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    Wise Financial Literacy Wise Financial Literacy Presentation Transcript

    • Financial Literacy Certification Program The Urban Forum, Rochester NY December 15, 2008
    • Let’s Change the Course of History! Credit intensity of GDP (The amount of credit generated by per $1 of GDP Growth) $4.5 $3.0 $1.5 $1.5 $1.5 $1.5 1950’s 1960’s 1970’s 1980’s 1990’s 2007 Source: UBS as reported in the Financial Times on January 24th, 2008
    • Financial Literacy Certification Program Why it’s Important!  Less than a quarter of students (24%) say they are very well prepared to deal with life’s financial challenges (Hartford Financial Services Group, 2007)  68% of high school seniors today do not understand the basics of personal finance and only 21% have taken a personal finance class (Jump$tart, 2008).  Universities lose more students to credit card debt than to academic failure  US consumer debt stands at $2.4 trillion and exceeds household income by over 8% 3
    • Financial Literacy Certification Program Background about the Program  Origin: Established in 2003 in New York City as an initiative of the New York Financial Literacy Coalition (the NY State Jump$tart affiliate)  Goals:  increase the number of young people who are financially literate  improve instruction of finance to seniors in high schools  measure the level of school effectiveness in the teaching of finance and the financial literacy of students graduating from high school  Market position:  35 schools in the Upstate Region of New York  Over 200 schools in 21 States  Recognition: Recipient of the 2007 US Treasury John Sherman Award for Excellence in Financial Education 4
    • Financial Literacy Certification Program Program Characteristics  Schools agree to teach Personal Finance unit and test all students in course on business, financial planning, economics, personal finance, math, health and consumer sciences etc.  Topics Taught: Money, Cost of Money, Budgeting, Banking, Credit, Insurance, Investing, Money Management, Retirement Planning, Regulatory Agencies  Program Features:  Orientations  Workshop training for teachers (with partners)  Annual Conference  Teacher Resources (curriculum outline, practice tests online)  Certification Testing (pre-test and post test) administered by teachers and scored by w!se  Student, Teacher and School Recognition  Behavioral Surveys and Psychometric Analysis  Troubleshooting support 5
    • Financial Literacy Certification Program The Certification Test  Newly developed each semester  Students randomly assigned one of three tests  50 Multiple Choice questions  15 Survey Questions  60-70 minutes  Administered in the fall and spring  Test Available in English and Spanish  Plans to develop on-line testing 6
    • Financial Literacy Certification Program Participating Students 25,000 22,528 20,000 15,447 16,767 15,000 10,273 11,666 10,000 6,226 7,532 4,614 5,000 2,208 4,548 3,350 1,736 0 2003 2004 2005 2006 2007 2008 Pass Rate 79% 73% 73% 73% 75.5% 74.4% Number of Students Tested # of Students Financially Literate Total of 61,296 participating students and 45,599 Certified Financially 7 Literate!
    • Financial Literacy Certification Program Performance by Topic Area 100% % Correct % % % % % 80% 75 75 75 75 % % % 73 % 71 71 71 69 % % % 63 63 62 60% 40% 20% 0% Money Management Banks & Banking Credit Insurance/Investing Spring 2006 Spring 2007 Spring 2008 Performance generally strongest in the area of credit and money management weakest in insurance/investing 8
    • Financial Literacy Certification Program Pass Rate by Gender 73.10% Spring 2008 72.20% 80.00% Fall 2007 83.00% 75.80% Spring 2007 76.40% 72.60% Fall 2006 73.20% 72.40% 2005-6 74.30% 72.80% 2004-5 73.40% 72.80% 2003-4 73.40% 0.00% 20.00% 40.00% 60.00% 80.00% 100.00% Males Females No statistical difference between the performance of males and females. Interestingly, however, females had a higher pass rate than males for the first time in Spring 2008. 9
    • Financial Literacy Certification Program Pre-test vs Post-test Scores 100.00% 80.00% 74.00% 72.00% 69.00% 73.90% 72.00% 60.00% 50.00% 48.00% 50.00% 47.10% 43.00% 40.00% 20.00% 0.00% 2005-6 Fall 2006 Spring 2007 Fall 2007 Spring 2008 Pre-test Post-test At least 20% improvement between pre-test scores and post-instruction scores. 10
    • Financial Literacy Certification Program Survey Results  A student survey is conducted when the Certification Test is administered to measure the impact of personal finance education and to identify variables that impact student scores.  Presented in this section are highlights of  Student perception of the value of financial education  Changes in student behavior towards their finances after completing a personal finance course  Impact of student exposure to financial products on test scores 11
    • Financial Literacy Certification Program Value of Financial Education  As a result of a personal finance course, students reported  they felt confident in managing their own finances  that financial education had been valuable to them  believed they would use the skills and knowledge learned % % % 90 % % 90 % % .0 .0 .1 .0 100.0% .0 .0 .0 97 97 97 91 % 90 .8 83 % % .0 .9 81 83 80.0% % % .0 .0 67 65 % Students 60.0% 40.0% 20.0% 0.0% 2003-4 2004-5 2005-6 2006-7 2007-8 12 Confidence Value of Learning Relevance
