THIS IS NEED TO KNOW WITH JEFF GREENFIELD, MARIA HINOJSA,SCOTT SIMON AND THIS WEEK RAY SUAREZ >> ON THIS EDITION -- >> SO, I WANT TO MAKE A DEPOSIT.

>> IT'S FINANCIAL LITERACY MONTH, AND IN MISSISSIPPI, THEY'RE GETTING YOUNG PEOPLE, VERY YOUNG PEOPLE, THINKING ABOUT COLLEGE BY INCREASING THEIR FINANCIAL LITERACY.

>> IT'S MAKING SURE THAT THEY GROW UP AND HAVE A FINANCIALLY STABLE LIFE.

IT'S THE FACT THAT THAT CHILD CAN WALK INTO A BANK AND NOT FEEL AFRAID.

>> AND WE'LL HEAR FROM THE MAN CHARGED WITH PROTECTING CONSUMERS FINANCIAL INTERESTS.

>> THE MOST IMPORTANT THING FOR PEOPLE IS TO DEVELOP A SAVINGS HABIT, TO THINK ABOUT SAVINGS.

IF YOU DON'T THINK ABOUT SAVINGS, IT'S TOO EASY FOR ALL YOUR MONEY TO BE GONE, BECAUSE THERE'S THINGS WE WANT, THERE'S THINGS WE NEED.

>> NEXT ON "NEED TO KNOW."

>>> WELCOME TO "NEED TO KNOW."

THANKS FOR JOINING US.

AMERICA MAY HAVE ITS FIRST AFRICAN-AMERICAN PRESIDENT, BUT THE HISTORIC, ECONOMIC DIVIDE BETWEEN BLACKS AND WHITES PERSISTS TODAY.

SOME STATISTICS ILLUSTRATE HOW AND WHY.

A LOWER PERCENTAGE OF AFRICAN-AMERICANS GRADUATE FROM COLLEGE.

AFRICAN-AMERICANS, ON AVERAGE, EARN LESS, BANK LESS, AND SAVE LESS.

ALL THIS HELPS EXPLAIN WHY SO MANY AFRICAN-AMERICANS FACE HARDSHIPS TODAY - AND WHY BRIDGING THE ECONOMIC DIVIDE WILL BE SO DIFFICULT IN THE FUTURE.

THE PROBLEM IS ESPECIALLY SEVERE IN THE DEEP SOUTH, IN STATES LIKE MISSISSIPPI.

THAT'S WHERE NEW EFFORTS ARE UNDERWAY TO HELP THE CHILDREN OF LOW-INCOME, AFRICAN-AMERICANS LEARN TO SAVE FOR COLLEGE.

THE IDEA IS THAT ONCE THEY GET THERE, THEY'LL FIND A WAY TO IMPROVE THEIR FAMILIES' FORTUNES.

STACEY TISDALE REPORTS.

>> EVERY AFTERNOON AT 5 O'CLOCK, LASONIA CHRISTON PICKS UP HER 3-YEAR-OLD TWINS MA'KAYLA AND MA'KENZIE FROM PRE-SCHOOL IN JACKSON, MISSISSIPPI.

CHRISTON'S A SINGLE MOM AND MAKES ABOUT $12 AN HOUR AS A MANAGER AT WALMART.

>> TELL ME ABOUT YOUR FINANCIAL SITUATION RIGHT NOW.

>> WELL, IT'S NOT THE BEST.

>> AND BEING A SINGLE PARENT THAT I AM, IT'S -- IT'S HARD.

IT'S- IT'S VERY HARD.

I DON'T WANT TO WORK IN RETAIL ALL MY LIFE.

DON'T GET ME WRONG - I LOVE MY JOB.

BUT THAT'S NOT THE FUTURE THAT I WANT TO HAVE FOR MY KIDS.

>> THE FUTURE CHRISTON WANTS IS TO BECOME A SPECIAL EDUCATION TEACHER.

BUT SHE HAS NO COLLEGE DEGREE.

SHE'S TAKEN A FEW COMMUNITY COLLEGE CLASSES, AND WANTS TO FINISH SOMEDAY.

CHRISTON, WHO'S NOW 34, GREW UP POOR OUTSIDE JACKSON, AND SAYS NO ONE IN HER FAMILY WENT TO COLLEGE, AND NO ONE EXPECTED HER TO EITHER.

>> DID YOU EVER THINK ABOUT THINGS LIKE GOING TO COLLEGE?

>> AT THE TIME, NO, I DIDN'T.

I -- IT DIDN'T EVEN CROSS MY MIND AT THE TIME.

>> DO YOU REGRET THAT NOW?

>> I DO.

I KNOW I DIDN'T DO IT RIGHT BACK THEN.

BUT IT'S IMPORTANT FOR ME FOR THEM, SO THEY CAN HAVE A BETTER LIFE.

SO, THEY CAN, YOU KNOW, HOPEFULLY GRADUATE, YOU KNOW, HIGH SCHOOL AND GO STRAIGHT TO COLLEGE.

