Families are the most effective and economical system for rearing children and nurturing adults. Regardless of structure, the family is the primary influence in our lives. The family is important to the well-being of each person and to the strength of society. It is within the family unit where we receive our first lessons on how to live and function as a member of a community. Families that function effectively and manage resources efficiently contribute to positive individual development, a stronger workforce, and a healthier society.

As we enter a new century, American families will continue to face economic and noneconomic challenges stimulated by technological advances. Individual and family financial matters such as basic financial life skills, managing debt, investment and retirement issues will be ongoing skills for the 21st century. Developing and maintaining financial competency for all ages will continue to be a societal concern.

Access to credit, especially unsecured credit has become easier for many population segments since the early 1990s (e.g. individuals with low incomes, young adults with no or limited work history). Indicators of consumers’ inability to manage credit wisely can be seen in the increasing number of personal bankruptcies filed in Pennsylvania bankruptcy courts, the number of national and regional credit counseling agencies that offer on-site and remote counseling, the increasing average outstanding balance on credit cards and the low savings rate of Americans. Americans save about four percent (4%) of their after-tax income compared to the double digit (11-18%) savings rate of other industrialized countries.

Investment and retirement issues will be on the minds of many as baby boomers (persons born from 1946-1964) approach retirement. Women are likely to show an increased interest in these areas as their discontinuous or shorter employment histories and longer average life expectancy will impact their well-being differently than that of men.

Consumers will need new skills to make decisions in a changing marketplace about matters that were once regulated by government entities (i.e., public communications, banking, and utilities). Deceit and fraud in the marketplace has become so prevalent that a national information center operates to address the issues. In addition, consumer alerts about fraudulent activities are commonplace from state and federal consumer protection agencies.

Major housing issues identified for extension programs include the home buying process, landlord tenant issues, and access to affordable housing across the life cycle. Prospective home buyers need to become more familiar with information required by real estate agents, lending institutions, and government legislation, thereby easing the home-buying process. Pennsylvania laws clearly define landlord responsibilities to tenants. Information about tenant rights and responsibilities is not always readily available to consumers. Access to affordable housing for all will continue to be a concern and especially for individuals living on fixed or low-incomes and single family units.

While the forecasted changes will present challenges for individuals and families, through study and experience, family members can acquire knowledge and skills to manage available resources effectively and enhance their well-being. (A resource is anything that can be used or accessed to take care of a need. Examples of commonly recognized resources are time, talent, knowledge, skills, values, attitudes, and money.)

SUB POW: 5.B.l. Basic Family Financial Management - No longer available for program planning after September 30th, 2002.

SUB POW: 5.B.2. Advanced Family Financial Management - No longer available for program planning after September 30th, 2002.

SUB POW: 5.B.3. Non Financial Resource Management - No longer available for program planning after September 30th, 2002.

SUB POW: 5.B.4. Affordable Housing - No longer available for program planning after September 30th, 2002.

SUB POW: 5.B.5. Financial and consumer education

Objective 5.B.5.1. Individuals who participate in financial education programs will learn and apply principals of personal financial management to meet individual or family financial needs.

1. Number of individuals who completed a Financial Security in Later Life related program.
2. Number of participants who increased their financial literacy related to later life issues.