Worcester Business Journal

14 Worcester Business Journal | October 14, 2024 | wbjournal.com F O C U S B A N K I N G & F I N A N C E As financial illiteracy becomes a growing concern, Central Mass. institutions are helping people understand how money can work for them Demystifying finances BY MICA KANNER-MASCOLO WBJ Staff Writer C linton Savings Bank begins offering financial education services for children as young as kin- dergarten. Starting at such a young age is key, as it is one of the most effective ways to combat the growing problem of financial illiteracy in adulthood, said Ellen McGovern, senior vice president and chief marketing officer at Clinton Savings Bank. A 2024 study conducted by the Glob- al Financial Literacy Excellence Center, a California-based research agency, found 57% of U.S. adults are financially literate while 30% couldn't come up with $2,000 to cover an unexpected need. Banking and finance leaders at Central Massa- chusetts institu- tions see educa- tion as a key way to help combat financial illiteracy. For example, last year Cornerstone Bank increased the number of financial literacy programs it held from 114 to 204, with 52 employees collectively spending 568 hours on educational programming, according to its annual report. "People in this country are asking for help with finances. So there is a need for this, and we know that it works when people get it. e challenge is that not everybody is able to access financial educa- tion," said Lindsay Torrico, executive director of the ABA Foundation, a nonprofit from the American Bankers Associ- ation providing banks with free programs and resources to promote the financial wellbeing of their customers and com- munities. Financial literacy in schools In the U.S., 26 states require financial coursework to graduate high school, according to the National Endowment for Financial Education. Massachusetts is not one of them. At 18 years old, teens are flooded with credit card offers they oen don't know how to navigate, said McGovern. She sees teens accepting one or more credit cards at a time and quickly un- able to meet their minimum payments because they don't understand how interest rates work. Since many Central Massachusetts schools aren't able to provide financial courses due to budget constraints, Clin- ton Savings Bank offers programming around its market, said McGovern. ose services from Clinton Savings Bank include in-school banking days, seminars, and online courses. e bank has two full-service branches run by students at Tahanto Regional Middle/ High School in Boylston and Nasho- ba Regional High School in Bolton. Overseen by a Clinton Savings Bank relationship manager, the in-school branches afford students the opportuni- Working as the director of financial empowerment at Worcester Community Action Council, most of Terra Oliveira's clients are very aware of the financial situations they're in and are wanting to make progress on their goals, but aren't sure how. "So my job is instilling hope in that and breaking it down into steps that demystify that a little bit," she said. PHOTO | EDD COTE Ellen McGovern, senior vice president and chief marketing officer at Clinton Savings Bank Lindsay Torrico, executive director of the ABA Foundation

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