Helping Americans become financially literate: national initiative offers opportunities for Ohio CPAs.

• Author: Eufinger, Tony

A new kind of illiteracy rate is on the rise in the United States. Stories of Americans going into debt, filing for bankruptcy, or failing to build adequate retirement savings are painting a grim picture of the country's financial health. Working in partnership with The Ohio Society, the American Institute of CPAs (AICPA) has launched a national campaign designed to provide a comprehensive approach to life-long financial well-being. The "360 Degrees of Financial Literacy" campaign will soon become very well known among CPAs, and the public. The success of this initiative could be vital to the future financial security of millions of Americans. The initiative also presents CPAs with unique opportunities to give back to the community, broaden their expertise, and to grow their businesses.

**********

As students head back to their classrooms, new statistics provided by the AICPA reveal the rest of America is in dire need of an education. The average American's lack of basic money management concepts is all too clear. Consider the evidence:

* Nearly two-thirds of Americans age 65 and older do not feel fully confident they have the knowledge they need for adequate retirement planning, and almost half are unfamiliar with the impact a 401(k) plan can have.

* For every dollar earned, the average American family spends $1.22. The average family also saw its credit card debt grow by 53 percent in the 1990s.

* As many as 25 percent of Hispanic households in the U.S. don't have bank accounts. Neither do a quarter of all families with incomes under $20,000 and nearly half of the families moving from welfare to work.

* College students carry an average of three credit cards, each with an average balance of $2,748 each.

* Fifty-three percent of women are not covered by a pension, compared to only 22 percent of men.

If a country's economic strength can be measured by the degree of financial literacy of its citizens, then who can help Americans become financially literate?

CPAs--by virtue of their experience and knowledge--are the most qualified professionals to educate the public about these issues, according to U.S. Comptroller General David Walker, CPA.

"Every time CPAs improve a client's financial condition, they are by extension contributing to the economic well-being of our nation," Walker says.

Hitting the Books

CPAs who want to become involved in the financial literacy initiative may want to start by brushing up on the issue. One of the best study guides available is the AICPA's new 360 Degrees of Financial Literacy Web site. By logging on to www.aicpa.org/financialliteracy, visitors can download financial literacy education materials designed to...