Karen Murrell: All Publications, Events and Press

Developing Sophisticated Financial Consumers

Asset Building — Wed, 10 Sep 2008 08:27:00 -0400

Karen Murrell in The Oklahoman on Financial Education

Communications — Sun, 28 Oct 2007 07:30:00 -0400

New America in the News:

Explosive growth in the number and complexity of financial products available to Americans has far outstripped programs aimed at teaching consumers how to choose and use those products, experts said Wednesday at a financial education conference in Oklahoma City.

Consumers have dozens of options unavailable to previous generations in terms of retirement plans, loans and credit cards, said Karen Murrell of the New America Foundation, a Washington, D.C.-based think tank.

"What hasn't changed is the amount of education people get to help them make these decisions," Murrell said.

One of the results has been a sharp decline in personal savings, Murrell said.

"People are not only spending every dime they have, they're dipping into savings," she said. "Debt is rising much faster than household income." ...

For the complete article, please follow this link.

Public Policy Ideas to Improve Financial Education and Help Consumers Make Wise Financial Decisions

Asset Building — Wed, 17 Oct 2007 11:51:00 -0400

Although the number of financial education programs has grown over the last decade, few policies have been enacted to evaluate, support and expand effective financial education and increase financial capability. Although the government is not the only entity that can help improve financial education, there is an important role for the government sector to play that complements the efforts of the private sector, the nonprofit sector, and the efforts of individuals to take personal responsibility to access financial education. All levels of government can develop policies that help prepare youth and adults to make wise financial decisions. … more

Beyond the Mortgage Meltdown

Communications — Thu, 20 Sep 2007 05:00:00 -0400

A New America Event
09/20/2007 - 12:00pm

The current -- and predicted future -- turmoil in the mortgage market highlights an important challenge to the American dream of homeownership: how to make certain that those who enter into homeownership are able to sustain that status, protecting family stability and building equity in a critical asset. Thirty years ago, those who owned homes had fixed rate mortgages and substantial equity, and foreclosure was a rare event. However, many Americans were denied the opportunity to become homeowners because of inefficient mortgage markets, underwriting based more on “rules of thumb” than analysis of the likelihood of loan repayment, and, frequently, discrimination.

By the end of the 1990s, positive changes in all three dimensions helped raise America’s homeownership rate, especially for lower-income and minority families. But in part because of excesses that have encouraged and enabled many to support homeownership based solely on debt, without building assets or equity, we are now at serious risk of losing many of those gains.

Both Congress and bank regulators are considering how to help those currently in trouble and to bring the mortgage industry back into better alignment with sound practices. Can potential homeowners and those who work with them use more direct saving, education and other strategies to return to sustainable homeownership while retaining, and in fact enhancing, broadened ownership opportunities? At this event, the panel of experts listed below offered both novel solutions and improvements to proven programs to boost savings and encourage asset-building through sustainable homeownership.

Video of this event is available at right, while an MP3 audio recording can be downloaded below.

The Congressional Savings and Ownership Caucus is Co-Chaired by Sen. Kent Conrad (D-ND), Rep. Jim Cooper (D-TN), Rep. Phil English (R-PA), Rep. Tom Petri (R-WI) and Rep. Earl Pomeroy (D-ND).

New America Foundation Launches Financial Services and Education Project

Jerry Irvine — Thu, 14 Dec 2006 17:21:00 -0500

(WASHINGTON, DC, 12/14/06)— In response to the growing complexity of financial services, the persistent need for widespread, effective financial education, and the increasing importance of reducing debt and building wealth by millions of low-, moderate- and middle-income Americans, the New America Foundation’s Asset Building Program is establishing the Financial Services and Education Project, with funding from the Ford Foundation.

“To build and retain personal and community assets, Americans must navigate a financial system that is innovative and robust, but complex and constantly changing,” said Ellen Seidman, the recently named director of the new project. “The Financial Services and Education Project… more