1. University of Georgia College of Family & Consumer Sciences 1 Program Overview

2. University of Georgia College of Family & Consumer Sciences 2 Financial Literacy Being knowledgeable, educated, and informed on issues of managing money and assets, banking, investments, credit, insurance, and taxes; Understanding basic concepts underlying the management of money and assets; and Using that knowledge and understanding to plan and implement financial decisions.

3. University of Georgia College of Family & Consumer Sciences 3 Why Is It Important? Well-informed, well-educated consumers make better decisions, increasing their economic well-being. Secure families contribute to vital, thriving communities, and foster economic development. Informed consumers help keep unscrupulous sellers out of the market.

4. University of Georgia College of Family & Consumer Sciences 4 Trends Shifting responsibility for long-term well- being away from employers and government to individuals. Increasing sophistication of the financial marketplace. Increasing reliance upon credit reports for pricing of consumer products. Information security

5. University of Georgia College of Family & Consumer Sciences 5 Evidence High school seniors averaged 52% on a recent Jump$tart Coalition test of financial literacy. The average score on a “Money Skills” test of high school seniors was 35%. The average score for 1700 adults completing a basic consumer skills test was 75%.

6. University of Georgia College of Family & Consumer Sciences 6 More Evidence About 60% of U.S. households revolve credit card balances (average balance of $4,100 in 1998). 1 of 5 families with incomes under $50,000 spend at least 40% of after-tax income on debt service. In the 12 months before July 2002, one of every 39.8 Georgia households filed for bankruptcy. In 2000, credit card issuers sent each household an average of 3 credit card offers per month.

7. University of Georgia College of Family & Consumer Sciences 7 Financial Literacy Education An important component of community economic development

8. University of Georgia College of Family & Consumer Sciences 8 OPEN a Gateway to a Better Life Ongoing—over a period of weeks or months Proactive—focus on prevention Experiential—participants “learn by doing” Needed—addresses the financial information needs of the learner

9. University of Georgia College of Family & Consumer Sciences 9 What is the Funded by the Governor’s Office of Consumer Affairs Pilot program Purpose: To reach target audiences and the public with information to improve economic education and well- being. ?

10. University of Georgia College of Family & Consumer Sciences 10 Financial Secure Georgians The Vision:

11. University of Georgia College of Family & Consumer Sciences 11 The Mission: Promoting financial security through education and outreach

12. University of Georgia College of Family & Consumer Sciences 12 What is the target area of the ? © Carl Vinson Institute of Government, University of Georgia 21 Counties: Bleckley, Candler, Crawford, Crisp, Dodge, Dooly, Emanuel, Houston, Jeff Davis, Johnson, Laurens, Macon, Peach, Pulaski, Schley, Taylor, Telfair, Toombs, Tattnall, Treutlen, and Wilcox

13. University of Georgia College of Family & Consumer Sciences 13 The 4 Components of the are: Adult Program Goal setting Decision-making Developing spending plans Time & Stress management Using financial tools

14. University of Georgia College of Family & Consumer Sciences 14 Youth Program Financial Champions (Middle School) High School Financial Planning Program Teaching Children About Money (for parents) The 4 Components of the are:

15. University of Georgia College of Family & Consumer Sciences 15 are: Tax Education Program Outreach to inform workers of tax credits. Promote advanced payment EITC option. Free tax assistance to: –Minimize dollars spent for tax preparation. –Reduce participation in refund anticipation loan programs. Economic Development The 4 Components of the

16. University of Georgia College of Family & Consumer Sciences 16 2000 EITC Benefits & Rank (By Percent of Population Receiving EITC) Emanuel (16) 38% Telfair (19) 36.7% Treutlen (24) 35.9% Toombs (30) 34.6% Johnson (33) 33.9% Candler (41) 32.9% Tattnall (51) 31.4% Jeff Davis (52) 31.3% Dodge (53) 31% Laurens (61) 29.1% Bleckley (79) 25.2%

17. University of Georgia College of Family & Consumer Sciences 17 2000 EITC Benefits & Rank (By Percent of Population Receiving EITC) Crawford (105) 19.5% Crisp (22) 36.1% Dooly (17) 36.8% Houston Macon (8) 40.0% Peach Pulaski (65) 28.2% Schley (45) 32.6% Taylor (32) 34.0% Wilcox (44) 32.7%

18. University of Georgia College of Family & Consumer Sciences 18 2000 Total EITC Benefit for 11 County Service Area (Original Counties) $47,253,780

19. University of Georgia College of Family & Consumer Sciences 19 2000 Total EITC Benefit for 10 County Service Area (Expansion Counties) $23,326,138* *Excluding Peach & Houston Counties

20. University of Georgia College of Family & Consumer Sciences 20 CFL Outreach and Community Education Promote financial literacy for the community at large –media campaigns –exhibits –Workshops –Seminars The 4 Components of the are:

21. University of Georgia College of Family & Consumer Sciences 21 Partnership Opportunities Refer clients or employees for educational programs. Develop financial literacy programs for targeted audiences (check bouncers, individuals denied credit, etc.) Collaborate to implement an Individual Development Account (IDA) program.

22. University of Georgia College of Family & Consumer Sciences 22 Questions?