Financial Literacy

Why am I presenting this?

Uh………

2012 Poverty Guidelines for the 48 Contiguous States and the District of Columbia

Persons in family/household Poverty guideline

1 $11,170

2 15,130

3 19,090

4 23,050

5 27,010

6 30,970

7 34,930

8 38,890

For families/households with more than 8 persons, add $3,960 for each additional person.

Ludes, et. al.

…the financial decisions students make in college have an important influence on their financial situation after college. In addition, their financial situation in college can affect their academic performance. Lyons (2003) found that one in three students reported his/her financialsituation was “likely” or “somewhat likely” to affect the ability to complete a college degree.

In 2011, scores on a nine-question quiz to measure current

college students’ basic financial management knowledge

administered by Higher One, Inc. were down from last year,

with more than 70 percent of students surveyed receiving a

failing score. In total, less than 30 percent of the survey’s

5,488 respondents answered six or more questions correctly,

with more scores in the bottom levels than the previous year.

So what do our students know and why is it important?

financial literacy vs. pop culture

76 percent of undergraduates have credit cards, and the average undergrad has $2,200 in credit card. Additionally, they will amass almost $20,000 in student debt. (Source: Sallie Mae, "Undergraduate Students and Credit Cards in 2004: An Analysis of Usage Rates and Trends") <Now up to 91% - 2009>

Half of college undergraduates had four or more credit cards in 2008. That's up from 43 percent in 2004 and just 32 percent in 2000. (Source: Sallie Mae, "How Undergraduate Students Use Credit Cards," April 2009)

The average senior will graduate with $4,100 in credit card debt. Sallie Mae 2009

84% of undergraduates admitted the need for more financial management education. Of these, 64% would have preferred some type of financial literacy education in high school and 40% as college freshman. (Source: Sallie Mae – 2009)

I asked my 101 ALP classes about changes to financial aid last

semester.

1 student out of 40 knew the answers.

And your attitudes…

When you see theses on your students how do you feel? How about when they

tell you they don’t have money for books?

If you need money, advice, or lots of other things, how do you

know where to get answers?

Capital

Social Capital

And now a test!1) For a subsidized loan, does a student

get a grace period? If so, does the student still accumulate interest?

2) How many semesters can a student receive a pell grant?

3) What is the minimum passing grade a student must have to continue receiving aid? Does that count dropped classes? How does a student get back into good graces?

Don't buy stuff you can't afford!

So let’s go to how I teach financial literacy!

Let’s go over a sample financial aid module and readings (see

handouts)