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Financial Literacy:
What You Need to Know to
Educate Your Students
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“
” Source: nfcc.org
In 2016, nearly 6 in 10 (58%) adults do not feel knowledgeable about the process of applying for student loan—and a similar
percentage (60%) do not feel knowledgeable about the difference between federal and
private student loan options.
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Four Major Stumbling Blocks
Four major stumbling
blocks to building
a successful financial
literacy program
Don’t know how
to get started
Limited
time
Limited
resources
Difficulty
reaching
students
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Agenda
01
Identify the goals
of your financial
literacy program
02
Develop a financial
literacy team
03
Plan the program
04
Engage your
students
05
Get the word
out
06
Develop your
program
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Identify Goals
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What Do You Want to Accomplish?
• Identify your school’s needs
– Reduce cohort default rate
– Increase retention
– Improve overall student success
• Identify your student’s needs
– Reduce over-borrowing
– Minimize credit card debt
– Improve money management
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Assess Your Student’s Needs
• What are students most concerned about?
• What issues do you hear regarding money
from students?
• What are their reasons for withdrawal?
• What are their reasons for requests of
emergency loans and additional loan funds?
Internal sources
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Assess Your Student’s Needs
Top Five Things That Stress College Students:
1. Need to repay loans
2. Cost of education
3. Borrowing money for college
4. Need to find a job after school
5. Academic challenge of coursework
Source: Time Business and Money
External sources
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Source: CBS Money Watch
Assess Your Student’s Needs
Top Money Mistakes College Students Make:
External sources
• Abusing student loans
• Running up credit
card debt
• Ruining their credit score
• Eating off campus
• Lending money to “new
friends
• Not having a budget
• Sharing personal
information
• Being pressured into
spending money
• Avoiding money classes
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Develop a Team
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Develop a Team
• Developing a financial literacy team is good,
particularly if time and resources are limited
• Benefits of a team approach
– Increases buy-in from across the campus
– Pulls together ideas, skills,
and resources from other
departments
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Develop a Team
Which departments would be
beneficial to a financial
literacy team?
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Educate the Team
• Begin by sharing facts with team members
– Goal of the financial literacy initiative
– How financial literacy impacts student success
– Previous or existing financial literacy
programs or initiatives
– Needs assessment results
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Define Roles and Responsibilities
• Establish an agenda to include
the purpose and goals
• Determine the frequency
of regularly scheduled meetings
• Identify team lead
• Share projected financial contribution
and/or time commitment from each
department
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Plan the Program
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Matchmaking
• Once you’ve identified your goals, select or
develop a program that will help you achieve
them and fits your time and resources
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Three Sizes
Baby Bear Papa Bear Mama Bear
Little-to-no
budget or staff
Limited
support
Little-to-no
access to captive
audiences
Designated budget
Full administration
and faculty support
and involvement
Access to captive
audiences
Some budget
and staff
Some campus
support
Access to captive
audiences
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Determine the Target Audience
• All students
• Freshmen
• Graduating seniors
• Particular majors
• Students who
request private or
unsubsidized loans
• Students near their
aggregate limit
• At-risk
Who do you want to reach?
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Determine the Target Audience
Who are your at-risk students?
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Determine the Type of Program
• Online program
• Voluntary seminars
• Presentations
– In-class
– As part of an existing program
• Peer counseling
• Course curriculum
• Office dedicated to financial education
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What’s the Target Date?
• When would you like
to have it up and running?
– Can roll out in phases
– Set realistic target date
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Determine the Measurements
How will you know it’s working?
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Engage Your Students How do you get students interested?
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Lectures (can be) Boring
• The average adult attention
span is 10 minutes
• During lectures students use
several coping strategies
– Send texts
– Doodle
– Chat with friends
– Sleep
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Learning Theory
Students retain:
Of what they learn
10%
Of what they hear
20%
Of what they see
30%
Of what they see
and hear
50%
Of what they see
and write
70%
Of what they do
90%
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Students Learn Differently
• Engage students by appealing to their
learning styles
Auditory Visual Kinesthetic
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How to Engage Students
• Use different speakers to grab and keep the
student’s attention
– Captivating speakers
• Motivational
– Relatable speakers
• Students or recent graduates
– Credentialed speakers
• Outside organization they respect
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How to Engage Students
• Consider offering a mix of programs with
different delivery methods
• Let students talk and be active every chance
possible during the presentation/seminar
• Allow students to connect their life
experiences to the classroom lesson
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How to Engage Students
• Encourage students to use their technology
during the presentation/seminar
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Activities
What types of activities can
be used to engage students?
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Get the Word Out Now that you have your program
planned, how do you get them to come?
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Timing and Location are Important
• Determine the date and time most
convenient for your students
• Plan program with
or around major event
• Schedule location easiest
for your students
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Get the Word Out
• Determine the most effective way to reach
your target audience
– Social networks
– Flyers
– Text messages
– School website
– LED/flat panel display
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Use the Power of Influence
• Identify a campus champion
to promote your program
• Ask faculty to promote your
program in their classes
• Utilize student leaders to invite
other students
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Promote the Freebies
• Use the freebies that are important
to your students
– Food
– Giveaways
– Raffles
– Extra credit
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Develop Your Program What do students need to know most?
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Determine Topics
• Determine topics through
– Internal and external needs assessments
– Needs of your target audience
• If an assessment is not possible, ensure students know the basics of:
Budgeting
Loan Repayment
Credit Management
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Budgeting
• Benefits of budgeting
• Overcoming the obstacles of budgeting
• What should be included in a budget
• Ways to reduce spending
• Cost of spending leaks,
conveniences, and mistakes
• Importance of saving
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Credit Management
• What is credit
• Role of credit reporting agencies
• Difference between a credit report and credit score
• What your credit report say about you
• Different types of credit (installment, revolving, mortgage)
• How to request a free copy of your credit report and the importance of checking it regularly
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Credit Management
• Who is FICO
• The five components that make up a credit score (and what is not included in a credit score)
• The importance of paying credit accounts on time and keeping balances low (credit utilization)
• Benefits of having good credit and the penalties of negative credit
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Credit Management
• How student loans impact credit
• How to build a credit history
• Implications of credit cards
• What is an APR and the cost
of using credit
• How to limit debt
• How to repair credit
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Loan Repayment
• The cost of borrowing
• Repayment options
• Changing repayment plans
• Benefits and drawback of each
repayment plan and consolidation
• How to qualify for forgiveness programs
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Loan Repayment
• How to use studentloans.gov
• Consequences of delinquency and default
• Importance of updating your contact
information
• Importance of contacting your
lender/servicer
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Resources and Conclusion
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Resources
• studentloans.gov
• 360financialliteracy.org
• Jumpstart.org
• Mymoney.gov
• Annualcreditreport.com
• Practicalmoneyskills.com
• Nefe.org
• Creditkarma.com
• Financialit.net
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Conclusion
• Make financial literacy a campus-wide, coordinated effort
• Conduct a needs assessment to determine what students want/need
• Identify target populations to include students at greatest risk
• Make it a fun, engaging learning experience
• Implement a measurement to determine if it’s working
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“ ”
Alan Greenspan
Financial literacy can help prevent younger people from making poor financial decisions that can take
years to overcome.
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