Financial Literacy: How to Inform Your Students

1. Financial Literacy: How to Inform Your Students A comparison of two different financial literacy programs and strategies for connecting with students Adam DiIulio, Case Western Reserve University Brett Underhill, Denison University Moderated by Betsi Werling, Ohio Northern University

2. Agenda • Adam – CWRU • Target Audience: Underclassman • Brett – Denison • Target Audience: Seniors • Best Practices • Resources

3. Case Western Reserve University • What is CWRU? • Private college located in Cleveland, Ohio • 10,129 Students (4227 Undergrad,5902 Grad) • 2010-11Tuition: $37,300 • 69% receive institutional gift aid • 65% receive need-based financial aid • First two year on campus • Budget Allocation for Financial Literacy: $0

4. Focus: Underclassman • Planting the seed early • Focus on underclassmen through several different avenues • Catch them before the mistakes happen • What we want to teach them • Keeping loan volume down • Planning ahead/creating goals • Avoiding the Pitfalls

5. Our Plan of Action 4 Items • 1st – Parent Orientation • 6summer sessions before classes begin. • What they should tell their children vs. what we will tell them • Keeping track of loan information • Borrowing need versus want • Planning for all 4 years • Joint effort with Admissions and Student Affairs

6. Our Plan of Action • 2nd– Welcome Days • Right before classes start • “The Overview” - A decent amount of information but with a few good takeaways to think about. • Make it personal. “When I was in your shoes…” • Brand new and eager – plant the seed now. • Recent articles showing up online. “Why didn’t they tell us this sooner?” • How to avoid the Pitfalls.

7. The Pitfalls • Ruining credit while in college • Not budgeting properly • Over borrowing student loans • Applying for financial aid late • Not setting goals for the future

8. Our Plan of Action • 3rd– Student Counseling • Target Underclassmen • The Goal: “to stop the bleeding early” in regards to amount of loan debt they accrue • Created document with emphasis on repayment amounts, repayment plans, budgeting, loan details • Will put in file but not mandatory • Set thresholds for loan indebtedness • One-on-one session with a counselor

9. Our Plan of Action • 4th– Student Groups • Transition into upper-class • Target RA’s, Housing Office, Student Affairs, Fraternities, Sororities, etc. • Cater to their needs and wants • Grad school loans • Repayment • Credit • After college: budgeting, mortgages, insurance, etc.

10. Moving Forward • SatCo • Free Saturday college presented by faculty, staff, and students one Saturday every semester • Presented by Student Affairs and classes range from sky-diving to cooking • Start debt management/financial literacy program • Outsourcing • Social Media

11. Motivation • How are you acting in regards to the recession? • Background in mortgage industry. • What do you wish they told you when you were in school? • Did you do everything you could to help?

12. How to connect • Keep it relatable • Give real world examples • Add pictures • Tell stories • Focus on the takeaways for the student • Not everyone is going to pay attention • Plant a seed – get them thinking • Keep it short, interactive and energetic

13. About Denison • Student Population: 2,100 • Undergraduate only • 99% Residential • 2010-11 Tuition: $37,270 • 93% receive institutional gift aid • 40% receive need-based financial aid • Financial Aid Office: 3 Administrators, 2 Support Staff • Budget Allocation for Financial Literacy: $0

14. Financial Literacy Education at Denison • Loan Exit Counseling • Face to face, in-person • Loan Summary by Academic Year • Loan Repayment Estimator from DL Servicing • 235+ Seniors per year • CashCourse.org • National Endowment for Financial Education (NEFE) • Customizable website • Access to presentations prepared by NEFE • Free

15. Financial Literacy Education at Denison

16. The Game of LIFE Series • A Joint Effort • Alumni Relations • Annual Fund • Campus & Residential Life • Career Services • Financial Aid • Student Activities

17. The Game of LIFE Series • Celebrate and Network with Fellow Denison Graduates • Gatherings & Events, “From Denison to….” • Develop Job Search Skills and Prepare for Professional Life • Resume Review, Etiquette Program, Employee Benefits • Learn to Manage Finances Responsibly • Learn to Care for Yourself: Your Health, Your Home and Life Essentials • Cooking, Stress Management, Automobile Maintenance

18. The Game of LIFE Series • Money for Graduate School • Credit and Credit Scoring • From Dorm Life to Renting • “Leases, Utilities, and Renter’s Insurance, Oh My!” • Budgeting • Saving and Investing

19. The Game of LIFE Series • Money for Graduate School • Scholarships, Fellowships, Assistantships & how to get them • Federal Direct Loans, Grad PLUS, Private Loans • Stressing the importance of their credit score • Loan Forgiveness Programs • Especially IBR and Public Service

20. The Game of LIFE Series • Credit and Credit Scoring • What is a credit report? • What is a credit score? • How is it calculated & tips for improving it • Responsible use of credit and the CARD Act

21. The Game of LIFE Series • From Dorm Life to Renting • “Leases, Utilities, and Renter’s Insurance, Oh My!” • What typically is in a lease? • What utilities will you have to pay? • Should you buy Renter’s Insurance? • The importance of your credit score • Renting vs. Owning

22. The Game of LIFE Series • Budgeting • What goes into a budget? • How much should you budget? • Saving and Investing • Time Value of money & Compound Interest • Savings Vehicles • 401k, 403b, IRA, Roth IRA • Investments • Stocks, Mutual Funds

23. Planning the Series • Why Seniors? • Intrinsic VS. Extrinsic motivation • Students retain more when they choose the topic and the topic relates to them • If they are not interested in the topic, or believe it doesn’t apply, they need an external motivator • Seniors are beginning to realize that their financial literacy will have an immediate impact on their lives in just a few short months

24. Planning the Series • What do the Students want? • Student involvement on the committee • What are they already doing / asking for? • Appointments with Career Services • Organizations on campus • Strategic Planning • Avoid mid-terms and other big events • After classes end and before the dinner rush • Promise to keep workshops with a financial theme short – 45 Minutes

25. Planning the Series • Piggy-Back off of earlier workshops • Money for Grad School leads to Credit and Credit Scoring • Don’t try to make them experts • Abraham Maslow’s Four Stages of Learning • Stage 1 to Stage 2, maybe Stage 2 to Stage 3 • They won’t be an expert after 45 min, but they’ll remember that you know where to point them for additional information • Provide lots of web resources

26. Advertising • Campus Flyers • Large, Medium and Bookmarks • Department Websites • Career Services and Student Activities Office • Social Networking • Game of Life Facebook page • Evaluations

27. Resources • National Endowment for Financial Education • www.nefe.org • www.myFICO.com • www.kiplinger.com/tools/budget • www.practicalmoneyskills.com

28. Adam DiIulio • Manager of Student Loans and Finance • Case Western Reserve University • add24@case.edu • Brett Underhill • Financial Aid Counselor • Denison University • underhillb@denison.edu