My friend Victoria showed this video to us last week and it was inserted, as it demonstrates what I had found in my research coming from the mouths of current students.
Your local paper highlighted the problem just a couple weeks ago
Facts that SCARE, but show why this is needed
After looking at many varied programs this is what seems to work across all lines
Use them all or most --- some read..some listen .. Some only respond online..others in person
Know your student body and target groups ..then apply CASE
It is amazing that most good programs have a similar core
Year ago when I was at temple we talked to focus groups of students –freshman through Professional Schools –the results were not what we originally thought – where, how and who were surprising as theere desires follow what other schools implemented Where--
Small groups, from experts-relevant and interesting …and with FOOD
Build the RIGHT program – use what is available –why reinvent what is there!
Look..take a little from each and Steal it!! Many other sites are available!
A VERY typical plan!
Too short a time for long term results, but they are working and in the next 10-years data will support this!
Financial Literacy At the Campus Level
Best Practices in Financial LiteracyPresented by:Mark Goodman – Educational Service AdvisorAt:
May 2, 2013H.E.A.R.O. Spring Workshop 2 You-tube worth listening to: Most students do not know their credit score but know exactlyhow long Kim Kardashian was married. Less than 40% knew what “defaultbut 90% know who JustinBieber is dating.” meant for Student Loans 100% would take advantage of financial literacy learning if it isRELEVANT and INTERESTING. Thank you Victoria Pirrung for the Video and information!
May 2, 2013H.E.A.R.O. Spring Workshop 3 Heard Off the Street: Young people want financial literacy onsyllabus April 14,2013 from Students are concerned about financial planning Only 4 states require personal finance education (not PA) Peer pressure can discourage good financial habits
May 2, 2013H.E.A.R.O. Spring Workshop 4 The process by which people improve theirunderstanding of financial products, servicesand concepts, so they are empowered tomake informed choices, avoid pitfalls, knowwhere to go for help and take the rightactions to improve their present and longterm well-being.** From Chris Stompanato of ECSI and Student lending Analytics
Today almost all Colleges and Universities have aFinancial Literacy Program 84% of current students believe they need morefinancial education. The vast majority wished theyreceived more information as freshman or in high school Only 13% of colleges make financial literacy part ofthe mandatory curriculum* The majority of administrators agree that less than10% of the students are served by these programs*May 2,, 2013H.E.A.R.O. Spring Workshop5
Eighty-five percent of college graduates plan to move back home after graduating. (TwentysomethingInc. 2010 survey) The rate has risen from sixty-seven percent in 06‟. (Jessica Dickler, CNN staff writer) Only fifty-nine percent of the young adults in Generation Y (ages eighteen to twenty-nine) pay theirbills on time every month. (2008 Financial Literacy Survey National Foundation for Credit Counseling,Inc. and MSN Money) Ten percent of American with mortgages reported being late or missing a mortgage payment in the lastyear and seven percent of adults are either getting calls from collectors or thinking about filing forbankruptcy. (2008 Financial Literacy Survey National Foundation for Credit Counseling, Inc. and MSNMoney) Almost fifty percent of those who closely monitor their finances say that they learned about personalfinance from their parents or at home. (2008 Financial Literacy Survey National Foundation for CreditCounseling, Inc. and MSN Money) About thirty-four percent of parents have taught their teens how to balance a checkbook, and less thanthat has explained how credit card interest and fees work and ninety-three percent of Americanparents with teenagers report worrying that their children might make financial missteps such as:overspending or living beyond their means. (Charles Schwab‟s 2008 “Parents & Money) Around sixty-nine percent of parents admit to feeling less prepared to give their teenager guidanceabout investing than they do having the „sex talk‟ with them. (Charles Schwab‟s 2008 “Parents &Money) Three out of every four Americans say they arent saving enough. (2008 Pew Research Center) Fifty-four percent of college student respondents had overdrawn their bank account and eighty-onepercent underestimated the amount of time it would take to pay off a credit card balance by a largemargin. (Center for Economic and Entrepreneurial Literacy Survey) Forty percent will never gain a net worth in excess of ten thousand dollars. (American Dream EducationCampaign)May 2,, 2013H.E.A.R.O. Spring Workshop6
