Financial Literacy: Promoting the knowledge: Mr. Eric Esterkin... (2)

For all of us who are involved in the global financial industry, witnessing the growth, earnings, investment opportunities, risk and the notorious failures that those markets and major financial institutions on Wall Street have "shared" with all of us on Main Street, have implied unfortunate events and in most cases, sad personal stories: growing credit card debt, foreclosures, bankruptcy, layoffs, unemployment, delayed retirements, massive frauds (the already "famous" Bernard Madoff and Allen Stanford).

In the meantime, we've also witnessed what I think are serious efforts where the U.S. Government wants to create a frame of concrete reference intended to solve or at least provide an initial help for people already grappling with a difficult financial situation.

Since this crisis has had a true global negative effect, we realize that "average" people is being affected by financial problems and in many cases, a difficult time for older people in terms of deciding about retiring now, continue working and how to manage retirement related risks.

Based on a complex financial outlook we are witnessing as a result of this crisis, once again, I scan ee how the whole problem revolves about Financial Literacy and a key goal: our ability to manage our money efficiently not only to buy groceries, pay our debts but the ability to plan our financial future.

Thinking once again about what to do as to how to build a more efficient Money Management process, I invited Mr. Eric Esterkin who is another committed financial advocate, to share his mission and vision in terms of spreading a more complete Financial Advisory process:

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"My company, Younginvesteneur, creates a win-win with financial advisers and their clients through financial literacy and general business education tools. In addition to educating the clients, the YoungInvesteneur Newsletters and other resources promote the advisers' intergenerational referral business, build the adviser a new loyal customer base, educate their customer base and differentiate their brand, all for significantly cheaper than traditional marketing tactics.

"In a recen survey of 300 young adults, on average, 30% of those whose parents utilize a financial professional have decided to open an account with a discount on online firm, despite the obvious ease of accepting a referral from their parents. These lost clients also responded that they are 75% more likely to maintain accounts with their parent's professional, if offered basic financial literacy materials to help prepare them for their future.

"I believe that financial advisors are in a unique position to promote financial literacy as they are directly involved financial transactins with the clients. These transactions are the best learning opportunities for the clients, as opposed to teaching financial literacy in the classroom, as they are more relevant and consequential".

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As a visual complement, let's consider watching the following videos offering us a general view about what a Financial Advisor does, the importance of having an open communication with him and how important his role has become in these tough financial times:

I want to thank and congratulate Mr. Esterkin for another magnificent job in promoting Financial Literacy.

Image: Photobucket

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Financial Literacy: Promoting the knowledge: Mr. Sam Renick... (1)

Based upon available information, the U.S. Government has been doing a reasonably (but not well enough) good job by issuing key rules like the Financial and Economic Literacy Improvement Act and the Credit Card Holders Bill of Rights intended to help people to solve serious problems involving mostly credit cards and ultimately, a worrying lack of financial literacy.

Even though the Obama Administration is working on solving a serious financial crisis by applying new measures but facing in the meantime new problems involving the financial industry as well as critics as to the lack of financial education proposals, let's try to focus our comment on another equally important issue: What are private institutions and individuals doing in order to promote Financial Literacy?

A few days ago, while having a very enlightening conversation with Mr. Sam Renick (a fellow Linkedin member) about what needs to be done to continue promoting Financial Literacy particularly for kids (in order to teach them at an early age about their future "financial independence"), I invited him to share his beliefs as to the job he does as an educator involving the need -in my opinion- to make parents participate in a more serious effort: teach their children the reasons, value and significance of saving a dollar for their future...

In addition to quoting Mr. Renick's educational perspective, I had the opportunity to visit the website where he also talks about his job, mission and values.

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"It's a Habit! Company, Inc. (IACH) is a Los Angeles based micro enterprise formally founded in 2001 by financial education Innovator and social entrepreneur Sam X Renick, a.k.a Sam the Money Man. "During their 8 years of existence, IACH has earned a national reputation for developing and delivering dynamic, strategic family financial education programs and products that feature its main character, Sammy 'the get in habit' Rabbit. The company was chronicled in the February 2007 issu of Kiplinger Magazine wherein editor, Janet Bodnar, stated after witnessing and even, 'Sam and Sammy can whip a gym full of elementary school kinds into a frenzy of enthusiasm for saving money...'

"The IAHC story intially began in October 1998 with Sam's dream to help kids from every economic, cultural and geographic strata learn to save and read. After having a numerous adults share with him their regret for not having started to save or invest earlier in their lives, Sam wrote on napkins a rough draft of what eventually became his first book It's a Habit, Sammy Rabbit!

"With assistance from his then Financial and Insurance Services partner Alonso Silva Jr. and Alonso's family Sam further developed and revised the story. A few years later in 2001, he teamed up with illustrator Juan 'The Honduran Express' Alvarado and former Disney graphic designer, Carlos Rodriguez and officially formed IAHC. The company published its first book, It's a Habit, Sammy Rabbitt! in October 2001 just after 9/11.

"That book was followed by a second book, Will Sammy Ride the World's First Space Coaster? In March 2003 now titled Sammy's Big Dream! A six song music CD titled Get in the Habit! came in September 2003 and was followed in July 2006 by a 15 song music CD, Mission 1 Celebrate Saving!

"In 2004 the company began making live author and character performances at schools and other venues around the country including the National Book Festival in Washington DC. Since the author and character have actively toured promoting financial education and reading in six countries and thirty states to more than 250,000 students, parents and educators.

"In addition to publishing Sammy story books, work books, coloring books, music standard-based lesson plans, training guides and programs it also conducts train the trainer programs for teens and financial education organizations and educators.


"IAHC holds the unique distinction of having its products achieve recognition for use on three different levels:

• Corporate - In November 2007, IAHC was honored with the California Jumpstart Coalition Leadership Award.
• High School Trainer - In July 2007, teenagers from San Saba, Texas were awarded a national gold medal for their Sammy Rabbit Read and Save project with elementary School Students.
• Educator - Notice has been formally received that in September 2009, a university educator will receive a national award for a financial education initiative featuring Sammy Rabbit products and programming.

"The company's motto: Changing children lives one habit and dime at a time!

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From this corner, I want to congratulate Mr. Sam Renick for a magnificent job in collaborating to educate kids in basic financial matters; it's a huge effort but Mr. Renick is clearly a truly a committed educator...

Finally, the following piece of visual information contributes to the need to raise more awareness among parents about the need to educate financially their children... the time to do this is now.

Image: Photobucket

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Financial Culture / Cultura Financiera ©

Students, Credit Cards and Financial Independence... Can they get along together? (4)

Thinking about the financial impact that credit cards have already had on college students, we couldn't stop wondering about why not only banks have been liberal enough to offer those cards but to get astonished as to how deep the lack of debt literacy is among college students and... their parents (If this thing happen in the name of "Financial Independence", I can't stop thinking that something is wrong).

If teenagers and college students are being educated to become smart professionals, Why are they dumb about money (and therefore about credit cards) instead of helping them to become aware about money and credit?

Let's consider these videos about the subject...

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Financial Culture / Cultura Financiera ©