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Resources, slides and more information available: 

https://learn.extension.org/events/1558#.U36Otq1dXrU!
Panelist: Bill Cheeks!
William “Bill” Cheeks is President
of ABBA Associates Inc., a fiscal
management consultant. Bill is ...
Panelist: Dr. Joyce Serido!
Dr. Joyce Serido is an
Assistant Research
Professor at the University
of Arizona’s Norton Scho...
Panelist: Dr. Shelley MacDermid
Wadsworth!
Dr. Shelley MacDermid
Wadsworth is a Professor and
Director of the Center for
F...
Jump$tart®	
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  Personal	
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  independent,	
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  coal...
Jump$tart National Initiatives Standards
and Benchmarks3rd	
  
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  Coali@on	
  for	
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Omni	
  
	
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ARIZONA	
  PATHWAYS	
  TO	
  LIFE	
  
SUCCESS	
  FOR	
  UNIVERSITY	
  
STUDENTS	
  (APLUS)	
  
Joyce	
  Serido,	
  Asst.	
...
Copyright@APLUS	
  Take	
  Charge	
  America	
  Ins?tute,	
  2014	
  
SOCIALIZATION	
  
•  Financial	
  paren?ng	
  
is	
  key	
  influence	
  	
  
•  1.5	
  ?mes	
  that	
  of	
  
financial	
  ...
COGNITION	
  
3%	
  
11%	
  
14%	
  
CUMULATIVE	
  EFFECTS	
  OF	
  FINANCIAL	
  EDUCATION	
  
Copyright@APLUS	
  Take	
  ...
FINANCIAL	
  SELF-­‐AWARENESS	
  	
  
3.5	
  
4.5	
  
4.0	
  
3.7	
  
4.6	
  
3.7	
  
Perceived	
  financial	
  
efficacy	
  ...
FINANCIAL	
  BEHAVIOR	
  	
  
2	
  
3	
  
4	
  
Wave	
  1	
  
Wave	
  2	
  
Copyright@APLUS	
  Take	
  Charge	
  America	
...
FINANCIAL	
  BEHAVIOR	
  AND	
  WELL-­‐BEING	
  
2	
  
2.5	
  
3	
  
3.5	
  
4	
  
4.5	
  
Financial	
  
Sa?sfac?on	
  
Li...
Financial
Parenting
Work
Experience
Education
Financial
attitudes
Perceived
financial
control
Financial
efficacy
Saving
Bu...
WHAT	
  IS	
  “FINANCIAL	
  CAPABILITY”?	
  
•  Knowledge	
  and	
  competencies	
  [rela?ve	
  to	
  personal	
  
finance]...
PROMOTING	
  YOUNG	
  ADULTS’	
  
FINANCIAL	
  CAPABILITY	
  
Strategies	
  for	
  
Copyright@APLUS	
  Take	
  Charge	
  A...
PERSONAL	
  FINANCE	
  IS…PERSONAL	
  
•  Personal	
  goals	
  and	
  values	
  -­‐	
  the	
  founda?on	
  of	
  	
  
pers...
FIRST	
  STEP	
  TOWARD	
  FINANCIAL	
  CAPABILITY	
  
Awareness	
  
•  Personal	
  goals,	
  values,	
  aStudes	
  
•  Fi...
FINANCIAL	
  LEARNING	
  IS	
  ONGOING	
  
•  Financial	
  decision-­‐making	
  is	
  a	
  daily	
  event	
  
•  Individua...
SECOND	
  STEP	
  TOWARD	
  FINANCIAL	
  CAPABILITY	
  
Relevance	
  
•  Financial	
  well-­‐being	
  is	
  a	
  personal	...
PROACTIVE	
  COPING	
  PROMOTES	
  WELL-­‐BEING	
  
Proac?ve	
  coping	
  involves:	
  
•  Star?ng	
  with	
  a	
  goal	
 ...
THIRD	
  STEP	
  TOWARD	
  FINANCIAL	
  CAPABILITY	
  
RESPONSIBILITY	
  
•  Invest	
  in	
  yourself	
  	
  
•  Career	
 ...
Questions!!
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Please enter your question in the chat box!
- or Tweet your question using #MFLNPF!
What	
  Young	
  Military	
  People	
  
Need	
  to	
  Know	
  about	
  Money	
  
Shelley	
  MacDermid	
  Wadsworth	
  
Jun...
Today,	
  Enlisted	
  Average	
  Military	
  Compensa?on	
  
Exceeds	
  Earnings	
  of	
  Most	
  Workers	
  with	
  High	...
Officer	
  Average	
  Military	
  Compensa?on	
  Exceeds	
  
