1. Navigating Rough Economic Terrain: RESEARCH ON THE FINANCIAL BEHAVIORS OF YOUNG ADULTS Joyce Serido, PhD, MBA Take Charge America Institute University of Arizona October 21, 2013 Funding for this study provided by the National Endowment for Financial Education (NEFE) and the Citi Foundation Copyright @ Take Charge America Institute 2013

2. Spoiled Rotten? New Yorker, July 2012 Huffington Post, December 11, 20 11 OR

3. Where do financial behaviors come from? Do financial behaviors change? What promotes financial capability among young adults? Today’s Agenda Copyright @ Take Charge America Institute 2013

4. ARIZONA PATHWAYS TO LIFE SUCCESS FOR UNIVERSITY STUDENTS (APLUS) Project Synopsis Copyright @ Take Charge America Institute 2013

5. Project Recap Copyright @ Take Charge America Institute 2013

6. In The Transition To College: Early financial socialization strengthens college students’ financial behaviors. When it comes to financial behavior and well-being, parental communication and expectations matter more than parental finances. Copyright @ Take Charge America Institute 2013

7. Financial Parenting Ways parents make a difference – Directly and explicitly teach financial behaviors – Model positive behaviors – Expect responsible behaviors – Cultivate positive adult relationships Copyright @ Take Charge America Institute 2013

8. Financial Education Formal and Informal Instruction - Reinforces parents’ teaching - Extends understanding of financial topics Part-Time Paid Employment - Makes financial management relevant - Provides money-management experience Copyright @ Take Charge America Institute 2013

9. WHAT CHANGES FINANCIAL BEHAVIOR? Young Adults’ Financial Behavior Copyright @ Take Charge America Institute 2013

10. Faced With Changing Financial Demands The financial behaviors of many young adults are reactive rather than proactive Those who practice proactive financial behaviors, feel better now and in the future Copyright @ Take Charge America Institute 2013

11. As They Prepare To Graduate Significant changes in financial knowledge and skills Changes in knowledge changes in self-awareness changes in behavior changes in well-being – The changes are not uniform Taken together, the changes suggest a dynamic process of emerging financial capability Copyright @ Take Charge America Institute 2013

12. 12 Is it STILL worth it?

13. WHAT WORKS? Effective Techniques Copyright @ Take Charge America Institute 2013

14. Promoting Financial Capability of Youth Communicating Modeling Direct teaching Setting clear expectations Copyright @ Take Charge America Institute 2013

15. Communicate = Dialogue Most effective “teaching strategy” Listen for the pressure points Offer specific/concrete advice Copyright @ Take Charge America Institute 2013

16. Modeling The 60/40 Reading Literacy Rule Applies Introduce strategies for coping with common financial problems Show them how to dialogue about financial matters Be a mentor - not an expert Copyright @ Take Charge America Institute 2013

17. Direct Teaching The eight-minute lesson: Lather Rinse Repeat Individual understanding is evolving: Each lesson is a seed for the next lesson, class, seminar, workshop Copyright @ Take Charge America Institute 2013

18. Set Clear Expectations Financial capability is a life course - not a financial class Embed interventions in day-to-day context Provide practice in making complex decisions Copyright @ Take Charge America Institute 2013

19. Questions? Arizona Pathways to Life Success for University Students (APLUS): Examining the connections between financial behavior and well-being http://aplus.arizona.edu