Fine-Tune Your Focus: Using Grade-Level Financial Literacy Strategies

1. Fine-Tune Your Focus: Using Grade-Level Financial Literacy Strategies

2. Educate Students from the Beginning “A recent study sponsored by Higher One, Money Matters on Campus, found that young adults entering college were already exhibiting troubling and risky financial behaviors, with 20% having more than $1,000 in credit card debt and nearly 25% admitting that others would be horrified if they knew about their spending habits.” Source: http://www.huffingtonpost.com/mary-johnson/thoughts-during-national-_b_3117050.html (April 2013)

3. Today’s Objectives • Benefits to the students • Benefits to the institution • Different strokes for different folks • Activity • Ohio Northern University’s Program: Money Matters • Wrap Up

4. Benefits to Students • Acquire grade-level appropriate knowledge and skills related to basic financial concepts • Educate first-year students on the value of lower indebtedness • Help first-year students avoid making financial mistakes while in school • Prepare graduating seniors for loan repayment and financial success

5. Benefits to the Institution • Minimize loan default • Financially educated students are less likely to default • Improve retention • Students without financial concerns are more likely to stay in school

6. Benefits to the Institution • Increase alumni giving • Students with loan repayment or other financial struggles are less likely to give back • Lower average student loan debt to report • Shopping sheet

7. Different Strokes for Different Folks

8. Freshmen • A recent study of first-year students revealed: • Four in ten students did not know what the definition of “Net Pay” was • Too many students could not correctly identify the kinds of items that appear on a paycheck stub • Source: https://www.inceptia.org/about/news/jan-22-2013/

9. Freshmen • A recent study of first-year students revealed: • Only 45 percent of students said they understood that their credit score may have an impact on their ability to get a job • Most students knew that the credit card companies are not the source of credit reports, but only half or less could correctly identify the credit reporting agencies • Source: https://www.inceptia.org/about/news/jan-22-2013/

10. Freshmen • Illustrate the basics of budgeting • Teach them to balance a checkbook • Coach them on needs vs. wants • Encourage living like a student • Remind them to pay attention to deadlines

11. Freshmen • Explain the importance of applying for scholarships • Instruct them to use NSLDS • Prepare them to understand financial aid award letters • Help them know the difference between gift aid and loans • Advise students on criteria for maintaining scholarships

12. Sophomores • Stress the importance of staying in school • Cultivate an understanding of credit basics • Educate on identity theft prevention • Advocate the use of career assessment tools to facilitate choosing a major • Share the benefits of using NSLDS prior to borrowing again

13. Juniors • Promote successful steps to graduating on time • Recommend staying with chosen major • Encourage regular meetings with their academic advisor • Support the consideration of co-op and internship opportunities • Remind them to use NSLDS before they borrow again

14. Seniors • Explain the expenses associated with graduation • Graduation expenses at school • Interviews • Relocation • Guide them on what to do during their grace period • Use servicer websites to help manage their student loan debt

15. Seniors • Review ways to use NSLDS and annualcreditreport.com to facilitate student loan repayment • Cover financial basics associated with their first job • Paycheck basics • Taxes • Insurance • Investing

16. Seniors • Share tips for those going on to graduate school • Explain the role of financial planners and other organizations that manage money for others

17. Activity

18. Things to Consider • What additional needs might your students have? • Which offices on campus would you involve? • How frequently would you provide interaction with your students?

19. Things to Consider • What are some unique activities you could implement? • How might you encourage attendance? • How could you do it with little to no budget?

20. Ohio Northern University’s Program: Money Matters

21. About ONU • Private institution in west central Ohio • Mix of professional and arts/sciences • College of Business Administration • College of Pharmacy • College of Engineering • College of Arts and Sciences • College of Law

22. About ONU • Approximately 3,300 students • Mostly undergraduates • About 300 law students

23. About ONU • Average student loan debt for a bachelor’s degree is about $50,000 (does not include Parent PLUS) • Average JD debt almost $100,000 • Average PharmD debt is about $120,000 • 2 yr CDR 1 percent

24. Facts • Officially launched Money Matters in August 2012 • Had been doing much of this on campus prior to the launch • Partnership with Career Services and Financial Aid • No budget! • Did get a couple donations from other departments on campus

25. Program Launch Officially launched at student Welcome Fest • Welcome Fest is a fair held each year for students to get to know clubs, organizations, community entities, etc. Lots of freebies and prizes

26. Program Launch Officially launched at student Welcome Fest • We set up a booth and used a money machine for students to grab tickets • Freebies for students • Bear paw banks w/logo • Cookies w/logo • Tickets students grabbed entered them for prize drawings

27. Programming • Online learning • Classroom sessions • Special interest sessions • Residence halls, clubs, and organizations • Financial aid counseling

28. Online Learning We chose a set of online modules to offer students for independent learning • Offered a log-in for students and for parents • Have not required this on campus • Students choose to participate

29. Classroom Sessions • Trained students, known as our Peer Career Assistants, to provide financial literacy programming • These students are upperclassmen who are carefully selected for this position • Peer Career Assistants already existed in Career Services before Money Matters

30. Classroom Sessions • Used a “you call we’ll haul” approach • Advertised to faculty as an alternative to cancelling class

31. Special Interest Sessions • Sessions have covered credit, budgeting, loan repayment, etc. • Loan repayment session is held most frequently • Separate sessions held for undergrad and law students • Request students sign up and then provide them with their NSLDS reports at the session • Law college turnout has been successful by offering a lunch with the programming

32. Residence Halls, Clubs, and Organizations • Successful in getting student organizations to sponsor events or invite presenters on Money Matters topics • Programming provided to resident assistants to hold in the residence halls

33. Financial Aid Counseling • Last spring we targeted counseling towards students we knew had financially struggled that academic year • Our goals were to encourage: • Early preparation and planning to avoid issues • Thinking about planning the next four years • More than 100 students came in to see us

34. Conclusion

35. Fine Tune Your Focus • Students have various developmental needs depending on class level – one size does not fit all • Financial aid information can be tailored to each class level to improve both student engagement and financial literacy results • Your student affairs colleagues can help you to provide grade-level specific programs to your campus

36. Resources • Feedthepig.org • 360financialliteracy.org/Life-Stages/College-Students • Practicalmoneyskills.com • Nefe.org • Jumpstart.org • Mint.com • Moneymattersoncampus.org

37. Thank you for joining us! Melanie Weaver Director of Financial Aid Ohio Northern University m-weaver.2@onu.edu Michiale Schneider Training Specialist Great Lakes Higher Education Guaranty Corporation mmschneider@glhec.org