- 1. SASFAA-Nashville February 12, 2007 An Academic Approach to
Financial Literacy Barry Simmons, Virginia Tech Scott Miller,
University of Virginia Wendy Wood, University of Virginia
2. Overall Guidelines
- Virginia public colleges and universities shall make provisions
for the promotion of the development of student life skills through
the inclusion of the principles of economics education and
financial literacy within an existing general education course, the
freshman orientation process or other appropriate venue.These
principles may include, but need not be limited to, instruction
concerning personal finance, such as credit card use, opening and
managing an account in a financial institution, completing a loan
application, and managing student loans; consumer rights and
responsibilities; and debt management.
3. Financial Literacy
- Accredited Financial Counselor
4. Money Matters
- It is incumbent on every generation to pay its own debts as it
goes.A principle which, if acted on, would save one-half the wars
of the world.
- Thomas Jefferson(1743-1826)
- Founder of the University of Virginia
5. Financial Literacy
6. Financial Literacy
- -Meeting 100% of demonstrated financial need
- -Replacing need-based loans with grants
7. Accredited Financial Counselor SM The National Student Loan
Program and the Association for Financial Counseling and Planning
Education (AFCPE) are partnering to provide the Accredited
Financial Counselor SMProgram to NSLP clients. 8. Accredited
Financial Counselor SM
- The AFCPE program consists of:
- Personal Finance, Financial Counseling, and Debt
Managementcourses
- all-day telephonic review sessions
- online, proctored examinations
- In addition, NSLP will lead 6 two-hour study group conference
calls for each course to provide participants with structure to
complete courses in a timely manner.
9. Accredited Financial Counselor SM
- Participants will gain in-depth knowledge of:
- budgeting and cash flow management
- income tax and estate planning basics
- Participants will also learn valuable counseling skills such as
interviewing, discerning real issues, suggesting solutions,
motivating clients, and implementing plans of action.
10. Accredited Financial Counselor SM What is the Cost? AFCPE --
$850 AFCPE/NSLP Partnership AFCPE is providing a substantial
discount for NSLP school clients who enroll in the program in 2006.
In addition to AFCPE's generous discount, NSLP will pay $500 of the
$750initialcost for its clients' program costs. After participants
pass 2 required examinations, NSLP will reimburse the clients' $250
initial cost to the school. 11. Accredited Financial Counselor SM
Contact Information AFCPE Sharon A. Burns, Ph.D., CPA
[email_address] Columbus, OH (614) 485-9650 office NSLP Pauline
Balta [email_address] Lincoln, NE (800) 735-8778 12. Financial
Literacy
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- Financial Literacy Survey Spring 2006
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- Assessment of the financial management education component
ofAccessUVa
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- Baseline of first-years personal finance knowledge and
behavior
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- To understand how students or groups of students differ in
their financial knowledge and behavior
13. Financial Literacy
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- First-years and fourth-years
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- High-need (200% of poverty level)
14. Financial Literacy
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- Students were surveyed about
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- credit card habits and debt
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- knowledge about student loans
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- knowledge about credit scores
15. Financial Literacy
- A majority of students wish that they knewsomewhatora lot
moreabout money management.
- A majority of first-year students learned most of their money
managing skills from their parents.
- Average credit card debt of a fourth-year is just under $700;
for a high-need fourth year that figure climbs to just under
$2000.
16.
- Developed in partnership with the National StudentLoan Program
(NSLP)
- Reviewed with parents and students during orientation
17.
- Beginning of Financial Literacy at the University
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- Credit Cards and Debt Management
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- Consumer Rights and Responsibilities
18.
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- Financial Literacy Workshops
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- Choosing and Using Credit Cards Wisely
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- Credit Reports and Scores
19. "I came away from the experience learning to be responsible
and watch out for [myself] in terms of credit. --First Year Student
Nana Agyemang 20. Developed and Written by Karen Richel M.S. Ed.
Curriculum Specialist Conceived and Directed byBarry W. Simmons Sr.
Ed.D. Director Office of University Scholarships and Financial
AidVirginia Tech SASFAA 2007 Financial Literacy 101: Process and
Design 21. Financial Literacy 101
- Why make a program available?
22. Financial Literacy Programs History
- Virginia Code amended (Chapter 741 23-9.2:3.5) to incorporate
personal finance and student education in institutes of higher
education.
- Principle requirements requested are:
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- Opening and managing accounts in financial institutions
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- Completing a loan application
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- Consumer rights and responsibilities
23. Whats First?
24. The Design Process
25. Existing Programs
- Capital One: Practical Money Skills for Life
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http://capitalone.practicalmoneyskills.com/english/index.php
26. Existing Programs
- http://www.consumerjungle.org
27. 28. 29. The Design Process
30. Module Contents
- Module # 2 Account Management
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- Types of Accounts Available and How They Work
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- The Wonder of Compound Interest
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- Pros and Cons of Ownership
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- Alternatives to Credit Cards
31. Module Contents
- Module # 4 Debt Management
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- How to Control Current Debt/Manage Future Debt
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- Future Consequences of Debt
- Module # 5 Other Benefits Available
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- Different Types of Financial Aid (not just for education)
- Module # 6 Loan Management
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- Three Simple Rules to Borrowing
- Module # 7 Consumer Rights and Responsibilities
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- Protecting Consumer Rights
32. The Design Process
A B 33. 34. 35. 36. 37. ObjectivesAfter completing Module #1,
you will be able to:$ Define several financial terms related to a
budget.$ Distinguish if a budget is necessary for you.$ List and
incorporate the 5 steps to budgeting into your ownfinancial plan.$
Apply the S.M.A.R.T. Model of Goal Setting to your financial
goals.$ Create and implement your own budget.$ Identify extras that
should be considered in a healthy budget. 38. 39. 40. 41. 42. 43.
44. 45. 46. 47. 48. 49. 50. 51. 52. What Students Think!
- The breeze presentation (someone talking to me) and then being
able to look up what she said in writing.
- Answered most of my questions about finances.
- The information related to me!
- General information people my age need to know and yet often do
not.
- It touches on all the basics freshmen need to know about as
they enter into college.
- I liked the self-pace aspect of the program
- I liked the activities because I could personalize them.
53.
- Adding information about investing
- Frankly, I was satisfied with the way it is already.
- Add information about our Hokie Passport since it is used so
much.
- have a giveaway if you complete it.
- You could go a little more in-depth
- I would like to see a section on filing for taxes and a general
section about taxes.
54. Advertising
55. Enrollment Process
- Blackboard Learning System
56. Implementation
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- Brochures given to Students during Orientation
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- Resource Fair Table Handouts/Brochures available for
Parents/Students
57. 58. 59. Ideas for the Future
60. Questions??? www.finaid.vt.edu/nestegg Dr. Barry W. Simmons
Sr.