FOR IMMEDIATE RELEASE 98-20 Press Contact: John Nester (202) 942-7083 Unprecedented Campaign to Combat America's Financial Literacy "Crisis" 65 million American households could fall short of major financial goals Washington, D.C., February 24, 1998 -- At a February 24 news conference, a powerful coalition of government, business and consumer organizations announced an ambitious grassroots plan to motivate Americans to "get the facts" on saving and investing, and to avoid costly mistakes. Americans have more of their money invested in the stock market than ever, but tens of millions lack the basic saving and investing information they need to achieve financial security. The campaign's slogan is: "Get the facts. It's your money. It's your future." Also at the news conference, the United States Securities and Exchange Commission issued a new report, "The Facts on Saving and Investing," that summarizes recent polls and studies addressing the consequences of financial illiteracy. One key fact that highlights the need for the campaign comes from the 1997 Retirement Confidence Survey: three of every four American workers have no idea how much they need to save for retirement, and two-thirds have not even tried to figure how much they_ll need. Most respondents said that they were afraid of the answer, considered the process too complicated, or didn't have the time. Another study estimates that 65 million U.S. households will probably fail to realize one or more of their major financial goals because they have not developed a comprehensive financial plan. "At a time Americans are increasingly responsible for their own financial security, that spells trouble," said SEC Chairman Arthur Levitt. "We are in the midst of a financial literacy crisis, and many will pay a high price._ "A sound financial education not only builds personal wealth, it is the first line of defense against investment fraud," said Denise Voight Crawford, President of the North American Securities Administrators Association. "It pays to be skeptical, to do your homework and to ask tough questions. Wall Street can be a mean street for those who aren't careful with their money. Wall Street is no short cut to Easy Street. Success takes persistence and practice." The Facts on Saving and Investing Campaign will kick-off with a week-long series of national and community events from March 29 to April 4, 1998. Securities regulators from twenty-one nations in North, Central and South America and the Caribbean will also offer investor education programs in their countries that week. For more information, visit http://www.investoreducation.org on the web, or call 1-800-732-0330. U.S. Campaign Events and Daily Themes for the Kick-Off Week Monday: Americans Need Financial Education On Monday, March 30, the SEC will host a National Roundtable on Saving and Investing that will assemble many of the leading voices from government, industry, consumer groups, and the media to focus the nation's attention on the need for financial education. Participants in the roundtable will discuss where we are as a country when it comes to saving and investing, recent polling results on what Americans know and don't know, and educational programs and strategies that work. Tuesday: Get a "Ballpark Estimate" of Your Retirement Needs Individuals will be encouraged to fill out the one-page "Ballpark Estimate" that helps people compute what they need to save and invest each year to meet their retirement needs. Employers will be encouraged to distribute copies to their employees. A joint government publication of the "Ballpark Estimate" will list government sources that provide information on saving and investing. Copies of the "Ballpark Estimate" are available at http://www.asec.org or by calling 800-732-0330. Wednesday: Set Realistic Expectations The day will focus on developing realistic expectations about market returns, understanding the risks and rewards of investing, and the need for diversification. Educated savers and investors are able to set financial goals and to understand how different products help them achieve their goals. Thursday: Teach our Children Parents and teachers will be encouraged to teach children and young adults about personal finance. State securities regulators will kick-off a million dollar national "Financial Literacy 2001" program to teach investment fundamentals to every high school senior in the nation. During this week the Securities Industry Association's Stock Market Game will produce a special curriculum focusing on investing for the long-term. Financial industry professionals and regulators will be encouraged to talk to high school classes about careers in the financial services industry. Friday: You Can Do It: Start Small, Think Big. Know Your Rights and Responsibilities. One of the best ways to protect investors is to give them the tools they need to protect themselves. Investors need to know how the industry is regulated to gain confidence in our markets and the securities industry. Investors also need to recognize securities fraud and report it promptly to regulators. Events on this day will also spotlight programs that help people set financial goals and overcome some of the barriers to saving and investing. One program, the USDA's Money 2000, challenges people to save or reduce their debt by $2000 by the year 2000. Saturday: National Investors" Town Meeting The two-hour broadcast will originate from Washington, D.C., and be available at nationwide by satellite at local downlink sites. The broadcast will feature SEC Chairman Arthur Levitt and Denny Crawford, President of the North American Securities Administrators Association, as well as industry experts, with tips on how to save and invest wisely. Facts on Saving and Investing Campaign U.S. Campaign Partners (as of February 23, 1998) * Alliance for Investor Education * American Association of Individual Investors * American Association of Retired Persons * American Savings Education Council * Board of Governors of the Federal Reserve System * The Bond Market Association * Certified Financial Planner Board of Standards * Commodity Futures Trading Commission * Consumer Federation of America * Council of Securities Regulators of the Americas * Employee Benefit Research Institute * Federal Trade Commission * International Association for Financial Planning * Investment Company Institute * Investor Protection Trust * National Association of Investors Corporation * National Association of Securities Dealers, Inc. * National Council on Economic Education * National Foundation for Consumer Credit * New York Stock Exchange * North American Securities Administrators Association * Securities Industry Association * Social Security Administration * Department of Agriculture, Cooperative State Research, Education, and Extension Service * Department of Justice * Department of Labor * Department of Treasury, Bureau of Public Debt * General Services Administration, Consumer Information Center * Securities and Exchange Commission Foreign Countries Participating in the Campaign through COSRA, Council of Securities Regulators of the Americas * Argentina * Bahamas * Barbados * Bolivia * Brazil * Canada - Ontario * Chile - Quebec * Columbia * Costa Rica * Domincan Republic * Ecuador * El Salvador * Jamaica * Mexico * Nicaragua * Paraguay * Peru * Trinidad and Tobago * Uruguay * Venezuela # # #