Pay	
  of	
  Most	
  Workers	
  with	
  Bachelor’s	
  Degree	
 ...
Military	
  Wives	
  Have	
  Lower	
  Labor	
  Force	
  
Par?cipa?on	
  and	
  Earnings	
  Than	
  Comparable	
  
Civilian...
Labor	
  Supply	
  and	
  Earnings	
  Differences	
  
Imply	
  Average	
  Annual	
  Earnings	
  20	
  
Percent	
  Lower	
  ...
‘Can’t	
  make	
  ends	
  meet’	
  or	
  ‘In	
  over	
  our	
  heads’	
  
Junior	
  Enlisted	
  Service	
  Members	
  
0%	...
‘Can’t	
  make	
  ends	
  meet’	
  or	
  ‘In	
  over	
  our	
  heads’	
  
Military	
  Family	
  Life	
  Project	
  Mothers...
Financial	
  Problems	
  Are	
  More	
  Common	
  
in	
  Families	
  Where	
  …	
  
•  Service	
  members	
  are	
  in	
  ...
Financial	
  Problems	
  Are	
  Less	
  Common	
  
in	
  Families	
  Where	
  …	
  
•  Money	
  is	
  put	
  aside	
  each...
Conclusions	
  
•  Service	
  members’	
  compensa?on	
  is	
  higher	
  
than	
  that	
  of	
  comparable	
  civilians	
 ...
Questions!!
!
!
Please enter your question in the chat box!
- or Tweet your question using #MFLNPF!
Resources!
•  Arizona Pathways to Life
Success!
•  Jumpstart!
•  Jumpstart Clearinghouse!
•  The Military Family Research
...
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What Young Adults Need to Know About Money
What Young Adults Need to Know About Money
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What Young Adults Need to Know About Money

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What Young Adults Need to Know About Money is a 90 minute panel discussion presented by Bill Cheeks, Dr. Joyce Serido and Dr. Shelley MacDermid Wadsworth on behalf of the Military Families Learning Network. This panel discussion addresses the concerns of young working adults, college students and young enlisted Service Members.

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What Young Adults Need to Know About Money

