A Publication of

A Publication of the National Endowment for Financial Education

Nefe Digest

InsideNation’s Youth to Benefit from NEFE-JA Partnership . . . . . . Page 2

NEFE CEO Testifies on Financial Literacy in Washington, D.C. . . . . . . . . . . . . . . Page 3

High School Students Join NEFE Teen Advisory Board . . . . . . . . . . . . . . . . Page 3

New NEFE Grants Cycle Announced . . . . . . . . . . . . . . Page 3

USA TODAY and NEFE Work Together to Help “Twenty-Somethings” . . . . . . . . . . . Page 4

NEFE Guidebook Updated to Reflect Pension Protection Act . . . . . . . . . . . . . . . . . Page 4

Collaborative Booklet Helps Homeowners Budget for Utility Costs . . . . . . . . . Page 5

Months of planning, dozens ofcommittee meetings, hoursof design, writing and re-

writing, and several field tests willculminate soon in the rollout of an all-new NEFE High School FinancialPlanning Program® (HSFPP). Updatedmaterials will be unveiled by late spring,and teens across the country willbegin using the new edition in the fall.

“The revision reflects an enormouseffort by many individuals who con-tributed their time and expertise to thisproject,” said HSFPP director JohnParfrey. “Our goal was to build on thesolid foundation of a program that hasbeen used successfully for 22 years,while adding new elements to theHSFPP that would relate to today’steens, enhance the use of technology,and assist both teachers and parents intheir financial literacy efforts. I believewe have reached these goals with therevised NEFE High School Program.”

The updated curriculum now is linkedto education standards in 50 states,and to several national subject-areastandards. While remaining a paperand pencil curriculum—which is stillin demand by most teachers—it has anew, edgy look that teens respond to.In addition, the revised HSFPP issupported by a dynamic Web site thatoffers a large, continually changingcollection of materials for teachers;online calculators, games, polls, andreal-life learning exercises for students;and ideas for extending learningbeyond the classroom, including aspecial section for parents.

The HSFPP curriculum was shaped byeducators and subject matter expertsworking with NEFE, while the actuallearning approach was created by aninstructional design firm using acompetency-based model. Lessonsalso reflect the principles of multiple-

Continued on page 6

January/February 2007

Revised High School Program Nears Launch

2 NEFE Digest - January/February 2007

Teens transitioning into today’sadult world face a challenge inmaintaining—not to mention

improving on—the quality of lifeenjoyed by their parents. To meet thatchallenge, a critical emphasis shouldbe placed on providing financial edu-cation for young people before theyleave high school and college to maketheir way in life.

Toward this end, the NationalEndowment for Financial Education®

(NEFE®) and JA Worldwide™ (JuniorAchievement), a nonprofit organizationdevoted to inspiring and preparingyoung people to succeed in a globaleconomy, have entered into an

Nation’s Youth to Benefit from NEFE-JA Partnership

to use Junior Achievement volunteersto introduce the HSFPP to high schools.Through hands-on, experiential learn-ing activities, students participating inthe program will be exposed to theimportance of financial planning as akey element to one’s success.

“The top priority for the High SchoolFinancial Planning Program is toreach out to all of America’s youth and help them acquire and applypersonal finance skills,” said TedBeck, president and CEO of NEFE.“We welcome this alliance and believeJunior Achievement’s vast volunteernetwork will help us meet our goalsfor expanding the program. By

50 states. In 2005 alone, more than630,000 student guides were circulatedto nearly 7,500 schools.

An independent evaluation of the pro-gram completed in 1998, and repeatedin 2003, found that the HSFPP ishighly effective in improving the per-sonal finance knowledge, behavior,and confidence of teens.

In commenting on the new agreement,John Parfrey, director of the NEFEHigh School Financial PlanningProgram, said, “More than ever,America’s youth need a solid footingin the principles of personal finance.The HSFPP has been proven to be a powerful tool in accomplishing that goal. I am pleased that JuniorAchievement, with its highly regardedvolunteer network and reach to fourmillion students in the United States,will become yet another avenue foryoung people to begin the road tosound financial maturity through theuse of our program.”

For more information about theNational Endowment for FinancialEducation and the NEFE High SchoolFinancial Planning Program, visitwww.nefe.org and click on theEducation Programs section.

JA Worldwide is the world’s largestorganization that aims to inspire youngpeople to succeed in a global economy.Through a dedicated volunteer net-work, JA Worldwide provides programsthat focus on seven key content areas:business, citizenship, economics,entrepreneurship, ethics/character,financial literacy, and career develop-ment for students in grades K-12. Formore information, visit www.ja.org.

Holiday ClosingsNEFE will be closed on January 1for New Year’s Day and February 19for President’s Day.

working in concert, our two organiza-tions can achieve a synergism that,ultimately, enhances the financial well-being of this country’s young people.”

