A Collaborative approach to financial Education

1. A Collaborative approach to financial Education Presented by:American Student Assistance

2. Session Overview • Defining financial literacy • The importance of financial education • Developing and implementing a plan • Examples of models and projects • Resources and materials

3. Financial Literacy • “The ability to use knowledge and skills to manage financial resources effectively for a lifetime of financial well-being.” • The President’s Advisory Council on Financial Literacy, 2008 Annual Report to the President

4. The importance of financial education

5. Increasing Tuition & Fees 2012-13 • Two-Year Public: $3,131 Up 5.8% from 2011-12 • Four-Year Public: $8,655 • Up 4.8% from 2011-12 • Four-Year Private: $29,056 • Up 4.2% from 2011-12 Trends in College Pricing 2012, The College Board

6. Student Loan Debt for UnderGrads • Class of 2011: $26,600* • Two-thirds of college seniors borrowed • Outstanding loan debt greater than $1 Trillion** • Student loan debt > credit card debt** *The Project on Student Debt ** Federal Reserve Bank of New York, August 2011

7. Credit Card Usage • In 2012, 35% of undergraduates had a credit card • Down from 42% in 2010 • Average outstanding balance: $755 • 3% charged tuition (average of $2,169) • 4% of parents charged tuition (average of $4,911) • 80% of students carry debit cards. How America Pays for College 2012, Sallie Mae/IPSOS

8. Dollars and Borrowers in Default + CDR FY 2010 3 Year Rate = 13.4% U.S. Department of Education

9. Attitudes Toward Debt and Financial Education • Those with loans recognize: • Benefits of financial counseling from college before graduating • Difficulties of managing money to pay loan *Asked only of those with student loans. 9 Melior Group & American Student Assistance, 2011

10. Developing and Implementing a Plan

11. Key Elements • Perceived need/purpose • Goals and objectives • Format of program • Audience • Partners and resources • Measuring success

12. PERCEIVED NEED/PURPOSE Position Students and Alumni for Financial success Increase Annual Giving & Alumni Engagement Reduce Student Loan Debt and/or CDR Increase Student Engagement Improve Retention Financial Aid Office & Media/Public Relations Admissions, First Year Experience, and Academic Outreach Alumni Relations & Development Student Activities, Residential Life, Career Services Everyone! 12 SALT CREATED BY AMERICAN STUDENT ASSISTANCE

13. TRiO Requirement

14. Possibility for Alumni Office Melior Group & American Student Assistance, 2011

15. Your Development Office Cares! 74% Melior Group & American Student Assistance, 2011

16. Goals and Objectives • Learn good financial decision making • Lower borrowing levels • Lower Cohort Default Rate • Get students to attend • Get students to pay attention • Collaborate with other offices

17. Format of Program • In-person • Course • Orientation • Workshop series • Online • Written material • Counseling • Certified professionals • Peer-to-peer

18. Audience • TRiO students • All entering freshmen • All graduating seniors • College 101 class • Greek life/residence hall groups • Commuter students • Campus organization/major • Young alumni

19. Partners and Resources • Campus partners • Find some champions: staff, faculty, students • Community resources • Local credit unions, banks, insurance professionals, etc. • National resources • Not-for-profit agencies • Blogs and websites • blog.saltmoney.org, studentlendinganalytics.com, todayscampus.com, academic-impressions.com

20. Measuring Success

21. Examples of Models and Projects

22. California State University Sacramento http://www.csus.edu/sfsc-ymm/

23. Virginia Tech http://www.finaid.vt.edu/financial_literacy/

24. Emerson College http://www.emerson.edu/student-life/support-services/student-service-center/money-matters

25. Texas Tech University http://www.orgs.ttu.edu/r2b/

26. Make It Simple! • School Newspaper • Write a regular article on money management and/or student loan basics • Pay for advertisements in the newspaper • School radio or TV station • Social media tools

27. Quick Money Leakage Examples

28. Resources

29. Web Resources • www.myfico.com • www.annualcreditreport.com • www.bankrate.com • www.jumpstart.org • www.afcpe.org

30. Family Economics & Financial Education http://fefe.arizona.edu/

31. SALT http://www.saltmoney.org

32. Principles of Effective Programs • Teachable moments • Active, experiential, and problem-based learning • Evaluation Financial Education in TRiO Programs, Institutional Policy Brief, The Pell Institute, September 2009

33. Most Important • Start somewhere • Anything can help! • Find campus champions to help • Partner with community and national resources

34. Your Plan • Short Term • Identify three actions you would like to take when you return to campus that will get you started on your road to a financial education program. • Long Term • Consider the ideal state. • What resources do you need to make this happen? • Who do you need to partner with? • What does the roadmap look like?

35. Thank you!