  1. 1. Please  share  your  email  address  with  us!   We’d like to send you a link to this webinar’s recording and resources, and notifications for future webinars.!   Provide  feedback  and  earn  CEU  Credit  with  one  link:     We will provide this link at the end of the webinar! Welcome to the 
 Military Families Learning Network 
 Panel Discussion What Young Adults Need to Know About Money! This material is based upon work supported by the National Institute of Food and Agriculture, U.S. Department of Agriculture, and the Office of Family Policy, Children and Youth, U.S. Department of Defense under Award Numbers 2010-48869-20685 and 2012-48755-20306.
  2. 2. This material is based upon work supported by the National Institute of Food and Agriculture, U.S. Department of Agriculture, and the Office of Family Policy, Children and Youth, U.S. Department of Defense under Award Numbers 2010-48869-20685 and 2012-48755-20306. Research and evidenced-based
 professional development ! through engaged online communities.! eXtension.org/militaryfamilies! ! ! Welcome to the 
 Military Families Learning Network !
  3. 3. Connect with the Personal Finance Team » Facebook: PersonalFinance4PFMs » Twitter: #MFLNPF
  4. 4. Resources, slides and more information available: 
 https://learn.extension.org/events/1558#.U36Otq1dXrU!
  5. 5. Panelist: Bill Cheeks! William “Bill” Cheeks is President of ABBA Associates Inc., a fiscal management consultant. Bill is a consultant to the Jump$tart Coalition for Personal Financial Literacy and, in that capacity, serves as Regional Consultant, Eastern States, assisting and advising Jump$tart state coalitions in the region. !
  6. 6. Panelist: Dr. Joyce Serido! Dr. Joyce Serido is an Assistant Research Professor at the University of Arizona’s Norton School of Family and Consumer Sciences/Take Charge America Institute and is the Principal Investigator for the Arizona Pathways to Success Transition to Adulthood initiative.!
  7. 7. Panelist: Dr. Shelley MacDermid Wadsworth! Dr. Shelley MacDermid Wadsworth is a Professor and Director of the Center for Families and the Director of the Military Family Research Institute at Purdue University. Over the past 20 years, her research has focused on the relationships between work conditions and family life. !
  8. 8. Jump$tart®  Coali@on  for    Personal  Financial  Literacy     An  independent,  non-­‐profit  coali@on  of  more  than   150  na@onal  organiza@ons  and  en@@es.   Ø Non-Profit Organizations Ø Educational Institutions Ø Financial Associations Ø Corporations Ø Government Agencies
  9. 9. Jump$tart National Initiatives Standards and Benchmarks3rd   Edi@on,   2007   Jump$tart  Coali@on  for  Personal  Financial  Literacy   National Standards in K–12 Personal Finance Education   With  Benchmarks,  Knowledge  Statements,  and  Glossary   Substantially Revised in 2007 Benchmarks for 4th, 8th and 12th Grades
  10. 10. Jump$tart’s Online Clearinghouse Ø Virtual Library Ø 750+ resources Ø Many free Ø Reviewed against standards Ø Updated annually
  11. 11. Jump$tart State Coalitions
  12. 12. Jump$tart     Na@onal  Educators  Conference       Omni    Hotel  
  13. 13. ARIZONA  PATHWAYS  TO  LIFE   SUCCESS  FOR  UNIVERSITY   STUDENTS  (APLUS)   Joyce  Serido,  Asst.  Director  &  Research  Professor   Take  Charge  America  Ins@tute   University  of  Arizona   June  5,  2014   Funding  for  this  study  provided  by  the  Na5onal  Endowment  for   Financial  Educa5on  (NEFE)  and  the  Ci5  Founda5on   Copyright  @  Take  Charge  America  Ins?tute  2014  
  14. 14. Copyright@APLUS  Take  Charge  America  Ins?tute,  2014  
  15. 15. SOCIALIZATION   •  Financial  paren?ng   is  key  influence     •  1.5  ?mes  that  of   financial  educa?on     •  2  ?mes  that  of   their  friends   Copyright@APLUS  Take  Charge  America  Ins?tute,  2014  
  16. 16. COGNITION   3%   11%   14%   CUMULATIVE  EFFECTS  OF  FINANCIAL  EDUCATION   Copyright@APLUS  Take  Charge  America  Ins?tute,  2014  
  17. 17. FINANCIAL  SELF-­‐AWARENESS     3.5   4.5   4.0   3.7   4.6   3.7   Perceived  financial   efficacy   Perceived  financial   control   Posi?ve  financial   aStudes     Wave  1   Wave  2   Copyright@APLUS  Take  Charge  America  Ins?tute,  2014  
  18. 18. FINANCIAL  BEHAVIOR     2   3   4   Wave  1   Wave  2   Copyright@APLUS  Take  Charge  America  Ins?tute,  2014  
  19. 19. FINANCIAL  BEHAVIOR  AND  WELL-­‐BEING   2   2.5   3   3.5   4   4.5   Financial   Sa?sfac?on   Life   Sa?sfac?on   Psychological   Well-­‐Being   Physical  Well-­‐ Being     Poor   Low   Average   High   Copyright@APLUS  Take  Charge  America  Ins?tute,  2014  
