# Presentation: 664386

## <date/time>

## Session 47

***Programs for Building      Early Awareness &******	******   Financial Literacy***

**By Dara Duguay**
**Jump$tart Coalition**

## Financial Literacy Defined

***Financial literacy**** refers to the basic skills people need to manage money and make financial decisions.*

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## Statistics

- 61% of 24- 64 year-olds have no retirement savings account of any kind
- 21% of undergraduates owe between $3,000- $7,000 on their credit cards
- Mortgage delinquencies have surged to their highest level since 1992
- Teens spent $173 billion in 2001, equal to Mexico’s yearly exports

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## Statistics

- College students borrowed in the 90s what they did in the 60s, 70s & 80s combined
- Graduating students owe an average of $20,402 in student loan & credit card debt
- Bankruptcies filed by those under-25 rose 96% from 1991- 1999 to 118,000
- 2001 Personal Savings Rate was 1.6%
- Non-secured consumer debt= 1.65 trillion

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## Jump$tart Coalition	Personal Finance Survey Results

- 2002 National Benchmark Study
- 4,024 High School Seniors
- Average Score was
- 	50.2%-a Failing Grade
- 65% said they felt “very sure” or “somewhat sure” about ability to manage their finances

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## The Good News

- As little as 10 hours of classroom instruction can affect how teens handle their money
- 58% of students improved their spending habits
- 56% of students improved their savings habits
- NEFE Financial Literacy Study

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## More Good News

*Adults, age 30-49, who studied personal finance in high school had:*
***A greater net worth – by about ***
*** ******1 year of income***
***More personal savings!***
*Education and Savings:  The Long-Term Effects of HS Financial Curriculum Mandates,*
*Bernheim, B.D., Garrett, D.M., and Maki.  1997.*

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## Major Jump$tart Activities

- Standards and Benchmarks
- Clearinghouse
- State Coalitions

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## Personal Finance Standards & Benchmarks

- Income
- Money Management
- Spending and Credit
- Saving and Investing

***What students need to know and***
***be able to do.***

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## Search the Clearinghousewww.jumpstart.org 

- You will find:
- Personal finance materials
- teaching guides, videos, CDs
- textbooks, web sites and more
- Many free and low-cost sources

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## State Coalition Status Map

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## Partnership

- Please Send Money:
- A Financial Survival Guide for Young Adults
- By Dara Duguay

- American Education Services (AES)
- A Division of the Pennsylvania Higher
- Education Assistance Agency (PHEAA)

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## Project Specifics

*Money Matters* Interactive CD-Rom.
- One component of AES/PHEAA’s public service campaign.
- Provide students with the information to plan for their financial futures now.
- Distributed at no cost to financial aid administrators.
- Selected content from *Please Send Money*.
- Interactive worksheets.

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## Content Examples

- Understanding Your Student Loans
- Tax Deductions
- Seven Easy Steps to Creating a Budget
- Determine Your Financial Priorities
- Managing Your Debt

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## Content Examples

- Paying Off Credit Balances
- The Hidden Dangers of Interest
- How to Avoid Debt
- Consequences of Default
- Money Motivators
- Millionaire by 65

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## What Can You Do?

- Request copy of *Money Matters- **	*CD-Rom
- Become familiar with content
- Encourage students visiting financial aid office to utilize the CD-Rom
- Organize workshops

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## Resources

- YouCanDealWithIt.com
*Money Matters* CD-Rom
- Jump$tart Clearinghouse- http://www.jumpstart.org
- Workshops

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## Contact Us

- 		I appreciate your feedback and 	comments.  I can be reached at:
**Dara Duguay**
- 		Phone: 202-466-8610
- 		Fax: 202-223-0321
- 		Email: dduguay@afsamail.org

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