Econ4U helps educate people about money

I received this in my inbox this morning and thought it was appropriate to post here. Looks like an interesting program and one that is right in line with the goals of this blog. Visit them and let me know what you think:

Econ4U Takes Unique Approach to Increase Financial Literacy Among Nation’s Youth

With a steady decline of financial literacy among young Americans there should be little doubt as to why our personal savings rates are at an all-time low and bankruptcy rates are at an all-time high. Basic economics classes are only required in 15 states, and studies prove those who need this information most aren’t getting it elsewhere.

Many may say “information is out there, it’s not my problem.” But in fact it is an American problem that’s not going away on its own. American consumers now spend a record 18.1 percent of after-tax income just to cover existing debts! What does that mean for you? As their disposable income decreases they are most likely borrowing more and more just to stay afloat. We as consumers end up paying for their “forgiven” debts through higher fees and interest rates when they get in too deep and file for bankruptcy.

As many American families try to “keep up with the Jones,” they find themselves in a cycle of debt, passing their bad financial habits onto their kids. And how would they know any better? Media culture encourages spending, not saving. Young people are marketed to with promising offers like “no payments for one year” without understanding that when they don’t pay off the entire balance within that year they’ll probably be charged 20% interest from the date of purchase. Unfortunately many young Americans see these offers as free money today that they’ll worry about tomorrow. And frankly, nobody’s stopping them.

If you don’t know better you can’t do better. There are volumes of information available on how to repair credit scores and file for bankruptcy, but if this is the information you need, you’re probably already in over your head. You’re wishing you had better information before you made bad financial decisions in the first place.

Econ4U is a public economic education campaign designed to do just that. It brings basic economic facts to young Americans—those who will not seek this information on their own until it’s too late—when they are captive and comfortable. Most young people find economics courses complicated and dry. That is why Econ4U takes an innovative approach to teaching about personal finance, government spending and business economics.

For example, instead of unscrambling movie titles as they wait for the feature presentation to begin, a moviegoer will now learn that it will cost them 46 years to pay off that $5,000 credit card bill if they only pay the minimum balance each month. Teens are exposed to the miracle of compounding interest on their tray liners in fast food restaurants. Average profit margins are explained on scoring machines as bowlers wait for their scores to be calculated. By putting this information in front of people in a way that they can easily understand and retain, Econ4U reaches young people with vital financial information before they make mistakes we’ll all pay for.

Go to econ4U to learn more about how you can support the Econ4U program. And while you’re there, tell us what you think young Americans should know about their finances. Submit new questions by September 7, 2005 for your chance to win business-class airfare to anywhere Delta flies worldwide, tickets to the Outback Bowl in Tampa, FL with a ride on the Outback blimp, or round-trip tickets on JetBlue Airways.