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The Road to Student Financial Literacy

The Road to Student Financial Literacy. A Grass Roots Collaboration at the College Of St. Scholastica . Current status of financial literacy. Why important for our students?. St. Scholastica’s WellU. The online course. What next?. Contents.

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The Road to Student Financial Literacy

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  1. The Road to Student Financial Literacy A Grass Roots Collaboration at the College Of St. Scholastica

  2. Current status of financial literacy Why important for our students? St. Scholastica’s WellU The online course What next? Contents

  3. If a man empties his purse into his head, no one can take it from him. An investment in knowledge always pays the highest return. – Benjamin Franklin Do you agree?

  4. Current Status • Financial literacy is the ability to use knowledge and skills to manage one’s financial resources effectively for lifetime financial security – Jumpstart Coalition • Multiple studies show that financial literacy is lacking, a definite and widespread problem in the United States • Good news from the Financial Literacy Center: • MN was the 2nd best state! • Higher level of education attained, the more financially literate • With poor economy, slow recovery, high unemployment, the problem is magnified

  5. Current Status as Related to Education • K-12 education: • Only 4 states require .5 credit of personal finance • 17 states require personal finance be incorporated into other subjects • Colleges/Universities: • Kansas State – IPFP (Inst. Pers. Fin. Planning) • Powercat Financial Counseling – A peer counseling model • U of North Texas – Student Money Management Center • Other: • Financial Literacy Center – RAND

  6. Current Status – Importance to Higher Ed • Increased tuition and student debt loads combined with economic issues are creating hardships • Tuition increases much greater than normal inflation • Student debt surpassed $1 trillion! • Student use of other forms of debt is also greatly increasing. 84% of students use credit cards, with half of students having 4 cards! (Sallie Mae, 2009) • Lives are being negatively impacted!

  7. Current Status – Importance to Higher Ed • Increasing consumer financial literacy is now a public policy objective to improve welfare through better decision making (U.S. House of Representatives, Financial Services Committee 2009) • National Strategy for Financial Education • President Obama in his State of the Union address: “So let me put colleges and universities on notice, if you can’t stop tuition from going up, the funding you receive from taxpayers will go down.”

  8. Current Status – Importance to Higher Ed • Result? Increased rules & regulation! • Require better transparency for education ‘consumers’ • Mandates for education ‘providers’ • Mandates for grant/aid/loan participants • More scrutiny for accreditation authorities

  9. Why important for our students? • Some comments from committee members as to why they are willing to volunteer their time to further financial literacy in our students…

  10. WellU Financial Plan $ Calculate $ Act

  11. How it Happened • TRiO/Student Support Services (SSS) required services of financial and economic literacy. • FREE 1 Credit Course (FIN 1777) in collaboration with the School of Business and Technology. • “Water Cooler” conversation between TRiO/Student Support Services (SSS) and Career Services. • Bringing Together the Silos

  12. Highlights

  13. Recommendations • Establish goals and mission early. • Be aware of motives from other departments, organizations, etc. • Get the right people on board. • Secure money to help with activities and programming.

  14. Money Revolution Interns • Partnered with Thrivent Financial • Provide training • Provide resources Interns work as Peer on Peer tabling presentations activities

  15. Financial Literacy Course Free 1 credit online course offered to SSS TRiO Students 3/19/12-5/10/12

  16. SSS Grant Financial Literacy Goals • Personal and family budget planning • Understanding credit building principles to meet long-term and short-term goals, credit scores • Cost planning for secondary education (spending, saving, personal budgeting) • Cost of attendance (public vs. private, tuition vs. fees, personal costs) • Scholarship, grant and loan education (searches, applications, federal vs. private) • Assistance in completing the Free Application for Federal Student Aid (FAFSA)

  17. Design of the Course • Fully Online using Blackboard as the platform. Textbook is also online • 20 student maximum • Team taught by two Student Affairs staff - disclaimer that we are not financial experts! • 8 week course- free to SSS students if below 12 credits or above 18 credits

  18. Course Learning Outcomes • Understand Microsoft Excel Basics • Apply budgeting concepts to personal spending • Analyze personal spending trends • Review basic financial terms through class WIKI • Research and investigate Personal Credit Score • Evaluate personal credit card information • Apply SMART Goal Setting techniques to personal finances • Understand the cost of attending college and explore ways to assist with these costs • Obtain resources to assist with financial decisions

  19. Course Evaluation Activities • Completed pre and post test • Two journal reflection assignments • Needs vs. Wants worksheet • Track and submit spending for a two week period • Complete an estimated personal budget • Definition of terms, class WIKI and quiz • MNCIS Activity • Icebreaker and final discussion

  20. Sample Assignment -WIKI Terms • Asset • Bankruptcy • Kelly blue book value • Net worth • Liability • 401 K • Term Life Insurance • Whole life insurance • Credit Score • Compound interest

  21. Questions? Thank You!

  22. Resources The Geography of Financial Literacy - http://www.rand.org/pubs/working_papers/WR893.html Jumpstart Coalition - http://www.jumpstart.org/assets/files/standard_book-ALL.pdf Kansas State U - http://www.k-state.edu/pfc/http://www.cashcourse.org/ksu Univ of North Texas - http://moneymanagement.unt.edu/ Rand - http://www.rand.org/labor/centers/financial-literacy/partners.html Know Before You Owe - http://www.consumerfinance.gov/ Chronicle - http://collegecompletion.chronicle.com/institution/#id=174899 Thrivent - Ryan M Anderson, Social Entrepreneurship Fellow, Marketing Dvlpmnt 625 Fourth Ave. S., Minneapolis, MN 55415-1665 Direct: 612-844-7203 Cell: 952-221-4645 Email: ryan.m.anderson@thrivent.com Cash Course - http://www.cashcourse.org/home/ Financial Literacy and Education Commission - http://www.mymoney.gov/ OCC Newsletters - http://www.occ.gov/topics/community-affairs/resource-directories/financial-literacy/financial-literacy-update.html

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