>> WE'RE GOING TO COLLEGE!

>> THANKS TO A NEW PROGRAM HERE IN MISSISSIPPI, CHRISTON MAY GET HER WISH.

BECAUSE EVEN THOUGH MA'KAYLA AND MA'KENZIE ARE JUST 3 YEARS OLD, THEIR TEACHERS ARE ALREADY TALKING TO THEM ABOUT COLLEGE, AND THE TWINS HAVE EVEN STARTED TO SAVE FOR IT.

>> SAY GOOD MORNING.

SAY, I WANT TO MAKE A DEPOSIT!

>> THEY ARE PART OF WHAT'S KNOWN AS THE MISSISSIPPI COLLEGE SAVINGS ACCOUNT PROGRAM.

LAUNCHED MORE THAN A YEAR AND A HALF AGO, THE INITIATIVE HAS OPENED 650 SAVINGS ACCOUNTS FOR MOSTLY LOW-INCOME, AFRICAN-AMERICAN CHILDREN IN JACKSON AND PART OF THE MISSISSIPPI DELTA, ONE OF THE POOREST REGIONS IN THE POOREST STATE IN THE NATION.

BUT THE GOAL HERE ISN'T JUST TO SAVE MONEY.

IT'S ALSO TO TEACH GOOD FINANCIAL HABITS AND CREATE POSITIVE EXPECTATIONS, SO THESE KIDS' FUTURES MIGHT LOOK MORE PROMISING THAN THEIR PARENTS'.

>> IT'S REALLY ABOUT, THEY -- MAY NOT HAVE GONE TO COLLEGE, BUT YOU CAN GO.

>> ERNESTINE BILBREW IS A MISSISSIPPI NATIVE WHO WORKED HER WAY THROUGH COLLEGE.

A REAL ESTATE BROKER AND FORMER MORTGAGE BANKER, SHE'S A BIG BELIEVER IN THE IMPORTANCE OF BUILDING ASSETS AS A WAY TO FIGHT POVERTY.

SO MUCH SO, SHE'S WORKING PRO-BONO TO LEAD THIS PROGRAM.

>> IT'S INSTILLING SOME OF THAT VALUE.

IT'S CHANGING BEHAVIOR.

AND THAT IS ONE OF THE THINGS THAT WE LOOK AT WITH THIS PROGRAM.

IT IS THAT OPPORTUNITY TO BREAK THAT POVERTY CYCLE.

>> THE PROGRAM WAS DEVELOPED BY THE CORPORATION FOR ENTERPRISE DEVELOPMENT, A WASHINGTON, D.C.-BASED NONPROFIT, AND FUNDED BY THE W.K.

KELLOGG FOUNDATION.

IT'S RUN IN MISSISSIPPI BY DELTA STATE UNIVERSITY AND A COALITION OF LOCAL GOVERNMENTS, BANKS, AND NON-PROFITS.

THESE ARE DEPOSIT-ONLY SAVINGS ACCOUNTS IN THE KIDS' NAMES, AND THE MONEY CAN ONLY BE USED FOR FUTURE EDUCATIONAL EXPENSES.

THE $135,000 KELLOGG FOUNDATION GRANT HELPS SEED EACH ACCOUNT WITH $50 WHEN FAMILIES SIGN UP, AND PROVIDES INCENTIVES FOR SAVING, LIKE A THREE-TO-ONE MATCH FOR ALL DEPOSITS MADE DURING THIS FIELD TRIP TO THE BANK.

>> CARL RIST WORKS WITH AN ARM OF THE CORPORATION FOR ENTERPRISE DEVELOPMENT AND SAYS THE PROGRAM IS PART OF A NEW EFFORT TO INCREASE ACCESS TO COLLEGE.

>> HEY, HOW YOU DOING?

DID YOU MAKE A DEPOSIT?

PLACED ON ACADEMIC PREPARATION TO HELP KIDS PREPARE FOR COLLEGE.

BUT THE TRUTH IS, WITH THE GROWING COSTS OF COLLEGE AND WITH SUPPORT IN TERMS OF PELL GRANTS AND OTHER SUPPORT REMAINING FLAT, THERE'S REALLY A BIG HURDLE THERE FOR KIDS TO GET OVER.

>> RIST SAYS THE ACCOUNTS ARE AN IDEA THAT'S CATCHING ON ACROSS THE COUNTRY.

THE CITY OF SAN FRANCISCO NOW FUNDS ACCOUNTS FOR EVERY KINDERGARTNER.

>> THANK YOU VERY, VERY MUCH.

>> ANOTHER SIMILAR PROGRAM IS IN PLACE IN HAWAII ELEMENTARY SCHOOLS, AND FOR THOUSANDS OF CHARTER SCHOOL STUDENTS IN WASHINGTON, D.C., NEW YORK, CHICAGO AND HOUSTON.

SUPPORTERS SAY IT'S NOT JUST ABOUT THE MONEY.

