Building the Perfect Homebuyer Dallas Mortgage Bankers Association

1. Building the Perfect HomebuyerDallas Mortgage Bankers Association Laura Ewing, President 501(c)3 Texas wide nonprofit tcee@economicstexas.org www.economicstexas.org * www.smartertexas.org

2. Family Financial Literacy Night Hosted by Austin Habitat for Humanity and TCEE

3. Texas 41st In Financial Security • 27.7 percent of households are asset poor Corporation for Enterprise Development (CFED). • Excluding important assets such as a vehicle or home, the (liquid) asset poverty rate increases to 50.6 percent of Texas residents. • The 2012 Assets & Opportunity Scorecard ranked Texas 41st in the country overall for how their residents fare in terms of achieving financial security across 52 measures in five different issue areas. Many of Texas residents have jobs, but they lack adequate savings or other assets to cover expenses for three months if they lose a steady income. Asset poverty, the Scorecard™s signature measure, is a conservative estimate of financial security since it counts all assets, including those ”such as a home” that would need to be liquidated to be used for day-to-day needs. A more realistic measure of the resources available to families is liquid asset poverty, which excludes assets such as a home or car that are not easily converted to cash. Don Baylor, CPPP 2012

4. Statistics Updated April 2014 • U.S. household consumer debt profile: • Average credit card debt: $15,191 • Average mortgage debt: $154,365 • Average student loan debt: $33,607 • In total, American consumers owe: • $11.68 trillion in debt • An increase of 3.7% from last year • $854.2 billion in credit card debt • $8.15 trillion in mortgages • $1,115.3 billion in student loans • An increase of 13.9% from last year

5. Why is there a need to teach personal financial literacy? • The recent recession • The slow recovery • 2/3 of all college students graduate with debt • 60% of all Texas students are on free and reduced lunch How do we develop a culture of wise spending and saving? HOW DO WE BUILD THE PERFECT HOMEBUYER?

6. Texas Legislation For A Smarter Texas Texas Council on Economic Education 1801 Allen Parkway Houston, TX 77019 www.economicstexas.org www.smartertexas.org

7. Texas One of Only 22 States… • To require that seniors pass Economics for graduation. • The senior level course is known as Economics With Emphasis on the Free Enterprise System and Its Benefits

8. Economics With Emphasis on the Free Enterprise System and Its Benefits • Personal Financial Literacy (PFL) Standards/Student Expectations added to Texas Essential Knowledge and Skills (TEKS) in 2010 • How To Pay For College Added to TEKS in 2012

9. Oh Where Are Those Standards? • Smartertexas.org and then click on standards • Tea.state.tx.us and click on curriculum and then TEKS

10. And the Economics TEKS say about housing: (20)  Personal financial literacy. The student understands how to provide for basic needs while living within a budget. The student is expected to: • (A)  evaluate the costs and benefits of renting a home; • (B)  evaluate the costs and benefits of buying a home; and • (C)  assess the financial aspects of making the transition from renting to home ownership.

11. Saving For CollegeThe Why, When, and How • Published by RAISE Texas • Parent and Student Guides Written by TCEE • Download Book And Guides at http://economicstexas.org/?page_id=5703

12. Resources for College • http://raisetexas.org/resources/collegesavingsresources/ Saving for College • http://library.cppp.org/files/2/2012_05_JO_Cost_Of_College.pdf • http://www.tgslc.org/tfaic/ • http://www.aie.org/ • collegeforalltexans.org • http://library.cppp.org/research.php?aid=1199 The Cost of College: How Texas Students and Families Are Financing College Education

13. SB 290: PFL In K-8 Math • Will take effect 2014-2015 • Testing begins 2015 • Texas Council on Economic Education, Opportunity Texas, Raise Texas, Texas Credit Union Foundation and others played a keyrole in the writing of the standards

14. 2nd Grade Decision Making on Responsible and Irresponsible Borrowing • I need a pencil. I promise I’ll return it to you. Last time I borrowed your pencil I returned it in about a week. It was chewed on and too small to sharpen anymore. • I only have a quarter and want to buy ice cream with my lunch. I’ve borrowed small amounts of money before and have always paid it back. • I need $1.00 to buy a treat. I’ve never borrowed money from you before. I don’t get an allowance and I don’t do any chores around the house.

15. How? • TCEE Lessons Are Online and Free to All • Woodforest Bank Sponsoring Grades 2-3 • TCUF Sponsoring Grades 4-6 • PlainsCapital Bank Sponsoring Grades 7-8 • PlainsCapital Bank Sponsoring After School Lessons • Cornerstone Credit Union Foundation 1 K & 1 First • Seeking Sponsors for Grades K to 1 • Never Too Young: Personal Finance for After School Learners from Council for Economic Education

16. Lesson Downloads Statistics on downloaded TCEE lessons for grades 2-8 from late February 2014 through July 23, 2014 Grand totals: • Attended TCEE Training: 929 • Teachers who will use downloaded materials: 55,115 • Students who will be reached with lessons: 592,725 -- 

17. Kindergarten & First Grade

18. Grades K-1 Incomplete • Kindergarten: The Money Making Farm • First Grade: What Do You Do At The Zoo? Will be completed with additional funding.

