1. Financial Education: An Alternative Route to CRA Credit Erin Scheithe, NC Bankers Association

2. Why Financial Education? Americans have approximately $1 trillion in revolving credit card debt. Only about half make the minimum monthly payment. Americans have approximately $1 trillion in revolving credit card debt. Only about half make the minimum monthly payment. Nationally, those under 25 are the fastest- growing age group filing for personal bankruptcy. Nationally, those under 25 are the fastest- growing age group filing for personal bankruptcy. In the past two years, home mortgage foreclosures reached a record high. In the past two years, home mortgage foreclosures reached a record high.

3. Why Financial Education? Lack of financial education is a growing problem facing people in all age groups and socio- economic levels across the country. The financial literacy of our youth is of particular concern as we strive to right the wrongs of the past decade. Financial education for school-aged children and homeownership education should be top priority.

4. Why focus on NC youth? North Carolina high school students scored lower than the national average on the Jump$tart Coalition’s biannual financial literacy survey. Less than 5 percent of students surveyed scored a “C” or better and just 25 percent received a passing grade (60 percent or higher). The North Carolina dropout rate is higher than the national average, although it has declined in the last year.

5. Why focus on NC youth? The NC Department of Public Instruction requires 5 hours of personal finance instruction before graduation. Typically this occurs in the 10 th grade, in a Civics/Economics course. Due to budget cuts, this mandate is not funded. The knowledge and comprehension of the material tested in the end of grade level tests. Material that is not tested often is overlooked as teachers struggle to teach what will be on the tests.

6. CRA Credit Possibilities School Savings Program – Expand the benefits of a minor savings account and offer a savings program in a local school. School Savings Program – Expand the benefits of a minor savings account and offer a savings program in a local school. Camp Challenge – Invest in a summer camp program for underserved middle school youth. Camp Challenge – Invest in a summer camp program for underserved middle school youth. Moneypalooza at Marbles – Invest in a new financial education project at Marbles Kids Museum in Raleigh. Moneypalooza at Marbles – Invest in a new financial education project at Marbles Kids Museum in Raleigh.

7. School Savings Programs Establish a relationship with a local school. If you’re just getting started, work with an elementary school. Establish a relationship with a local school. If you’re just getting started, work with an elementary school. Clearly define what your program will include – Will it be a deposit collection program? Or a student-run mini bank? Clearly define what your program will include – Will it be a deposit collection program? Or a student-run mini bank? North Carolina Bankers Association © 2009

8. School Savings Programs Deposit Collection program – Bank employees make regular visits to school to pick up deposits, which they process at the branch. Deposit Collection program – Bank employees make regular visits to school to pick up deposits, which they process at the branch. Less maintenance and banker staff-time required. Less maintenance and banker staff-time required. Good way to establish relationship with school. Good way to establish relationship with school. Brand your project by giving students piggy banks with your bank logo. Brand your project by giving students piggy banks with your bank logo. North Carolina Bankers Association © 2009

9. School Savings Programs In-School Bank – a student-run “mini-bank” In-School Bank – a student-run “mini-bank” Elementary and Middle School level Elementary and Middle School level Older students work as tellers, branch managers, marketing specialists; Older students work as tellers, branch managers, marketing specialists; Usually deposit-only, occasionally small withdrawals; Usually deposit-only, occasionally small withdrawals; Branch is open on a regular basis – usually once a week, during lunch or in the morning before school. Branch is open on a regular basis – usually once a week, during lunch or in the morning before school. Middle and High School level Middle and High School level Can be a full-service branch, offering small dollar loans, withdrawals, etc. Can be a full-service branch, offering small dollar loans, withdrawals, etc. Offer companion curriculum to create a “for-credit” class. Offer companion curriculum to create a “for-credit” class. North Carolina Bankers Association © 2009

10. Financial Education Provide financial education to students in your community. Suggest a field trip to the bank. Give young students a tour of the bank and a basic savings lesson. Suggest a field trip to the bank. Give young students a tour of the bank and a basic savings lesson. Visit a school and teach a lesson. A variety of low-cost and free curricula are available. Visit a school and teach a lesson. A variety of low-cost and free curricula are available. Host a Kids’ Night at the Bank with staff available to open minor savings accounts, 529 plans, IRAs and other savings accounts. Include door prizes, refreshments and balloons. Host a Kids’ Night at the Bank with staff available to open minor savings accounts, 529 plans, IRAs and other savings accounts. Include door prizes, refreshments and balloons. North Carolina Bankers Association © 2009

11. Camp Challenge For the past 16 years, NCBA has operated a summer camp focused on financial literacy, well before it was a hot topic. For the past 16 years, NCBA has operated a summer camp focused on financial literacy, well before it was a hot topic. Nearly 8,000 students have benefited from Camp Challenge, learning smart money habits and gaining the skills necessary to become leaders. Nearly 8,000 students have benefited from Camp Challenge, learning smart money habits and gaining the skills necessary to become leaders. Campers attend on scholarships, which are funded by your North Carolina banks and other non-profits. Campers attend on scholarships, which are funded by your North Carolina banks and other non-profits.

12. Campers climb to the top of Hanging Rock in Stokes County as a demonstration of how far they have come and what they have learned while at Camp.

13. Camp Challenge We need your help to make Camp Challenge 2010 the best summer yet! We need your help to make Camp Challenge 2010 the best summer yet! Volunteer as a personal finance instructor or guest speakers during the summer months. Novices welcome – we host a train-the-trainer session! Volunteer as a personal finance instructor or guest speakers during the summer months. Novices welcome – we host a train-the-trainer session! If you are interested in sponsoring a camper, we’ll do our best to make sure a child from your area is the recipient of the scholarship. If you are interested in sponsoring a camper, we’ll do our best to make sure a child from your area is the recipient of the scholarship. Spread the word! Tell a community group or your school system about Camp Challenge. Spread the word! Tell a community group or your school system about Camp Challenge.

14. Moneypalooza at Marbles The NCBA helped to fund a permanent financial education exhibit called Moneypalooza at Marbles Kids Museum in Raleigh. The NCBA helped to fund a permanent financial education exhibit called Moneypalooza at Marbles Kids Museum in Raleigh. Marbles is a hands-on, minds-on museum that inspires imagination, discovery and learning through extraordinary adventures in play. Marbles is a hands-on, minds-on museum that inspires imagination, discovery and learning through extraordinary adventures in play. Moneypalooza aims to promote healthy money habits through play. The exhibit will open in January 2010. Moneypalooza aims to promote healthy money habits through play. The exhibit will open in January 2010.

21. Does your financial institution want to be a part of Moneypalooza? There are many opportunities for sponsor investment ranging from $1,000 - $15,000. Please contact Erin Scheithe (NCBA) at 919- 781-7979 or Arinn Widmayer (Marbles Kids Museum) at 919-847-1074 for more information.

22. Erin Scheithe Community Outreach Director NC Bankers Association Phone: 800/662-7044 Email: erin@ncbankers.org erin@ncbankers.org North Carolina Bankers Association © 2009