Financial Literacy Trends, Problems, and Best Practices

1. Financial Literacy Trends, Problems, and Best Practices Presented By: Rob LaBreche

3. What did we learn from our student survey? • 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 12,000 original respondents filled out one section 6,000 attempted several sections 4,095 filled out all sections

4. Current Student Status

5. Educational Attainment

6. Types of Student Loans Borrowed

7. What is your current job search priority?

8. What caused you to drop out?

9. 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

10. What keeps you in school/staying positive?

11. What do you want to know/understand about your future?

12. Recorded Response 18-34 Years Young 35-64 Years Young 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 Will/Already is Affecting Me Might Affect Me Won’t Affect Me Unsure if it will Affect Me

13. Preference for Learning Tools

14. What motivates you to use iGrad?

15. Administrators were asked to rank a student’s knowledge and their own knowledge of the following areas: Scoring: 4 = Above Average 3 = Average 2 = Below Average 1 = Poor Money Management Investing Financial Aid ID Theft Can you guess what the scores were?

16. What else did we learn from our Administrator Survey?

17. Do you have a Financial Literacy task force? Not Sure, 11.5%

18. Do you have a Financial Literacy strategy or platform in place? Not Sure, 9.4%

19. All Who “owns” Financial Literacy on your campus? Alumni Bursar/Financial Services Default Prevention Financial Aid Academics/Faculty Financial Literacy FYE Other

20. Is your Financial Literacy program mandatory? Not Sure, 8.4%

21. Do you believe that Financial Literacy should be mandatory? Yes, but only for borrowers No Yes, but students should be able to test out 71% Yes, mandatory for all

22. 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%

23. What is your budget for a Financial Literacy program? > $1.50/student, 7.70% Less than $1.50/student,11.10%

24. Financial Literacy Best Practices

25. There is no singular or perfect operational model for a campus financial literacy program

26. Institutional Action Plan Identify your advocates on campus and in the community Start a task force Involve students Know your students Start small, but choose engaging content and delivery methods Learn from other institutions Create a mission/goal statement and definition of success

27. AND the most prevalent and successful models are: • Classroom Based Programs Interactive Online Programs • Game Based Education • Event Based Programs • Individual Counseling

28. Research Will Unlock The Answers • 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 study’s long-term results will unlock about what causes people to spend, save, take on debt, etc. University of Arizona study 2. iGrad study • Currently measuring impact of financial literacy strategies with regard to lowering defaults and increasing retention

29. 5 6 Keys to a Successful Financial Literacy Program(5 just wasn’t enough!) Make is ACCESSIBLE Make it MANDATORY Get Buy-In from MULTIPLE DEPARTMENTS Make it RELEVANT Make it REPETITIVE MEASURE IT!!!

30. Questions/Discussion