Financial Literacy Transitions from High School OHIO ASSOCIATION TEACHERS OF FAMILY AND CONSUMER SCIENCES (OATFACS ) Natala K. (Tally) Hart Ohio State University

Financial Literacy Timeline 4 th /5 th grades – concepts of savings and investment 4 th /5 th grades – concepts of savings and investment Steps to college as second largest investment Steps to college as second largest investment 6 th -8 th grades – investment steps 6 th -8 th grades – investment steps Power of compound interest, saving Power of compound interest, saving Taking the right classes Taking the right classes Use of time Use of time Building personal portfolio Building personal portfolio

Financial Literacy Timeline cont’d 9 th /10 th grades – beginning financial decisions 9 th /10 th grades – beginning financial decisions Jobs – what comes out of a paycheck Jobs – what comes out of a paycheck Organizations – financial management of others’ money Organizations – financial management of others’ money Insurance Insurance Steps to college Steps to college 11 th /12 th grades 11 th /12 th grades Understanding credit and credit cards Understanding credit and credit cards Credit scores Credit scores Comparing financial aid awards Comparing financial aid awards

Background for OSU Financial Literacy Initial study regarding student loan defaults Initial study regarding student loan defaults Led to information about consumer debt Led to information about consumer debt Determined problem with consumer finance for all income and academic achievement levels Determined problem with consumer finance for all income and academic achievement levels OSU Student Affairs Spending Habits Study OSU Student Affairs Spending Habits Study Lumina Foundation study of impact of resultant financial aid packages in increase retention Lumina Foundation study of impact of resultant financial aid packages in increase retention

What Can/Should Happen in High School for Long-Term Results? Working as key investment Working as key investment Wide variety of what qualifies as “work” Wide variety of what qualifies as “work” How paychecks are determined How paychecks are determined Role of work in classroom toward college future Role of work in classroom toward college future Organizations Organizations Time invested Time invested Role of finances in organizations Role of finances in organizations Insurance Insurance Lessons for new drivers Lessons for new drivers Steps to college and programs beyond high school Steps to college and programs beyond high school Math Math Good grades in the right subjects Good grades in the right subjects

What Can/Should Happen in High School for Long-Term Results? Cont’d. Credit Credit Understanding APR Understanding APR Review of credit card applications Review of credit card applications Lessons on minimum repayment Lessons on minimum repayment Number of credit cards may be critical Number of credit cards may be critical Credit scores Credit scores What gets counted and why What gets counted and why Why score is important to educational future Why score is important to educational future Understanding financial aid Understanding financial aid Compare sample award letters Compare sample award letters Relationship of good grades to admission and money Relationship of good grades to admission and money

Most Important Learning Outcomes from High School Years How you invest time in high school is critical to future How you invest time in high school is critical to future Limit credit card use, if at all Limit credit card use, if at all Know deadlines as key to getting money for college and programs beyond high school Know deadlines as key to getting money for college and programs beyond high school