NEWS for North Dakotans
Agriculture Communication, North Dakota
State University
7 Morrill Hall, Fargo, ND 58105-5665
March 26, 1998
Millions of Americans lack the basic saving and investing information they need to achieve financial security. Some of those Americans are North Dakota residents. That's the reason why the North Dakota State University Extension Service has begun offering Money 2000, an educational program that teaches participants how to increase their financial well-being by increasing savings and investments and/or reducing debt. The program encourages participants to set a goal they can attain by the end of the millennium.
Money 2000 is a national program available through the U.S. Department of Agriculture's Cooperative States Research, Education and Extension Service (CSREES). The developer of Money 2000 is Barbara O'Neill, an extension agent in New Jersey's Sussex County and author of "Saving on a Shoestring: How to Cut Expenses, Reduce Debt and Stash More Cash." Thus far, about 30 state extension services are offering Money 2000. Most states are introducing the program on an area-by-area basis.
"Money 2000 went statewide here last fall because we used it as a packaged program for the North Dakota Family and Community Education affiliates and other organized groups," says Debra Pankow, extension family economics specialist at NDSU.
Along with the USDA, several other federal agencies, including the Securities and Exchange Commission and the Justice and Labor departments, have joined national business and consumer organizations to increase awareness about the need for saving and investing. At the state level, the North Dakota Securities Commission has joined the effort by promoting the Facts on Saving and Investing Campaign, a grassroots educational effort that kicks off during the week of March 29 through April 4.
Just how serious is the problem of financial illiteracy in America? The 1997 Retirement Confidence Survey found that three out of every four American workers have no idea how much they need to save for retirement, and two-thirds have not even tried to figure out how much savings they'll need for retirement.
"We are in the midst of a financial literacy crisis, and many will pay a high price," says SEC Chairman Arthur Levitt.
The U.S. Department of Commerce reports that the average American in 1997 saved only 3.8 percent of his or her personal disposable income, a savings level matched once this decade. Only twice since World War II has the personal savings rate dipped below 3.8 percent. Meanwhile, North Dakota's non-business bankruptcy filings for 1997 stood at more than 1,800—nearly 225 percent higher than the 1980 level.
"Most North Dakotans need to plan to increase savings and reduce debt. Money 2000 can help by providing classes and other resources," says Pankow. "A quarterly newsletter is available for all who join the campaign."
Money 2000 programs will vary by county. For local educational opportunities, check with the nearest county office of the NDSU Extension Service.
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Source: Debra Pankow (701) 231-8593
Editor: Dean Hulse (701) 231-6136