Presented by Gretchen Bonfardine

1. Implementing a Financial Literacy Program on Your Campus Presented by Gretchen Bonfardine

2. Agenda • What’s your role? • Key Statistics • Right info–Right time • Financial Literacy Programs - Ideas • Useful Tools

3. Let’s Debate….

4. Financial Aid Office Involvement – Reasons Why Nellie Mae Research • Easy access to credit cards: 76% of students began college with credit cards (down from 2001). (2004 Nellie Mae Study http://www.nelliemae.com/library/research_12.html ) • Average balance on undergraduate credit cards is $2,169 with the average number of cards held by these students being 4.09. (2004 Nellie Mae Study) • 55% say they feel burdened by education debt – up from 50% in 1997. • 54% say they would borrow less if they had it to do over again – up from 45% in 1997. (Marie O’Malley – Nellie Mae – Articles for Industry Professionals: “College on Credit: Ensuring Continued Opportunity”. http://www.nelliemae.com/library/college_on_credit.html )

5. Financial Aid Office Involvement – Reasons Why Nellie Mae Research (cont.) • Groups vulnerable to feeling burdened by their education debt include: • Borrowers who didn't earn a degree. • Those from low-income families (defined as Pell recipients). • Minority borrowers; older borrowers. • Those who say they weren't aware of how much they were borrowing at the time they borrowed. • Those who did not participate in exit counseling.

6. Financial Aid Office Involvement – Reasons Why • Increase in debt burdens during college and after graduation despite low levels of financial literacy. • “We lose more students to credit card debt than to academic failure.” (University of Indiana administrator, CFA study, 1999) • Low GPAs and bad debt are linked. (Bennett & Wesley, 1998) • Average American spends more than they make. • 42% of freshman report having at least one credit card while 71% of sophomores report having at least one credit card • This is the single largest jump in card ownership between any two grade levels

7. Financial Aid Office Involvement – Reasons Why Jump$tart Coalition Research “Jump$tart Coalition for Personal Financial Literacy determined that the average student who graduates from high school lacks basic skills in the management of personal financial affairs. Many are unable to balance a checkbook and most simply have no insight into the basic survival principles involved with earning, spending, saving and investing.”

8. Financial Aid Office Involvement – Reasons Why From Jump$tart Coalition 2008 Financial Literacy Survey • Average score on 2007-08 survey was 48.3% (down from 52.4% in 2005-06) • Average scores by race: • White students: 52.5% (down from 55% in 2005-06) • Black students: 41.3% (down from 44.7% in 2005-06) • Hispanic students: 45% (down from 46.8% in 2005-06)

9. Financial Aid Office Involvement – Reasons Why From Jump$tart Coalition 2008 Financial Literacy Survey • Score of 27 or higher ACT • Average score on Jumpstart survey was 59% • Score of 20 or lower on ACT • Average score on Jumpstart survey was 43%

10. Financial Aid Office Involvement – Reasons Why From Jump$tart Coalition 2008 Financial Literacy Survey • First ever College student survey • average score was 62% • freshmen scored 59% • sophomores scored 61% • juniors scored 62.1% • seniors scored 65%

11. Financial Aid Office Involvement – Reasons Why From Jump$tart Coalition 2008 Financial Literacy Survey • First ever College student survey • by race: • Caucasian: 63.3% • African American: 55.3% • Hispanic: 59.8%

12. Financial Literacy Ideas

13. Financial Literacy – Simple Ideas • Handouts with ideas for reducing expenses • Roommates • Share with friends (pot lucks, videos, books) • Car pooling • Dollar Store • Coupon center/local store circulars • Offer workshops with the help of others

14. More Simple Ideas • Budgeting Workshops Using Realistic Figures • Average starting salary at your school or in their major • Average cost of living in your area and/or area where many of your grads live • Provide Regular Updates with Personalized Loan Indebtedness and Repayment Information • With each new loan borrowed?

15. More Ideas • Use the resources available to you • 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 • Interviews • PSA’s • Ads • On campus mailboxes

16. More Ideas • Take advantage of ‘First Year Experience’ courses • Credit information • Car buying • Differences between living on campus or in an off-campus apartment • Basic budgeting and money management • Identify your ‘at risk’ populations ~ use resources on them

17. Advanced Ideas • Work deals on behalf of your students • Local apartment complexes • Cell phone companies • Public transportation offices • Other services Guarantee a certain number of customers for a set price • Try to get financial literacy courses required at each academic level on your campus

18. Advanced Ideas • Provide/Sponsor regular financial literacy programs with involvement from many areas of campus • Faculty members • Student Health and Recreation Center • Student Government Association • Residence halls • Other student organizations • Extended Studies/Continuing Education • Career Center • Student Activities • Financial institutions

19. Advanced Ideas • Use your website to provide financial literacy education • You don’t have to reinvent the wheel! • Link to partner’s websites • Take cues from existing sites

20. Useful Tools www.asa.org www.mappingyourfuture.org/ www.studentaid.ed.gov www.practicalmoneyskills.com www.jumpstart.org www.students.gov www.nslds.ed.gov www.youcandealwithit.com

29. Useful Tools www.mymoney.gov (US Financial Literacy and Education Commission) www.bankrate.com www.moneymanagementtips.com/tips.htm www.myfico.com

30. Useful Tools – Existing Programs Iowa State University Financial Counseling Clinic http://www.hdfs.hs.iastate.edu/financial/ http://www.extension.iastate.edu/finances/personal/money/management_pubs.htm University of Georgia Peer Financial Counseling http://www.uga.edu/osfa/pfc/