Clinton: Americans should become better savers

Tuesday, April 4th 2000, 12:00 am

By: News On 6

WASHINGTON (AP) -- With the rate of personal savings at a record low, the Clinton administration would like to see Americans become more financially literate -- and in the process become better savers.

The Treasury Department is teaming up with financial education groups, banks and others to form a national coalition to help people sharpen their financial skills and educate them about ways to save.

Called the National Partners for Financial Empowerment, the coalition was to be announced by Treasury Secretary Lawrence Summers in a speech tonight.

The coalition will create an Internet Web site to provide people with resources to become financially literate, Summers said in his prepared remarks. A copy of the text was made available to The Associated Press.

It also will set up national conferences featuring experts to discuss subjects such as personal financial management, saving for retirement and ways employers, schools and other institutions can help educate consumers about their finances.

And, the coalition will launch a national campaign on the importance of financial literary and saving for retirement.

In February, the rate of personal savings, or savings as a percentage of after-tax income, fell to 0.8 percent, a record low. That rate isn't as dire as it would seem because it doesn't include gains realized on savings from such things as rising stock market values and higher real estate values from homes.

"Lifting the rate of savings in our country is both a national and a personal imperative," Summers said in the prepared remarks.

For consumers, Summers offers some suggestions: Start saving early; manage debt as carefully as assets; teach children about money; and do your homework.

"Being a savvy personal consumer takes time," Summers said. "The average American spends several hours per day watching television. Even a small portion of that time diverted into managing one's personal finances could yield big dividends."

Summers also is urging employers to make it as easy as possible for employees to participate in 401(k) savings plans and to educate workers on ways to improve managing their finances. And, he is encouraging schools to bring financial education into their curricula at all levels.

To promote savings, President Clinton, in his State of the Union address, proposed setting up retirement savings accounts for low-income families with the government offering a 2-for-1 match for the first $100 contributed by each person.

Participants in the new coalition include the American Savings Education Council, the Consumer Federation of America, Chase Manhattan Bank, Bank of America and Fidelity Investments.