THESE BANK ACCOUNTS MAY ALSO PUSH KIDS TO GET TO COLLEGE IN THE FIRST PLACE.

RESEARCH SUGGESTS THAT KIDS WITH SAVINGS ACCOUNTS ARE THREE TO SIX TIMES MORE LIKELY THAN KIDS WITHOUT ACCOUNTS TO GO TO COLLEGE.

>> IS IT THE SAVINGS ACCOUNT THAT MAKES A CHILD MORE LIKELY TO GO TO COLLEGE, OR IS SAVINGS AN INDICATOR OF THINGS LIKE HIGHER INCOME, BETTER OFF FAMILIES, SO THE CHILD IS MORE LIKELY TO GO?

>> THE RESEARCH ACTUALLY SHOWS THAT THEY'RE MORE LIKELY COMPARED TO STUDENTS WHO ARE LIKE THEM IN ALL OTHER WAYS.

SO, THESE ARE -- THESE ARE KIDS WHO ARE SIMILAR IN EVERY RESPECT, EXCEPT ONE WOULD HAVE AN ACCOUNT, THE OTHER DOESN'T.

THERE'S A REAL POWERFUL DIFFERENCE THAT ACCOUNT MAKES, HAVING THAT MONEY THAT'S BOTH A WAY TO HELP THEM -- HELP PROVIDE A LITTLE MORE MONEY WHEN THEY GO TO COLLEGE TO PAY FOR THINGS, BUT ALSO IT'S KIND OF CHANGING THEIR MIND ALONG THE WAY.

>> RIST SAYS THAT WHILE IT MAY BE ROUTINE FOR WEALTHIER FAMILIES TO SAVE FOR AND TALK ABOUT COLLEGE WITH THEIR KIDS, THOSE CONVERSATIONS CAN BE RARE FOR LOW-INCOME, AFRICAN-AMERICAN KIDS IN PLACES LIKE MISSISSIPPI, WHERE ONLY ABOUT 9% OF AFRICAN AMERICAN ADULTS HAVE A BACHELOR'S DEGREE, COMPARED TO 14.5% OF WHITES.

>> FOR FAMILIES WHERE IT'S NOT EVEN A CONVERSATION, WHERE THERE'S NOT A SENSE OF DO THEY KNOW PEOPLE WHO'VE GONE TO COLLEGE.

YEAH, IT'S NOT EVEN IN THEIR SORT OF -- IN THEIR -- IN THEIR SENSE OF WHAT'S POSSIBLE FOR THEM.

SO, IT'S MORE THAN JUST ABOUT THE MONEY.

IT'S ABOUT KIND OF CHANGING- CHANGING- ASPIRATIONS AND DREAMS.

>> I WANT TO MAKE A DEPOSIT!

>> ALL RIGHT.

>> YOU COULD ASK ANY OF THOSE KIDS WHY ARE YOU MAKING YOUR DEPOSIT.

I'M MAKING MY DEPOSIT INTO MY ACCOUNT SO I CAN GO TO COLLEGE.

>> WE CAN DO WHAT WITH OUR MONEY?

PAY FOR COLLEGE.

TO PAY FOR COLLEGE.

>> IT'S THAT REINFORCEMENT.

IT'S A SEED THAT'S PLANTED EARLY.

AND IF YOU CAN CONTINUE TO TOUCH THEM ALONG THE WAY, THEY LEARN THAT BEHAVIOR.

>> THE KIDS NOT ONLY MAKE TRIPS TO THE LOCAL BANK.

THEY ALSO TOUR JACKSON STATE UNIVERSITY.

>> ANYBODY HAVE ANY QUESTIONS?

>> A NEARBY HISTORICALLY-BLACK COLLEGE, SO THEY CAN SEE JUST WHAT IT IS THEY ARE SAVING FOR.

>> THANK YOU FOR COMING TO JACKSON STATE UNIVERSITY!

>> HOW MANY DOLLARS YOU HAVE IN YOUR HAND?

>> TWO!

>> AND THEY'RE GIVEN TWO DOLLARS EACH FOR A TRIP TO THE GROCERY STORE, WHERE THEY MUST FIND ITEMS THAT COST LESS.

THE IDEA IS TO SPEND SOME MONEY.

>> SPENDING, SAVING.

>> AND SET ASIDE THE REST.

>> THAT'S YOUR MONEY FOR THE STORE, OKAY?

>> THE PROGRAM ISN'T JUST ABOUT GETTING KIDS THINKING ABOUT COLLEGE.

IT HAS ANOTHER VERY IMPORTANT OBJECTIVE.

TEACHING KIDS ABOUT MONEY, MAKING GOOD CHOICES, AND GETTING THEM COMFORTABLE WITH FINANCIAL INSTITUTIONS.

>> IT'S MAKING SURE THAT THEY GROW UP AND HAVE A FINANCIALLY STABLE LIFE.

IT'S THE FACT THAT THAT CHILD CAN WALK INTO A BANK AND NOT FEEL AFRAID.

FOR MANY OF OUR PEOPLE, THEY ARE AFRAID OF A BANK.

