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It pays to be financially literate

Surveys continue to conclude that consumers don't have the best grasp of personal finance issues.

There are good intentions behind these surveys. Their purpose is to find out how to create financial literacy programs to help people understand the importance of saving and investing, the devastating results of taking on too much debt, and how to avoid becoming a victim of fraud.

In fact, April has been designated as National Financial Literacy Month. Last year, in a proclamation about setting some time aside during April to learn more about your finances, President Obama noted: "As we recover from the worst economic crisis in generations, it is more important than ever to be knowledgeable about the consequences of our financial decisions. The financial crisis was fueled by a lack of responsibility from Wall Street to Washington. It devastated ordinary Americans, many of whom were caught by hidden fees and penalties or saddled with loans they could not afford. Preventing a recurrence will require both better behavior and oversight on Wall Street and more informed decision-making on Main Street and in homes across our country."

In other words, they -- the bankers -- did some awful things, but individuals have to ultimately take personal responsibility for their own financial decisions.

So do you have any plans to observe National Financial Literacy Month?

If you don't, let me suggest one thing you can do. Go to the website for the Consumer Financial Protection Bureau ( and take the agency up on its "ask us anything" new feature. It's an interactive online tool that allows you to submit questions on everything financial from credit cards to debt collection to reverse mortgages.

CFPB Director Richard Cordray says "Ask CFPB" was designed to provide consumers "answers in plain language so they can make sound financial decisions."

Far too often the people who are most readily available to answer your financial questions have an agenda because they want to sell you a service or product. It's important to seek out a source that can provide answers that are unbiased.

The Ask CFPB feature already contains hundreds of answers to the most commonly asked financial questions. The majority of the entries are focused on credit card and mortgage questions. However, in the coming months, the bureau will expand the database to answer questions about a range of financial products and services, including student loans, auto loans and checking and savings accounts.

There's another government site that can help you:, which is dedicated to providing basic financial information culled from more than 20 different federal websites. If you prefer, you can call toll-free (888) 696-6639 and can hear recorded financial tips, which are available in English and Spanish. You can also order a MyMoney toolkit, a package of printed financial materials from government agencies.

Here's a really good idea: High school teachers were able to have students take the National Financial Capability Challenge, which is sponsored by the Department of the Treasury in partnership with the Department of Education.

Here's an example of the type of question asked (there are 40 multiple-choice questions that typically take about 30 minutes to complete): Sara works full time at the Big Save store and earns $2,500 per month. Who pays the contributions to Social Security on the $2,500 per month in wages she earns?

Various government agencies and nonprofits are providing tips, programs and links to other events to help you in your journey to learn more. For example, the Office of the Comptroller of the Currency lists a number of financial literacy events including a "Shopping For Loans Webinar" on April 26 that teaches people to evaluate loan terms to get the best deal. For details go to and search for "Financial Literacy Update."

Spend some time in April boosting your financial knowledge. It will be well worth it.