Financial literacy changes lives, CU tells Congress

WASHINGTON (9/29/06)--Carl Sorgatz, representing the Credit Union National Association (CUNA) Thursday, testified before a House subcommittee of credit unions' commitment to financial education and the changes such programs can make in the lives of ordinary citizens.

Click for slide show (CLICK TO VIEW SLIDESHOW) CUNA witness Carl Sorgatz, president/CEO of Hawthorne CU, Naperville, Ill., tells the subcommittee yesterday about his credit union's financial literacy classes. Many participants include single parents, and the credit union arranges on-site baby sitters. (Photo provided by CUNA)
Sorgatz, who is president/CEO of Hawthorne CU, Naperville, Ill., painted a picture for members of a House Financial Services subcommittee of the impact credit unions can have through their financial literacy efforts.

He outlined the financial education efforts of CUNA and its member credit unions, and noted they have long been a leading advocate and implementer of financial literacy programs for members of all ages.

Sorgatz said his own credit union has teamed up with Families Helping Families, a group that assists "individuals who are in great need of financial assistance and guidance in getting their lives back on track."

The families receiving assistance, Sorgatz said, are often single mothers and their children who have been victims of domestic violence and poverty. Through a partnership with the National Endowment for Financial Education (NEFE), Hawthorne developed a program that reached not only the adults with financial education, but the children as well with a savings incentives plan.

"Our commitment to provide Financial Literacy to our community is important to our charter, our strategic plan, and center to our success. Becoming 'Our Members' Trusted Financial Advisor' often starts with helping individuals like these better understand their financial options," Sorgatz told the House panel members who were conducting the hearing on private sector coordination and solutions to financial literacy.

Among CUNA's initiatives, he said, are such programs as one developed as an Hispanic outreach plan for credit unions to utilize. Also, through programs such as Jump$tart, NEFE, Thrive by Five, National Youth Involvement Board and the National Youth Savings Challenge, credit unions have made and continue to make "a difference in many lives, through financial education and counseling, and maintain the high standards of 'people helping people.'"

U.S. Rep. Judy Biggert (R-Ill.) chaired the hearing. The subcommittee also heard from witnesses from NASD, a private-sector regulator of financial services, JA Worldwide (Junior Achievement). NEFE, Consumer Federation of America, National Association of Federal Credit Unions, American Bankers Association, and Mortgage Bankers Association.

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