>> THIS IS ANOTHER THING LASONIA CHRISTON HOPES WILL BE DIFFERENT FOR HER DAUGHTERS.

>> DO YOU HAVE A CHECKING ACCOUNT OR A SAVINGS ACCOUNT?

>> NO, I DON'T.

>> WHY NOT?

>> I GUESS AFRAID TO HAVE ONE ABOUT OVERDRAFT.

>> CHRISTON SAYS A BAD EXPERIENCE WITH OVERDRAFT FEES LED HER TO GET RID OF HER BANK ACCOUNT SEVERAL YEARS AGO.

SO SHE HAS NO SAVINGS, AND HER PAYCHECKS GET DEPOSITED ONTO A CASH CARD SHE USES TO PAY HER BILLS.

ACCORDING TO THE FDIC, MISSISSIPPI HAS ONE OF THE HIGHEST RATES OF UNBANKED AFRICAN-AMERICAN HOUSEHOLDS IN THE NATION, 31%.

ABOUT 32% MORE ARE UNDERBANKED, MEANING THEY MAY HAVE SOME TYPE OF ACCOUNT, BUT RELY ON CHECK CASHERS OR PAYDAY LENDERS WHO CAN CHARGE EXORBITANT FEES.

>> WE HAVE A TRAIN WRECK AHEAD OF US IF WE DON'T ADDRESS THIS.

>> BILL BYNUM IS THE CEO OF HOPE CREDIT UNION, WHERE MANY OF THESE KIDS ARE NOW MEMBERS.

>> WHAT'S THE EFFECT ON A COMMUNITY WHEN SO MUCH OF THE POPULATION IS OUTSIDE OF THE MAINSTREAM BANKING SYSTEM?

>> THERE IS A CLEAR CONNECTION BETWEEN ACCESS TO FINANCIAL SERVICES AND OTHER INDICATORS OF WELL-BEING.

WE THINK THAT PART OF WHAT WE'RE DOING IS HELPING TO STABILIZE COMMUNITIES.

ONE OF THE THINGS THAT OUR MEMBERS REPORT WHEN THEY GET ACCESS TO A MORTGAGE LOAN OR CAN GET A CAR TO GO TO WORK, IT STABILIZES THEIR LIVES.

>> WHAT KID OF JOB DO YOU WANT WHEN YOU GROW UP?

DOCTOR.

>> AS CHILDREN ARE EXPOSED TO FINANCIAL TOOLS THEY MAKE BETTER DECISIONS.

AND THE EARLIER WE CAN GET THESE CHILDREN INTO A RELATIONSHIP WITH A FINANCIAL INSTITUTION, THE MORE LIKELY THEY'LL CONTINUE THAT AS THEY GROW OLDER.

>> FOR ALL THE POTENTIAL BENEFITS, THE PROGRAM HAS ITS CHALLENGES.

IN THE LAST YEAR AND A HALF, ONLY ABOUT TWO-THIRDS OF THE FAMILIES IN JACKSON HAVE MADE ADDITIONAL DEPOSITS TO THE ACCOUNTS, >> YOU GOING TO COME BACK AND PUT SOME MORE MONEY IN THE CREDIT UNION?

>> AND ONLY ABOUT 35 ACCOUNTS CONTAIN MORE THAN $100.

>> SAVINGS LEVELS ARE NOT WHERE WE WOULD LIKE FOR THEM TO BE.

>> MANY OF THESE FAMILIES CAN BARELY GET FOOD ON THE TABLE.

>> YEAH.

>> THEY CAN BARELY PAY THEIR RENT.

>> YEAH, BUT GUESS WHAT?

WE CAN TEACH THEM HOW TO SAVE.

IF YOU MANAGE YOUR MONEY PROPERLY.

AND I TELL THEM ALL THE TIME, IT'S NOT HOW MUCH MONEY.

IT'S -- IT'S WHAT YOU ARE DOING WITH THAT THAT YOU DO HAVE.

>> BUT AT SOME POINT, THE AMOUNT OF MONEY THEY HAVE WILL MATTER.

AT MISSISSIPPI'S PUBLIC UNIVERSITIES, AVERAGE IN-STATE TUITION, ROOM AND BOARD ADDS UP TO ALMOST $9,000 A YEAR.

>> WHEN YOU LOOK AT THE REAL COST OF GOING TO COLLEGE, WHAT DO YOU SAY TO PEOPLE WHO WOULD TELL YOU, THIS WILL NEVER PAY TO COLLEGE, YOU'RE GIVING PEOPLE FALSE HOPE?

>> EVEN IF THEY DO HAVE TO TAKE OUT A LOAN, THEN IT'S STILL NOT AS MUCH AS WHAT IS HAVING TO BE DONE NOW.

WHAT WE ARE TRYING TO DO IS TO CHANGE THE DYNAMICS.

>> BILBREW SAYS THEY'VE ALREADY CHANGED DYNAMICS AMONG THE PARENTS, WHO OTHERWISE MAY NOT BE SAVING AT ALL.

