Financial literacy: programs help young and old to understand money matters. "Feed the Pig" promotes saving.

• Author: Hromadka, Erik
• Position: FINANCIAL SERVICES

CALCULATING THE expected return of capital spent on an early redemption of convertible debentures in terms of a company's projected market cap can be a frustratingly complex and difficult process ... balancing a checkbook should not be.

And yet, many Indiana residents have trouble understanding and practicing such basic financial concepts as budgeting, saving and making wise choices with their money, Since those skills are often not taught in schools, the state's financial community is stepping up to provide such an education in what they call financial literacy.

Financial literacy suggests that a person understands and has the ability to apply the necessary financial knowledge in everyday life. However, since there's no required education or standardized teaching material, that knowledge and ability varies widely across segments of the population. Often financial literacy is a lifelong learning process that requires more advanced financial skills to help individuals through increasingly complex matters, from a young person getting a first paycheck to a senior citizen trying to stretch retirement savings.

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Teaching people how to deal with money is the goal of Dian Reyome, financial literacy coordinator at Centier Bank in Merrillville. As an independent community bank that has been family owned and operated since 1895, teaching new generations about financial matters is a priority for the bank, she says.

"Unfortunately a lot of adults have never been taught how to balance a checkbook or choose a credit card wisely," she says. "If everyone in our community becomes more financially literate, our community is going to blossom."

Reyome, who has a background in education and marketing, is taking financial literacy programs into northwest Indiana communities by making resources available to local school teachers, with classroom materials that correlate with the Indiana Standards for Learning, and by creating programs for adult education centers. She also wants to partner with businesses that seek to assist their employees with financial matters and help them make wise choices with money, because doing so can avoid problems that cause hardships both at home and on the job.

Because a lack of financial skills often leads to economic difficulties, Reyome also works with the local trustee's office to reach out to those already in need and help them to avoid repeating poor financial choices. Another audience that Reyome targets is...