The Road to Student Financial Literacy

A Grass Roots Collaboration at the College Of St. Scholastica

Contents

Current status of financial literacy

Why important for our students?

St. Scholastica’s WellU

The online course

What next?

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?

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

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

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!

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.”

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

Current Status – Importance to Higher Ed

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…

WellU FinancialPlan $ Calculate $ Act

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

Highlights

Timeline and Highlights

2009/10 Committee Formed

2010/11 TrainingsWorkshopsFIN 1777Cash Course

2011/12 WELL U FinancialThrivent/Money RevolutionFIN 1777Senior Send OffWells Fargo

2012/13 Welcome WeekHomecoming Week - $100 Savings ChallengeMoney Week

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.

Money Revolution Interns

Partnered with Thrivent Financial Provide training Provide resources

Interns work as Peer on Peertablingpresentationsactivities

Financial Literacy Course

Free 1 credit online course offered to SSS TRiO Students

3/19/12-5/10/12

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)

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

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

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

Sample Assignment -WIKI Terms

AssetBankruptcyKelly blue book valueNet worthLiability401 KTerm Life InsuranceWhole life insuranceCredit ScoreCompound interest

Thank You!

Resources

The Geography of Financial Literacy - http://www.rand.org/pubs/working_papers/WR893.htmlJumpstart 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.htmlKnow Before You Owe - http://www.consumerfinance.gov/Chronicle - http://collegecompletion.chronicle.com/institution/#id=174899Thrivent - 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