Financial literacy campaign urges 25- to 34-year-olds to 'Feed the Pig'

Message: Start building financial security now

NEW YORK, Oct. 25, 2006 — The American Institute of CPAs and the Ad Council are launching a nationwide effort to encourage Americans between the ages of 25 and 34 to “feed the pig” as a key step toward building a solid financial future for themselves and their families.

"Feed the Pig" is a national multi-media public-service announcement campaign sponsored by the AICPA and the Ad Council. Featuring Benjamin Bankes, a smartly dressed, adult-size pig who evokes memories of a piggy bank, the campaign delivers a strong message about the importance and benefits of saving.

A dedicated Web site, www.FeedthePig.org, provides free financial information and tools to help young “career builders” take control of their finances and build long-term financial security.

The campaign extends the reach of the award-winning 360 Degrees of Financial Literacy (www.360financialliteracy.org), the CPA profession’s national campaign that helps educate Americans on how financial issues affect them at the different stages of their lives, from childhood to retirement.

“For the first time since the Great Depression, Americans are spending more than they earn,” said Jimmy Williamson, chair of the AICPA Board of Directors. “Twenty-five to 34-year-olds face the toughest challenges but also have the benefit of time to work toward lifelong financial security. Consequently, we are directing our efforts toward them.”

A new AICPA-commissioned study by Dr. Christopher Thornberg and Dr. Jon Haveman, economists with Beacon Economics in Los Angeles, shows that Americans 25 to 34 are not saving enough. The number of people in this demographic maintaining an interest-bearing account or other savings instrument is declining, from 65 percent in 1985 to 55 percent in 2004. In addition, the group’s median net worth has fallen dramatically: In 1985 it was $6,788; by 2004 it was $3,746.

“It’s vital that these young Americans hear, understand and act on the message we are conveying through Feed the Pig,” Williamson said.

Carl George, chair of the AICPA’s National CPA Financial Literacy Commission, said adults in the 25-to-34 age group are in a milestone period of their lives.

“People in this demographic are getting married, having children, developing careers and buying homes,” George said. “The financial decisions they make now will have a long-term impact. Working with the Ad Council, which has a legacy of creative, memorable public-service campaigns, we hope to change behaviors and help set our target audience on the right path.”

According to the U.S. Census Bureau, there are approximately 40 million Americans in the 25-to-34 demographic.

"As a CPA, I'm pleased that the AICPA and the Ad Council have teamed up to promote saving in America,” said David M. Walker, comptroller general of the United States. “All Americans need to do a better job of planning, saving and investing for retirement, and the younger you are when you start, the better off you'll be. I hope the Feed the Pig campaign encourages all Americans, especially young people, to take control of their own finances."

“All Americans should make saving for the future a priority,” said Dan Iannicola Jr., deputy assistant secretary for Financial Education, U.S. Department of the Treasury. “Earlier this year, in the national strategy for financial literacy, the federal government challenged the private sector to join with us in our efforts to help Americans become more financially savvy. I’m pleased to see that the American Institute of Certified Public Accountants has answered our call to action with this new national campaign.”

Uncertain future

Americans between the ages of 25 and 34 face a potentially troubling future as a consequence of their current spending and saving habits, according to an AICPA study.

The number of people in this demographic maintaining an interest-bearing account or other savings instrument is declining, from 65 percent in 1985 to 55 percent in 2004. Notably, the ownership of the most accessible of these instruments, a simple savings account with a bank, fell from 61 percent to 47 percent between 1985 and 2004.

The study was conducted by Dr. Christopher Thornberg and Dr. Jon Haveman, economists with Beacon Economics in Los Angeles, on behalf of "Feed the Pig."

The study also found:

There is an increased willingness among Americans in this age group to acquire unsecured debt. The average level of debt in 1985 was $3,118, whereas by 2004, it had climbed to $4,733.

On average, net worth for 25– to 34-year-olds was 99 percent of income in 1985; by 2004, it was 92 percent.

The East South Central region of the United States (comprising Kentucky, Tennessee, Alabama and Mississippi) ranks lowest in ownership of savings instruments and net worth.

The complete report is available at www.aicpa.org/mediacenter.

Memorable campaigns

Feed the Pig is the Ad Council’s latest campaign. Many of its previous efforts feature slogans that have become a part of the American vernacular, including “Only you can prevent forest fires” for the U.S. Forest Service and “A mind is a terrible thing to waste” for the United Negro College Fund.

“We are proud to partner with the AICPA to address this critical issue,” said Peggy Conlon, Ad Council president and CEO. “I am confident that the media will generously support these important PSAs created by the talented team at Young & Rubicam.”

Feed the Pig will employ a variety of media, including TV, radio, print, digital and outdoor advertising such as billboards and bus kiosks.

Feeding the pig in Maryland

The new campaign complements the MACPA’s efforts as part of the CPA profession’s national initiative to help educate Americans on how financial issues affect them at the different stages of their lives, from childhood to retirement.

For nearly two years, the MACPA has spread the word about financial literacy in Maryland public schools, the General Assembly, the Maryland National Guard and in communities across the state. The MACPA's 2007 Financial Fitness Calendar will be issued in November.

Want to get involved in Feed the Pig and other MACPA financial literacy activities? Sign up here or contact Richard Rabicoff, the MACPA career initiatives and public relations manager, at (443) 632-2318 or richard@macpa.org.

This content has not yet been Rated.

To Rate content, please Login.