Student Learning and Financial Realities Jamie Petersen Cheryl Warmann Oakton Community College Champions of Financial Aid - 2017 ILASFAA Conference

Financial Literacy and Student Success In Fall 2014, over 20 million students (undergrad and grad) attended a post-secondary institution (U.S. Dept. of Education, 2016) Average net price of attendance for full-time/first-time students in 13-14 (U.S. Dept. of Education, 2016) $12,750 at 4-year public $24,690 at 4-year private non for profit $21,000 at 4-year private for profit $7,100 at 2-year public

Financial Literacy and Student Success Employment (U.S. Dept. of Education, 2016) 40% of full-time students between 16-24 years old 76% of part-time students between 16-24 years old Seven in 10 seniors (68%) who graduated from public and nonprofit colleges in 2015 had student loan debt, with an average of $30,100 per borrower. (Project on Student Debt, 2016)

Financial Literacy and Student Success An estimated two million students enrolled in college who were eligible for Pell Grants in 2007 did not apply for them (U.S. Department of Education, 2008) One in three students reported his/her financial situation was “likely” or “somewhat likely” to affect the ability to complete a college degree (Lyons, 2003) 45% of community college students participating in the CCSSE indicated that finances were critical to their continued enrollment in college (Cooper, 2010)

Financial Literacy and Student Success 56% of students hold a credit card Students reported being less prepared to manage their money than almost any other aspect of college life. (Higher One, 2016)

Oakton’s Financial Literacy Program Began Fall 2013 Activities SALT/online tool Facebook/Twitter Lecture Financial Reality Store

Financial Reality Store Game-based educational activity/experiential learning Real money simulation Student-centered Cone of Learning Active learning/Learning by doing Fun and interactive Reflects real life behavior Less threatening way to reveal money habits Safe environment to make mistakes

Financial Reality Store Career/Salary Budget Fixed costs Variable costs Net income Positive Negative

Research Questions How does the experience influence students’ current financial decision making? How does the experience influence students’ future financial planning? How does the experience influence students’ educational goals or career path?

Research Methods Qualitative Short answer student questionnaire Comments recorded Comments reviewed for patterns/themes Comments reviewed for outliers

Student Questionnaire In a few brief sentences, please share with us how this experience…. What financial decisions making strategies will you make in your daily life as a result of your participation in today’s program? What financial goals (including college financing) will you set as a result of your participation in today’s program? How will your participation in today’s program impact your educational goals or career path?

Influence on Students’ Current Financial Decision Making Budgeting for needs vs wants (mindfulness) “Use money wisely” “Be conscious of what I am spending on” “Make sensible decisions” Saving “Start a savings account” “Put money in savings”

Influence on Students’ Future Financial Planning Financial aid options “Get many scholarships” “Get scholarships and save financial aid [refunds]” “Get job” and “work part-time” “Get through school with few student loans” (Des Plaines only) Budgeting “Live with parents” and “room with someone” “Save and spend wisely”

Influence on Students’ Educational Goals or Career Path Study Hard “Need to finish school” and “try harder to achieve goals” “Study in school” “Pursue further education” Realize/consider career path supports lifestyle “Realized I’m on the right track” “Realize job will finance life” “Find good paying job”

Changes to Consider for Future Programming In evaluation, inquire into what change(s) are needed to achieve your chosen career and educational goals. In evaluation, inquire into monthly savings goal. Consider creation of a new reality game related to student loan repayment, credit card borrowing, and/or retirement planning.

Questions Contact Information Jamie Petersen jpeterse@oakton.edu 847-635-1709 Cheryl Warmann cwarmann@oakton.edu 847-635-1719