NEARLY 100% SIGNED UP FOR THE PROGRAM AND MANY ATTEND THE REGULAR FINANCIAL EDUCATION SESSIONS THE PROGRAM ALSO PROVIDES.

>> DO YOU THINK YOU'LL BE SAVING FOR YOUR KID'S COLLEGE RIGHT NOW IF IT WASN'T FOR THIS PROGRAM?

>> NO, JUST THINKING ABOUT MAKING IT DAY TO DAY.

NOT NECESSARILY THINKING ABOUT 10 YEARS, 15 YEARS DOWN THE ROAD.

>> IT'S A GOOD THING SO IT MAKES YOU FEEL LIKE, OKAY, I GOT MONEY HERE SO I CAN USE IT FOR THIS AND THAT'S LESS LOANS ON HIM, SO LESS PROBLEMS FOR THEM.

>> I FEEL LIKE I'M CONTRIBUTING TO HIS FUTURE NOW.

THAT MAKES ME FEEL GOOD.

>> NOBODY HAD EVER GONE TO THIS GROUP OF PEOPLE AND SAID, YOU CAN THINK ABOUT COLLEGE.

NOBODY HAD EVER DID THAT.

AND IT WOULD -- IT'S FANTASTIC.

IT'S FANTASTIC.

>> YOU DO ALL OF THIS WORK PRO BONO.

WHY IS THIS SO PERSONAL TO YOU?

>> THIS PROGRAM MEANS A LOT TO ME BECAUSE OF THE IMPACT -- THE IMPACT THAT IT CAN HAVE.

WHY IS IT THAT HERE IN MISSISSIPPI WE ARE ALWAYS LAST?

THIS PROGRAM IS REALLY ABOUT HELPING PEOPLE TO MOVE THEMSELVES TO THAT BETTER PLACE.

>> BUT HOW LONG CAN IT LAST?

PROGRAM ORGANIZERS SAY THE MATCHING MONEY HAS BEEN CRUCIAL TO HELPING THE FAMILIES SAVE.

BUT THEY'LL NEED TO RAISE ABOUT $380,000 OVER THE NEXT THREE YEARS TO CONTINUE THE INCENTIVES AND ACHIEVE THEIR GOAL OF OPENING 300 NEW ACCOUNTS EVERY YEAR.

TO HELP MAKE IT HAPPEN, THE CORPORATION FOR ENTERPRISE DEVELOPMENT LAUNCHED A NEW INITIATIVE CALLED THE "1 TO 1 FUND" TO RECRUIT PRIVATE DONORS TO PROVIDE MATCHING MONEY, WHICH COULD MAKE ALL THE DIFFERENCE FOR PARENTS LIKE LASONIA CHRISTON.

>> YOUR DAUGHTERS HAVE AN ACCOUNT THAT THEY'RE SAVING FOR COLLEGE.

WHAT DOES THAT FEEL LIKE?

>> IT FEEL WONDERFUL.

>> BECAUSE OF THE PROGRAM, CHRISTON IS NOW LOOKING INTO OPENING A BANK ACCOUNT FOR HERSELF.

AND IN THE SIX MONTHS OR SO SINCE SHE SIGNED UP HER GIRLS, THEIR ACCOUNTS HAVE GROWN TO ABOUT $140 BETWEEN THE TWO.

IT MIGHT SOUND SMALL, BUT FOR CHRISTON, IT'S REPRESENTS A BIG OPPORTUNITY.

AN OPPORTUNITY THAT SHE NEVER HAD.

>> I'M EXCITED, HAPPY, JOYFUL.

YOU KNOW, THE -- YOU KNOW, THAT MY KIDS ARE LEARNING ABOUT MONEY AND SAVING FOR COLLEGE.

SOMETHING I WANT THEM TO DO.

GO TO COLLEGE.

MAKE MOMMY PROUD.

>> JOINING US NOW FROM CHICAGO IS RICHARD CORDRAY, THE FIRST DIRECTOR OF THE CONSUMER FINANCIAL PROTECTION BUREAU, THE NEW FEDERAL AGENCY CHARGED WITH SUPERVISING FINANCIAL INSTITUTIONS, ENFORCING CONSUMER FINANCIAL LAWS, AND EDUCATING CONSUMERS.

DIRECTOR, WELCOME TO "NEED TO KNOW."

>> WELL, WE JUST SAW SOME VERY YOUNG AMERICANS, 3-YEAR-OLDS, >> THANK YOU, RAY.

OPENING BANK ACCOUNTS, AND MANY OF THEM, AS WE HEARD, COME FROM UNBANKED FAMILIES.

WHY IS THIS A PRIORITY?

WHY IS IT SO IMPORTANT TO GET FAMILIES LIKE THE ONES WE SAW INTO THE BANKING SYSTEM?

>> I THINK IT'S IMPORTANT FOR A NUMBER OF REASONS.

FIRST OF ALL, IT GIVES THEM A FUTURE.