College Loans Epic Default Student Loans the Next Bubble Student-Loan Default Rates Rise As Federal ScrutinyGrows Decades Later, Student Loan Default Haunts Borrower More college students defaulting on student loansThese are recent headlines taken from publications includingThe Wall Street Journal, Bloomberg and USA Today that arescreaming at us to better educate our students FINANCIALLY!May 2,, 2013H.E.A.R.O. Spring Workshop7
Everyone seems to agree that financial literacy should begin in High Schoolor Middle School◦ At a recent seminar I attended the presenter talked about games like Monopoly or Life that taughtyoung people about money.◦ In the “dark ages” when I attended school we learned about the value of money in elementary ormiddle school, but today the schools are too busy preparing students for standardized tests andtherefore things like finance have followed shop and home economics only to be replaced by testpreparation and additional computer classes. There are some programs available◦ Games like Nintendo‟s Money Game, or companies like Squido that offer Financial Literacy for Kidswith Games on-line◦ Creative Wealth International –offers high school level curriculum◦ Jump$tart is a national coalition of organizations dedicated to improving the financial literacy ofpre-kindergarten through college-age youth by providing advocacy, research, standards andeducational resources. Jump$tart strives to prepare youth for life-long successful financialdecision-making. We can advocate these programs and hopefully in the future the studentsthat show up on our door will have some financial education andunderstanding, but for now we must play the hand we are dealt!.May 2,, 2013H.E.A.R.O. Spring Workshop8
Financial Literacy Programs for our studentsshould include: One on One Counselors Written Support Material Outreach Course Work Self-Awareness Activities Interactive Websites Educational Programs Incorporate into school curriculum Multi-tracks for different levels Target those most in need and apply REAL life situationsMay 2,, 2013H.E.A.R.O. Spring Workshop9
Brochures and Handouts For-Credit Classes Videos Lectures (small groups are better) Counseling PowerPoint type presentations Exercises Simulations/ Games / Competition Social Media Peers and Recent GraduatesMay 2,, 2013H.E.A.R.O. Spring Workshop10
◦ There are schools throughout the country that have FinancialLiteracy Programs that do work and have proven results so whatwe need to do is look, find what we like and build the programthat best FITS with our institution!◦ Each of us in this room may look at the same data and build aprogram that is different.◦ The key is to Build a program that you believe in and that yourstudent‟s will follow to success and just like successful programseverywhere we must continually revisit, update and fine tune.May 2,, 2013H.E.A.R.O. Spring Workshop11
Duke University University of Illinois Texas Tech Virginia Tech Plymouth State Augsburg College California Institute of Technology Bowling Green State University Monroe College Boston College And more …May 2,, 2013H.E.A.R.O. Spring Workshop12
The first items I will highlight were found in amajority of the programs studied and thereforeshould be high on our C.A.S.E. list.Multiple program modules: Financial Literacy is not a quick fix or something that can besingle focused. These programs offer a variety of topics thatthe students can take one at a time. Some online, some inclasses, some offered in groups. Key Topics included- Budgeting and Financial Planning,Establishing credit, Saving money, Paying debts, Handlingcredit cards, Loan management, Paying for college, Taxes-preparation and advice, Choosing a professional to workwith and Consumer rights and responsibilities.May 2,, 2013H.E.A.R.O. Spring Workshop13
When you offer a good program, the next key is tomake it easily accessible so the students takeadvantage of what you are offering.◦ Multiple ways for the students to access information (onmany departmental websites) and workshops at variouslocations.◦ Webinars were successful when feedback was integrated.◦ Counseling Offices (professionals and peer) with postedhours throughout campuses.◦ Trained peers or professionals presenting in residentialhousing, classrooms or lecture halls and organizationoffices.May 2,, 2013H.E.A.R.O. Spring Workshop14
