Financial Literacy for Today s Students Presented for IASFAA Conference by Cheryl Willard
Today s Agenda What is Financial Literacy? Who Needs to be Financial Literate? Why is Financial Literacy Training Important? When Should We Provide Information on Financial Literacy? How Can We Provide Financial Literacy Training?
What is Financial Literacy? Knowledge and understanding of money, credit, debt, loans and all things financial Applying sound financial principles to personal decisions, such as going to college, leasing a car, or buying a home
Who Needs to be Financial Literate? Everyone - especially in today s economy College students, more than ever, must use good judgment when making purchases, borrowing loans, and using credit
Why is Financial Literacy Important? Financial decisions are made daily The quality of those decisions will determine financial success Investing in a college degree is the second biggest financial decision most people will make The total outstanding student loan debt for 2011 will exceed $1 trillion dollars ($1,000,000,000)
When Should We Provide Information on Financial Literacy? Initial meeting with a student and parents College Goal Sunday Orientation Financial Literacy information table Entrance Counseling and Exit Counseling Freshmen Experience Classes B-W Financial Literacy website http://www.bw.edu/finaid/literacy/ Campus Events Group presentations and one on one appointments allow for opportunities to mention the importance of making good financial choices
How Can We Provide Financial Literacy Training? Make it relevant to the student: o Include financial aid basics in the discussion, such as federal aid first and PLUS v Private Ed Loans o Discuss pay day loans, rent-to-own programs, and credit card abuse o Compare Needs v Wants o Highlight the benefits of working part time while in school o Encourage the use of online tools such as loan calculators and repayment options
How Can We Provide Financial Literacy Training? Make it fun for the student: o Include videos in your presentation: Schoolhouse Rock Where the Money Goes is comical and will probably be familiar to your students (search schoolhouse rock for a variety of clips) o The pilot show of the Bill Cosby Show discusses finances in a timely and humorous way (found on Youtube)
How Can We Provide Financial Literacy Training? Make it interactive for the student: o Use websites: PracticalMoneyskills.com NFL Financial Football o Play Budget Games: Divide the class into teams w/ different scenarios (search financial literacy games college)
How Can We Provide Financial Literacy Training? Make it personal for the student: o Discuss the importance of graduating on time o Create a budget/spending plan and stick to it o Assign him/her to keep a Spending Journal o Talk about potential future earnings, based on career choices. Include student loan repayment in this discussion repayment options and forgiveness benefits.
How Can We Provide Financial Literacy Training? Make it personal for the student: o Encourage participation in webinars and usage of websites provided by federal loan servicers o Bring yourself into the discussion when possible: the fact that you were (or are) a student, a parent, a customer, etc. may allow the student (or the student s parent) to relate to you differently than someone who simply works for the school.
How Can We Provide Financial Literacy Training? Make it personal for the student: o Discuss accountability on the part of the student. Taking responsibility for his/her decisions and actions is critical for success in and outside of the class room. Financial decisions being made today should be carefully considered.
How Can We Provide Financial Literacy Training? Make it about the student: o As members of a passionate community, dedicated to the success of our students, we have many opportunities to share expertise, experiences and sound advice with impressionable young adults
How Can We Provide Financial Literacy Training? Things to consider: o What do you wish to accomplish? o Who is your target audience? o What venues and resources are available to you? o Who will create and provide the program? o Who will manage the program? o Who will measure the program s success? o How will the program s success be measured?
Comments and Questions
Thank you Cheryl Willard Associate Director, Financial Aid Baldwin-Wallace College 440-826-8042 cwillard@bw.edu