Financial Literacy Trends, Problems, and Best Practices

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Financial Literacy Trends, Problems, and Best
Practices

• Presented By
• Rob LaBreche

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(No Transcript)
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What did we learn from our student survey?

• 12,000 original respondents filled out one
  section
• 6,000 attempted several sections
• 4,095 filled out all sections

• Ages 18-76
• Median age 32

• Nearly 1/5 of respondents identified as being
  unbanked
• 31.2 were without a savings account
• Over 50 have a least ONE credit card
• 98 have student loans

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Current Student Status
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Educational Attainment
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Types of Student Loans Borrowed
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What is your current job search priority?
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What caused you to drop out?
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General Comments/Observations

• A significant portion of respondents indicated
  that their institution did not provide the
  guidance or direction they need to be successful
• Students enrolled entirely in online programs
  thought about dropping out and ultimately ended
  up dropping out more than their traditional
  campus counterparts

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What keeps you in school/staying positive?
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What do you want to know/understand about your
future?
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Recorded Response
18-34 Years Young
35-64 Years Young

• Will/Already is Affecting Me
• Might Affect Me
• Wont Affect Me
• Unsure if it will Affect Me

46.3 10.9 32.7 10.2
47.5 8.3 27.5 15.8
Note Responses may not equal 100 due to rounding
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Preference for Learning Tools
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What motivates you to use iGrad?
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Administrators were asked to rank a students
knowledge and their own knowledge of the
following areas

• Money Management
• Investing
• Financial Aid
• ID Theft

Scoring 4 Above Average 3 Average 2 Below
Average 1 Poor
Can you guess what the scores were?
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What else did we learn from our Administrator
Survey?
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Do you have a Financial Literacy task force?

• Not Sure,
• 11.5

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Do you have a Financial Literacy strategy or
platform in place?

• Not Sure,
• 9.4

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Who owns Financial Literacy on your campus?

• Academics/Faculty

All
Alumni
Bursar/Financial Services
Default Prevention
Financial Aid
Financial Literacy
FYE
Other
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Is your Financial Literacy program mandatory?

• Not Sure,
• 8.4

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Do you believe that Financial Literacy should be
mandatory?

• No

Yes, but only for borrowers
Yes, but students should be able to test out
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Yes, mandatory for all
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If you have a Financial Literacy program in
place, what percentage of the student population
is using it?

• Over 50,
• 16.2

31-50, 8.8
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What is your budget for a Financial Literacy
program?

• gt 1.50/student,
• 7.70

Less than 1.50/student,11.10
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Financial Literacy Best Practices
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There is no singular or perfect operational model
for a campus financial literacy program
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Institutional Action Plan

1. Identify your advocates on campus and in the
   community
2. Start a task force
3. Involve students
4. Know your students
5. Start small, but choose engaging content and
   delivery methods
6. Learn from other institutions
7. Create a mission/goal statement and definition of
   success

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AND the most prevalent and successful models are

• Interactive Online Programs

• Classroom Based Programs

• Game Based Education

• Event Based Programs

• Individual Counseling

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Research Will Unlock The Answers

1. University of Arizona study

• Multi-year study on how young adults develop and
  gain financial knowledge
• Research is based on behavioral economics and
  psychological aspects of decision making
• Hope is that studys long-term results will
  unlock about what causes people to spend, save,
  take on debt, etc.

2. iGrad study

• Currently measuring impact of financial literacy
  strategies with regard to lowering defaults and
  increasing retention

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5 6 Keys to a Successful Financial Literacy
Program(5 just wasnt enough!)

1. Make is ACCESSIBLE
2. Make it MANDATORY
3. Get Buy-In from MULTIPLE DEPARTMENTS
4. Make it RELEVANT
5. Make it REPETITIVE
6. MEASURE IT!!!

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Questions/Discussion