THAT'S SO IMPORTANT FOR YOUNG PEOPLE IN TERMS OF ASPIRING AND HAVING HOPES AND DREAMS AND WORKING TOWARD ACHIEVING THEM, WHICH BECOMES MOTIVATIONAL.

ON THE FINANCIAL FRONT IN PARTICULAR, WE HAVE SO MANY PEOPLE IN THIS COUNTRY WHO DON'T UNDERSTAND, AND THEY KNOW THEY DON'T UNDERSTAND.

THEY FEEL SELF-CONSCIOUS AND WORRIED ABOUT IT, HOW TO MAKE FINANCIAL DECISIONS, HOW TO THINK ABOUT THEIR FINANCIAL FUTURE, HOW TO PLAN AHEAD A BUDGET AND THOSE SORTS OF I THINK ESTABLISHING EARLY ON THIS IS NOT SOMETHING TO BE THINGS.

AFRAID OF, IT'S SOMETHING TO BE EMBRACED, IT CAN BE PROTECTIVE OF YOU AND MAKE YOUR LIFE BETTER.

THAT'S AN IMPORTANT LESSON FOR YOUNG PEOPLE.

>> FOR THE MILLIONS OF AMERICANS WHO HAVE A BANK ACCOUNT, WHO ROUTINELY HAVE THEIR WAGES DEPOSITED BY DIRECT DEPOSIT, PAY THEIR BILLS WITH A CHECK, GIVE PEOPLE AN IDEA OF WHAT YOU'RE UP AGAINST IF YOU'RE IN THAT VERY LARGE SEGMENT OF MILLIONS OF HOUSEHOLDS THAT HAVE TO PAY INDIVIDUALLY FOR ALL THESE HOW MUCH DOES IT COST?

SERVICES.

WHAT ARE THEY LOSING?

>> SO, FIRST OF ALL, TRANSACTION BY TRANSACTION, IT BECOMES MORE YOU'RE AT RISK OF BEING SUBJECTED TO FEES AND CHARGES.

EXPENSIVE.

YOU NEVER GET ANY REAL CREDIT FOR HAVING DONE WHAT YOU'VE DONE OVER THE LAST SIX MONTHS.

EACH NEW TRANSACTION IS A ONE-OFF.

THAT'S HARD FOR PEOPLE.

IT ALSO MEANS THEY DO NOT HAVE ANY CONSISTENCY IN THEIR THEY DON'T HAVE SORT OF SUPPORT AND CONFIDENCE.

RELATIONSHIP.

THEY DON'T HAVE UNDER THE LAW THE SAME PROTECTIONS ABOUT MAKING SURE THEY'RE NOT BEING VICTIMIZED BY SOME SORT OF FRAUD OR LACK OF DISCLOSURE OR IF THERE'S SOMETHING THAT GOES WRONG, THAT THERE'S PROTECTION FOR THEM TO MAKE IT RIGHT.

>> WELL, YOUR AGENCY IS STILL PRETTY NEW.

WHAT CAN THE CONSUMER FINANCIAL PROTECTION BUREAU DO TO MAKE SURE AMERICANS AREN'T BEING FLEECED BY PAYDAY LENDERS, CHECK CASHING SERVICES, AND OTHER PARALLEL BANKING SERVICES?

>> THERE ARE THREE THINGS, RAY, THAT WE'RE TRYING TO DO.

FIRST OF ALL, WE HAVE SUBSTANTIVE WORK TO DO TO MAKE CONSUMER FINANCE MARKETS WORK BETTER FOR PEOPLE, MAKING SURE THAT PRODUCTS ARE TRANSPARENT, THAT DISCLOSURES ARE CLEAR, THAT PEOPLE ARE TREATING CONSUMERS FAIRLY AND THAT THE LAW IS BEING NUMBER TWO IS TRYING TO TAKE THE COMPLEXITY WE FIND IN THE ENFORCED.

FINANCIAL MARKETPLACE AROUND DECISIONS PEOPLE MAKE ABOUT THINGS LIKE MORTGAGES OR PAYING FOR SCHOOL, SOME OF THE BIG DECISIONS THEY MAKE, AND TRYING TO REDUCE THE COMPLEXITY SO THOSE DECISIONS ARE MORE ACCESSIBLE TO PEOPLE.

THEY CAN MAKE GOOD DECISIONS.

THEY CAN UNDERSTAND WHAT THEY'RE GETTING INTO.

THIRD IS WE NEED TO BUILD UP THE FINANCIAL CAPABILITY OF IT'S A SHAMEFUL FACT THAT IN THIS COUNTRY WE DO VERY LITTLE AMERICANS.

TO EDUCATE YOUNG PEOPLE BEFORE WE SEND THEM OUT INTO THE WORLD TO BE ON THEIR OWN, TO MAKE THEIR OWN DECISIONS, TO SINK OR SWIM BASED ON WHAT KIND OF DECISIONS THEY MAKE.