  20. 20. Financial Parenting Work Experience Education Financial attitudes Perceived financial control Financial efficacy Saving Budgeting Investing Tracking Ini%ate   Improve   Promote     Subjec@ve   financial   knowledge     Objec@ve   financial   knowledge   Socializa@on   Cogni@on   Self-­‐Awareness   Behavior   Well-­‐Being   Financial Physical Psychological Life Satisfaction FINANCIAL  CAPABILITY  DEVELOPMENT   Copyright@APLUS  Take  Charge  America  Ins?tute,  2014  
  21. 21. WHAT  IS  “FINANCIAL  CAPABILITY”?   •  Knowledge  and  competencies  [rela?ve  to  personal   finance],  ability  to  act  on  that  knowledge,  and   opportunity  to  act  (Johnson  &  Sherraden,  2007)   •  The  ability  to  make  good  financial  decisions  in  their   own  behalf  (FINRA,  2009)   Copyright@APLUS  Take  Charge  America  Ins?tute,  2014  
  22. 22. PROMOTING  YOUNG  ADULTS’   FINANCIAL  CAPABILITY   Strategies  for   Copyright@APLUS  Take  Charge  America  Ins?tute,  2014  
  23. 23. PERSONAL  FINANCE  IS…PERSONAL   •  Personal  goals  and  values  -­‐  the  founda?on  of     personal  financial  style   •  Financial  style  -­‐  the  way  you  approach  financial   choices   –  Financial  style  comes  from  self-­‐understanding  and  self-­‐ expression   •  There  is  a  “cause  and  effect”  inherent  in  financial   choices     Copyright@APLUS  Take  Charge  America  Ins?tute,  2014  
  24. 24. FIRST  STEP  TOWARD  FINANCIAL  CAPABILITY   Awareness   •  Personal  goals,  values,  aStudes   •  Financial  prac?ces  (what  one  can  do)   •  Financial  knowledge  (understanding  how  financial   services  work)     Copyright@APLUS  Take  Charge  America  Ins?tute,  2014  
  25. 25. FINANCIAL  LEARNING  IS  ONGOING   •  Financial  decision-­‐making  is  a  daily  event   •  Individual  understanding  evolves   •  Prac?ce  making  financial  choices   Copyright@APLUS  Take  Charge  America  Ins?tute,  2014  
  26. 26. SECOND  STEP  TOWARD  FINANCIAL  CAPABILITY   Relevance   •  Financial  well-­‐being  is  a  personal  assessment  of   sa?sfac?on  with  one’s  finances.   •  Financial  well-­‐being  contributes  to  quality  of  life   •  Financial  well-­‐being  emerges  from  managing  your   resources  well   •  Financial  well-­‐being  ≠  wealth       Copyright@APLUS  Take  Charge  America  Ins?tute,  2014  
  27. 27. PROACTIVE  COPING  PROMOTES  WELL-­‐BEING   Proac?ve  coping  involves:   •  Star?ng  with  a  goal  or  purpose   •  Gathering  informa?on  (mul?ple  sources)   •  Evalua?ng  informa?on   •  Making  best  choice  (for  you)     Copyright@APLUS  Take  Charge  America  Ins?tute,  2014  
  28. 28. THIRD  STEP  TOWARD  FINANCIAL  CAPABILITY   RESPONSIBILITY   •  Invest  in  yourself     •  Career  planning  is  one  of  the  most  important  financial   decisions  you  will  make     •  Things  change…  things  are  always  changing   Try  it…see  what  happens…adapt     Copyright@APLUS  Take  Charge  America  Ins?tute,  2014  
  29. 29. Questions!! ! ! Please enter your question in the chat box! - or Tweet your question using #MFLNPF!
  30. 30. What  Young  Military  People   Need  to  Know  about  Money   Shelley  MacDermid  Wadsworth   June  5,  2014  
  31. 31. Today,  Enlisted  Average  Military  Compensa?on   Exceeds  Earnings  of  Most  Workers  with  High  School   Educa?on   Civilian  earnings  are  for  full-­‐?me,  full-­‐year  male  workers  star?ng  at  age  20   Thanks  to  James  Hosek  for  this  slide   $20,000   $30,000   $40,000   $50,000   $60,000   $70,000   $80,000   $90,000   0   2   4   6   8   10   12   14   16   18   20   Annual  earnings  (2013  $)   Year  of  service     Males  with  High  School:  2011   p_90   p_80   p_70   p_50   RMC  
  32. 32. Officer  Average  Military  Compensa?on  Exceeds   Pay  of  Most  Workers  with  Bachelor’s  Degree   Civilian  earnings  are  for  full-­‐?me,  full-­‐year  male  workers  star?ng  at  age  24   Thanks  to  James  Hosek  for  this  slide   $20,000   $40,000   $60,000   $80,000   $100,000   $120,000   $140,000   $160,000   $180,000   0   2   4   6   8   10   12   14   16   18   20   Annual  earnings  (2013  $)   Year  of  service   Males  with  Bachelor's  Degree:  2011   p_90   p_80   p_70   p_50   RMC  
