The U.S. Department of Education, the FDIC and the National Credit Union Administration (NCUA) concluded an agreement in which the agencies will work together to facilitate partnerships among schools, financial institutions, federal grant recipients and other stakeholders to provide effective financial education. The partnership among the three federal agencies also intends to increase access to safe, affordable and appropriate accounts at federally insured banks and credit unions, and encourage saving. The agreement allows the FDIC and NCUA to support the Education Department’s 1,700 college access grant recipients, which engage more than 1 million low-income K–12 students striving for higher education, according to a press release.
“Teaching young people how to responsibly handle their finances and use mainstream banking products isn’t a luxury in today’s economy—it is essential,” said FDIC Chairman Sheila Bair in the press release announcing the partnership. “Even though banking services and products evolve, consumers will always need to know the fundamentals, such as the importance of saving for a rainy day, the meaning of ‘APR,’ and deposit insurance. That is why this partnership between the nation’s deposit insurers and the Education Department makes so much sense.”
The agencies will also work together to increase participation in the National Financial Capability Challenge, a voluntary awards program designed to challenge educators to teach high school students the basics of personal finance, and reward success. More information on the partnership is available at fdic.gov.
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