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MASFAA 2013
October 6th – 9th, 2013
Indianapolis, Indiana
Financial Matters – Dealing with Financial Literacy & Educational
Planning
Shashanta S. James, M.A.Associate Director
Western Michigan University
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Financial Matters
What is Financial Literacy Impact to Your Campus Buzz Word Goals & Needs Building a Program Resources & Training What our Colleagues are Doing GAME TIME
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What do you know about FL&EP?
What does financial literacy mean to you? ◊ “the ability to use knowledge and skills to
manage financial resources effectively for a lifetime of financial wellbeing.”
• President’s Advisory Council on Financial Literacy in 2008
• Why is it important to financial aid offices?
− College students earned less than 53% score in personal finance knowledge
− Less than 24% of students and families understand their financial future during college and post graduation
− Over 70% of students learn about finances from parents
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How this impacts your campus..
According to a 2013 study by Sallie Mae and Ipsos◊ 85% of parents surveyed believe that
college will increase career opportunities, higher earnings over their lifetime and is an investment in their future.
◊ Families ideally believe that their students will earn a degree in five years or less
• Is the graduation rate < 5 years on your campus?
Statistically speaking….
How this impacts your campus..
Making it affordable◊ Eliminate schools based
on cost?◊ Students living at home?◊ Will students enroll in
accelerated coursework?
Making ends meet◊ Parents reduced overall
spending?◊ Students reduced overall
spending?
◊ Parents worked more◊ Student worked more
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Being Cost Conscious – What does this really mean to our students?
How this impacts your campus..
30%
27%
18%
11%
9%5%
Financial Aid is paying more of the bill.
Grants & Scholarships Parent Income & Savings Student BorrowingStudent Income & Savings Parent Borrowing Relatives & Friends6
THANK YOU
Sallie Mae and IpsosHOW AMERICA PAYS FOR COLLEGE 2013
A national study of undergradate students, 18-24 and their parents.
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No longer just a buzz word
Who benefits from financial literacy & educational planning efforts?
◊ Students◊ University – FAO, AR, FYE, Alumni
Relations◊ Associate Sectors – banks, credit unions
guarantee agencies and financial partners
◊ Parents
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No longer just a buzz word
Students today are financially vulnerable and have limited knowledge of financial responsibilities.◊ “Gimme now” culture
• Thriving on the latest fashions, dependent on trendy technologies and dealing with generational demands
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Goals to Accomplish
In developing your financial literacy program what are the goals of your campus and needs of your students?
◊ Enhance knowledge, skills and attitudes to develop a healthy financial behavior in the following areas:
• Budgeting• Saving and Investing• Needs vs. Wants• Loan debt and repayment• Credit cards• Insurance matters
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Give them what they need
Ah-ha moments for young adultsHow much it takes to live on your own (26%) How challenging it is to find a job (10%)
How hard it is to save money (22%) How hard it is to break away financially from your parents (6%)
How many financial choices & decisions there are to make (13%)
How little you made at your first job (5%)
How hard it is to pay all your bills (12%) Something else/None of the above (7%)
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Give them what they need
I wish someone would have told me….
Living within a budget (45%) Evaluating employee-provided benefits (20%)
The importance of saving (42%) Financing a home (19%)
Choosing investments (32%) Retirement plans (17%)
Using credit cards wisely (32%) Balancing a checkbook (13%)
Insurance Options (23%) Other (8%)
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Build it and they will come..?
Probably not – just because you develop a program does not guarantee attendance
Creative Marketing – bribe them to come Administrative buy-in is crucial
What is your institution’s Mission & Vision Connect financial literacy to your goals Build a network of colleagues who buy-in to the
concept
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Building it Together
Who will be included in the program development, planning, and implementation?◊ Enrollment Management Division
• Financial Aid, First Year Experience, Admission
◊ Faculty & Academic Dept, TRIO, Alumni Relations, Parent & Family Programs, Career Services & Graduate College
◊ Students – graduate, undergrad or high school◊ School & Community partnerships
This does not have to solely develop in the financial aid office.
