Wi$eUp Financial Planning for Generations X and Y Success Metrics

1. Wi$eUpFinancial Planning for Generations X and Y Success Metrics Nancy L. Granovsky, CFP® Professor & Extension Family Economics Specialist Texas AgriLife Extension Service, The Texas A&M System ASEC Fall Partners Meeting Washington, DC October 22, 2008

2. What is Wi$eUp? • A financial education program for Gen X and Y women developed by the U.S. Department of Labor – Women’s Bureau. • Texas AgriLife Extension of The Texas A&M System developed the curriculum, maintains the website and provides national program management.

3. Why Wi$eUp? • Gen X/Y women (especially those 22-35) need information to guide their financial planning. • Gen X/Y women want to learn about financial planning in different ways. • Internet-based distance learning • Community-based educators need tools and curricula for outreach education.

4. Wi$eUp Scope and Content • Approach emphasizes action steps individuals can take. • Content is organized in learning modules around 8 basic content areas. • Gen eXperiences are incorporated.

5. Wi$eUp’s 8 Modules • Money for Life • Money Math • Money Basics • Credit in a Money World (Chapter 4) • Savings Basics (Chapter 5) • Insurance and Risk Management • Becoming an Investor (Chapter 7) • Achieving Financial Security

6. Gen eXperiences All I could think about was landing my first job. I wouldn’t have to worry about money! I could finally buy what I wanted, when I wanted, so I did. I filled my apartment with all the things I had been dreaming of, including a to-die-for new wardrobe. I wasn’t prepared when my apartment building burned down one day when I was at work, and I lost everything. Did I have renter’s insurance? No.....I didn’t think it could happen in a million years! Now I tell everybody, “Don’t just think about today. Think about tomorrow.”

7. Wi$eUp’s Implementation Options • Handbook alone for self-study. • Workshop Series with handbook. • Instructor’s CD-ROM and PPTs • Web Course with or without handbook. • www.wiseupwomen.org • Combination of workshops + Web course • Over 11,000 across the U.S. have “Wi$edUp.”

8. Other Program Components • Over 110 volunteer financial experts respond to participant questions; Q and A’s are posted to website. • Bi-monthly national teleconferences feature noted speakers and MP3’s and transcripts are posted to website.

9. National Partners and Others • American Institute of Certified Public Accountants (AICPA) • Bi-monthly conference call speakers • Mentors • Financial Planning Association (FPA) • Financial Planning Perspectives posted • Mentors • Service providers/replicators

10. DoL-WB Metrics • Strategic Goal: Improve the Status of Working Women • Outcome Goal: Better Earnings • Performance Goal: Increase Women’s Financial Security • Output Measures: number of participants, with annual increases.

11. Reduce Debt • Intermediate Measures: % of participants who say they will reduce debt. • Outcome Measures: % of participants who reduce debt.

12. Increase Savings/Investments • Intermediate Measures: % of participants who say they will increase their savings/investments. • Outcome Measures: % of participants who do increase their savings/investments.

13. Wi$eUp Assessments • Pre-assessment before each unit • Captures current status/practices • Post-assessment after each unit • Focuses on intentions/”plan to do” • Individuals can track their own intentions via “My Financial Roadmap” online • You won’t do what you can’t remember!

15. Assessments, continued • 3-month post-assessment, with two follow-ups to non-respondents • Challenges • Low rate of response: 10-12% • High cost • How different are respondents from non-respondents? • Solutions? • Alternative approaches to evaluation

16. What We Are LearningPre-Assessment ResultsCreditFY08

17. Total Non-Mortgage Debt Reported(n=1240) “debt-free” 21.3% $1.00 - $1,000 10.2% $1,001 - $5,000 14.9% $5,000 - $10,000 10.0% $10,001 - $20,000 14.4% $20,001-$50,000 17.1% Over $50,000 6.9% No response 5.2%

18. Number of Credit Cards(n=1240) None 30.1% One 14.8% Two 18.4% Three 10.5% Four 6.9% 5+ 19.0%

19. When I pay my credit card bills, I generally: Make the minimum payment 20.5% Make more than min payment 34.2% Pay my credit balances in full 22.2% No response 23.1% (n=1240)

