Financial Literacy Getting Serious Presentation by David D. Mancl Director, Office of Financial Literacy Wisconsin Department of Financial Institutions 345 W. Washington Ave., Madison, WI (608) ,

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Three good ideas Keep doing the good work you are doing! Be active in Money Smart Week WI Sponsor a teacher to NIFEL

Expanding Opportunities through Financial Education

Strengthening Wisconsin's Financial Future Regulatory Responsibilities 214 state chartered banks 242 state chartered credit unions 13 state chartered savings institutions 112,000+ securities representatives (brokers & advisors) Wisconsin Consumer Act (credit transactions < $25,000) Corporate Filing Agency for: 213,000+ LLCs (Limited Liability Companies) 101,000+ Corporations Numbers are current as of 12/31/09 To ensure the safety and soundness of Wisconsin’s financial institutions, to protect consumers of financial services and to promote economic growth

Social and economic impact of financial illiteracy Leading cause of divorce and suicides Bankruptcies at an all time high Individual Costs Cost to each consumer (over $600/yr) #1 impediment to WI’s financial competitiveness

Trends Living Longer Retirement responsibility shift Social Security benefits? Raising healthcare costs Debtor Class Unprecedented access to more financial products and services than ever before Tough times

Message to Next Generation You’re on your own!

National Survey of High School Seniors YearScore (USA)Score (WI) % NA % NA % 58.8% %54.7% %53.1% %57% College 62% The high school survey was given to 6,856 high school 12th graders in 40 states. The college survey was given to 1,030 full time students nationwide.

State Financial Education Requirements (+5 since 2009)

WI Workplace Financial Literacy Survey Results WI for-profit and non-profit businesses (380 responds) 66% provide some financial education –Outside provider, 70% –Posters, paycheck insert –Presentation by employee, 25% –Topics Investing for Retirement, 90% Benefits, health insurance, basic investing –Reasons for providing it Perk (70%), morale & loyalty, employee demand (30%)

WI Workplace Financial Literacy Survey Results 33% NO financial education Barriers –Weren’t sure employees want it (…?) –Have no one to present

Challenges Solutions

Financial Literacy Movement NAEP 2006 (Nat’l Assessment of Educational Progress) National Financial Literacy and Education Commission National Office of Financial Education Consumer Financial Protection Agency * National Institute of Financial and Economic Literacy National Jump$tart Coalition

Financial Literacy Movement NAEP 2006 (Nat’l Assessment of Educational Progress) National Financial Literacy and Education Commission –Request comment on national strategy and core competencies –Search on FLEC National Office of Financial Education Consumer Financial Protection Agency * National Institute of Financial and Economic Literacy National Jump$tart Coalition

WISCONSIN First-ever State Coalition of the Year!

A financial education program for educators and the thousands of students they teach Thank You !!! 10th Anniversary

We are reaching educators Program participants’ knowledge rose 13% Participants felt better prepared to introduce a course in financial education in their schools Participant evaluations rate the Institute training as “excellent” -- Pre- and post-test administered and analyzed

We are reaching students... 80% of the teachers implemented financial literacy after attending the Institute We are reaching educators... A financial education program for educators and the thousands of students they teach Over 600 WI teachers trained. We trained educators in technical colleges, correctional institutions, youth volunteers, etc. -- Data from three separate surveys of all past participants

Governor's Council on Financial Literacy “The Council’s mission will be to measurably improve the financial literacy of Wisconsin citizens.” And, “…serve as a continuous sounding board for the Governor’s Office and the Department of Financial Institutions…” 5th Anniversary

Governor's Council on Financial Literacy Formal education in schools Employee education Emerging market Fraud prevention Family Financial Literacy

Council Priority Financial Literacy Innovation awards for teachers $500 to $5000 to teachers and their school MOU between DFI and DPI Total: $150,000 WI’s Model Academic Standards on Personal Finance A.Relating Income and Education B.Becoming a Critical Consumer C.Community and Financial Responsibility D.Planning, Saving, and Investing E.Money Management F.Risk Management G.Credit and Debt Management Historic Implementation

Money Smart Week Wisconsin October 2-9, 2010 “Rally” event at Executive Residence Governor’s Proclamation State agencies 27 Communities Teams 62 cities 1000 partners 5th Anniversary

Participation

Green Bay Packer Donald Driver

Wisconsin State Capitol in Green

Oprah’s Debt Diet Coach

President’s Council on Financial Literacy Money Math Lessons for Life -middle schools National Financial Literacy Challenge -high schools Community Financial Assess Pilot -unbanked -including FL in sub prime lending Financial Education Honor Roll -employers, colleges/universities -Model cities, states Baseline Survey of Adult Consumers Multimedia Consortium and Outreach

REAL Progress and Pathways to Prosperity Investor Education in Your Workplace This project is funded by a grant from the Investor Protection Trust (IPT). The IPT is a Washington, DC-based nonprofit organization dedicated to investor education. Since 1993 the IPT has worked with the states to provide the independent, objective investor education needed by all Americans to make informed investment decisions. Visit 36

Program Goals:Program Results: Recruit 40 Credit Unions Register 4000 employees Complete 30,000 hours of online coursework completed Make measurable impact on employees / employers 80+ CU’s signed up 4200 Registered 30,000+ hours of coursework completed in < 25 weeks!!!!!! YES. Groundbreaking results on knowledge and behavior! REAL Progress and Pathways to Prosperity

Expanding Opportunities through Financial Education

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