Financial Literacy and Your Students- A Winning Combination Takeila Hall Fall 2011 NCASFAA

1. Financial Literacy and Your Students- A Winning CombinationTakeila HallFall 2011 NCASFAA

2. What Is Financial Literacy? Why Is It Important? The ability of individuals to make appropriate decisions in managing their personal finances Financial Literacy is critical for a healthy, sustainable economy and culture Understanding financial responsibilities and managing money can have a positive impact on repaying education loans!!!!!

3. Financial Literacy – or Illiteracy Statistics • The majority of high school students were unable to answer basic financial questions regarding credit, savings, interest, and insurance. (Jump$tart Coalition for Personal Financial Literacy, 2006) • College students’ survey results: • Correctly answered 62% of the questions • College freshman correctly answered 59% of the questions • College seniors correctly answered 65% of the questions. • (Jump$tart Coalition 2008 survey)

4. 2010 Financial Literacy Statistics – North Carolina

5. Financial Literacy Resources And Tools NEFE Tools America’s Promise Alliance Federal Government Resources Mapping Your Future Tools Cash Course Other Resources Get Financially Fit CFNC Resources

6. National Endowment for Financial Education (NEFE) • Educate high school students about money management and financial planning • Help teens develop positive behaviors • Curriculum materials • Sponsors Include • Cooperative State Research, Education & Extension Service • USDA • Credit Union National Association, Inc. • America’s Credit Unions

7. America’s Promise Alliance • Teach middle school and high school students about financial responsibility • Set of curriculum materials • Founded in 1997 • General Colin Powell is the Chairman • Partnership of over 400 organizations

8. Federal Government Resources • U. S. Treasury • National Financial Capability Challenge (annual) • Educator’s Toolkit • mymoney.gov

9. Mapping Your Future Budget Tools Calculators Show Me the Future Game (geared for younger students)

10. Cash Course Financial education resources for colleges Cashcourse.org Sponsored by NEFE

11. Other Resources • practicalmoneyskills.com • financiallit.org • nslp.org • tgslc.org • usafunds.org • mygreatlakes.org

12. Get Financially Fit • “How-to” Guide – to develop a financial literacy program on campus • newyorkfed.org/regional/projects.html • Funding for this project provided by: • American Council on Consumer Interests • Federal Reserve Bank of New York • Association for Financial Counseling and Planning Education • Direct Selling Education Foundation

13. Financial Literacy Education Components • What is financial health? • Budget tools • Calculators – savings, credit card debt, loan repayment • Using credit responsibly • Borrowing to finance an education • Setting financial goals • Information about financial institutions, identity theft, etc. • Assessment tool

14. An Example: CFNC.org Financial Literacy Tools

16. Elementary Students – Financial Literacy Videos Goals Money Grows Spend or Save

17. Financial Literacy On-line, interactive course Tools to help you make wise money management decisions Calculators Fact sheets

18. Building Blocks Of Financial Health

19. Budgeting 101 Identify income Identify expenses Remember the different types of expenses Fixed Variable Periodic Pay Yourself First! Funds transfer to a savings account Payroll deduction Internet transfer Envelope method

20. Budget Calculation Tool

21. Real World Calculator

22. Credit Cards - The Good, The Bad, And The Ugly When it is appropriate to use credit (for example, an emergency) What happens if you only make the minimum payment or run up the balance What happens if you fail to make payments Credit Card Calculator

23. Credit Report Basics Know what’s on your credit report! You should check it at least ONCE per year! What creditors are looking for: -On time payments -Your mortgage payments -Available credit on your credit cards -Total debt outstanding Missing even one credit card payment can knock your score down 50-100 points.

24. Credit Card Repayment Calculator

25. Investing in Your Education

26. Education Loan Repayment Calculator

27. Smart Borrower Calculator

28. Set Your Financial Goals Write your goals down!

29. Additional Resources - Text

30. Additional Resources - Fact Sheets

31. Assessment On-line test Certificate of completion

32. Financial Aid Administrator Access – Master Control Panel Homepage

33. View Student-Level Detail Student name Login date Year in school Percent of material covered Percent of correct answers Completion code

34. Financial Literacy Reports • Pre-Completion Survey • Post-Completion Survey • Aggregate Usage Data • Easy to use Report Toolbox

35. On Your Campus • Consider using a combination of several programs • Some students respond best “in person” • Some prefer working at their own pace on-line • Integrate financial literacy education into your debt management plan • Your current financial literacy education activities? • Your future financial literacy education plans?

36. Questions?