Photo courtesy of rachel payne, tacoma community college
MONEY-WISE. Senator Patty Murray visited Tacoma Community College on April 9 to speak about the possibility of financial literacy programs being integrated into K-12 and 2-year and 4-year colleges. LaTasha Smith also attended the event and spoke of her experience in Goodwill’s adult Financial Literacy program, and how significantly it changed her life for the better.
On April 9, U.S. Senator Patty Murray (D-WA) made her way to the Tacoma Community College (TCC) campus to speak to students, college administration and local financial leaders about the bipartisan legislation she and Senator Thad Cochran (R-MS) and Representative Carolyn McCarthy (D-NY 4th) sent through Congress on March 19, “The Financial and Economic Literacy Improvement Act of 2009.”
The current economic crisis the entire country is experiencing is evidence of how imperative education on the essentials of money management and responsible budgeting are for all age groups. Through the rebuilding of state infrastructure and new efforts on the part of schools and congressional leaders, hopefully these programs will soon become a reality.
Dr. Pamela J. Transue, president of TCC, expounded upon an unfortunate reality for many individuals today – personal finance is a mystifying, if not impossible, subject to tackle.
“People don’t know how to budget, finance their cars or homes, or start saving their money. Half of all college students use credit cards to pay for their expenses, and they end up in debt because of it,” Transue affirmed.
Transue spoke of the methods in which TCC has recently been trying to integrate financial literacy into its existing programs, such as Human Development 101, which had 650 students enrolled last quarter. She also spoke to the financial literacy program that Goodwill Industries heads, and how TCC is striving to work together with the organization to share their program with students. Transue gave her staunch support for the legislation, and noted, “it provides strong and meaningful support for our efforts.”
Murray, a Bothell native, relayed that people in Pierce County and Tacoma have been hit hard by this recession, and many people are asking how we got in this position. She explained that when she was young, she grew up with the three r’s, “reading, writing and arithmetic,” but she wants to introduce a new one into the mix – “resource management” – and affirmed that her legislation is stepping up to the plate and helping out K-12 and higher education institutions with this new goal.
The bill would authorize $250 million annually for financial education, and the funding would be funneled through state and local agencies. $125 million of the bill funding would go directly to teaching financial principles at K-12 institutions, and the remaining $125 million would help two and four-year institutions, like TCC, start programs dedicated to finance management.
One aspect of the meeting that was of critical importance to Murray was hearing the stories of students and adults regarding their experiences or struggles with handling money, and passing them on back in Washington, D.C.
One TCC freshman, 18-year-old Jesus Pedraza, took the podium after Murray to speak about his own financial situation. “I’ve tried to make good financial decisions so far, and I live on a budget. My parents teach me how to not misuse credit cards, and about interest,” he said. Although Pedraza currently does not have any major financial hang-ups, he feels that the bill could go a long way towards helping him prevent them before they happen. “I don’t want to get in debt in the future.”
Columbia Bank CEO Melanie Dressel spoke of the ways in which her company tried to help individuals learn more about finance everyday, but sometimes people do not take the opportunity. “We see it (lack of financial skills) every day. It is critical for individuals of all ages to navigate the financial system and make good financial choices,” Dressel said.
She also discussed how household saving has become negative in recent years, and people are spending well above their means. Firstly they are consuming all of their income, then begin tapping into their savings accounts, and spending money from other sources in addition to those that are readily available. Dressel’s ultimate bottom line was that “local banks can be a great resource (for financial help),” for those who need it now.
A former TCC student, LaTasha Smith avoided mail and phone calls for four years out of fear, and the knowledge that she just did not know how to handle her finances.
“I’ve never had trouble finding a job, and I thought that having more money meant that things would be fixed,” Smith said. She was not aware of how to best handle her money until she took a free financial literacy course through Goodwill. She asked questions in the class, got answers, and was grateful for the opportunity to get her life back on track and finally began communicating with her bank. Smith wrote a letter to Governor Chris Gregoire speaking highly of the Goodwill program that she participated in, and affirming that similar programs should be available to those who need them in the rest of the country, as well.
“I (now) know what a 401k is, budgets, compound interest, and I file my bills in a cabinet with 20 labels on it. I’m honest about where I am, and people are willing to work with me. I don’t hide anymore,” Smith stated with confidence.
In order for these changes to be implemented, the government needs to take the reins. As Murray’s press release on the bill states, “In January, after President Obama took the oath of office he called for an era of personal responsibility. This bill helps Americans to usher in that era.”
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