Transcript The Credit Card Act of 2009 - Georgia Library Association

A Money Matters Quiz
Q: What percentage of Americans carry
credit card balances up to $10,000
A.
B.
C.
D.
E.
50%
33%
87%
10%
21%
Goals
Targets GED students
Classes cover
Budget
Credit scores
Banking
More
Results
 206 students in at least 1 class
 78 completed all 6 (38% completion
rate)
 GED graduates – in progress
What is financial literacy?
http://www.flickr.com/photos/kristaeleman/1414580852
FINRA Report
 1,500 surveyed
 ½ trouble with regular expenses
 No rainy day funds
 Non-bank borrowing
Reality check
 52% -- own financial knowledge good
BUT many
 Incur late fees, other expenses
 Fail to compare
 Cannot calculate interest
A Money Matters Quiz
Q: What percentage of Americans pay their
credit card balance in full each month?
A.
B.
C.
D.
E.
71%
22%
54%
13%
5%
Georgia
 3rd in bankruptcies
 12% “unbanked”
 45% of those without
a high school
diploma
Why the library?
 IMLS report on 21st century skills
 Themes
 Financial literacy
 Environmental literacy
 Health literacy
 Global awareness
Smart Investing @ Your Library ®
 Partnership with FINRA and
ALA/RUSA
 Started in 2007
 More than $3 million in grants
 Application by invitation only
 Go to smartinvesting.ala.org
Money Matters
 Community programs
 6 hours of basic financial instruction
 “Graduates” qualify for GED
scholarships
About Athens
A great place to live!
 Home to University of Georgia
 Athens consistently rated among
“bests”
 For retirement
 College town
 by Kiplinger

The “other” Athens
 High poverty rate
 Low high school graduation rate
 Low educational attainment
 High unemployment
Two Athens
http://www.flickr.com/photos/pocketwiley/4164830
Athens Banner-Herald, Aug. 20, 2010
http://www.flickr.com/photos/leobard/291537563
http://www.flickr.com/photos/courtneymcgough/4044448852
http://www.flickr.com/photos/courtneymcgough/4827337562
A Money Matters Quiz
Q: Which is true of Millionaires?
A. 77% drive an older car
B. 20% inherited their money
C. 80% are college graduates
D. the most popular brand of car is FORD
E. All of the above
OneAthens
 Community-wide forum
 Education a key goal
 Better-educated workforce – more
jobs & better-paid workers
Benefits of GED or diploma
 Increase earning power
 More job opportunities
 Jobs with better benefits
 Financial Security
Grant idea
 Partner with Athens-Clarke Literacy
Council
 Library offers financial literacy classes
 ACLC offers GED scholarships
Putting it together
 Take Money Matters classes
 Learn about finance, credit, banking,
etc.
 Complete 6 classes
Putting it together
 Complete GED exam
 Get a job
 Earn good wages
 Manage money better because of
Money Matters classes
We won!
 January 2009
 Grant covers
 Salary
 Library materials
 Printing, publicity, etc.
 LearningExpress
A Money Matters Quiz
Q: All consumers are legally entitled to
receive free which of the following:
A.Their credit score
B.A copy of their credit reports annually from each
of the three main credit-reporting bureaus.
C.A detailed debt-to-income analysis
D.Access to freecreditreport.com
E.Two copies of their credit report
The Credit Card Act of 2009
 The new requirements phased in starting August 2009-
August 2010
 Goal
 More transparency & easier to understand terms
 Enhanced Consumer Disclosures
 Consumer Protection
 Protection of Young Consumers
Provisions of the Act
 Consumer Protections
 Limited interest rate increases
 The right to opt out
 Limits on over-the-limit fee
 Subprime credit cards
 Protection of Young Consumers
 Limited credit to Young Adults, under 21
 Enhanced Consumer Disclosures
 Minimum Payments
What the new credit card
law means to you
 Higher upfront cost
 Annual fees
 Fewer Reward cards
 Shorter grace periods
 Account closures & Credit limit reductions
 No advance notice required
 No cap on interest rates
 Less accessibility for low income & bad credit
Credit Score Factors
Course Development
 FINRA Modules
 Money Matters Advisory Board
 GED pilot program
GED Pilot Program
 Benefits
 No transportation
 No need for childcare
 Unforeseen benefits
 GED class make-up
Collection
 Adult
 Basics
 Retirement / Mortgages / College
 Sophisticated Investors
 ValueLine and LearningExpress testing database
 Young Adult
 Children
Money Matters Web Page
 Classes
 Internet links
 Ask Teri
 www.clarke.public.lib.ga.us/
hqdepts/moneymatters.html
Classes
 Money Matters Series
 6 one hour classes
 GED scholarship opportunity
 Offered at GED program locations
 Community Classes
 UGA School of Law, UGA College of Family and Consumer Science
 Athens Land Trust and the NEFE
 Money Matters
 Managing Your Credit Score
 Investing Basics
 Investing II
 *Money Matters for Engaged and Newly Married Couple
 Civic clubs, Kiwanis and Invest clubs
Outcomes
# taught
Class demographics
Class Evaluations
Testimonies
Post class evaluations
Sustainability
 Establish the ongoing need for the program
 Evaluate to ensure we are meeting the need
 Determine cost to continue the program
 How to fund the program going forward
Replicability
 Do your homework
 Start small
 Look for partners (credit union, local
colleges)
 Other grants
Sources:
• "FDIC Economic Inclusion." FDIC Economic Inclusion. http://www.economicinclusion.gov/
•"FINRA Investor Education Foundation." FINRA Investor Education Foundation
http://www.finrafoundation.org/.
•"Goodbye to Complacency Financial Literacy Education in the U.S. 2000-2005." Institute
for Socio-Financial Studies. http://www.isfs.org/documents-pdfs/GoodbyetoComplacencynocover.pdf
•"IMLS - About Us - National Initiatives." Institute of Museum and Library Services (IMLS).
http://www.imls.gov/about/21stCSkills.shtm.
•"Smart Investing @ Your Library | Financial and Investor Education Resources." Smart
Investing @ Your Library | Financial and Investor Education Resources.
http://smartinvesting.ala.org.
•"U.S. Treasury - Office of Domestic Finance - Council on Financial Literacy." United States
- Department of The Treasury http://www.ustreas.gov/offices/domestic-finance/financialinstitution/fin-education/council/.