Why Is Financial Literacy Important to Your Campus?

Anne Barton, AFC NSLP

Today’s focus

– Who, What, When, Where, Why – How to Start – Find the Experts – What Can You Do – Who Needs This

Why?

• Nellie Mae 2005 Survey – 74% college students use credit cards for supplies – 71% college students use credit cards for books – 24% college students use credit cards for books – College students double their credit card debt between freshman and senior year

Why?

• Nellie Mae 2005 Survey – 21% pay off balance each month – 44% pay more than minimum payment – 11% pay less than minimum

Why?

• 2007-08 National Postsecondary Student Aid Study – 86% of college students take out student loans – Average undergraduate student loan debt is $24,651

Why?

• National Cohort Default Rate is rising • New calculation of CDR will result in across the board increases • Financial Aid is a natural to take the lead

Why?

• Jump Start Coalition Survey 2008 – High School students scored 48% on personal finance survey – College students scored 62% on the same survey

Why?

• Sallie Mae 2009 Survey – 84% of college students want more information on financial management topics – One in three students graduate with $10,000 in credit card debt

Why?

• Hartford Financial Services Group Study – Only 24% of college students say they are well prepared to deal with the financial challenges they face after graduation

Why?

• In 2009 CARD Act was signed – implementation complete in 2010 • In September 2010 US Treasury launched their Financial Literacy Campaign – Created a national strategy • In 2010 US Government released a revised website www.mymoney.gov

What?

• Students Need Basic Financial Literacy Skills – Budgeting – Credit and Credit Reports – Identity Theft – Taxes

Who?

• Varies by campus – Financial Aid Office – Student Accounts – Student Affairs – Residence Halls – Business/Economics Department – Greek Organizations

When?

• The sooner the better – SUNY Agreement with the AG

How to Start

• Create a task force to identify creative ways for outreach • Evaluate available resources • Coordinate outreach efforts to include presentations, training, websites and surveys – Learning outcomes • Think outside the box

Find the Experts

• Who has the expertise on campus?

• Do you need to seek help elsewhere?

• Check with colleagues • Ensure accuracy of information provided – Liability assessment

What can you do?

• Learn from colleagues • Expand entrance and exit counseling • Explore what is being done on campus • Spread the word • Post information • Links on website

Who Needs This?

• First time students to graduate students • Parents and spouses/partners • Faculty and staff • Student clubs and organizations • Everyone!

Questions

Contact Information

Anne Barton, AFC Regional Director NSLP [email protected]

585-319-9140