The Role of Professors in Improving Financial Literacy

With President George W. Bush's creation of the President's Advisory Council on Financial Literacy in January 2008, the topic of financial literacy was elevated to a national priority. As the impact of the financial crisis of 2008 became apparent, the popular press denounced the actions of the banks and mortgage brokers that granted credit to individuals who were poor credit risks. A broader view, however, has recognized a shared responsibility by those individuals who voluntarily added unmanageable levels of debt to their personal balance sheets as if such leverage had no risk. A primary objective of the roundtable was to introduce finance professors to a number of organizations that are involved in the fight to increase financial competency. These organizations offer a wide range of resources designed to lift the level of an individual's financial acumen and decision making ability. The message being that a finance professor does not have to develop materials or design a curriculum from scratch to get involved.