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  1. 1. NCHELP Conference Graduating a Financially Fit Generation: Education is the Key By Dara Duguay Jump$tart Coalition
  2. 2. Financial Literacy Defined Financial literacy refers to the basic skills people need to manage money and make financial decisions.
  3. 3. Statistics <ul><li>61% of 24- 64 year-olds have no retirement savings account of any kind </li></ul><ul><li>21% of undergraduates owe between $3,000- $7,000 on their credit cards </li></ul><ul><li>Mortgage delinquencies have surged to their highest level since 1992 </li></ul><ul><li>Teens spent $170 billion in 2002, equal to Mexico’s yearly exports </li></ul>
  4. 4. Statistics <ul><li>College students borrowed in the 90s what they did in the 60s, 70s & 80s combined </li></ul><ul><li>Graduating students owe an average of $20,402 in student loan & credit card debt </li></ul><ul><li>Bankruptcies filed by those under-25 were 150,000 in 2000, a ten-fold increase in 5 years </li></ul><ul><li>2002 Personal Savings Rate was 2.4% </li></ul><ul><li>Non-secured consumer debt= 1.65 trillion </li></ul>
  5. 5. Personal Finance Survey Results <ul><li>2002 National Benchmark Study </li></ul><ul><li>4,024 High School Seniors </li></ul><ul><li>Average Score was </li></ul><ul><li>50.2%-a Failing Grade </li></ul><ul><li>65% said they felt “very sure” or “somewhat sure” about ability to manage their finances </li></ul>
  6. 6. The Good News <ul><li>As little as 10 hours of classroom instruction can affect how teens handle their money </li></ul><ul><li>58% of students improved their spending habits </li></ul><ul><li>56% of students improved their savings habits </li></ul><ul><li>NEFE Financial Literacy Study </li></ul>
  7. 7. More Good News <ul><li>Adults, age 30-49, who studied personal finance in high school had: </li></ul><ul><ul><li>A greater net worth – by about </li></ul></ul><ul><ul><li>1 year of income </li></ul></ul><ul><ul><li>More personal savings! </li></ul></ul><ul><li>Education and Savings: The Long-Term Effects of HS Financial Curriculum Mandates, </li></ul><ul><li>Bernheim, B.D., Garrett, D.M., and Maki. 1997. </li></ul>
  8. 8. Major Jump$tart Activities <ul><li>Standards and Benchmarks </li></ul><ul><li>Clearinghouse </li></ul><ul><li>Assessment </li></ul><ul><li>State Coalitions </li></ul>
  9. 9. Standards & Benchmarks <ul><li>Income </li></ul><ul><li>Money Management </li></ul><ul><li>Spending and Credit </li></ul><ul><li>Saving and Investing </li></ul>What students need to know and be able to do.
  10. 10. Clearinghouse <ul><li>You will find: </li></ul><ul><li>www.jumpstartclearinghouse.org </li></ul><ul><li>Personal finance materials </li></ul><ul><ul><li>teaching guides, videos, CDs </li></ul></ul><ul><ul><li>textbooks, web sites and more </li></ul></ul><ul><li>Many free and low-cost sources </li></ul>
  11. 11. Assessment <ul><li>Bank of Test Questions </li></ul><ul><li>Task Force of Experts </li></ul><ul><li>Linked to the Standards </li></ul><ul><li>Partnership with Major Testing Co. </li></ul>
  12. 12. Status of State Coalitions
  13. 13. Monitoring Legislation
  14. 14. No Child Left Behind Act <ul><li>Title 5, Section 5131 </li></ul><ul><li>Local Innovative Education Programs </li></ul><ul><li>#11.   Activities to promote consumer, economic, and personal finance education, such as disseminating information on and encouraging use of the best practices for teaching the basic principles of economics and promoting the concept of achieving financial literacy through the teaching of personal financial management skills including the basic principles involved with earning, spending, saving, and investing. </li></ul>
  15. 15. What Can You Do? <ul><li>Become a Personal Finance Cheerleader </li></ul><ul><li>Encourage educators to incorporate into existing classes </li></ul><ul><li>Spread information about wealth of curricula, guest speaker and teacher training programs </li></ul>