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2009 Institute for Staff Development
Students Today, Leaders Tomorrow
Financial Literacy Certification Program from w!se
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Financial Literacy Certification Program
Less than a quarter of students (24%) say they are very well prepared to deal with life’s financial challenges (Hartford Financial Services Group, 2007)
68% of high school seniors today do not understand the basics of personal finance and only 21% have taken a personal finance class (Jump$tart, 2008).
Universities lose more students to credit card debt than to academic failure
US consumer debt stands at $2.4 trillion and exceeds household income by over 8%
Why Youth Financial Literacy is Important!
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Prior Exposure to Financial EducationVery few students have exposure to financial education
prior to their school participating in the w!se program
22.00% 23.00% 22.00%
36.00%
0.00%
20.00%
40.00%
60.00%
80.00%
100.00%
2003-4 2004-5 2005-6 2006-7 2007-8
% S
tude
nts
N/A
Financial Literacy Certification Program
% of students with financial education
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Financial Literacy Certification Program
Origin: Established in 2003 in New York City as an initiative of the New York Financial Literacy Coalition (the NY State Jump$tart affiliate)
Goals: increase the number of young people who are financially
literate measure the level of school effectiveness in the teaching of
finance and the financial literacy of students graduating from high school
reward achievement
Market position: 50 schools in the Upstate Region of New York Over 200 schools in 18 States
Recognition: Recipient of the 2007 US Treasury John Sherman Award for Excellence in Financial Education
Background about the Program
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Partnership: Schools teach Personal Finance and test all students
Topics: Money, Cost of Money, Budgeting, Banking, Credit, Insurance, Investing, Money Management, Retirement Planning, Housing, Regulatory Agencies
Features: Orientations Teacher Workshops Annual Conference Resources (curriculum outline, practice tests online) Certification Testing (pre-and post test)
administered by teachers, scored by w!se Student, Teacher and School Recognition The Blue Star Financial Literacy Report
Program Cost: Offered at no charge to schools in New York State
Confidentiality: Results ONLY shared with school contact
Program Characteristics
Financial Literacy Certification Program
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The Certification Test
More than one test per semester 50 Multiple Choice questions 15 Survey Questions 60-70 minutes Administered in the fall and spring Test Available in English and Spanish Paper and on-line testing Spring 09
Financial Literacy Certification Program
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Participating Students
22,528
7,532
11,666
16,76715,447
10,273
6,226
4,614
2,208 4,5483,350
1,7360
5,000
10,000
15,000
20,000
25,000
2003 2004 2005 2006 2007 2008
Number of Students Tested # of Students Financially Literate
Total of 61,296 participating students and 45,599 Certified Financially Literate!
Pass Rate 79% 73% 73% 73% 75.5% 74.4%
Financial Literacy Certification Program
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Pre-test vs Post-test Scores
43.00%
50.00%
48.00% 50.00% 47.10%
72.00% 69.00%74.00% 73.90% 72.00%
0.00%
20.00%
40.00%
60.00%
80.00%
100.00%
2005-6 Fall 2006 Spring 2007 Fall 2007 Spring 2008
Pre-test Post-test
At least 20% improvement between pre-test scores and post-instruction scores.
Financial Literacy Certification Program
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Awards and Recognition Results ONLY shared with school contact Schools with 75% + passing the FLC Test
are designated BLUE STAR SCHOOLS Teachers with 90% of class passing test are
designated as GOLD STAR TEACHERS Certificates to students who pass the test;
Medals for students who achieve a 95%+. The w!se CFL!
Financial Literacy Certification Program
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The Financial Literacy Certification (CFL)
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Testimonials about the Certification
The Financial Literacy Certification Program has been a home run at our high school. A leading college recently honored more than 15 certified students for business leadership at a reception. All involved were very
proud and now have a great knowledge base in personal finance.” - Teacher from New York
“I had a girl last semester who earned a $4/hr raise when she showed to her manager her financial literacy
certification from w!se ” - Teacher from Tennessee
“On a recent job interview, one of my students was about her financial certification, credit score and credit history. She said she was surprised but felt confident in being able to answer the questions. She also explained that she had received a financial literacy certification
from w!se. She got the job! “- Teacher from New Jersey
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Performance by Topic Area
Performance generally strongest in the area of credit and money management weakest in insurance/investing
0%
20%
40%
60%
80%
100%
Money Management Banks & Banking Credit Insurance/Investing
Spring 2006 Spring 2007 Spring 2008
% Correct
Financial Literacy Certification Program
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Pass Rate by Gender
73.40%
73.40%
74.30%
73.20%
76.40%
83.00%
72.20%
72.80%
72.80%
72.40%
72.60%
75.80%
80.00%
73.10%
0.00% 20.00% 40.00% 60.00% 80.00% 100.00%
2003-4
2004-5
2005-6
Fall 2006
Spring 2007
Fall 2007
Spring 2008
Males Females
No statistical difference between the performance of males and females.
Interestingly, however, females had a higher pass rate than males for the first time in Spring 2008.
Financial Literacy Certification Program
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Value of Financial EducationAfter personal finance instruction, students report confidence in
managing their finances, that financial education is valuable to them and that they will use the skills and knowledge learned
0.0%
20.0%
40.0%
60.0%
80.0%
100.0%
2003-4 2004-5 2005-6 2006-7 2007-8
% S
tuden
ts
Confidence Value of Learning Relevance
Financial Literacy Certification Program
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38%
50%
68%63% 64%
75%
64%56%
82% 83%75%
85%
0%
20%
40%
60%
80%
100%
Budgeting Banked Saving FinancialGoals
Talking Money ComparingPrices
Changes in Student Behavior
38%
54%
38%
72%66%
75%
56%61%
56%
84%77%
89%
0%
20%
40%
60%
80%
100%
Budgeting Banked Saving Financial Goals Talking Money ComparingPrices
2007-2008
2006-2007
Financial Literacy Certification Program
Each year since 2005, there has been an increase in the percentage of students:
Using budgets Having bank accounts Saving regularly Setting financial goals Talking about money with their
parents Comparing prices
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Use of Financial Products and Test Scores
7.70%
4.30%
1.90%
7.00% 7.10%
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
BankAccount
ATM Card Debit Card Credit Card InvestmentProduct
Score differential 2007-2008
Financial Literacy Certification Program
Ownership of financial products consistently affects Certification Test scores
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Frequently Asked Questions
Can the test be given in class? Should I count it toward the final grade? Can all schools administer the pre-test? Do the practice tests matter? How does the program work with block schedules? Can you use the program to support dual credit? Do you have multiple testing dates? How long does it take to receive test scores? What is the passing rate on the test?
Financial Literacy Certification Program
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The program calendar - 2008-2009 August 17th 2008, First Program Orientation August 27th 2008, Fall 2008 – First Pre-test Date September 16th 2008, Second Program Orientation October 2nd 2008, Fall 2008 Second Pre-test Date October 16th 2008, Fall Workshop New York City November 4th, 2008, 6th Annual MoneyPOWER Conference for Educators December 16th 2008, Fall Financial Literacy Certification Test January 2009, Reporting of Fall Certification Test Scores January 2009, Spring Program Orientation available through You Tube February 2nd 2009, Spring Workshop I (NYC) January 27th and February 10th, 2009, Spring 2009 Pretest March 2009, Spring workshop (Long Island, NY) April, 2009, Teacher orientation for Spring test May 2009, Spring Financial Literacy CertificationTest June, 2009, Reporting of Spring Test scores June, 2009, Scholars Reception
Financial Literacy Certification Program
Thank You!