Financial Literacy: An Invitation for Your Participation and Insight

Financial Literacy: An Invitation for Your Participation and Insight

The New York State Society of CPAs’ Personal Financial Planning Committee has created a subcommittee called the Financial Literacy Subcommittee, which consists of four members who are ready to take their passion for teaching to the masses.

Drawing from the success of the American Institute of CPAs’ 360 Degrees of Financial Literacy program, which encourages CPAs to volunteer to educate the American public on financial topics that apply to particular stages of life, this subcommittee currently is putting together a plan to provide financial literacy knowledge to all ages, from kindergarten to eldercare.

The need for increased financial literacy and this subcommittee is self-evident. For example, in a new study, economic expert Global Insight, Inc., predicted that personal bankruptcy rates in the U.S. will rise 11.3 percent between 2004 and 2007. This study, “Predicting Personal Bankruptcies,” projects that after a lull in recent years, annual bankruptcy filings in the U.S. will increase to more than 1.74 million in 2007.

An increasing number of Americans are getting into financial trouble and living beyond their means. Seven out of 10 college undergraduates have at least one credit card, according to a news report from KWWL News in Iowa. Twenty percent of those students have run up a debt of at least $10,000, and one estimate says that more young people are filing for bankruptcy than are graduating from college, KWWL reported. Average credit card debt per U.S. household is $8,400, according to a statistics report on www.creditcounselingbiz.com. Approximately 24 percent of personal expenditures in the U.S. are made using bank credit cards, retail cards and debit cards, the statistics report said. Additionally, two out of every three American households will probably fail to realize one or more of their lifetime goals, according to the AICPA.

The subcommittee’s mission, therefore, is simple: educate, educate, educate. As trusted professionals with knowledge of tax, finance and economics, CPA financial planners are highly qualified to assist those in our communities who are in need of a financial education. As the subcommittee’s plan comes together, more information will be made available.

The NYSSCPA’s Financial Literacy Subcommittee consists of Michael E. Goodman, CPA, of Wealthstream Advisors, Inc., in Manhattan (mgoodman@wealthstreamadvisors.com); Michael David Schulman, CPA/ PFS, of Schulman CPA, in Manhattan (michael@schulmancpa.com); Robert H. Yunich, CPA, of Aidala Services Management, LLC, New England Financial, in Manhattan (ryunich@tba-ny.nef.com); and the author, CPA, candidate for CFP® certification, and a sole proprietor practicing tax and financial planning in Staten Island.

If you are interested in assisting this subcommittee, please contact the author at 718-605-1985 or at fjdcpa@si.rr.com, or any of the other subcommittee members.