20. I know my debt-to-income ratio YES 21.2% NO 70.6% No response 8.1% (n=1240)

21. Recommended debt-to-income ratio is: 5-10 percent 19.5% 10-15 19.3% 15-20 18.5% correct response 20-25 8.0% 25-35 6.5% Over 35% 5.3% No response 22.8%

22. What We Are LearningPost-Assessment ResultsCreditFY08

23. Planning to… Reduce over-all debt 64% Calculate debt-to-income ratio 67.0% Get copy of credit report 72.4% Start tracking credit spending 54.2% Protect identity more closely 69.9% (n=1179)

24. Planning to… Develop plan to reduce debt 69.6% Pay most credit balances in full each month 32.1% (n=1179)

25. Knowledge about debt-to-income ratio CORRECT ANSWERS ON Pre-assessment 18.5% Post-assessment 23.6%

26. What We Are Learning3-Month Post-Assessment ResultsCreditFY08

27. Credit Actions Taken(n=110)

28. Credit Actions Taken(n=110)

29. Credit Actions Taken(n=110)

30. What We Are Learning3-Month Post-Assessment ResultsSavings/InvestmentsFY08

31. Savings – Actions Taken(n=110)

32. Savings – Actions Taken(n=110)

33. Savings – Actions Taken(n=110)

34. Investing – Actions Taken(n=110)

35. Age 28 (25.45%) — 18–24 13 (11.82%) — 25–29 13 (11.82%) — 30–34 12 (10.91%) — 35–39 7 (6.36%) — 40–44 14 (12.73%) — 45–49 15 (13.64%) — 50+ 8 (7.27%) — no response

36. Gender 91 (82.73%) — Female 18 (16.36%) — Male 1 (0.91%) — No response

37. Reaching Diverse Audiences(n=110) Hispanic or Latino (all races) 22% Black or African-American 28% White or Anglo 41% American Indian/Alaska Native/ Native Hawaiian/Pacific Islander 6% Asian <2% Other <2% No Response <2%

38. Educational Attainment(n=110) 19 (17.27%) — Some high school or less 8 (7.27%) — HS graduate or GED 1 (0.91%) — Vocational or technical degree 21 (19.09%) — Some college 15 (13.64%) — Associate's degree 27 (24.55%) — Bachelor's degree 16 (14.55%) — Post-graduate degree(s) 3 (2.73%) — No response

39. Satisfaction with Financial Progress since Wi$eUp 19 (17.27%) — Extremely satisfied 42 (38.18%) — Very satisfied 38 (34.55%) — Somewhat satisfied 9 (8.18%) — Not satisfied at all 2 (1.82%) — No response (n=110)

40. How helpful was the Wi$eUp experience to you, personally? 23 (20.91%) — Extremely helpful 47 (42.73%) — Very helpful 33 (30%) — Somewhat helpful 5 (4.55%) — Not helpful at all 2 (1.82%) — No response (n=110)

41. What they wrote… • I have started to pay more attention to my bill statements and understanding my bills. • I am satisfied with my financial progress throughout using Wi$eUp because it has help me to manage my money and save it for important uses.

42. What they wrote… • I could be doing better, but I have not taken any action. • I want to stay with your program & re-take the course. • The most important benefit of the program is helping you save money a quicker faster way.

43. What they wrote… • The courses made me actually put numbers down for goals. That was very helpful. • The most important benefit of being involved in the WiseUp program is that it helps you better to situate all of your financial needs in a better and more organized way. It also helps you to save your money in a manageable way and for beneficial reasons.

44. Benefits mentioned.. • Income to debt ratio information. • Actually seeing my "debt to income ratio". • The benefits of starting early! • I learned a good amount of information about financial responsibilities that I did not know.

45. Insights mentioned.. • All women should participate, regardless of age. • It'll help women be aware of financial options and ways to help themselves. • It's a course everyone should take.

46. Would you recommend Wi$eUp to others? 104 (94.55%) — Yes 4 (3.64%) — No 2 (1.81%) — No response (n=110)

48. Thank You….. • Nancy Granovsky, CFP® • n-granovsky@tamu.edu • 2251 TAMU Texas A&M University College Station, TX 77843-2251 • Websites: http://fcs.tamu.edu http://wiseupwomen.org • TEL: 979-845-1869