Greenspan Says Consumers Have To Be Educated

Financial education is vital to the well being of the nation's economy these days according to Federal Reserve Board Chairman Alan Greenspan. It can both help consumers to make better financial decisions and help them to embrace the new technologies that are so much a part of that economy, he said.

Greenspan was speaking before a Federal Reserve audience. He said computers and technological advances have lowered the cost and broadened the scope of what financial services are available. However, with the proliferation of specialized lenders and their new products has come a wide array of choices, and consumers need education to help them make wise choices and avoid abusive lenders. Education also can help the nation's consumers overcome any fears they have about using the new technological tools and financial products that are available.

Greenspan pointed to the limited research that is available on the benefits of early financial learning, but said most of it affirms that consumers who have been taught the basics of financial planning save better, invest better, and make wiser choices.

Copyright © 2001 Bankers' Hotline. Originally appeared in Bankers' Hotline, Vol. 11, No. 4, 4/01