WEBVTT - Starting Financial Education Early

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<v Speaker 1>This is Bloomberg Business Week with Carol Messer and Tim

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<v Speaker 1>Steneveek on Bloomberg Radio. Well, we've got a financial literacy

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<v Speaker 1>problem here in the US. Each year, the TIAA Institute

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<v Speaker 1>does a financial literacy assessment of adults in the US.

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<v Speaker 1>They have this thing called a G. Fleck Personal Finance Index.

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<v Speaker 1>This year, US adults only answered forty eight percent of

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<v Speaker 1>questions on the index. Carol, and some groups fared better

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<v Speaker 1>than others. The levels of financial literacy among Asian Americans

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<v Speaker 1>and whites are roughly equal, that's at about fifty five percent.

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<v Speaker 1>But Black Americans correctly answered thirty four percent of the

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<v Speaker 1>index questions on average, and Hispanics thirty eight percent.

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<v Speaker 2>Another gap that needs to be closed. So people who

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<v Speaker 2>are financially literate tend to do better. This is why

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<v Speaker 2>it's important. Finner found that people who scored higher on

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<v Speaker 2>its financial literacy quiz were more likely to set aside

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<v Speaker 2>emergency funds, more likely to plan for their financial futures,

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<v Speaker 2>and spent less of their income. So let's get to

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<v Speaker 2>our next guest. She is working to tackle inequality through

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<v Speaker 2>financial literacy. Doctor Renee Baker is founder and CEO of

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<v Speaker 2>the RBI Group. It's a firm that does marketing and

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<v Speaker 2>financial education. She's also an adjunct professor at the University

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<v Speaker 2>of South Florida and she joins us on Zoom from

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<v Speaker 2>Saint Petersburg, Florida.

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<v Speaker 3>Renee.

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<v Speaker 2>Great to have you here with us. First of us,

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<v Speaker 2>tell us about your mission and how you are going

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<v Speaker 2>about it.

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<v Speaker 4>Well, thank you so much for having me on today.

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<v Speaker 4>The mission around the RBI Group is really to educate,

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<v Speaker 4>empower and elevate individuals and organizations when it comes to

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<v Speaker 4>financial literacy. That's really truly our imperative. But we also

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<v Speaker 4>have an opportunity through amplification of strategic marketing opportunities where

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<v Speaker 4>we're focusing in the wealth management space. That's where I've

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<v Speaker 4>spent decades of my career and getting into in front

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<v Speaker 4>of the problem, as you mentioned earlier, tackling the financial

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<v Speaker 4>literacy challenge here in our country.

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<v Speaker 1>The thing is is people who who need the services

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<v Speaker 1>of wealth managers are probably pretty financially literate because they

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<v Speaker 1>don't have the problem of not having money. In fact,

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<v Speaker 1>they have the problem of Okay, well, how do I

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<v Speaker 1>invest this money? How do I make this money grow?

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<v Speaker 3>Right?

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<v Speaker 4>And I'm not here to say, there are many people

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<v Speaker 4>who have financial literacy education and our ware, but as

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<v Speaker 4>you highlight it, there is a tremendous opportunity when it

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<v Speaker 4>comes to the overall financial education within our country. For instance,

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<v Speaker 4>I think about my background. I didn't grow up talking

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<v Speaker 4>about finance and my community. It wasn't until I got

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<v Speaker 4>to college where I majored in finance undergrad that I

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<v Speaker 4>started to have that conversation and as a result, I

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<v Speaker 4>was able to share with my three daughters the importance

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<v Speaker 4>of financial literacy. So while there is an opportunity for

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<v Speaker 4>financial literacy in our country, yes, there are people that

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<v Speaker 4>have it, but WHOA. We have about thirty one million

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<v Speaker 4>children in our world and our country that do not

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<v Speaker 4>have financial literacy. And as you highlighted earlier, just a

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<v Speaker 4>small percentage of adults feel comfortable when it comes to

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<v Speaker 4>financial literacy.

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<v Speaker 2>So Renee help me out here again. This is one

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<v Speaker 2>of those stories, whether we're talking about diversity, whether we're

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<v Speaker 2>talking about women as CEOs, I feel like I've been

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<v Speaker 2>talking about it for decades, and the same thing with

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<v Speaker 2>financial literacy. And I remember talking with people about creating

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<v Speaker 2>books for kids so that they could really learn about

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<v Speaker 2>it early on and make it part of a core curriculum.

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<v Speaker 2>But here we are same problems, same conversation. How do

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<v Speaker 2>you move the needle specifically?

