Pub. 11 2021-2022 Issue 3

coloradobankers.org 4 L et me tell you an ugly secret that not even my closest colleagues know about me: before my long career in banking, I was absolutely clueless when it came to my personal finances. I did not lack for intelligence or drive; during my college years, I maintained pretty solid grades. But when it came to my checking account, unopened bank statements would pile up, along with more than a few overdraft fees. By Mike Brown Regional President, Alpine Bank 2021-2022 CBA Chairman Chairman’s Message Financial Literacy and Banks: A Job or a Duty? What forms has this taken across the banking spectrum? For starters, many banks — big and small — have created their own “classes” for customers and non- customers alike. My budget (and my access to ramen dinners) consisted of whatever a nearby ATM machine told me on a given day. And when it came to borrowing for my last year of college, I didn’t know about my interest rate or how my inevitable loan payments would be calculated. I was only concerned about where to sign and when the money would show up. Now, fast forward more than three decades later. By virtue of lifelong experience — not to mention choosing banking as a career — I came to cure my own lack of financial awareness. But across our country, our state, and our communities, there are many intelligent, hardworking individuals who struggle with financial literacy, including concepts like budgeting, money management, investing and borrowing. Globally, the United States ranks behind more than a dozen countries when it comes to financial literacy among adults. Nationally, surveys conducted over the past 10 years have consistently shown that well over half of American adults do not understand basic financial terms. The negative effects of this issue may be seen in nationwide problems, such as student loan defaults as well as the lack of retirement planning by the majority of working American adults. The simple fact is that our society does not formally equip students and adults with everyday financial knowledge. This issue is not confined to a single age, gender, racial or economic group. But many — if not most — of these good folks have one thing in common: They’re customers of our banks. Our industry has come to realize that serving our customers and our communities goes far beyond daily deposit and lending transactions. Financial education has increasingly