Financial Literacy A Model That Works

Presented by Christina Rose, Discover Student Loans

Julie Finn, First Marblehead ILASFAA 2014

http://www.youtube.com/watch?v=Qb8hTzUoI54

Why do we care?Just as it is proven to be impossible to succeed in the modern world without the ability to read and write (literacy), so it will be impossible to succeed in the present-day financial system without knowing the ABCs of economics and finance (financial literacy).

-Annamaria Lusardi

Survey Results

We care because…If you develop a good financial habit, it will last a lifetime and it will make life easier in all kinds of ways. On the contrary, if you get a bad financial habit…it can ruin your life; it hurts marriage, it hurts health… [so] it is really important to get it right early

-Warren Buffet

http://www.nerdwallet.com/blog/2013/financial-literacy-quiz/

Hurdles• Unrealistic expectations

-Baby steps -Resources

• Assumption of One Size Fits All Model

• Inability to control circumstances outside of Financial Aid Office

• Student Attendance

Where do you start?• Appoint a person/committee to be in charge

• Establish goals and mission early (Budgeting / Borrowing / Repayment)

• Research your options

• Identify potential partners in other departments, organizations, etc.

• Know your audience

Things To Consider• What is the financial literacy knowledge level of your student

population?

• Do specific populations need to be targeted?

• What format or program design best suits the needs of your student population and the goals of your program?

• What are your top priorities of the program?

What options are out there?• 3rd party programs for a cost

• Lender & servicer resources at no cost

• On-line resources

• Other departments on campus

• Religious & community outreach programs

What are other schools doing?• Orientation programs

• 1-2 credit required courses

• Money Management section on website

• Financial literacy presentations

• Programming in conjunction with other departments

• Peer money mentors

• Individual Counseling

Examples of School ProgramsUniversity of Minnesota

• http://onestop.umn.edu/finances/manage_money/live_like_a_student/index.html

DePaul University • http://resources.depaul.edu/financial-fitness/Pages/default.aspx

Bowling Green State University • http://www2.bgsu.edu/offices/smms/

Hamline University • http://www.hamline.edu/financial-literacy/

Western Illinois University• http://www.wiu.edu/student_services/financial_aid/tools/

Northwestern University• http://undergradaid.northwestern.edu/help/money-management.html

Resources

• Department of Education Tools– FACT Tools - http://

studentaid.ed.gov/about/announcements/fact– NSLDS - http://www.nslds.ed.gov/nslds_SA/

• FinAid– Student Budget Calculator http://

www.finaid.org/calculators/studentbudget.phtml

• Cashcourse.org• MyMoney.gov