News Release
Financial Advisors Throughout U.S. Bancorp Piper Jaffray to Teach Financial ABCs on National Teach Children to Save Day

MINNEAPOLIS - April 16 - "Teach your children well,*" was a popular lyric when baby boomers were growing up. But statistics show that today's adults are not always setting examples that live up to the verse when it comes to saving for the future:

• The U.S. personal saving rate averaged only 1.3 percent in 2000 and 2001 compared to 9 percent between 1960 and 1989 and 6 percent during the 1990s. (Source: The Bank Credit Analyst, April 2002)
• Personal bankruptcy filings are at record highs in America. 1.5 million individuals filed for bankruptcy in 2001, up from 1.2 million in 2000. (Source: The American Bankruptcy Institute)

To help stem this tide, U.S. Bancorp Piper Jaffray, a full service securities firm, has developed an interactive financial education program for children in fourth through sixth grades, which it will launch on Thursday, April 18 -- National Teach Children to Save Day. U.S. Bancorp Piper Jaffray financial advisors will visit approximately 100 classrooms across America on National Teach Children to Save Day, which was initiated by the American Bankers Association in 1997.

"We are concerned that children are consistently bombarded with 'spend now, worry later' messages," said Paul Grangaard, U.S. Bancorp Piper Jaffray president of Private Advisory Services. "Our new Teach Children to Save program is one of several financial education programs we've developed to help children achieve their dreams. U.S. Bancorp Piper Jaffray has a commitment to financial education because children are up against many barriers."

Grangaard says lack of savings is not the only obstacle for today's children in living life to the fullest. "Not only have personal savings dropped, the cost of college -- which supplies one of the greatest future opportunities for children - has been skyrocketing. Last year college tuition rose 7.7 percent and, as has been widely publicized, experts expect the cost to outpace inflation for years to come," he said. "We would like to make a difference in preparing the next generation by reaching out to families and communities with fundamental financial guidance."

Financial Advisors Teach School
On National Teach Children to Save Day, U.S. Bancorp Piper Jaffray financial advisors will attempt to make saving and investing money even more fun than spending it. Fourth through sixth graders will be introduced to a savings brain-teaser the firm developed called, "Let's Make a Deal." Children are to assume that their parents are planning to give them an allowance to do a daily chore such as walking the dog or cleaning their room. They are asked to give their parents a choice between paying them $20 a month or paying them a penny the first day, two pennies the second day, four pennies the third day and so on, doubling the pennies each day. Which should the parents choose?

While children typically will say $20, most adults know there's a hitch. And they're right. Within two weeks the pennies add up to $163.83. After one month the pennies add up to $10,737,418.23! Following this brain-teaser, financial advisors will teach students how to make money grow through a savings account or CD. Finally, they will introduce them to the concept of stocks through a stock game.

Parents have a role in helping children to save
Parents have an important role in reinforcing savings lessons children will learn in school on April 18. Here are some savings tips for parents to use with children at home:

1. Give them an allowance with the understanding that part of it goes into their own savings -- a first step toward learning to budget.
2. To make their savings visible and real, have them build up savings in a piggy bank. Then help them open their own bank savings account, and have them make deposits each month.
3. Use their monthly statements, or the record in their savings passbooks, to show them how their money is growing.
4. For every dollar children earn, encourage them to spend 25 cents on what they want or need now, put 25 cents away for a bigger-item purchase later and save or invest the rest. (That's a 50 percent savings rate!)
5. Make savings and investing fun. Give children play money to "invest" in stocks they can track in local newspapers. If the stocks go up, pay them in more play money; if the stocks decline, they pay you.
6. Best of all, show children how to save by example. Adults can save by having a portion of their paycheck directly deposited into a savings account, IRA, 401(k) account or other savings options.

(Source: American Bankers Association)

College savings plans can help parents save for their children
In addition to helping children to save their own money, parents can also help children get a good start in life by saving for their children's college education early. The returns from an investment in college beat just about any other investment:

• People with bachelor's degrees earn an average of 80 percent more than those with only a high school diploma.
•Over a lifetime, that can add up to a million-dollar difference, according to the U.S. Census Bureau.

The lifetime rewards of college require a substantial capital outlay, however. The cost of a public college education today averages $3,754 a year, while the cost of private college today is about $17,123 a year, according to The College Board. Typical room and board expenses run about $5,254 at a public college and $5,455 at a private college. And the cost of college is outpacing inflation. The College Board estimates that public college for a child born this year will likely cost more than $124,00 over four years, and private college will total $270,000 over four years.

Education Savings Plans Help Foot the Bill
College savings plans, including the 529 college savings plan and Coverdell Education Savings Account, allow parents or grandparents to set aside money each year for college tuition tax deferred. When a child is ready for college, he or she can also make federally tax-exempt withdrawals to pay for qualified expenses such as tuition, as a result of new tax laws.

These plans are only two of several options for college saving. Parents should learn about all the options before deciding on a plan that's right for them. A good overview is provided on the Web at www.piperjaffray.com.

The lesson for both parents and children is that putting away even a little money consistently can help children achieve their dreams in life. And a little help from a financial advisor to determine savings and investing plan will help families prepare for a bright future.

U.S. Bancorp Piper Jaffray, a subsidiary of Minneapolis-based U.S. Bancorp, provides a full range of investment products and services to individuals, institutions and businesses. Approximately 1,200 financial professionals provide investment guidance to clients through more than 120 offices in 18 Midwest, Mountain, Southwest and Pacific states. The company also has a national reputation for its expertise in debt and equity financing for growth companies. U.S. Bancorp offers a comprehensive range of financial solutions through U.S. Bank, U.S. Bancorp Asset Management, U.S. Bancorp Investments and U.S. Bancorp Piper Jaffray. For more information, visit our Web site at piperjaffray.com.

*Crosby, Stills, Nash & Young, "Teach Your Children"