A Money Matters Quiz Q: What percentage of Americans carry credit card balances up to $10,000 A.50% B.33% C.87% D.10% E.21%

Goals Targets GED students Classes cover Budget Budget Credit scores Credit scores Banking Banking More More

Results 206 students in at least 1 class 206 students in at least 1 class 78 completed all 6 (38% completion rate) 78 completed all 6 (38% completion rate) GED graduates – in progress GED graduates – in progress

What is financial literacy?

FINRA Report 1,500 surveyed 1,500 surveyed ½ trouble with regular expenses ½ trouble with regular expenses No rainy day funds No rainy day funds Non-bank borrowing Non-bank borrowing

Reality check 52% -- own financial knowledge good BUT many 52% -- own financial knowledge good BUT many Incur late fees, other expenses Incur late fees, other expenses F ail to compare F ail to compare Cannot calculate interest Cannot calculate interest

A Money Matters Quiz Q: What percentage of Americans pay their credit card balance in full each month? A.71% B.22% C.54% D.13% E.5%

Georgia 3 rd in bankruptcies 3 rd in bankruptcies 12% “unbanked” 12% “unbanked” 45% of those without a high school diploma 45% of those without a high school diploma

Why the library? IMLS report on 21 st century skills IMLS report on 21 st century skills Themes Themes Financial literacy Financial literacy Environmental literacy Environmental literacy Health literacy Health literacy Global awareness Global awareness

Smart Your Library ® Partnership with FINRA and ALA/RUSA Partnership with FINRA and ALA/RUSA Started in 2007 Started in 2007 More than $3 million in grants More than $3 million in grants Application by invitation only Application by invitation only Go to smartinvesting.ala.org Go to smartinvesting.ala.org

Money Matters Community programs Community programs 6 hours of basic financial instruction 6 hours of basic financial instruction “Graduates” qualify for GED scholarships “Graduates” qualify for GED scholarships

About Athens A great place to live! A great place to live! Home to University of Georgia Home to University of Georgia Athens consistently rated among “bests” Athens consistently rated among “bests” For retirement For retirement College town College town by Kiplinger by Kiplinger

The “other” Athens High poverty rate High poverty rate Low high school graduation rate Low high school graduation rate Low educational attainment Low educational attainment High unemployment High unemployment

Two Athens Athens Banner-Herald, June 29, Athens Banner-Herald, Nov. 17, 2007 Athens Banner-Herald, Aug. 20, 2010

A Money Matters Quiz Q: Which is true of Millionaires? A.77% drive an older car B.20% inherited their money C.80% are college graduates D.the most popular brand of car is FORD E.All of the above

OneAthens Community-wide forum Community-wide forum Education a key goal Education a key goal Better-educated workforce – more jobs & better-paid workers Better-educated workforce – more jobs & better-paid workers

Benefits of GED or diploma Increase earning power Increase earning power More job opportunities More job opportunities Jobs with better benefits Jobs with better benefits Financial Security Financial Security

Grant idea Partner with Athens-Clarke Literacy Council Partner with Athens-Clarke Literacy Council Library offers financial literacy classes Library offers financial literacy classes ACLC offers GED scholarships ACLC offers GED scholarships

Putting it together Take Money Matters classes Learn about finance, credit, banking, etc. Complete 6 classes

Complete GED exam Complete GED exam Get a job Get a job Earn good wages Earn good wages Manage money better because of Money Matters classes Manage money better because of Money Matters classes Putting it together

We won! January 2009 January 2009 Grant covers Grant covers Salary Salary Library materials Library materials Printing, publicity, etc. Printing, publicity, etc. LearningExpress LearningExpress

A Money Matters Quiz Q: All consumers are legally entitled to receive free which of the following: A.Their credit score B.A copy of their credit reports annually from each of the three main credit-reporting bureaus. C.A detailed debt-to-income analysis D.Access to freecreditreport.com E.Two copies of their credit report