IF PEOPLE ARE POORLY EQUIPPED TO HANDLE THAT, MANY OF THEM ARE GOING TO MAKE BAD DECISIONS AND GO WRONG, AND THEY WILL THEN REGRET IT AND IT WILL AFFECT THE REST OF THEIR LIVES.

ON ALL THREE FRONTS WE'RE LOOKING TO IMPROVE LIFE FOR AVERAGE AMERICANS.

>> YOU CAN CREDIBLY SAY I WAS INTO KIDS' FINANCIAL LITERACY BEFORE IT WAS COOL, BUT WHAT MAKES YOU SO PASSIONATE ABOUT THIS TOPIC?

HAVE YOU SEEN IT REALLY CHANGE LIVES?

>> I HAVE, AND I'VE SEEN HOW THE LACK OF IT HAS CHANGED LIVES FOR AS WE CAME UP TO THE RECESSION TEN YEARS AGO IN 2001, 2002, I THE WORSE.

WAS A LOCAL OFFICIAL.

I HAD TO DEAL WITH PEOPLE IN TERMS OF PAYING THEIR REAL ESTATE TAXES.

MANY PEOPLE WHO HAD GOTTEN BEHIND ON THEIR TAXES.

WE WERE ABLE TO WORK WITH THEM, OFFER WORKOUTS AND MODIFICATIONS TO GIVE THEM TIME ON A PAYMENT PLAN TO PAY THEIR TAXES.

AS YOU DO THAT ONE-ON-ONE WITH PEOPLE AND COUPLES AND FAMILIES, YOU START TO SEE HOW MANY OF THEIR PROBLEMS AND MISFORTUNES, SOMETIMES IT'S BAD DECISION, SOMETIMES IT'S BAD LUCK, ARE MADE WORSE BY THE FACT THAT THEY DON'T REALLY UNDERSTAND SOME OF THE DECISIONS THEY'RE MAKING.

AT THE CONSUMER BUREAU NOW, WE HAVE PEOPLE WHO WILL COME AND TELL US THEIR STORY.

WE ENCOURAGE THEM TO DO THAT ON OUR WEBSITE, THE STORIES THEY WILL TELL US ABOUT FINANCIAL DECISIONS THEY WWW.CONSUMERFINANCE.GOV.

MADE THAT THEY NOW REGRET BECAUSE THEY DIDN'T KNOW THEN WHAT THEY KNOW NOW.

HAD THEY KNOWN IT, THEY WOULD HAVE MADE DIFFERENT DECISIONS.

SO IT IS JUST A BEDROCK FACT THAT IN THIS SOCIETY, EVERYBODY IS FINANCIALLY ON THEIR OWN.

THEY'RE EXPECTED TO BE RESPONSIBLE.

BUT WE GIVE THEM VERY LITTLE GUIDANCE, VERY LITTLE SUPPORT, VERY LITTLE TRAINING TO BE ABLE TO DO THAT SUCCESSFULLY.

AND IT'S NO WONDER MANY OF THEM FAIL.

>> YOUR HOME STATE OF OHIO AND MORE THAN A DOZEN OTHERS NATIONWIDE NOW REQUIRE FINANCIAL LITERACY COURSES FOR KIDS IN HAVE THEY BEEN UP AND RUNNING LONG ENOUGH FOR US TO ACTUALLY SCHOOL.

SEE A MEASURABLE, NOTICEABLE IMPACT ON THE WAY THEY THINK, THE WAY THEY BEHAVE?

>> IN OHIO, THAT'S STILL NEW.

IN FACT, IT'S THE FIRST CLASS OF HIGH SCHOOL STUDENTS THAT ARE NOW REQUIRED TO HAVE PERSONAL FINANCE EDUCATION BEFORE THEY GRADUATE FROM HIGH SCHOOL.

BUT WE WORKED HARD TO ACCOMPLISH THAT.

IT'S SOMETHING THAT WE SHOULD BE PUSHING TO ACCOMPLISH THROUGHOUT THIS COUNTRY.

THE NOTION THAT YOUNG PEOPLE ARE GOING THROUGH SCHOOL AND THEN SUDDENLY THEY'RE OUTSIDE THE HOUSEHOLD, ON THEIR OWN, THEY MAY NEVER HAVE LEARNED MUCH AT HOME, OR THEY MAY HAVE BEEN SUBJECT TO SEEING A LOT OF BAD EXAMPLES AT HOME.

THEY DON'T REALLY HAVE A CHANCE EXCEPT TO GO OUT AND MAKE THE SAME MISTAKES OTHER PEOPLE HAVE MADE BEFORE THEM, WHICH TO ME IS THE EXACT OPPOSITE OF WHAT WE SHOULD DO THROUGH EDUCATION WHICH IS LEARN FROM WHAT PEOPLE HAVE LEARN BEFORE US AND TEACH IT IN A WAY THAT INVOLVES LESS PAIN, LESS COST, LESS UPSET TO >> SO WE JUST SAW THE COLLEGE SAVINGS PROGRAM IN MISSISSIPPI THEIR LIVES.