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Time ?
Who has the time and resources to develop a financial literacy program on their campus?
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You Already Giving the Time
Time◊ Have students or parents asked you any of
the following:• How am I going to pay for college• How can I get money for books• I had an accident and my car needs to be repaired
and I need more money • I need an advance on my refund for next semester
If you spent time with these question then you have been providing financial literacy lessons
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Building Resources & Training
Resources◊ Research, review and pick one…or two…
• TG• Great Lakes• Sallie Mae• ASA – American Student Assistance• Nelnet• GreenPath• USAFunds• PNC• Fifth Third• Wells Fargo• Charter One
− Disclaimer –Please visit all exhibitors and gather information that fits your needs.
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Building Resources & Training
Resources◊ NEFE.org
• Cashcourse, High School financial Planning Program
◊ Jumpstart.org◊ Mymoney.gov◊ Mint.com
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Building Resources & Training
http://www.greenpath.com/
http://www.tgslc.org/finlit/
http://www.kalamazoopublicschools.com/
https://www.kalamazoopromise.com/
www.practicalmoneyskills.com/games/trainingcamp/ff/
www.financialsoccer.com/play/play.php
www.practicalmoneyskills.com/games/road_trip/road_trip.html
Building Resources & Training
www.fdic.gov/consumers/consumer/moneysmart/young.html
Modules range from 90-110 minutes if taught in their entirety. However, the content is layered so that it can be taught in two (or more parts). To help an instructor tailor the modules to the needs of the audience, the front of each module includes a matrix or Layering Table to delineate the module’s components.
The matrix will assist an instructor in presenting material responsive to the needs of your target audience within the available time frame. A description of each of the eight modules follows:
Building Resources & Training
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What our Colleagues are Doing
Kansas State University◊ Powercat Financial Counseling Program
• http://www.k-state.edu/pfc
Syracuse University◊ I OTTO Know This Program – fee$
• http://www.syr.edu/financialaid/financialliteracy
Midwestern University◊ Financial Literacy
• http://www.Midwestern.edu/programs-and-admission/student-financial-services/financial-literacy
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Outreach
Strategies ◊ Who are the recipients of your financial
literacy programs?• Middle Schools• High Schools• Parents• Incoming Freshman• Graduating Seniors• Graduate Professional Programs
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What’s behind the
Outreach Unit - Western Michigan University ◊ Created in 2000
• Central scheduling for all presentation request• Strong representation in MSFAA’s Early
Awareness and Multicultural Outreach• Partnered with BPW with Reality Store• Partnered with GEAR-UP• Implemented EXTREME REALITY• Active with NCAN, MCAN and KACAN• Leadership in MASFAA’s FECC • Financial Literacy Proposal 2013
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We planted the FL seed
GEAR-UP provided opportunities in 3 states and numerous school districts◊ We created programs from our
colleagues and resources• EXTREME REALITY• NEFE• TG
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Cultivating the Land
In the community◊ Big Brother Big Sister◊ Girl Scouts/Boy Scouts◊ Church Youth Groups◊ Teen Moms◊ K-12 schools – Literacy Math & Reading Night,
P/T Conferences
On Campus◊ Kalamazoo Promise, SEITA Scholars, Honors
College, TRIO, FYE, Orientation and Student Organization
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Reaping the Benefits
Leave a lifelong impact about Financial Literacy and Educational Planning
Let me show you how “to use knowledge and skills to manage financial resources effectively”
GAME TIME
MASFAA’S REALITY STORE IN MICHIGAN
Volunteers from various organizations
Knowledge and Skills to Manage Financial Resources
Balancing your checkbook
Pay Yourself First
Child care cost how much?????!!!!!
PAY from a job
Fun stuff like MOVIES
Fast food,
SNACKS or pop
PAY from a job
ALLOWANCE
ALLOWANCE
SAVINGS
PAY from a job
CLOTHES or shoes
ALLOWANCE Fun stuff like MOVIES
Budget Lesson