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First Nations Development Institute Receives Funding to Implement Investor Education Through National Trainings in Native Communities
April 2, 2007
"Most of us assume that individuals consider all available information when making decisions, especially financial decisions, but there's a growing body of evidence that that's not always true - that social, emotional and other influences lead people to make unwise economic and investment decisions that affect their financial security." - NASD Foundation Chairman Mary L. Schapiro
Fredericksburg, VA - First Nations Development Institute is pleased to announce its first national training on investor education in Native communities. The training, "Investing for the Future: National Native Train-the-Trainers Event," will be held June 27 - 28, 2007. The event will be co-hosted by the Oneida Nation of Wisconsin's Trust Committee and is set to take place at the Oneida Nation Radisson Hotel and Conference Center in Green Bay, WI. The workshop will prepare financial education trainers to teach tribal community members and council members the basics of investing and investment management skills. The featured curriculum is First Nations' most recent publication, "Building Native Communities: Investing for the Future," which focuses on basic investing concepts in a culturally appropriate, accessible, and interactive style.
The two-day workshop is geared towards high school teachers, tribal college instructors and tribal financial professionals as well as financial advisors and consultants. It also marks the launch of the three-year InvestNative Project, which, like the "Building Native Communities" curriculum, is funded by a grant from the NASD Investor Education Foundation to First Nations Development Institute. The goal of the InvestNative project is to increase tribal members' knowledge of investment principles to help them make informed investment decisions. For the latest information on the InvestNative Project as well as the Building Native Communities - Investing for the Future curriculum released in late 2006, see First Nations' website at www.firstnations.org.
Reservations are at risk for predatory lending and other payday lending schemes. The growth of tribal industries and casinos have enabled more financial opportunities for Native Americans. However, many reservations have no banks or financial institutions, leaving their members open to high priced loans from car dealers, pawn shops, or payday lenders. Many Native Americans who live on or near reservations are hit hardest by the deregulated lending, especially when lending sharks target Native youth.
Susan White, Director, of the Oneida Trust Department of the Oneida Nation explains why some youth are targeted: "Oneida issues per capita, which has many social issues, good and bad. Our minor's trust fund payouts have become substantial, and we have observed positive and negative behavior associated with the distributions." The most effective strategy for Native youth and those wanting to make better use of their financial gains is through financial education and positive role modeling.
"I think it's hard for youth to take money seriously because they haven't had any role models in investing," commented Laura Manthe, the Director of the Oneida's Environmental Resource Board. This may be true, however groups like the Oneida Trust Committee are addressing the need for investment strategies and are becoming the role model. The next step is for other tribal leaders to focus on financial and investment literacy as a way out of negative financial behaviors that may affect young Native adults for the rest of their life.
White explains that education is a priority for Oneida, "We are looking at initiating an education benchmark before a minor receives their trust fund distribution. We see that some tribes have incorporated a high school diploma requirement in order for the minor to receive their trust fund. First Nations Development Institute's investor education curriculum is right in line with the Oneida Trust Committee's goals for our community." The train-the-trainer event on the Building Native Communities - Investing for the Future aims to bridge some of the gaps in investor education experienced in tribal communities by providing investor education for managing and investing assets.
Wayne Taylor, a former Hopi Tribal Chairman and currently a financial advisor for Merrill Lynch, agrees that investor education is a good start towards self sufficiency, "Wise investment practices allow communities to safeguard their hard-earned assets and utilize income to their greatest advantage." Taylor is currently helping lead the investor education effort in Arizona by bringing investment opportunities and financial literacy to Native American communities in the Scottsdale and Phoenix areas through Merrill Lynch's financial literacy drive.
"We believe that this workshop provides a solid foundation for improved community well-being and tools through which Native communities can increase and enhance their options for the future," stated First Nations Development Institute President, Mike Roberts. "The challenge for us is to make sure the next generation has access to investor education to further their understanding of money matters and investment options, so we are making this curriculum available for the them to learn about investing."