April 10, 2009

The current economic crisis could have been avoided if borrowers were more informed about the financial choices they make, Ric Struthers, president of Bank of America Global Card Services, said at the University of Delaware on Tuesday, April 7.“It all starts with financial literacy and it's young people in grade school, middle school, high school and college,” Struthers said. “We need to spend more time educating them about fundamental financial tools: balancing their checkbook, thinking about their own income statement. If they have a part-time job, what percentage goes to savings, spending charity, etcetera.

“That's really important. If we had done that many years in the past, especially in the mortgage industry, we wouldn't be having some of the problems we have today. People would be paying a little more attention to the loans that they signed up for .... Instead of just getting engaged in the excitement about buying a new home, they are thinking about what their commitment is going to be for the next 15 or 30 years."Struthers was speaking about “Managing Consumer Lending Through Troubled Times,” during a seminar for Delaware high school teachers organized by James B. O'Neill, director of UD's Center for Economic Education and Entrepreneurship (CEEE).