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