“We’re thrilled to join forces with NEFEand its HSFPP partners to provideyoung people with practical moneymanagement skills,” added David S.Chernow, president and CEO of JAWorldwide. “Together, we can givestudents valuable personal financetools so they will have a head start onthe way to a healthy financial future.”

The NEFE High School FinancialPlanning Program is a six-unit coursethat teaches the essentials of moneymanagement to teens at a time whenthey are developing habits and atti-tudes about money which will influencethem for the rest of their lives.

Since its inception in 1984, more than4.6 million HSFPP workbooks havebeen distributed in schools across all

“We’re thrilled to join forces with NEFE and itsHSFPP partners to provide young people withpractical money management skills.”

David S. Chernow

agreement to help teens reach theirfinancial goals.

The two organizations will worktogether to extend the reach of theNEFE High School Financial PlanningProgram® (HSFPP), a practical andnoncommercial course that is availableat no cost to public and private highschools throughout the country. It ismade available by NEFE in partnershipwith the Cooperative State, Research,Education, and Extension Services,(CSREES), USDA, and ParticipatingLand-Grant University CooperativeExtension Services, the Credit UnionNational Association, (CUNA), andAmerica’s Credit Unions.

The five-year affiliation was conceivedthrough the organizations’ mutual beliefthat teens with financial education arebetter prepared for the challengesthey will face while striving to achievetheir life goals. The collaboration intends

3NEFE Digest - January/February 2007

The 2006-2007 Teen Advisory Board (TAB) recentlywas selected by the NEFE fellows. The TAB mem-bers, under the guidance of the fellows, will help

maintain and update the NEFE Teen Resource Bureau®

(NTRB®) Web site.

The NTRB site was created by young people to increasefinancial literacy among America’s youth. The TAB programwas established in 2001 to ensure that the Web site and itsprograms reflect insightful, original, and relevant informationthat will encourage teens to take a more active role inmanaging their money.

TAB members, who are qualified high school students, willbe asked to submit projects designed to improve the NTRBWeb site, act as NTRB ambassadors in their local community,and participate in focus groups and conference calls aboutteens’ relationship to money. These projects and researchresults will be uploaded to the NTRB Web site atwww.ntrbonline.org.

High School Students Join NEFE Teen Advisory Board

Beginning in 2007, the NEFE Grants program will includetwo, rather than three, grant cycles with the June cycleremoved. The April and October cycles will continue asbefore. The grants that were submitted by December 5,2006, will be reviewed for the April cycle. The nextdeadline for grant proposals is June 5, 2007, for theOctober grant cycle. To learn more about the NEFEGrants program, visit www.nefe.org and click on theGrantmaking section.

NEFE CEO Testifies on FinancialLiteracy in Washington, D.C.

Ted Beck, president and CEO ofthe National Endowment forFinancial Education, recently

was invited to testify before theCommittee on Financial Services’Subcommittee on Financial Institutionand Consumer Credit of the UnitedStates House of Representatives.

The hearing provided NEFE and othermembers of the financial literacycommunity the opportunity to share

their experiences in coordinatingprivate-sector efforts to promote finan-cial literacy, and to explore ways inwhich the federal government canhelp enhance the effectiveness ofthese efforts.

Written testimony submitted by NEFEin support of Beck’s remarks wasspecifically recognized by U.S.Representative Rubén Hinojosa (D-Texas), co-chair and co-founder of the

Financial and Economic LiteracyCaucus, for the quality of the testimonyand the suggestions made to thefederal government.

Beck appeared on a panel with ElisseB. Walter, senior executive vice presi-dent, Regulatory Policy and Programs,NASD; and David S. Chernow,president and CEO, JA Worldwide.There also was a second panel ofrepresentatives who testified on behalfof the American Bankers AssociationEducation Foundation, MortgageBankers Association, Credit UnionNational Association, SecuritiesIndustry Association, ConsumerFederation of America, and NationalAssociation of Federal Credit Unions.

To view a copy of Beck’s testimony, visithttp://financialservices.house.gov/hearings.asp. The hearing is under the“All Hearings” section and is titled“Improving Financial Literacy:Working Together to Develop PrivateSector Coordination and Solutions.”

The new TAB members include: Kimberly Fejes of NewFairfield, Connecticut; Thomas Galanek of Manhasset, NewYork; Erin Seivley from Westminster, Colorado; WhitneyNewman of Kitty Hawk, North Carolina; and David Hanleyof Englewood, Colorado.

New NEFE Grants CycleAnnounced

4NEFE Digest - January/February 2007

The National Endowment forFinancial Education and USATODAY recently collaborated

to co-sponsor a survey about the per-sonal finance challenges that youngadults face. The poll served as the basisfor a series of articles USA TODAYwrote about young people who werecoping with a variety of personalfinance issues. The series was intendedto help young adults gain a betterunderstanding of money management.

