Post on 17-Dec-2015
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