FOR IMMEDIATE RELEASE 99-39 Facts on Saving and Investing Campaign Encourages Young Americans To Learn About Saving and Investing Washington, D.C., April 26, 1999--A national partnership of nearly 50 government agencies, consumer organizations, and business groups will reach out to students and young workers this week and throughout the year with educational initiatives aimed at averting the financial literacy crisis that threatens young Americans. The looming threat was underscored in a just-released survey from the American Savings Education Council (ASEC) that found that the vast majority of students have never taken a class in personal finance and two-thirds of the students admit they could use a few more lessons on money management. ASEC's 1999 Youth & Money Survey also found that nine percent are already rolling over credit card debt. Among key initiatives during the week of April 25 - May 1, 1999, state securities regulators in 47 states will visit dozens of high schools across the country, hand out investor education material in shopping malls and work places, air public service ads, and hold investor town meetings. The Securities and Exchange Commission, meanwhile, introduced "Test Your Money Smarts," a quiz that tests the top ten things students should know about money. The quiz is available on the SEC Web site in both interactive and non- interactive formats. The educational outreach is part of the "Facts on Saving and Investing Campaign," a national partnership that encourages Americans of every age and income to get the facts they need to save and invest wisely, and avoid costly mistakes. "The plain truth is that we are in the midst of a financial literacy crisis," said SEC Chairman Arthur Levitt. "Too many people don't know how to determine saving and investment objectives or their tolerance for risk. Too many people don't know how to choose an investment, or an investment professional, or where to turn for help." The campaign's special outreach to young people, whether still in school or just entering the work force, comes at a time when American teenagers are spending more than $100 billion per year. "Today in school we teach kids about sex and drugs but we don't teach them much if anything about money. That's incredibly short-sighted," says Peter C. Hildreth, New Hampshire's Director of Securities Regulation and President of the North American Securities Administrators Association (NASAA), a group representing state securities regulators. "No matter what happens to Social Security, today's young people need to start saving and investing as early as possible. They can't afford to procrastinate or to make the same money mistakes too many of their parents did. We have a financial literacy crisis in this country and we need to mobilize to do something about it." Even a little classroom time can make a difference. A recent study by the National Endowment for Financial Education found that just 10 hours of financial literacy instruction will prompt most teenagers to start saving. Besides learning how to be disciplined savers and investors, young people must learn how to spot scams and frauds, Hildreth said. "We need to teach young people the importance of doing a lot of homework before making an investment, to be skeptical and to always ask, 'Does this sound too good to be true?'" To teach high school seniors the fundamentals of personal finance, state securities regulators are promoting a curriculum known as "Financial Literacy 2001." Developed by NASAA, the National Association of Securities Dealers (NASD) and the non-profit Investor Protection Trust, the course is now being rolled out nationwide. The ultimate goal is to reach every high school senior in the country. For more information on the program, contact the Investor Protection Trust at (703) 276-1116. Campaign initiatives include: * ASEC Youth & Money Survey. On Monday, April 26, 1999, the American Savings Education Council (ASEC) released a major new survey of full-time students ages 16-22 regarding their attitudes about money and money management. * School Visits. As part of a pilot program led by the Securities Industry Foundation for Economic Education and the National Council on Economic Education, securities regulators and other campaign partners will visit schools to talk with students about saving, investing, and avoiding financial fraud. SEC Chairman Arthur Levitt visited Martin Luther King High School in New York City on Monday, April 26, 1999, to introduce new interactive tools for young people to encourage saving. * Financial Literacy Awards. The National Endowment for Financial Education awarded $30,000 in cash to 13 high school students whose posters, essays, and Web sites demonstrated how to save rather than spend. On Monday, April 26, 1999, the 3 first-place winners-students from Alaska, North Carolina, and Washington state-rang the opening bell of the New York Stock Exchange. * New Interactive Savings Calculator. The Alliance for Investor Education created an online, interactive "Savings Calculator" that helps young people see the real price tags on the items they buy. The calculator shows, for example, how $75 for a pair of sneakers could grow to more than $4,000 by retirement if the money was invested instead of spent. The calculator is available at www.investoreducation.org. * Forum on Financial Literacy. On Monday, April 26, 1999, the National Press Club in Washington, DC, hosted a panel discussion on America's financial literacy crisis. Speakers included pollster Mathew Greenwald, who conducted the 1999 Youth & Money survey, and Jayne Pearl, author of the just- published book Kids and Money (Bloomberg Press). * New Financial Literacy Quiz. The SEC developed Test Your Money Smarts, a quiz that tests the top ten things students should know about money. The quiz is available in both interactive and non-interactive formats on the SEC's Web site at www.sec.gov/consumer/camp99/getfacts.htm. * Classroom Poster. The American Savings Education Council (ASEC) developed a classroom poster that shows students how to save for short and long-term goals. The poster can be downloaded from ASEC's Web site at www.asec.org. * Distribution of the Ballpark Estimate. Campaign partners will distribute the Ballpark Estimate, a single-page worksheet that helps people quickly calculate how much money they should save each year for retirement. Interactive and non-interactive versions are on ASEC's Web site at www.asec.org/toolshm.htm. * New ICI Web site. On April 26, ICI launched a special section of its Web site to highlight the Facts on Saving and Investing Campaign. A quiz format-complete with pop-ups, animation, and sound effects-will help users "get the facts" quickly and easily. Visit www.ici.org/quiz/quiz_index.html. ICI is also distributing its video, "Introduction to Mutual Funds," to schools and libraries across the country. * Workplace Seminars. Securities regulators and other campaign partners will visit work places to speak with employees about credit management, planning a personal budget, personal financial management, and saving and investing wisely. * Employee Newsletter Articles. The American Payroll Association worked with other campaign partners to produce a series of personal finance articles for companies to publish in employee newsletters and other publications. For more information about campaign events, visit www.sec.gov/consumer/camp99/getfacts.htm. # # #