tailieunhanh - Providing and Funding Financial Literacy Programs for Low- Income Adults and Youth

The net cost is a measure of cash flow requirements, not the bottom-line cost of college. The net cost will correspond to the expected family contribution (EFC) and will be similar at most colleges. If there are significant differences in net cost, it may be a sign of unusual circumstances that were taken into account at one college but not the others. Thus, families should compare college financial aid award letters based on the out-of-pocket cost and not the net cost. If the difference in out-of-pocket cost is less than $500, the difference is not significant enough to affect. | TheFINANCE PROJECT Strategy Brief Providing and Funding Financial Literacy Programs for Low-Income Adults and Youth By Pamela Friedman Introduction Making effective financial decisions and knowing how to manage money are skills critical to enjoying a secure financial future. Yet many individuals and families lack the knowledge necessary to make sound financial choices as evidenced by falling savings rates mounting consumer debt and a growing dependence on alternative banking These indicators suggest that access to financial literacy programs is a pressing need in our society especially for groups such as youth and families transitioning from welfare to selfsufficiency. This brief presents key principles and funding sources for designing and operating financial literacy programs for low-income adults and youth. The brief is intended to give community leaders policy makers and program developers a better understanding of effective approaches to providing financial literacy training for low-income adults and youth. Background and General Considerations Over the past two decades changes in personal finances such as decreased personal savings and increased debt an increasingly diverse population that may not be familiar with the . financial system and new technologies and marketing strategies have brought the issue of personal financial management to the forefront. Further changes in employment and public policy have shifted greater responsibility for managing personal finances such as retirement planning and health care options from employers to workers. With the advent of welfare reform the number of low-income workers significantly increased. Many of these workers lack the knowledge and tools necessary to Economic Success for Families Communities September 2005 1 Braunstein Sandra and Carolyn Welch 2002 . Financial Literacy An Overview of Practice Research and Policy. Federal Reserve Bulletin Division of Consumer and Community Affairs Federal .