The Gallup Organization conductedthe survey by telephone with anationally representative sample of 22-29 year olds, while USA TODAYhand-picked several young people

(FPA) offered free financial planningadvice to the young adults highlightedin the articles.

The series of articles was published inUSA TODAY every Monday and Friday

from November 20 to December 29.The poll results were released onNovember 20.

The survey questions covered a rangeof personal finance issues, such ashousing concerns, health insurance,planning for future goals, credit cardand student loan debt, budgeting, andsaving for retirement.

The complete results of the poll, alongwith the USA TODAY articles featur-ing the young adults, can be found atwww.nefe.org under the Welcome toNEFE heading within the green box inNEFE News.

USA TODAY and NEFE WorkTogether to Help “Twenty-Somethings”

NEFE Guidebook Updated to Reflect Pension Protection Act

Good news for baby boomers,late savers, and youngeremployees came with the

signing of the Pension Protection Actof 2006, which outlines improvedbenefits that will help workers achievea secure financial future in retirement.

In response to the latest changes, theNational Endowment for FinancialEducation has updated the Guidebook toHelp Late Savers Prepare for Retirement,a free resource to assist Americans inboosting their retirement savings. Theguidebook was developed through agrant from NEFE in 2002 to providemore than a dozen catch-up strategiesfor workers—especially those 50 andolder—who have not saved enough for retirement.

“Time is an important element inachieving security for retirement. But,no matter what the age, there are waysto help individuals save for the future,”said Ted Beck, president and CEO ofNEFE. “Consumers just need to knowall of the options and plan accordingly.”

The new pension legislation aims tohelp everyone from people who haverecently entered the workforce to thosewho will retire in a few years. For youngerand middle-aged employees, the billasks employers to increase participa-tion in defined contribution retirementplans, such as 401(k)s, by automaticallyenrolling workers in the plan ratherthan requesting them to opt into it.

The act also allows for automatic yearly contribution increases into theretirement account, which will make it easier for the worker to save morefor retirement.

Additionally, this legislation wouldoffer simple methods for employees to save for their or their children’seducation expenses.

Those who are close to retiring will seebenefits through better reporting ofinformation by companies about theirpension plans. Also, corporations willbe required to fund their plans ade-quately and stop the practice of makingplans seem better than they are.

The Guidebook to Help Late SaversPrepare for Retirement was written, aswell as recently updated, by BarbaraO’Neill, Ph.D., professor and coop-erative extension specialist at RutgersUniversity, in cooperation with UtahState University and Jean Lown, Ph.D.,professor. The guidebook offersnumerous worksheets, including oneto help late savers develop a customaction plan by selecting financialstrategies to meet personal goals. Inaddition, the publication provides aresource section with more than 40books and retirement-related Websites to guide individuals in makinginformed choices about saving andinvesting wisely for the future.

To access or download the Guidebookto Help Late Savers Prepare forRetirement, search the NEFEFinancial Literacy Resource CenterSM

under the topic of retirement atwww.smartaboutmoney.org.

whose financial situations were show-cased during the series. Additionally,the Financial Planning Association

5 NEFE Digest - January/February 2007

With the price of electricity,natural gas, and other fuelson the rise in recent years, it

is no wonder that many Americans,particularly low-income individuals,are struggling to pay their utility bills.

To help new homeowners anticipate,budget for, and minimize utility costs,the National Endowment for FinancialEducation collaborated with theNational Fuel Funds Network (NFFN)to create the booklet Owning is Just theBeginning: Learning to Budget theUtility Costs of Your New Home.

“For new homeowners who may findthemselves already strapped finan-cially, this booklet can make all thedifference. It even could help themavoid a potential foreclosure due tohigh utility bills,” says Brent A.Neiser, CFP®, NEFE director ofCollaborative Programs.

A former NFFN board member, RogerColton, principle of the economics firmFisher, Sheehan & Colton, initiated thecollaboration between NEFE and NFFN.Prior to approaching NEFE, Colton hadcompleted extensive research regardinglow-income families and utility bills. Hefound that while the average householdpays between 2 percent to 4 percent ofits income in energy bills and between1 percent to 2 percent in sewer andwater bills, low-income families use a

Collaborative Booklet Helps Homeowners Budget for Utility Costs

significantly higher percentage oftheir income to pay for utilities.

“Concerning poor families, we areseeing that many are paying 40 per-cent to 60 percent of their income inutility bills,” Colton says. “When youconsider that, it’s not surprising thatsome low-income families have a hardtime paying for their utilities.”

Owning is Just the Beginning aims toprovide families with the informationthey need to avoid this situation. The53-page guide is divided into twosections. The first section explainshow to set goals, create a spendingplan, and use credit responsibly. Thesecond half of the booklet focusesentirely on home utilities. It begins bygiving homeowners a detailed expla-nation of utility costs, such as energyand water.