The Credit Card Act of 2009 The new requirements phased in starting August August 2010 The new requirements phased in starting August August 2010 Goal Goal More transparency & easier to understand terms More transparency & easier to understand terms Enhanced Consumer Disclosures Enhanced Consumer Disclosures Consumer Protection Consumer Protection Protection of Young Consumers Protection of Young Consumers

Provisions of the Act Consumer Protections Consumer Protections Limited interest rate increases Limited interest rate increases The right to opt out The right to opt out Limits on over-the-limit fee Limits on over-the-limit fee Subprime credit cards Subprime credit cards Protection of Young Consumers Protection of Young Consumers Limited credit to Young Adults, under 21 Limited credit to Young Adults, under 21 Enhanced Consumer Disclosures Enhanced Consumer Disclosures Minimum Payments Minimum Payments

What the new credit card law means to you Higher upfront cost Higher upfront cost Annual fees Annual fees Fewer Reward cards Fewer Reward cards Shorter grace periods Shorter grace periods Account closures & Credit limit reductions Account closures & Credit limit reductions No advance notice required No advance notice required No cap on interest rates No cap on interest rates Less accessibility for low income & bad credit Less accessibility for low income & bad credit

Credit Score Factors

Course Development FINRA Modules FINRA Modules Money Matters Advisory Board Money Matters Advisory Board GED pilot program GED pilot program

GED Pilot Program Benefits Benefits No transportation No transportation No need for childcare No need for childcare Unforeseen benefits Unforeseen benefits GED class make-up GED class make-up

Collection Adult Adult Basics Basics Retirement / Mortgages / College Retirement / Mortgages / College Sophisticated Investors Sophisticated Investors ValueLine and LearningExpress testing database ValueLine and LearningExpress testing database Young Adult Young Adult Children Children

Money Matters Web Page Classes Classes Internet links Internet links Ask Teri Ask Teri hqdepts/moneymatters.html hqdepts/moneymatters.html

Classes Money Matters Series Money Matters Series 6 one hour classes 6 one hour classes GED scholarship opportunity GED scholarship opportunity Offered at GED program locations Offered at GED program locations Community Classes Community Classes UGA School of Law, UGA College of Family and Consumer Science UGA School of Law, UGA College of Family and Consumer Science Athens Land Trust and the NEFE Athens Land Trust and the NEFE Money Matters Money Matters Managing Your Credit Score Managing Your Credit Score Investing Basics Investing Basics Investing II Investing II *Money Matters for Engaged and Newly Married Couple *Money Matters for Engaged and Newly Married Couple Civic clubs, Kiwanis and Invest clubs Civic clubs, Kiwanis and Invest clubs

Outcomes # taught # taught Class demographics Class demographics Class Evaluations Class Evaluations Testimonies Testimonies Post class evaluations Post class evaluations

Sustainability Establish the ongoing need for the program Establish the ongoing need for the program Evaluate to ensure we are meeting the need Evaluate to ensure we are meeting the need Determine cost to continue the program Determine cost to continue the program How to fund the program going forward How to fund the program going forward

Replicability Do your homework Do your homework Start small Start small Look for partners (credit union, local colleges) Look for partners (credit union, local colleges) Other grants Other grants

Sources: "FDIC Economic Inclusion." FDIC Economic Inclusion. "FINRA Investor Education Foundation." FINRA Investor Education Foundation "Goodbye to Complacency Financial Literacy Education in the U.S " Institute for Socio-Financial Studies. nocover.pdfhttp:// nocover.pdf "IMLS - About Us - National Initiatives." Institute of Museum and Library Services (IMLS). "Smart Your Library | Financial and Investor Education Resources." Smart Your Library | Financial and Investor Education Resources. "U.S. Treasury - Office of Domestic Finance - Council on Financial Literacy." United States - Department of The Treasury institution/fin-education/council/.