AND THESE YOUNGEST CHILDREN WATCHING THEIR BALANCES GROW.

BUT TODAY IN AMERICA, WHEN INTEREST RATES ARE 0.5% FOR SAVING MONEY, I UNDERSTAND THE LESSON THAT'S BEING TAUGHT, BUT CAN YOU REALLY PILE UP A NEST EGG IN A LOW-INTEREST RATE ENVIRONMENT LIKE THE ONE WE HAVE TODAY?

>> I THINK IT'S A MORE DIFFICULT LESSON IN TODAY'S ENVIRONMENT.

I OPENED ACCOUNTS WITH MY CHILDREN.

I HAVE TWINS.

THEY'RE IN EIGHTH GRADE NOW.

WE OPENED THEM A FEW YEARS AGO.

THEY HAVE MADE VERY LITTLE ON INTEREST IN THESE YEARS COMING OUT OF THE FINANCIAL CRISIS.

THAT'S JUST THE HAPPENSTANCE OF THE WORLD WE'RE IN AT THE MOMENT.

THAT WILL CHANGE OVER TIME.

THE MOST IMPORTANT THING FOR PEOPLE IS TO DEVELOP A SAVINGS HABIT, TO THINK ABOUT SAVINGS.

IF YOU DON'T THINK ABOUT SAVINGS, IT'S TOO EASY FOR ALL YOUR MONEY TO BE GONE BECAUSE THERE'S THINGS WE WANT, THERE'S THINGS WE NEED.

YOU HAVE TO MAKE YOURSELF SAVE.

YOU HAVE TO, AS THEY SAY, PAY YOURSELF FIRST, AND YOU HAVE TO MAKE THAT A HABIT.

OVER TIME, YOU'LL GET THE BENEFITS OF COMPOUND INTEREST, MORE SLOWLY IF INTEREST RATES ARE LOW, FASTER IF INTEREST RATES ARE HIGHER, BUT AS YOU PUT MONEY ASIDE, YOU GET INTO THAT THAT'S THE IMPORTANT LESSON FOR PEOPLE TO LEARN.

HABIT.

IT ALSO MAKES YOU MORE SELF-CONSCIOUS ABOUT YOUR HEARD FROM A NUMBER OF YOUNG PEOPLE IN RECENT WEEKS ABOUT FINANCES.

EFFORTS TO CONTROL YOUR SPENDING.

THAT'S VERY IMPORTANT FOR PEOPLE.

IT HAS TO BE A SELF-CONSCIOUS THING.

IT'S A LEARNED THING.

IT BECOMES A HABIT.

IT BECOMES A MEANS OF BEHAVIOR, NOT JUST KNOWING THE KNOWLEDGE, BUT ACTUALLY PRACTICING AND ACTUALLY DOING THE WORK ITSELF AND MAKING THAT BECOME YOUR HABIT AND ROUTINE OVER TIME.

SO THAT'S VERY IMPORTANT.

AND HAVING GOALS IS VERY IMPORTANT BECAUSE THAT'S WHAT MOTIVATES PEOPLE.

PEOPLE WHO WENT THROUGH THE DEPRESSION LIKE MY FATHER, HE'S NOW LASTING IMPRESSION ON THEM THROUGHOUT THEIR LIVES.

THEY SAVE TOWARD TRANSACTIONS.

THEY EARN THE THING THAT THEY WANT.

IT'S A LESSON, I THINK, WAS LOST IN THE LAST GENERATION OR TWO.

BUT THIS NEW GENERATION HAVING LIVED THROUGH THIS FINANCIAL CRISIS MAY WELL BE LEARNING IT AGAIN.

>> RICHARD IS THE DIRECTOR OF THE CONSUMER FINANCIAL PROTECTION BUREAU.

THANKS FOR JOINING US.

>> MY PLEASURE.

♪♪ >>> THIS IS "NEED TO KNOW."

♪♪ >> THIS WEEK ONLINE, TAKE PART IN OUR WEEKLY POLL.

THE TOPIC, FINANCIAL EDUCATION.

AND FIND OUT WHAT THE CONSUMER FINANCIAL PROTECTION BUREAU CAN DO FOR YOU.

VISIT PBS.ORG/NEEDTOKNOW.

>>> ON NEXT WEEK'S BROADCAST, THE SURPRISING HISTORY OF AMERICA'S DEBATE OVER GUNS.

>> WELL, CERTAINLY THERE WAS -- A NEW EMPHASIS ON SELF-DEFENSE AND THE RIGHT TO SELF-DEFENSE IN THE YEARS RUNNING UP TO THE CIVIL WAR.

>> ONE OF THE THINGS THAT WE FORGET IS THAT IN ALMOST EVERY ONE OF THE COLONIES THE MILITIA LAW REQUIRED PEOPLE TO BE ARMED.

>> THERE WAS A SENSE THAT THE CITIZEN SOLDIER WOULD NEVER HARM NEIGHBORS AND FRIENDS.

>> I'M RAY SUAREZ.

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