Reality Store™ - Preparing for the Next Generation of College Bound Students

1. Reality Store™ - Preparing for the Next Generation of College Bound Students Amy Gaffney, University of Dubuque Jayne Dinse, South Central College

2. Agenda • What is financial literacy? • Why financial literacy? • What is the Reality Store? • Adaptations

3. What is financial literacy? • Financial literacy is the ability to understand how money works in the world: how someone manages to earn or make it, how that person manages it, how he/she invests it (turn it into more) and how that person donates it to help others

4. Why financial literacy? • 2 in 5 US adults gave themselves a C, D, or F on their knowledge of personal finance • 56% admit they do not have budget • 1/3 or more than 77 million Americans, do not pay all of their bills on time • 2 in 5 adults indicated they are now saving less than they were one year ago and 39% do not have any non-retirement savings National Foundation for Credit Counseling, Inc., Financial Literacy Exposes Significant Gaps in Grasp of Personal Finance Skills, April 2012

5. Why financial literacy? • 41% US moms said they wish they were more informed about managing money/being financially responsible, so they could pass that knowledge on to their kids.1 • While 89% of K-12 teachers agree that students should either take a financial education course or pass a competency test for high school graduation, relatively few teachers believe they are adequately prepared to teach personal finance.2 • 81% of parents feel it is there responsibility to teach their kids about money and savings.3 • 1 iVillage, iVillage and Pass from American Express (SM) Partner to Launch The Talk to Mobilize Moms to Talk to Teens About Money, September 15, 2010. • 2 National Endowment for Financial Education, Are Teachers making the Grade in Personal Finance Education?, May 4, 2010 • 3 DoughMain, Study Reveals Need for Tools to Help Parents Teach Kids About Savings, February 17, 2012

6. Why financial literacy? • About half of senior girls shopped two or more weeks to pick out a prom dress and half of senior boys spent 2 or more weeks deciding whom to ask the prom • In contrast, nearly half of high school seniors spent five or fewer hours learning how to pay for college.1 • 87% of high school seniors report that their parents are their primary resource for information about money management and personal finance issues, but only 22% report that they talk to their parents about money management “frequently” and 44% say that they “sometimes ask their parents questions” about personal finance.2 • 1 Sallie Mae, Sallie Mae survey reveals high school seniors spend more time planning for prom than financial planning for college, May 11, 2011 • 2 Capital One, As High School Graduates Open The Gifts, Parents Have Key Opportunity to Talk Money Management, June 14, 2011.)

7. What is the Reality Store™? • MASFAA Family Education Concerns committee annually sponsored event • An interactive activity for eighth grade students designed to teach them budgeting skills, the correlation of educational level to employment opportunities and income variance • The Reality Store™ is a trademarked name for this activity [MASFAA has been granted permission to use]

8. What is the Reality Store™? • The traditional Reality Store™ event will require: • Cooperative school • 20 volunteers • 4 hours of time for actual activity • Travel for volunteers to location • School supplies and t shirts for students • T shirts for volunteers

9. IASFAA • Started offering annually its own version of the Reality Store™ in 2007 • Contact a school in an outlying community • IASFAA member volunteers throughout the state • School supplies • Pizza afterwards for students, volunteers

10. Costs for Reality Store™ • School supplies – pencils, folders, flyers, calculators, bags • Copies of worksheets for students • Volunteers, time and travel • Food • Donation to school • Miscellaneous supplies • Signage for stations, online resources, participant survey (students and volunteers) • “Bingo wheel” • Method to determine marital status (ping pong balls)

11. How it has evolved • Over time things change • Resources • Funds by IASFAA • Back packs • Calculators • Folders • T-Shirts

12. How it has evolved • Volunteers • Leadership symposium participants • School staff • Parents The school & local businesses that participated in 2011 and have continued the event on their own….. …….without IASFAA!

13. How it has evolved • Time allotment • 4 hours, 3, 2, even 1 hour • Facility • Gymnasium, cafeteria • Classroom

14. ICAN • The Iowa College Access Network (ICAN) empowers Iowans to achieve their educational and career goals through statewide comprehensive outreach, initiatives and partnerships with schools, groups and businesses. • ICAN hosts its own Life Store event, similar to Reality Store™ • Developed an alternative method of presenting a classroom lecture rather than 18 station process

15. University of Dubuque stats • Population = undergrads, graduates, seminary, and doctorate • Undergrads • Enrollment (2012-13) = 2013 • Undergrads = 1676 • 1st generation = 597 • Pell = 55%

16. UD adaptation • Personal Financial Stewardship class • Offered PFS as a J-term course • 2012 first event at local Middle School • College students taking PFS hosted the event rather than professional staff

17. UD Challenges • UD did not have a budget for this event • UD did not have the staff for the event • Only attended Reality Store™ once myself • RISKY!

18. UD Advantages • J-Term • Faculty & staff • Local school cooperated • IASFAA supplies

19. Other events • Indian Hills Community College hosted for freshmen fall 2012 using IHCC staff, #70 students participated • Allen College of Nursing held the event for summer program of high school age students • Upper Iowa University hosted 4 events in the 2012-13 year in area communities – inspired by parents!

20. Summary of Adaptations • Number of volunteers or hosts (1 – many) • Audience – 8th graders through college students • Style of event: • Traditional – 18 stations, etc… • Classroom setting - Powerpoint or Prezzi • Hybrid – present classroom style for first few stations, then remaining stations use funnel process

21. Additional ideas • Additional resources (Department of Ed materials, National Foundation for Credit Counseling, Inc., Jump Start Coalition, etc… ) • Bookmarks promoting website or event • Sample press release • Pictures of event • Donations – calculators, flyers, booklets on budgeting, pencils

22. What is the goal? • 51% of high school students surveyed wished their current high school offered financial literacy instruction for them and their families to prepare for college costs • 55% of teens surveyed say they want to learn more about how to manage their money • College Savings Foundation, High School Students Unprepared for Rising Costs of College with Deep Divide Between Funding Plans and Actions, says College Savings Foundation’s Survey of American Youth, February 22, 2012. • Capital One, Capital One’s Annual Back-to-School Shopping Survey Reveals Gap in Back-to-School Budget Expectations Between Parents, Teens, August 15, 2011.

23. Your thoughts? • Tactics, strategies you have tried? • What are your hesitations? • Challenges?

24. Resources • Jump Start Coalition www.jumpstart.org • National Endowment for Financial Education www.nefe.org • Practical Money Skills www.practicalmoneyskills.com • My Money www.mymoney.gov • Many, many of the vendors of our state associations and MASFAA

25. Questions

26. Presented by • Amy Gaffney • Associate Director of Student Financial Planning, University of Dubuque, IA agaffney@dbq.edu • Jayne Dinse • Financial Aid Director, South Central College, MN Jayne.dinse@southcentral.edu