Financial Literacy: Key to Retention and Default Prevention Fall 2012 NCASFAA Conference. What Is Financial Literacy? Why Is It Important?. The ability of individuals to make appropriate decisions in managing their personal finances effectively
Financial Literacy: Key to Retention and Default PreventionFall 2012NCASFAA Conference
The ability of individuals to make appropriate decisions in managing their personal finances effectively
Financial Literacy is critical for a healthy, sustainable economy and culture
Understanding financial responsibilities and managing money can have a positive impact on repaying education loans!!
Sara and Josh just had a baby. They received money as baby gifts and want to put it away for the baby’s education. Which of the following tends to have the highest growth over periods of time as long as 18 years?
A checking account
A U.S. Government savings bond
A savings account
B. Only 16.8% of high school students and 19.2% of college students feel stocks are likely to have a higher return than all other choices…over an 18 year period.
Many young people receive health insurance benefits through their parents. Which of the following statements is true about health insurance coverage?
You are covered by your parents’ plan until you marry
If your parents become unemployed, your insurance coverage may stop
Young people don’t need insurance b/c they are healthy
You continue to be covered by your parents’ plan as long as you live at home, no matter your age
B. Only about 40% of high school students got it right. What’s scarier is that 33% answered “D”. 70% of college students answered correctly.
- the need to repay loans
- the cost of education
- borrowing money for college
- the need to find a job after school
- the academic challenge of course work
America’s Promise Alliance
Federal Government Resources
Mapping Your Future Tools
Get Financially Fit!
- geared for younger students
Financial education resources for colleges
Sponsored by NEFE
Top 5 things HS Students spend their money on
If you chose mostly:
You put off making money decisions.
You like to see your money make money.
You enjoy spending and think little about how to pay for your purchases
You care about others who have less than you do, and you often feel guilty about having more than they do.
You like to save every penny. You do not enjoy spending money.
A $500 scholarship awarded randomly to two students per year who complete the Financial Literacy 101 or AMM course at CFNC.org.
Spend or Save
Online, interactive course
Multi-media or text
Tools to help you make wise money management decisions
Remember the different types of expenses
Pay Yourself First!
Funds transfer to a savings account
When it is appropriate to use credit (for example, an emergency)
What happens if you only make the minimum payment or run up the balance
What happens if you fail to make payments
Credit Card Calculator
Know what’s on your credit report!
You should check it at least ONCE per year!
What creditors are looking for:
-On time payments
-Your mortgage payments
-Available credit on your credit cards
-Total debt outstanding
Missing even one credit card payment can knock your score down 50-100 points.
Write your goals down!
Questions asked after certain topics
Certificate of completion
Year in school
Percent of material covered
Percent of correct answers