Incorporating Financial Literacy Education into Your Program

1. Incorporating Financial Literacy Education into Your Program Individual Development Accounts Presenters: Adrianna Kezar and Hannah Yang Center for Higher Education Policy Analysis Rossier School of Education University of Southern California http://www.usc.edu/dept/chepa/accounts/

2. Opportunity • An existing tool to help the lowest of the low-income students gain access and be retained in college • Individual Development Accounts or IDAs.

3. What is an IDA? An IDA is a matched savings account Example: For every $1 a student saves, receive $2 in matched funds Save up to $2,000, earn up to $4,000 in matched funds Savings and match can help pay for college!

4. and more... IDA programs also include case management, asset-specific training, and financial education.

5. How does an Education IDA work? • Open an IDA account with a community agency • Save in a bank account • Complete a financial education course • Develop financial skills • Learn to establish & build credit • Create an education plan • Spend funds at an educational institution

6. Education IDA uses • No • Room & Board • Student loans • Electronics • Car/transportation • Parking Yes Tuition Fees Books Supplies Equipment

7. Who qualifies?

8. Study Findings • The major finding from this study is that education IDAs have the most potential, not as a stand alone tool, but offered bundled with other services. Especially those working with low-income students. • For example, TRIO and GEAR UP programs! • The IDA replicates the kind of work they are already conducting and they do not have to perform any tasks beyond their current responsibilities.

9. How do you start offering IDAs? • Partner with Community agency • Directory of IDA programs in your state http://www.cfed.org/focus.m?parentid=31&siteid=374&id=599 • Assets for Independence (AFI) project locator: http://www.acf.hhs.gov/assetbuilding/ • Example of CASA of Oregon

10. How do you start offering IDAs? • Partner with a education nonprofit you are related to • Potential example • Approach the leaders of your institution to offer IDAs • Potential example • Refer them to the AFI website for information on how to apply: • http://www.acf.hhs.gov/programs/ocs/afi/applying.html

11. Get Involved – Re-infuse financial education into your program • Directors of TRIO programs nationwide were emailed a survey • ~51% of TRIO programs offer financial education (caveat) • Why offer financial education?

12. Survey Results • Most financial education offered is optional • Most common format: in-person group sessions • 78% of financial education were taught by program staff who usually also created the curriculum/materials • Network with your colleagues, they may have a curriculum you can use! • If they didn’t teach it themselves other staff on their campus taught the financial education • Some programs worked with organizations outside of their intuitions to offer financial education

13. Financial Education Resources • See handout • AFI has a tool on how to choose a curriculum, although it is for IDA practitioners some of the concepts are helpful: • http://www.acf.hhs.gov/programs/ocs/afi/finlit/ChoosingaCurriculum.htm • See Curriculum example • Let’s review together

14. Any Questions? • Also visit our website for more information on IDAs and financial education: http://www.usc.edu/dept/chepa/accounts/ • Thank you for joining this session!