Each depositor insured to at least $250,000 per insured bank

Federal agency making special outreach to Hispanic communities to promote awareness of its award-winning money management course; materials available in English and Spanish

Nearly 40 million Hispanics live in the United States and, according to estimates, about half of the adult Latino population doesn't have a checking or savings account. That's why the Federal Deposit Insurance Corporation (FDIC), an independent federal government agency, is making a special effort to ensure that Hispanic Americans are aware of an FDIC program that can help them better understand their finances and manage their money.

The FDIC's Money Smart financial education program, created in 2001, is aimed at the so-called "unbanked" - persons who may rely on "fringe" banks to cash checks, perform wire transfers, and other banking services that generally charge more than traditional financial institutions. Money Smart helps families make better financial decisions, teaches them about traditional banks and how to better manage their savings so that they can feel comfortable coming into the financial mainstream.

"Individuals without a banking relationship and without a basic knowledge of money management will have a difficult time building wealth and ownership, buying a home or generally pursuing the American dream," said FDIC Chairman Don Powell. "They also will pay higher fees for loans, money transfers and check cashing if they go outside of mainstream banking for these services," Powell said. "Financial education holds the key to financial prosperity in the Hispanic community, and the FDIC is here to help."

Money Smart is an award-winning financial education program available free of charge to help consumers learn the basics of banking. It is designed to help adults, especially those from low- or moderate-income families, understand the basics of banking -- from opening a savings account to choosing and using a credit card to buying a home. There are two versions of Money Smart . One is a version designed for classroom instruction and is available in five different languages. The other is an interactive, computer-based instruction (CBI) in English and Spanish for self-paced learning that can be used any time and anywhere there is access to a computer.

Since its inception, the FDIC has distributed more than 242,000 copies of Money Smart (paper and CD-ROM versions) to financial institutions, community groups and government agencies across the country. About 300,000 people have taken Money Smart classes and 40,000 new banking relationships have been established by Money Smart students. The computer-based version was launched on September 15, 2004, and since then more than 71,000 CBI curricula have been issued.

The FDIC also works with national and local organizations that promote Money Smart to their constituents. Currently, the FDIC has agreements with 33 such partners on a national level and another 900 locally.

For more information on the Money Smart program or to see the online version, go to www.fdic.gov/consumers/consumer/moneysmartsp/index.html which also includes details about where financial education classes in Spanish are being held.

In addition, the FDIC publishes a quarterly newsletter about Money Smart and financial education, which is aimed primarily for financial educators. The last two issues -- Summer and Fall 2005 -- featured reports on FDIC outreach efforts to Hispanic communities. They can be found at www.fdic.gov/consumers/consumer/moneysmartsp/newsletter/sum2005 and www.fdic.gov/consumers/consumer/moneysmartsp/newsletter/fall2005.

To subscribe to a listserv that will notify you automatically when a new edition of Money Smart News is posted to the FDIC Web site, follow the instructions at www.fdic.gov/about/subscriptions/index.html.

Congress created the Federal Deposit Insurance Corporation in 1933 to restore public confidence in the nation's banking system. The FDIC insures deposits at the nation's 8,868 banks and savings associations and it promotes the safety and soundness of these institutions by identifying, monitoring and addressing risks to which they are exposed. The FDIC receives no federal tax dollars – insured financial institutions fund its operations.

FDIC press releases and other information are available on the Internet at www.fdic.gov, by subscription electronically (go to www.fdic.gov/about/subscriptions/index.html)and may also be obtained through the FDIC's Public Information Center (877-275-3342 or 202-416-6940).