    • Financial Literacy Certification Program Changes in Student Behavior 100% 80% 2007-2008 72% 84% 77% 75% 89% 66% 61%  Students adopt positive 60% 56% 54% 56% 38% 38% changes after completing a 40% 20% personal finance course. 0% Budgeting Banked Saving Financial Goals Talking Money Comparing Prices 100% 2006-2007 85%  Each year since 2005, there 82% 83% 80% 75% 75% 68% 64% 63% 64% has been an increase in the 60% 50% 56% 38% percentage of students: 40% 20%  Using budgets 0% Budgeting Banked Saving Financial Talking Money Comparing  Having bank accounts Goals Prices 100%  Saving regularly 2005-2006 80%  Setting financial goals 60%  Talking about money with 40% 33% 34% 36% 29% 29% 26% their parents 20% 17% 22% N/A  Comparing prices 0% N/A 13 Budgeting Banked Saving Financial Talking Money Comparing Goals Prices Pre-test Post-test
    • Financial Literacy Certification Program Owning Financial Products Score differential 10.00% 2007-2008 7.70% and Effect on Test Scores 8.00% 6.00% 7.00% 7.10% 4.30% 4.00%  Ownership of financial 1.90% 2.00% products positively affects 0.00% Certification Test scores Bank ATM Card Debit Card Credit Card Investment Account Product  Having bank account has 20.00% 2006-2007 16.60% greatest positive benefit on 16.00% test score. 12.00%  Last year, having a bank 8.00% 5.20% 7.60% account, using an ATM card, 4.00% 3.00% 3.50% and using a debit card all 0.00% Bank Account ATM Card Debit Card Credit Card Investment had positive effects on test 20.00% AVG 2003-2006 Product scores in the range of 7% to 16.00% 8%. 12.00% 11.30% 8.00% 4.85% 4.85% 3.54% 4.00% N/A 14 0.00% Bank ATM Card Debit Card Credit Card Investment Account Product
    • Financial Literacy Certification Program Prior Exposure to Financial Education 100.00% 80.00% % Students 60.00% 40.00% 36.00% 22.00% 23.00% 22.00% 20.00% 0.00% N/A 2003-4 2004-5 2005-6 2006-7 2007-8  Very few students had exposure to financial education prior to their school participating in the w!se program  SY 07/08 was first year in which there was an increase in the percentage of students indicating prior financial education, suggesting there may be a shift among high 15 schools to exposing more students to personal finance.
    • 16
    • Blue Star School Banner 17
    • The Financial Literacy Certification (CFL) 18
    • Financial Literacy Certification Program Program Benefits  Free!!!!!!!  Results ONLY shared with school contact  Schools with 75% + passing the FLC Test are designated BLUE STAR SCHOOLS  Teachers with 90% of class passing test are designated as GOLD STAR TEACHERS  Certificates to students who pass the test; Medals for students who achieve a 95%+.  Annual Psychometric analysis  The w!se CFL! 19
    • Testimonials about the Program The Financial Literacy Certification Program has been a home run at our high school. A leading college recently honored more than 15 students for business leadership at a reception. All involved were very proud and now have a great knowledge base in personal finance.” “I had a girl last semester who earned York raise when she - Teacher from New a $4/hr showed to her manager her financial literacy certification from w!se ” - Teacher from Tennessee “On a recent job interview, one of my students was about her financial knowledge, credit score and credit history. She said she was surprised but felt confident in being able to answer the questions. She also explained that she had received a financial literacy certification from w!se. She got the job! “ - Teacher from New Jersey 20
    • Financial Literacy Certification Program The program calendar - 2008-2009  August 17th, First Program Orientation  August 27th, Fall 2008 – First Pre-test Date  September 16th, Second Program Orientation  October 2nd, Fall 2008 Second Pre-test Date  October 16th , Fall Workshop New York City  November 4th, 6th Annual MoneyPOWER Conference for Educators  December 16th, Fall Financial Literacy Certification Test  January 2009, Reporting of Fall Certification Test Scores  January, Spring Program Orientation (repeated in February)  January, 2008, Spring Workshop I (NYC)  February 3rd, 2008 Spring Workshop 2 (Saratoga Springs)  February, 2008 Spring Workshop (Rochester or Buffalo, NY)  February Spring 2008 Pretest  March 2008 Spring workshop (Long Island, NY)  April, Teacher orientation for Spring test  May, Spring Financial Literacy CertificationTest  May 15-30th, Reporting of Spring Test scores 21
    • Financial Literacy Certification Program Frequently Asked Questions  Can the test be given in class?  Should I count it toward the final grade?  Can all schools administer the pre-test?  Do the practice tests matter?  How does the program work with block schedules?  Can you use the program to support dual credit?  Do you have multiple testing dates?  How long does it take to receive test scores?  What is the passing rate on the test? 22
    • Thank You!