As we pointed out earlier there are many ways to delivermessages. When it comes to financial matters wediscovered that students want to learn from professionalsand those who “walked in their shoes” (graduates).◦ Workshops, Seminars, Classes or even Webinars with guestinstructors from the financial industry (bankers, investment,planning, credit and collection) or recent graduates who are nowin the workforce repaying loans and credit cards.◦ Online modules where feedback can be measured.◦ Published data – booklets – online or print.◦ “Ask the Expert” – video or via established electronic response (e-mail or message).May 2,, 2013H.E.A.R.O. Spring Workshop15
Benefits for All: The students: Avoid default Gain financial education that can be applied throughout life. Understanding “Needs” vs. “Wants” The Schools: Improved Cohort and overall default rates on Loan Programs Higher rates of graduation and retention at all levels Spirit of cooperation and teamwork between departments Better public image Alumni who are more appreciative and therefore moregiving.May 2,, 2013H.E.A.R.O. Spring Workshop16
The following may be helpful when looking to build,expand or link to your College‟s website:◦ Mymoney.gov◦ Huffington Post – Mary Johnson‟s Blog- Financial Literacy for College Students Net Price Calculator DOE Financial Aid Shopping Sheet Consumer Financial Protection Bureau◦ PracticalMoneyskills.com Includes lesson plans as sampled on a future slide…◦ Financial Literacy 101◦ WhyCreditMatters.net –Access Receivables‟ informative and educational site,please look at it and feel free to link or steal anything! (self serving advertising noteinserted in this presentation!)May 2,, 2013H.E.A.R.O. Spring Workshop17
The links below will lead you to a variety of sites that address Financial literacy.Some are planning sites to help you set up your site, some are non-profitsthat offer information and links and some charge small fees. •www.fdic.gov/consumers/consumer/moneysmart/index.html •www.mastercard.com/us/personal/en/learningcenter/index.html .www.StudentMoney.Uillinois.edu .www.PersonalFinance.Duke.edu •www.cashcourse.org •www.jumpstart.org •www.studentdebthelp.org •www.creditcardnation.com •www.decisionpartners.org •www.choosetosave.org •www.igrad.com •www.mappingyourfuture.org/money •www.bankrate.com •www.annualcreditreport.com •www.practicalmoneyskills.comMay 2,, 2013H.E.A.R.O. Spring Workshop18
May 2,, 2013H.E.A.R.O. Spring Workshop19College Teacher‟s Modules(from PracticalMoneySkills.com)Lesson 1: The art of budgetingLesson 2: Living on your ownLesson 3: Buying a homeLesson 4: About creditLesson 5: Credit CardsLesson 6: Cars and loansLesson 7: Consumer AwarenessLesson 8: Saving and investingLesson 9:; In TroubleLesson 10: About consumer privacy
May 2, 2013H.E.A.R.O. Spring Workshop20“If you build it they will Come.”This worked for a baseball field built on a mid-western farm, but itdoes not work for every student when we look at Financial Literacy.Administrators at a number of schools admitted that while many students willbenefit from Financial Literacy Programs some will not. Therefore it isimportant that the programs are focused to offer relevant informationdelivered in a variety of methods. Programs should not only be relevant butrepetitive and interactive.Successful programs incorporate the efforts of many departments and peer topeer efforts.Social Media is a reality in today’s world and a managed effort for students to“friend” and gain from will enhance your program.
May 2, 2013H.E.A.R.O. Spring Workshop21The Whitehouse.gov offers information and links on fiscal education.This should convince us all that Financial Literacy is here and will beimportant in the years to come.We need to supply our students with these valuable life lessonscontinually and via means that they will respond to positively. Themore students we reach the better financial citizens we develop!Look at the information introduced in this presentation, reach out toother schools, your collection partners, associations like HEARO,COHEAO, EARMA, NACUBO. We all have a common desire toeducate our students to be responsible fiscally now and throughouttheir lifetime.
May 2, 2013H.E.A.R.O. Spring Workshop22Mark R. Goodman – Educational Service Advisormgoodman@access-receivables.comCell: 856-577-7703 (Pacific Time Zone)