Financial literacy: getting down to the basics.

• Author: Albro, Walt

Two banks that have been recognized for the scale and inventiveness of their efforts explain how they put together their educational offerings and how their programs help to cement relationships with their current and future customers.

HERE'S THE REASON WHY BANKS SHOULD EMPHASIZE FINANCIAL LITERACY: A financially literate customer is someone who will make monetary decisions that are good for himself and for his community--and good decisions can only help the financial institution. For this reason, banks have long sponsored financial literacy training, especially for young people--who will be tomorrow's citizens and bank customers. And, financial literacy education is an effective way to strength the banks links both to its customers and its community.

The recession of 2008 accentuated the fact that there is still a long way to go in terms of adequately educating people about common, ordinary financial matters. Witness, for example, the number of people who eagerly bought a house late in the boom without taking into consideration the fact that values are capable of falling as well as rising. The recession and its fallout have encouraged banks to bolster their financial literacy outreach. In this article, ABA Bank Marketing magazine profiles two banks that have energetically pursued new ways to raise the level of financial know-how in their communities.

The first, profile subject is of First National Bank Texas, Killeen, Texas, which teaches young people about financial management and entrepreneurship by encouraging them to run their own lemonade-stand businesses. The second deals with the work at Cape Cod Five Centers Savings Bank, Orleans, Mass., which has expanded its financial education program to include people of all ages: senior citizens and other adults--in addition to young students.

Their two stories follow below.

Kids Learn about Entrepreneurship One Glass of Lemonade at a Time

Amanda Stephens

Assistant Vice President

First National Bank Texas

Killeen, Texas

Asset Size: $1 billion

This learn-by-doing entrepreneurship/financial literacy program for youngsters features a twist--a lemon twist, you could say.

The bank sponsors and organizes an annual Lemonade Day in which hundreds of children scatter throughout the city and set up their own functioning businesses in the form of lemonade stands. In the process, the kids learn the basics of both money management and entrepreneurship.

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The experience teaches participants firsthand that hard work can produce financial success, says Stephens. "Money management suddenly becomes very exciting"

The dynamic event also generates television, radio and print media coverage, which helps to boost the banks community visibility.

Participation has been growing by leaps and...