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<v Speaker 4>That is such a great question, Carol, and opportunity, and

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<v Speaker 4>that's why I'm here, and that's why this is an

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<v Speaker 4>imperative and admission for the RBI Group, because financial literacy,

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<v Speaker 4>for one, is not taught in schools. There are so

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<v Speaker 4>many adults in our country that are not comfortable having

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<v Speaker 4>the conversation about money. But what we recognize is through

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<v Speaker 4>the RBI Group, through our programs and our tools and resources,

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<v Speaker 4>we can get in front of it. And one of

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<v Speaker 4>the opportunities these we have is through our kids programs.

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<v Speaker 3>We have so much data and research.

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<v Speaker 4>That shows that they're earlier that children have access and

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<v Speaker 4>learn and are educated about financial literacy, the better off

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<v Speaker 4>they be. They'll be and as adults make more informed decisions.

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<v Speaker 2>Right, But how do you do it? So I get it.

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<v Speaker 2>I think we all agree we're on the same page

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<v Speaker 2>in terms of the problem and starting earlier is going

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<v Speaker 2>to be more productive right, longer term? So how do

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<v Speaker 2>how are you specifically moving the needle on this?

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<v Speaker 3>Thanks Carol.

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<v Speaker 4>So one of the opportunities we have is through our

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<v Speaker 4>direct to consumer Kids program, through our partnership with the

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<v Speaker 4>Sentibles Financial Literacy Program, which was really designed to reach

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<v Speaker 4>and teach kids about money and through entertainment editainment. Finance

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<v Speaker 4>doesn't always have to be bad. Finance can be fun.

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<v Speaker 4>So through educating and entertainment.

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<v Speaker 3>We're able to have that offering. We also provide opportunities.

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<v Speaker 4>For tools and resources from children through adults through our

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<v Speaker 4>multiple offerings, and the best way to get that information

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<v Speaker 4>is to go to our website on BCSD Kids dot

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<v Speaker 4>com for our director consumer program, but check out the

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<v Speaker 4>RBI group dot com for more information about our tools

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<v Speaker 4>and resources.

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<v Speaker 3>What about one, Well, I'm get ahead of it.

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<v Speaker 1>Sorry, sorry to interrupt you there. I didn't mean to

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<v Speaker 1>do that, but I am wondering about the role that

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<v Speaker 1>public schools should take and what high schools should do.

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<v Speaker 1>It's funny I was reading through the notes that you

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<v Speaker 1>sent our producer a little earlier today, and this has

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<v Speaker 1>actually improved. You write that only nineteen states require one

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<v Speaker 1>hour course on financial literacy to graduate, and doing research

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<v Speaker 1>for this, that's actually double what I found from just

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<v Speaker 1>a few years ago. So it seems like states are

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<v Speaker 1>starting to get the.

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<v Speaker 4>Picture, right, and that's one of another way having that conversation,

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<v Speaker 4>getting teaching financial literacy and schools and while only nineteen

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<v Speaker 4>states require a one hour course in financial literacy, getting

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<v Speaker 4>into schools and getting into kids younger. Right now, financial

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<v Speaker 4>literacy is not taught in elementary schools. So there continues

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<v Speaker 4>to be an evolution of this discussion around financial literacy.

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<v Speaker 4>So getting in front of kids and having that conversation

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<v Speaker 4>early but not missing out the fact. Yes, it's important

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<v Speaker 4>to sooner you get started, the better, but it's always

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<v Speaker 4>a good time to learn about financial literacy. And we

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<v Speaker 4>have an opportunity and that's one of the imperatives of

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<v Speaker 4>the RBI Group and that discussion.

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<v Speaker 2>So do you provide programs then, like to help the schools?

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<v Speaker 3>Is that so we have?

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<v Speaker 4>Yes, absolutely, so we have the financial Literacy program.

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<v Speaker 2>Okay, okay, that's right. Sorry forgive me finished, Sorry you bet.

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<v Speaker 2>We just wanted to let you know we have about

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<v Speaker 2>thirty seconds left here and I didn't want you to

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<v Speaker 2>run out of time, so go ahead.

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<v Speaker 3>Yes, so, thank you, Carol.

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<v Speaker 4>So we have financial tools and resources through the RBI Group,

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<v Speaker 4>through our Sensible Smart program which is BCSD Kids dot com,

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<v Speaker 4>which is our director's consumer Kids program. We also provide

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<v Speaker 4>a variety of tools and resources to educate kids through adults.

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<v Speaker 4>We even have a lesson plans to help teachers talk

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<v Speaker 4>to their kids and adults and parents talk to their kids,

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<v Speaker 4>and you can find reach out to us on the

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<v Speaker 4>rbigroup dot com for those resources.

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<v Speaker 3>Action phase to get.

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<v Speaker 2>Started well, certainly something that we've been talking about for

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<v Speaker 2>a long time. Doctor Renee Baker, founder and CEO at

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<v Speaker 2>the RBI Group, joining us on zoom from Saint Petersburg, Florida.

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<v Speaker 2>You are listening and watching Bloomberg Radio