19. HB 2662 High School PFL • Introduced by Representative Marsha Farney • Is a stand alone one semester course • Not required for graduation • Districts required to offer it

20. What are the House Bill 5 Endorsements for Graduation? • (1) STEM • (2) Business and Industry • (3) Public Services • (4) Arts and Humanities • (5) Multidisciplinary

21. Career and High School Math courses Offer financial literacy standards

22. What Role Does Texas Council on Economic Education Play? The Texas Council on Economic Education (TCEE) Teaches Teachers Who Teach Students Who Are the Future of Texas --John Anderson, TCEE Board Member

23. Jean Walker, MBA West TX A&M Cheryl McGaughey, MBA, Angelo State U Alberto Davila, Ph.D. UT Pan Am Catherine Rinhart Program Director Cindy Manzano Valerie Johse Smarter Texas Directors Debbie Mackey Stock Market Game™ Director Steve Cobb, Ph.D. University North TX Susan Doty, MBA UT Tyler Nancy Shepherd, Ph.D. Stephen F. Austin State University Laura Ewing TCEE President Cherry Frye Office Manager Allen Reding Web Manager TCEE Center Directors and Staff Provide Training All Over The Great State of Texas In After School Programs, Personal Financial Literacy (PFL), Social Studies Economics Strand, Math PFL, Career/CTE, Entrepreneurship, Economics, Paying For College

24. To Learn More About Personal Financial Literacy Materials and Lessons at the CEE Conference

25. Staff DevelopmentAnnually: 2000 Educators and 2.3 million students PlayfulEconomics • Economics • Entrepreneurship • Career/Business • Financial Literacy

26. Three Student Programs Directly Reach 22,000 students annually Stock Market Game™ Economics Challenge Personal Financial Literacy (PFL) Challenge

27. Research indicates improved math scores on standardized tests 10 week simulation Grades 4 through 12 Teams of 2 to 5 students Virtual $100,000 to invest 20,000 Texas students participate annually Legislative & Capitol Hill Challenges $15/team fees, help desk and campus awards $20 includes teacher training $25 includes dinner awards Students visit Dallas for the first time. Greenhill School parents thank TCEE.

28. InvestWrite Open to students participating in the Stock Market Game™ Elementary, Middle and High School Competition Cash prizes from Texas Greenhill High School National Winner visited Wall Street First and 9th Place National Winners From Texas in 2014

29. Economics Challenge • Fall and Spring Online Testing In Micro, Macro and International Economics • Bellaire HS placed FIRST in the Nation in the Economics Challenge • Funding provided by State Farm

30. Personal Financial Literacy Challenge • Teams of 4 compete in online test for state finals • Winning state team and teacher win cash • First place state team attends regional and national finals at St. Louis Federal Reserve Bank • Funded by State Farm • Bellaire HS Placed 5th in Nation in 2014

31. Smarter Texans SaveChildren’s Savings Accounts • Opportunity Texas and TCEE Worked with Amarillo ISD in Major Treasury Department Research on Youth Savings. • Teacher training and financial literacy lessons important • Opportunity Texas Sponsors Texas Pilots on Children’s Savings Accounts in 2014-2016. TCEE Will Provide PFL Staff Development and Lessons. Tentative plan is to work with Dallas ISD.

32. Why encourage young people to save? • Elliott and Beverly in the paper The Role of Savings and Wealth in Reducing Wilt Between Expectations And College Attendance (2010) state that - • when a savings account is set up for students, they are 4 times more likely to go to college and/or complete post high school training. • if students have a savings account in their name, they are 7 times more likely to go to college.

33. Why Connect Financial Education and Savings Accounts? • Academic achievement – educational savings account ownership is associated with higher scores on math achievement tests • Improved college aspirations – children with < $500 in savings for college are 3X more likely to attend and 4X more likely to graduate from college • Financial health - students with a savings account 7 years later were 2X more likely to have a savings account and 4X more likely to own stocks

34. A FINANCIAL LITERACY PROGRAM SPONSORED BY Helping young people learn to think, choose, and make better economic and financial choices in a global economy www.economicstexas.org www.smartertexas.org

35. 501(c)3 Texas wide nonprofit 1801 Allen Parkway, Houston, TX 77019 tcee@economicstexas.org www.economicstexas.org * www.smartertexas.org P: 713.655.1650 Presenter: Laura Ewing/President

36. The TCEE programs are made possible by the following TCEE partners. EnviroChem Services, Inc. John Anderson Trout Foundation Less B. Fox RBC Wealth Management copyDR.

37. Board of Directors James Cooper - Chairperson James C. Cooper, Inc. Joe Adams - Treasurer Texas - Omaha Group LLC Anthony Daddino Meadows, Collier, Reed, Cousins, Crouch & Ungerman, L.L.P. Andrew DeLauro Citibank Thomas Fleissner Houston Information Team, L.LC. Wayne Goettsche WKG Consulting John Ivie Basdin & Ivie P.C. Laura Jaramillo Wells Fargo Sherry Kiser Federal Reserve Bank of Dallas Marcus McCue Guardian Mortgage Co., Inc. Dawn Moeder Lane Gorman Trubitt, L.L.P. Donna Normandin Frost Bank Ed Segner Retired Robert Smith Texas A&M University at Galveston Pete Villarreal PlainsCapital Bank Director Emeritus: John Anderson Anderson Investments Director Emeritus: Carol Trout Trout Foundation

38. 1801 Allen Parkway, • Houston, TX 77019 • P: 713.655.1650 • F: 713.655.1655 • Laura@economicstexas.org • Catherine@economicstexas.org • Cindy@economicstexas.org • Valerie@economicstexas.org • smg@economicstexas.org • Cherry@economicstexas.org • allen@economicstexas.org • www.economicstexas.org****WWW.smartertexas.org • Helping young people learn to think, choose and make better economic decisions.

39. And Your Question IS???Ask Laura Ewing, Marcus McCue and/or Aaron Gladstone