The guide also offers informationabout budgeting and managing utilityexpenses. It illustrates how to read autility bill and what to do if the bill isincorrect. Additionally, the bookletlists techniques for keeping utility bills as low as possible. This includescompleting home maintenance,ensuring the home is well-insulated,and employing energy-saving tactics.

Readers also learn methods availablefor handling their bill payments, such

as asking for a level bill—in whichpayments are steady from month tomonth—and choosing their billingdate. At the end of the booklet, newhomeowners find out about wherethey can seek help if they are unableto pay their utility bills.

In order to distribute the free bookletsto those who need it most, NFFNenlisted the help of the U.S. Departmentof Housing and Urban Development(HUD), which used its national distri-bution network to provide them to localnonprofits and other organizations thatoffer homeownership classes to low-income individuals. In only two months,the majority of the 100,000 booklets pro-duced were in the hands of consumers.

“We were astounded by the demand,”says George Coling, executive directorof NFFN. “It demonstrates the greatneed that exists for such a resource.”

Owning is Just the Beginning isavailable on the NFFN Web site, atwww.nationalfuelfunds.org. TheNational Fuel Funds Network is anorganization that promotes all types of energy assistance programs—including fuel funds—and advocatesfor fair home energy policies.

For more information about NEFE’sCollaborative Programs, log on towww.nefe.org.

Ted Beck, president and CEO of the NationalEndowment for Financial Education, has been nameda member of the newly-formed Federal Deposit

Insurance Corporation’s (FDIC) Advisory Committee onEconomic Inclusion. The Advisory Committee was createdto offer guidance and suggestions to the FDIC on how toexpand access for underserved populations in banking andfinancial services.

In commenting on the work of the committee, FDIC ChairmanSheila C. Bair said, “I look forward to recommendations

from the Advisory Committee on how best to advance oureffort to provide all consumers with reasonable access tofull-service banking and other financial services. We wouldalso like to create ways to encourage individual and house-hold savings. I see this as a win-win proposition for both theindustry and consumers.”

The members of the Advisory Committee represent a widevariety of interests from the banking industry, academia,state regulatory authorities, government, community-basedgroups, and consumer or public advocacy organizations.

NEFE CEO Invited to Serve on FDIC Committee

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© January 2007, National Endowment for Financial Education (NEFE). All rights reserved. NEFE Digest, NEFE Press, NEFE Financial Literacy Resource Center, NEFE HIGH SCHOOL FINANCIAL PLANNING PROGRAM, and NEFE TEENRESOURCE BUREAU are service marks of the National Endowment for Financial Education. Certified Financial Plannerand CFP are marks of the Certified Financial Planner Board of Standards, Inc.All questions regarding NEFE Digest may be addressed to the Communications department, Editor: Ayelet Drori. NEFE is open Monday through Friday, from 8:30 a.m. to 5:00 p.m. Mountain Time. The main telephone number is (303) 741-6333; the fax number is (303) 220-0838. Visit the NEFE Web site at www.nefe.org.

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Continued from page 1

intelligence learning, encourage acycle of learning activities involvingparents and outside professionalssupporting the classroom experience,and challenge students to expand theirthoughts about the issues and applythese newly acquired skills to soundmoney management in their own lives.

Free teacher training will be availablein-person and online, along with step-by-step teaching plans. Additionally, theeffectiveness of the revised program willbe evaluated by university researchers,school districts, and teachers.

Parfrey credited much of the project’ssuccess to the HSFPP Revision TaskForce, which assisted NEFE by

reviewing the current edition, makingrecommendations for improvements,assessing new materials, and helpingto plan the national launch of theprogram. The 14-member task forcewas composed of representatives fromNEFE and its two HSFPP partners—the Credit Union National Association(CUNA) and the Cooperative State,Research, Education, and ExtensionServices, (CSREES), USDA, andparticipating Land-Grant UniversityCooperative Extension Services—aswell as individuals from state govern-ment, the Junior Reserve OfficersTraining Corps (JROTC), and theWorkforce Investment Boards. In addi-tion, a technology expert from theInCharge Institute and an educational

consultant from Worldwide InstructionalDesign System (WIDS) participated intask force meetings.

Independent studies in 1998 and 2003have shown conclusively that the HSFPPproduces statistically significantimprovement in financial knowledge,confidence, and behavior among teenswho have completed the program.The HSFPP is a noncommercial, fully-developed program that can be takenimmediately into schools free of charge.Since its introduction in 1984, theprogram has reached more than 4.6million students in youth organizationsand schools in all 50 states and theDistrict of Columbia.

For more information about the NEFEHSFPP, log on to the EducationPrograms section at www.nefe.org.

Revised High School Program Approaches Rollout