  33. 33. Military  Wives  Have  Lower  Labor  Force   Par?cipa?on  and  Earnings  Than  Comparable   Civilian  Wives   •  Labor  supply   –  9  percent  lower  labor  force  par?cipa?on  rate   –  6.4  fewer  work  weeks  among  labor  force  par?cipants   –  10  percent  less  likely  to  work  30  or  more  hours  a  week  (“full-­‐?me”)   –  14  percent  less  likely  to  work  33  or  more  weeks  a  year  (“full-­‐year”)   –  14  percent  less  likely  to  work  both  full-­‐year  and  full-­‐?me   •  Earnings   –  13  percent  lower  if  work  part-­‐?me   –  14  percent  lower  if  work  full-­‐?me   •  These  differences  may  reflect  both   –  Preference  for  less  par?cipa?on  and  work   –  Fewer  employment  opportuni?es  and  lower  wage  offers   Based  on  regression  analysis  of  American  Community  Survey  data  for  2005-­‐2011,  controlling  for  age,  educa?on,   year,  whether  federal  employment,  whether  spouse  is  a  veteran,  and  weeks  worked  (in  earnings  regressions)    
  34. 34. Labor  Supply  and  Earnings  Differences   Imply  Average  Annual  Earnings  20   Percent  Lower   Military  wife   Comparable     civilian  wife   Percent   difference   Earnings  by  whether  working  part-­‐?me  or  full-­‐?me      Part-­‐?me      $9,037   $10,352   -­‐13%      Full-­‐?me   $31,116   $36,325   -­‐14%   Percentage  working  full-­‐?me  among  those  working   75%   83%   -­‐14%   Overall  average  earnings  among  those  working     $25,723   $32,112   -­‐20%   Drawing  together  findings  so  far:   Military  spouses’  lower  earnings  par%ally  offset  the  higher  earnings     of  service  members,  plus  military  families  have  zero-­‐cost  health  care  
  35. 35. ‘Can’t  make  ends  meet’  or  ‘In  over  our  heads’   Junior  Enlisted  Service  Members   0%   5%   10%   15%   20%   25%   30%   35%   40%   45%   50%   2002   2009   2010   Individual  Financial   Problems   Overall  Financial   Condi?on   Source:  2011  Family  Readiness  Report  to  Congress  
  36. 36. ‘Can’t  make  ends  meet’  or  ‘In  over  our  heads’   Military  Family  Life  Project  Mothers   2010   0%   2%   4%   6%   8%   10%   12%   14%   16%   18%   Preschool   School  Age   High  School   None  
  37. 37. Financial  Problems  Are  More  Common   in  Families  Where  …   •  Service  members  are  in  pay  grades  lower  than  O4   •  Spouses  are  unemployed   •  The  family  had  a  hard  ?me  readjus?ng  to  the   service  member’s  presence  following  return  from   deployment   •  Service  members  have  been  wounded  in  ways  that   interfere  with  family  life   •  Someone  in  the  family  has  special  medical  or   educa?onal  needs   Data  Source:  Military  Family  Life  Project  2008  
  38. 38. Financial  Problems  Are  Less  Common   in  Families  Where  …   •  Money  is  put  aside  each  month   •  There  is  $500  or  more  in  emergency   savings   •  Social  support  is  higher  than  average   •  The  service  member  is  female   •  The  family  is  enrolled  in  the   Excep?onal  Family  Member  program   Data  Source:  Military  Family  Life  Project  2008  
  39. 39. Conclusions   •  Service  members’  compensa?on  is  higher   than  that  of  comparable  civilians   •  Military  spouses  work  and  earn  less  than   civilian  counterparts,  par?ally  offseSng   service  members’  higher  compensa?on   •  Military  service  provides  extensive  family   supports  rela?ve  to  civilians   •  Financial  condi?ons  have  improved  in  recent   years,  but  this  is  now  slowing  
  40. 40. Questions!! ! ! Please enter your question in the chat box! - or Tweet your question using #MFLNPF!
  41. 41. Resources! •  Arizona Pathways to Life Success! •  Jumpstart! •  Jumpstart Clearinghouse! •  The Military Family Research Institute at Purdue University ! ! !
  42. 42. Personal Finance Twitter Cohort! A 2-week learning experience beginning June 9 presented by the MFLN Personal Finance team and the Network Literacy Community of Practice.! ! •  Become a part of a community of learners that will form and build your online network.! •  Engage in conversations within the Twitter community centered around your interests.! •  Learn from guides that help new users maximize their Twitter experience.! •  For more information and to register: https://twittercohort.wordpress.com/!
  43. 43. Next Personal Finance Webinar! Small Steps to Health & Wealth! •  July 29, 11 a.m.-12:30 p.m. ET! •  Speaker: Dr. Barbara O’Neill! •  1.5 CEUs for AFCs! •  For more information: https://learn.extension.org/events/ 1625#.U36U8K1dXrU!
  44. 44. Military Families Learning Network" This material is based upon work supported by the National Institute of Food and Agriculture, U.S. Department of Agriculture, and the Office of Family Policy, Children and Youth, U.S. Department of Defense under Award Numbers 2010-48869-20685 and 2012-48755-20306. Family Development ! Military Caregiving
 Personal Finance! Network Literacy! Find all upcoming and recorded webinars covering: http://www.extension.org/62581

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