance Stacy Augustine Washington State Employees’ Credit Washington Credit Union League Union Jamie Chase Chase Public Relations Washington Jump$tart Board of Directors, Cont. Dana Twight Debbie Wege Seattle Times Newspapers in Boeing Employees’ Credit Union Education Washington Jump$tart Legislator Awareness Committee Scott Daukas Brenetta Ward TwinStar Credit