Pilot program promotes education on financial, homeownership issues

The Federal Deposit Insurance Corporation and the Neighborhood Reinvestment Corporation in April announced a pilot program to help revitalize communities across America through financial education.

Under an agreement signed April 15 at a ceremony in Washington, the Neighborhood Reinvestment Corpora-tion will use the FDIC's "Money Smart" financial literacy program to train adult educators and to teach money management skills to thousands of people, primarily low-income consumers, minorities or women who are potential homebuyers or existing homeowners having problems making ends meet.

"Learning how to save and manage money is essential to becoming financially independent and achieving the dream of owning your own home," said FDIC Chairman Donald E. Powell. "But it doesn't end there, because financial independence and homeownership are essential to safer, stronger communities and a more prosperous America. The FDIC is pleased to be a partner with the Neighborhood Reinvestment Corpora-tion in helping more Americans get a financial education and a start on homeownership."

Ellen Lazar, executive director of the Neighborhood Reinvestment Corpora-tion, added, "Helping families throughout America build, manage and maintain their assets is the key element in community revitalization and the goal of Neighborhood Reinvestment's Neigh-borWorks Financial Fitness program. The FDIC's Money Smart program is a valuable resource in this effort, and we are gratified to be the first national, nonprofit organization to partner with the FDIC in bringing this worthwhile program to consumers."

The FDIC created the Money Smart training program last year to help adults outside the financial mainstream enhance their money skills and develop positive relationships with financial institutions. The program features a comprehensive guide for instructors (including scripts, overheads and interactive class exercises) and resource material for students.

The Neighborhood Reinvestment Corporation, a public, nonprofit corporation created by Congress in 1978 to revitalize lower-income communities, plans to begin using the FDIC's Money Smart curriculum in June to train approximately 175 educators from 24 local, nonprofit organizations around the country. These educators, in turn, will teach between 1,000 and 2,000 students each year.

"Our hope is that this partnership will expand to include many more teachers and cities, and that soon tens of thousands of Americans will be money smart and owning their own home, thanks in part to our efforts," Powell said.

The FDIC's Money Smart program already is being offered by a variety of organizations nationwide, including U.S. Department of Labor employment centers, financial institutions, community colleges and adult education schools.