Presentation Transcript

1. THE COST OF FINANCIAL ILLITERACY

   WHAT YOU DON’T KNOW COULD REALLY HURT YOU!!
2. SOME SOBERING STATISTICS ON AMERICA’S YOUTH AND DEBT The average student graduates college with between $3,000 and $4,000 in credit card debt College seniors who graduated in 2010 carried an average of $25,250 in student loan debt
3. LACK THE KNOWLEDGE Nearly 60% of college freshmen max out their credit cards by the end of the year. Nearly 77% use credit cards for food, clothing and entertainment. Over 70% have no idea what the interest rate is on their credit cards. Nearly 50% report paying late fees, over-the-limit fees, or had a card canceled due to delinquency.
4. ILL-FATED CHOICES 20% of graduating college students have $10,000 or more in non-school related credit card debt. Students who have high credit card debt are more likely to work longer hours and have lower grades. Colleges and Universities say they lose more students to credit card debt than to academic failure.
5. EDUCATION ISN’T HAPPENING AT HOME 16-to-18-year-olds are more likely to own an iPod, cellphone or computer than they are to have a savings or checking account. Parents are more likely to nag their teens about cleaning their rooms or discuss the dangers of drugs and alcohol than talk about smart money management.
6. AMERICA HAS A FAR LESS MOBILE SOCIETY THAN IN THE PAST 62 percent of Americans raised in the top fifth of incomes stay in the top two-fifths 65 percent born in the bottom fifth stay in the bottom two-fifths
7. INVESTING IN YOURSELF TRADITIONALLY, IT’S BEEN BELIEVED THAT EDUCATION IS ONE OF THE SAFEST AND HIGHEST VALUE INVESTMENTS AROUND.
8. TOTAL COLLEGE COSTS HAVE GROWN 42%
9. PERSEVERANCE IS NOT ENOUGH!! On average, a degree will provide $1.3 million in additional lifetime earnings. One in five undergraduate degrees produce average earnings no greater than those of a high school graduate. Degrees that teach applied skills have unemployment rates far below the national average, while general degrees are far above average. Those with Actuarial and Pharmacology degrees have unemployment rates of zero. Graduates with Architecture degrees, 10.6% History and Fine Arts, 15.4% and 16.2% respectively.
10. Default Rates, % with Debt
11. Average Debt at USF
12. Impact on Florida’s Workforce FL Unemployment—7.1%, Competition for Jobs is Tough Employers and Credit Reports (47%) Damaged Credit = Difficulty Finding Good Jobs/Any Jobs Future wage earnings
13. What’s Happening at Work?Studies Show Workers with Financial Problems: Absenteeism Up Poor Performance Ratings Excessive Time—Personal Financial Issues Productivity Down
14. Impact on Personal Wealth & Expenses Floridians, Age 18-30, Seeking Credit Counseling in 2013 Average # of creditors: 4-8 Almost 1,000 bankruptcy filings (-$32,000 net worth) Average FICO score: 526-571 Poor Credit Scores Lead to Higher Interest Rates for Cars, Other Consumer Goods ($$).
15. What colleges and employers wish…. Students enter with: a cursory understanding of vocabulary, i.e., debits, credits, interest rate a familiarity of basic financial concepts experience in creating a budget an understanding of what school costs a plan to pay using financial aid, parent help, part time work