Presented by: American Student Assistance A COLLABORATIVE APPROACH TO FINANCIAL EDUCATION

SESSION OVERVIEW Defining financial literacy The importance of financial education Developing and implementing a plan Examples of models and projects Resources and materials

FINANCIAL LITERACY “The ability to use knowledge and skills to manage financial resources effectively for a lifetime of financial well-being.” –The President’s Advisory Council on Financial Literacy, 2008 Annual Report to the President

THE IMPORTANCE OF FINANCIAL EDUCATION

INCREASING TUITION & FEES Two-Year Public: $3,131 Up 5.8% from Four-Year Public: $8,655 –Up 4.8% from Four-Year Private:$29,056 –Up 4.2% from Trends in College Pricing 2012, The College Board

STUDENT LOAN DEBT FOR UNDERGRADS Class of 2011: $26,600* –Two-thirds of college seniors borrowed Outstanding loan debt greater than $1 Trillion** Student loan debt > credit card debt** *The Project on Student Debt ** Federal Reserve Bank of New York, August 2011

CREDIT CARD USAGE In 2012, 35% of undergraduates had a credit card –Down from 42% in 2010 –Average outstanding balance: $755 3% charged tuition (average of $2,169) –4% of parents charged tuition (average of $4,911) 80% of students carry debit cards. How America Pays for College 2012, Sallie Mae/IPSOS

DOLLARS AND BORROWERS IN DEFAULT + CDR FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 $801 Million $915 Million $1.183 Billion $1.465 Billion $1.533 Billion 114,128161,951204,507231,659238,852320, , %4.6%5.2%6.7%7.0%8.8% 9.1% U.S. Department of Education FY Year Rate = 13.4%

ATTITUDES TOWARD DEBT AND FINANCIAL EDUCATION Those with loans recognize: –Benefits of financial counseling from college before graduating –Difficulties of managing money to pay loan 9 ATTITUDES TOWARD DEBT AND FINANCIAL EDUCATION % Rating 5 and 4 on 5-point Agreement Scale Total Student Loan Status Age WithWithout Important to pay back what they borrow Should receive financial counseling from the college before graduating Need to be more careful about managing their money* 71 n/a *Asked only of those with student loans. Melior Group & American Student Assistance, 2011

DEVELOPING AND IMPLEMENTING A PLAN

KEY ELEMENTS Perceived need/purpose Goals and objectives Format of program Audience Partners and resources Measuring success

12 PERCEIVED NEED/PURPOSE SALT CREATED BY AMERICAN STUDENT ASSISTANCE Reduce Student Loan Debt and/or CDR Improve Retention Increase Annual Giving & Alumni Engagement Increase Student Engagement Position Students and Alumni for Financial success Financial Aid Office & Media/Public Relations Admissions, First Year Experience, and Academic Outreach Alumni Relations & Development Student Activities, Residential Life, Career Services Everyone!

TRIO REQUIREMENT 2008 Higher Education Opportunity Act Passed (2008) Sec (d) Improve the financial literacy and economic literacy of students in areas such as – (1) Basic personal income, household money management, and financial planning skills; and (2) Basic economic decision-making skills

POSSIBILITY FOR ALUMNI OFFICE Melior Group & American Student Assistance, 2011

YOUR DEVELOPMENT OFFICE CARES! Student loan borrowers indicated that the reason they don’t give back to their school is because of a lack of financial wherewithal. 74% Melior Group & American Student Assistance, 2011

GOALS AND OBJECTIVES Learn good financial decision making Lower borrowing levels Lower Cohort Default Rate Get students to attend Get students to pay attention Collaborate with other offices

FORMAT OF PROGRAM In-person –Course –Orientation –Workshop series Online Written material Counseling –Certified professionals –Peer-to-peer

AUDIENCE TRiO students All entering freshmen All graduating seniors College 101 class Greek life/residence hall groups Commuter students Campus organization/major Young alumni

PARTNERS AND RESOURCES Campus partners –Find some champions: staff, faculty, students Community resources –Local credit unions, banks, insurance professionals, etc. National resources –Not-for-profit agencies Blogs and websites –blog.saltmoney.org, studentlendinganalytics.com, todayscampus.com, academic-impressions.com

MEASURING SUCCESS Reduce loan debt Reduce credit card debt Increase alumni giving Increase # of offerings Student interaction Increase # of attendees Outcomes

EXAMPLES OF MODELS AND PROJECTS

CALIFORNIA STATE UNIVERSITY SACRAMENTO

VIRGINIA TECH

EMERSON COLLEGE

TEXAS TECH UNIVERSITY

MAKE IT SIMPLE! School Newspaper  Write a regular article on money management and/or student loan basics  Pay for advertisements in the newspaper School radio or TV station Social media tools

QUICK MONEY LEAKAGE EXAMPLES Dinner Out Every Saturday Night $32/week $1664/year One Starbucks Grande Latte Every Weekday $3.80/drink $988/year Wendy’s #2 Combo Twice a Week $5.64/combo $587/year

RESOURCES

WEB RESOURCES

FAMILY ECONOMICS & FINANCIAL EDUCATION

SALT

PRINCIPLES OF EFFECTIVE PROGRAMS Teachable moments Active, experiential, and problem-based learning Evaluation Financial Education in TRiO Programs, Institutional Policy Brief, The Pell Institute, September 2009

MOST IMPORTANT Start somewhere –Anything can help! Find campus champions to help Partner with community and national resources

YOUR PLAN Short Term Identify three actions you would like to take when you return to campus that will get you started on your road to a financial education program. Long Term Consider the ideal state. What resources do you need to make this happen? Who do you need to partner with? What does the roadmap look like?

THANK YOU!