|
The current economic crisis underscores the need to increase financial literacy among all Americans. Expressly for that purpose, President Obama formed the Advisory Council on Financial Literacy.
The group is committed to increasing awareness of the tools and resources that are available to all Americans to help them better understand and manage their finances. In a White House release, citizens are encouraged to take advantage of available resources of useful information that will help improve financial understanding.
In these times of uncertainty, the need to be financially literate has never been more important. The following points were released by the President’s Council.
- Understand how your bank or credit union is insured. The Federal Deposit Insurance Corp. (FDIC) or the National Credit Union Administration (NCUA) insures all deposits at insured banks and credit unions up to at least $250,000. To check whether your financial institution is insured, visit http://www2.fdic.gov/idasp/main_bankfind.asp
- Understand how your investments are protected. Brokerage firms are required to be members of the Securities Investor Protection Corporation (SIPC), which insures customer securities accounts up to $500,000, including $100,000 in cash claims, when a brokerage firm fails. To learn more about these protections, visit http://www.sec.gov/answers/investoralert.htm..
|
Always keep lines of communication open with your mortgage lender. As soon as you know you may have difficulty meeting your mortgage or home equity loan payments, contact a counselor to work out a payment plan at www.HOPENOW.com or by calling 888-995-HOPE (4673).
Protect your credit score. Only put on your credit cards what you can afford to pay back. For other hints on improving your credit score, visit www.controlyourcredit.gov. Also, to protect against identity theft, get a free copy of your credit report at www.annualcreditreport.com.
Make sure you have a rainy day fund. Keep an emergency fund worth three to six months of your monthly expenses in an insured account. If you do not have an emergency fund, try to start one. Visit the budget calculators on www.controlyourcredit.gov/html/debt_management.html.
Do not try to cut costs by canceling your insurance. Keep up with your insurance payments, and you will keep in place your protection against medical costs or major loss of personal property, like your home or car. Learn more in the Life Events section on www.MyMoney.gov.
If it sounds too good to be true, it probably is. Watch out for scams trying to take advantage of all the recent changes in our nation’s financial markets. Educate yourself at www.FTC.gov.
To learn more about your money, visit www.MyMoney.gov. For more information on the President’s Advisory Council on Financial Literacy, visit the U.S. Treasury Department’s Office of Financial Education web site at www.Treas.gov/ofe.
Janine Rywak
County Extension Director
|
