The reserve says the monetary maze that comprises the global financial system underscores a need for consumers to have a strong and working knowledge of financial concepts.

"Americans of every income and educational background want additional tools and training to address the complexities of personal finance. Educated consumers are one key to keeping our economy functioning well," said board governor Edward M. Gramlich.

Indeed.

Studies reveal success at home ownership is the pay off for better educated home buyers.

Home owners who received home ownership and mortgage counseling have an average 19 percent lower 90-day mortgage payment delinquency rate than those who don't receive counseling, according to a Freddie Mac study, "A Little Knowledge Is a Good Thing: Empirical Evidence of the Effectiveness of Pre-Purchase Homeownership Counseling."

Also, after one semester of personal finance instruction, including everything from borrowing money to estate planning, all of the seniors at Washington, D.C.-based Woodrow Wilson High School's Academy of Finance passed the rigorous Americans for Consumer Education and Competition's (ACEC) 2001 Personal Financial Quiz, according to Susan Molinari, ACEC's national chairwoman.

On June 5, Greenspan and Richmond (VA) Federal Reserve Bank President J. Alfred Broaddus, Jr., will speak with students of John Philip Sousa Middle School in Washington, D.C., about how sound mathematics and problem-solving skills can promote good money management -- a prerequisite to home ownership.

"We believe that this is a particularly good time to promote financial education because of the widespread availability of high-quality curricula, programs and training opportunities for consumers of all ages and backgrounds," Gramlich said.

Some 32,000 teachers in 42 school districts in the San Diego-Riverside-Imperial County area in Southern California have received "HomeWords," Newspapers in Education (NIE) curriculum that teaches the next generation of home owners about home ownership while strengthening their reading, writing and math skills.

"We fail to teach kids financial responsibility in terms of applying math skills to real life. We expect good things out of this program," said Kim Holm, head of the San Diego's Union-Tribune's NIE program.

The Union-Tribune NIE version of a program, originally developed by the Los Angeles Times, is sponsored by the San Diego Association of Realtors and California Coast Credit Union.

"The whole thing is based on the nuts and bolts of home ownership. Teachers get newspapers and a study guide with predesignated exercises based on accredited curriculum," said Pamela Thorsch, the association's government affairs director who helped set up the San Diego program.

The Federal Reserve education Web site is also being enhanced with links to additional educational resources including, "There's a Lot to Learn About Money," a brochure filled with tips for taking charge of personal finances, setting financial goals, budgeting, and using credit wisely.

Througout 2003, reserve banks will update existing financial education programs and launch new ones, some involving partnerships with area financial institutions and private-sector organizations.