NO STUDIES HAVE BEEN DONE ON THE NEED FOR CONSUMER EDUCATION IN PRISONS, BUT A STUDY ASSESSING THE CONSUMER COMPETENCE OF THE GENERAL POPULATION FOUND THAT SOME 34.7 MILLION ADULT AMERICANS FUNCTION WITH DIFFICULTY AND ANOTHER 39 MILLION ARE FUNCTIONAL BUT NOT PROFICIENT IN COPING WITH BASIC CONSUMER ECONOMICS REQUIREMENTS. OTHER STUDIES REPORT SIMILARLY PESSIMISTIC OBSERVATIONS ABOUT THE STATE OF THE TYPICAL AMERICAN FAMILY'S ECONOMY. IT IS ASSUMED THAT INMATES ARE ESPECIALLY IN NEED OF CONSUMER EDUCATION BECAUSE THEIR CRIMES MAY HAVE BEEN CAUSED BY ECONOMIC PRESSURES OWING TO IGNORANT MANAGEMENT OF PERSONAL FINANCES. MOREOVER, INMATES HAVE BEEN REMOVED FROM THE MAINSTREAM OF ECONOMIC ACTIVITY FOR SOME TIME AND ARE LIKELY TO FACE ECONOMIC PROBLEMS UPON RELEASE BECAUSE OF EMPLOYMENT UNCERTAINTY AND POSSIBILITIES OF LOW PAY. CONSUMER EDUCATION IN INSTITUTIONS COULD BE BASED ON TWO POSSIBLE MODELS--THE TRADITIONAL CLASS WITH A SINGLE INSTRUCTOR OR SPECIALIZED INSTRUCTION BY COMMUNITY PERSONNEL SUCH AS BANKERS, REPRESENTATIVES FROM FINANCE AND INSURANCE COMPANIES, CREDIT COUNSELORS AND OTHERS. FOR INMATES SCHEDULED FOR PRERELASE PROGRAMS, MONEY MANAGEMENT AND CONSUMER SKILLS TRAINING WOULD BE ESPECIALLY VALUABLE. REFERENCES ARE PROVIDED. (MRK)