In her remarks at the Financial Literacy & Education Commission (FLEC) Public Meeting July 20, U.S. Treasurer Chief Lynn Malerba discussed the state of financial literacy in Indian Country. Furthermore, she acknowledged the significant buying power of Indian Country, contributing to the economy and experiencing substantial business growth.
“With the right resources, supporting financial literacy can help Tribal citizens build good credit, save for emergencies, go to college and afford stable housing by owning or renting a home – all of which contribute to a stronger Tribal economy,” Malerba said in her remarks.
Her remarks highlighted the interconnectedness of health, education, public safety, environment and business development in Native communities, emphasizing the need for investment in these areas to foster social and economic prosperity and equitable wealth. Of particular concern was the lack of access these communities have to the institutions required for investment and growth.
"Native Americans face higher poverty rates, overcrowding in homes and inequitable health status including poorer social determinants of health, compared to other Americans," she said in her remarks.
She noted Native college students face barriers in financing that higher educations, particularly due to not understanding financial literacy concepts, according to her remarks.
"As Tribal leaders have previously brought to our attention, the lack of access to capital and credit markets creates economic disparities in Native communities. This disconnect from mainstream financial institutions creates a barrier to financial literacy, conventional financing and economic stability." Malerba emphasized in her remarks. "Some banks are hesitant to both locate and lend on reservations due to a lack of knowledge in navigating sovereign immunity, tribal jurisdiction, and the status of land held in trust.”
Malerba continued to impress on the importance of local banks to the success and growth of communities, according to the remarks.
“We know that having a relationship with a local bank is essential to building a credit score, long-term economic growth and financial security. In places where conventional banks have largely ignored Tribal communities, Native American banks, credit unions and community development financial institutions (CDFIs) have stepped in to fill the gap in both banking services and financial education," Malerba continued in her remarks. "These institutions are paving a path for economic prosperity for Native communities.”
