Administrator Workshop on Financial Literacy

1. Administrator Workshop on Financial Literacy Scott D. Lewis, Account Executive Lucy Manzo, Account Executive The College Board Education Loan Program Mike Bennett, Director of Financial Aid Brookdale Community College John View, Director of Financial Aid SUNY College of Environmental Science and Forestry Linda Bell, Director of Financial Aid Lehigh University

2. Let the Record Show… American children, teens and young adults (ages 8-21) earned about $211 billion in 2003. This group spends at a rate of approximately $172 billion per year and is saving at a rate of $38 billion per year. [Harris Interactive, Generation Y Earns $211 Billion and Spends $172 Billion Annually, September 3, 2003] On average, 65.5% of students who participated in a 2004 Jump$tart Coalition survey on Personal Financial Literacy failed the exam! [Jump$tart Coalition, Personal Financial Survey, April, 2004] The average undergraduate student loan debt was $18,900 in 2003. Up 66% from 1997. [Nellie Mae, College on Credit: How Borrowers Perceive their Education Debt Results of the 2002 National Student Loan Survey, February 6, 2003]

3. Let the Record Show… 55% of college students acquire their first credit card during the first year of college, and 83% of college students have at least one credit card. 45% of college students are in credit card debt, with the average debt over $3,000. [Senator Akaka, Credit Card Minimum Payment Warning Act, May 21, 2004] Bankruptcy filings for those in the 18 to 25 age bracket numbered 150,000 in 2000. A ten-fold increase in just five years. [Testimony of Dara Duguay, Executive Director Jump$art Coalition for Personal Financial Literacy, for the Senate Governmental Affairs Subcommittee on Financial Management, the Budget, and International Security, March 30, 2004] Consumer debt is now equal to 110% of disposable income. Ten years ago it was 85%, and 20 years ago, it was 65%. [Daily Bankruptcy News as excerpted from Senator Akaka, Credit Card Minimum Payment Warning Act, May 21, 2004]

4. Why Financial Literacy? The Four R’s • Recruitment • Retention • Revenue • Reputation Visibility The Goal • To enhance the R’s and address the need • Help students before it is too late Establish a strong academic and credit record

5. Financial Literacy Areas of Deficiency: • Basic Debt Management • Credit card debt • Student loan debt • Other consumer debt • Budgeting • Spending Habits

6. Tell Me About It…

7. What Am I To Do? • Assess Need • Set Your Goal • Create a Strategy • Measure & Evaluate Your Success

8. Assess Need • Student Financial Literacy Needs May Be Different Depending on: • Region of the country • Education sector • Secondary school • Proprietary school • Community college • State college/university • Private college/university • Socio-economic background

9. Assess Need • Ask Students What They Need or Want: • Survey • Paper • Online • Be prepared to guide • Students don’t know what they don’t know!

10. Group Breakout Group #1 – Four Year Private Institution Group #2 – Four Year Public Institution Group #3 – Community College Group #4 – Proprietary College In your group, assess the financial literacy needs of students from your assigned sector. Record your thoughts on your flip chart and be prepared to discuss.

11. Group Recant Group #1 – Four Year Private Institution Group #2 – Four Year Public Institution Group #3 – Community College Group #4 – Proprietary College Provide a rationale and background for the student needs identified for your education sector. Determine your dominant need.

12. Set Your Goal • Start small • Begin with most obvious need • Build from this point over time • Determine your goal • S.M.A.R.T Goals • Specific: Ask 6 “W” questions • Measurable: How much? How many? How will you know when…? • Attainable: Plan steps wisely. Establish a time frame. • Realistic: Willing and able to work toward. • Tangible: Can experience it with one of the senses.

13. Large Group Goal Setting Remember, start small and begin with most obvious need Group #1 – Four Year Private Institution Group #2 – Four Year Public Institution Group #3 – Community College Group #4 – Proprietary College

14. Time forLunch!

15. Best Practices: Testimonials of success John View, Director of Financial Aid SUNY College of Environmental Science and Forestry Linda Bell, Director of Financial Aid Lehigh University Mike Bennett, Director of Financial Aid Brookdale Community College

16. Solutions: See What’s Already Out There You don’t have to reinvent the wheel! There are a significant number of tools and resources already available to you. Where to start: • Education partners - lenders, guarantors, servicers, professional associations • State and federal initiatives - state councils on economic education, Federal Trade Commission • Education and non-profit organizations - College Board, Jump Start Coalition

17. Simple Good for “quick hits” Web sites Brochures, printed materials Moderate Good for keeping the topic on students’ minds E-mail newsletters Solutions: Types of resources available Involved • Good for deeper, long-term training • Scheduled sessions • Curriculum for credit A resource document for your use.

18. Creating a Strategy • Start small and build need with students • Take into account institutional resources • Involve others on campus Institutional buy-in is a key to success!

19. Group Breakout Strategy Creation Group #1 – Four Year Private Institution Group #2 – Four Year Public Institution Group #3 – Community College Group #4 – Proprietary College In your group, create a strategy based on the needs and goals previously determined for your assigned sector. Record your strategy and be prepared to discuss.

20. Group Strategy Recant Group #1 – Four Year Private Institution Group #2 – Four Year Public Institution Group #3 – Community College Group #4 – Proprietary College Share the strategy you created for your education sector.

21. Large Group Strategy Discussion & Brainstorm • Collect as many ideas as possible with no criticisms or judgments. • All ideas are welcome no matter how silly or far out they seem. Be creative. • The more ideas the better because you don’t know what might work. • No discussion during the brainstorming activity. • Do not criticize or judge. Don't even groan, frown, or laugh. All ideas are equally valid at this point. • Do build on others' ideas.

22. Solutions: Measure Success • Measure your success • Constantly assess • Continue surveying • Evaluations • Testimonials • Year to year retention rates • Cohort default rate

23. Reprise • Assess need • Set goal • Determine tools/resources • Measure your success • Promote your success

24. Final Thoughts • What is success? • Institutional buy-in is key • Patience

25. A Word to the Wise “If you build it, they will come” The R’s will thank you and so will your students!

26. Questions • Scott D. Lewis, Account Executive, slewis@collegeboard.org • Lucy Manzo, Account Executive, lmanzo@collegeboard.org • Mike Bennett, Director of Financial Aid, mbennett@brookdale.cc.nj.us • John View, Director of Financial Aid, jeview@esf.edu • Linda Bell, Director of Financial Aid, lfn0@lehigh.edu