The FoolProof Initiative is a project by America’s credit unions that teaches financial literacy

Financial literacy

Financial literacy is the ability to understand finance. More specifically, it refers to the set of skills and knowledge that allows an individual to make informed and effective decisions through their understanding of finances...

 to consumers in the United States and Canada through a variety of programs. It uses video and audio, games and music in a modular system to teach complex as well as basic financial concepts such as understanding credit (finance)

Credit (finance)

Credit is the trust which allows one party to provide resources to another party where that second party does not reimburse the first party immediately , but instead arranges either to repay or return those resources at a later date. The resources provided may be financial Credit is the trust...

 and credit score

Credit score

A credit score is a numerical expression based on a statistical analysis of a person's credit files, to represent the creditworthiness of that person...

, getting a checking account or savings account

Savings account

Savings accounts are accounts maintained by retail financial institutions that pay interest but cannot be used directly as money . These accounts let customers set aside a portion of their liquid assets while earning a monetary return...

, and knowing how to use credit cards.

The Initiative, for instance, appears one of the most effective in reaching vulnerable young people overextended on credit card debt.

Its motto is "Real Financial Literacy For All."

Characteristics

FoolProof is a program designed by young people from across the world to help educate students about financial decisions in a friendly video format using real life stories. The best part is that FoolProof can be used for free by anyone, no matter their financial aptitude, to help (young) people learn about money.

Young people generally make common mistakes when it comes to their money. The FoolProof Initiative addresses these problems.

Here is a list of the most common mistakes:

• I don’t have to worry about credit (finance)
  Credit (finance)
  Credit is the trust which allows one party to provide resources to another party where that second party does not reimburse the first party immediately , but instead arranges either to repay or return those resources at a later date. The resources provided may be financial Credit is the trust...
  
   yet.
• Bad credit can’t keep me from getting a job.
• All loan companies have the same rates.
• All credit cards are alike.
• Advertisements tell the truth.
• It’s OK to bounce a few checks.
• It’s OK to make minimum payments on a credit card.
• Paying late occasionally can’t hurt my credit.
• Fine print
  Fine print
  Fine print, small print, or "mouseprint" is less noticeable print smaller than the more obvious larger print it accompanies that advertises or otherwise describes or partially describes a commercial product or service...
  
   isn’t important.
• Young people don’t have a credit score
  Credit score
  A credit score is a numerical expression based on a statistical analysis of a person's credit files, to represent the creditworthiness of that person...
  
  .

Curriculum

Available are a variety of educational programs that are tied to state financial literacy standards and guidelines, listed in every state by the United States Department of Education

United States Department of Education

The United States Department of Education, also referred to as ED or the ED for Education Department, is a Cabinet-level department of the United States government...

. All programs are available to any consumer for free.

Endorsements

The FoolProof Initiative is endorsed by many consumer-oriented organizations throughout the United States:

• Consumer Federation of America
  Consumer Federation of America
  The Consumer Federation of America is a non-profit organization founded in 1968 to advance consumer interests through research, education and advocacy....
  
   (CFA), a non-profit organization
  Non-profit organization
  Nonprofit organization is neither a legal nor technical definition but generally refers to an organization that uses surplus revenues to achieve its goals, rather than distributing them as profit or dividends...
  
   founded in 1968 to advance the consumer interest through research, education and advocacy.
• National Association of Consumer Advocates (NACA) is a nationwide organization of more than 1500 members who represent and have represented hundreds of thousands of consumers victimized by fraudulent, abusive and predatory business practices.
• Credit Abuse Resistance Education
  Credit Abuse Resistance Education
  Credit Abuse Resistance Education is a national program founded by the U.S. Bankruptcy Court, WDNY and the Bankruptcy Committee of the Monroe County Bar Association. It was founded in 1997 by Bankruptcy Judge John C...
  
   (CARE) Program is a national program founded by the U.S. Bankruptcy Court, WDNY
  United States District Court for the Western District of New York
  The United States District Court for the Western District of New York is the Federal district court whose jurisdiction comprises only a part of New York....
  
  and the Bankruptcy Committee of the Monroe County Bar Association. It was founded in 1997 by Bankruptcy Judge John C. Ninfo, II, and as of 2008 has a presence in all 50 states.
• Education Credit Union Council (ECUC) is a trade association addressing the needs of credit unions who serve educational communities.

External links

• http://www.foolproofme.com/ FoolProof Initiative Website
• http://www.consumerfed.org/ Consumer Federation of America Website
• http://www.naca.net/ National Association for Consumer Advocates Website
• http://www.careprogram.us/ Credit Abuse Resistance Education Program Website
• http://www.ecuc.org/ Education Credit Union Council Website