1. Lois A. Vitt, Founding Director FINANCIAL LITERACY EDUCATION: Building Support for Sustainable Programs Second Annual Financial Literacy Leadership Conference October 5, 2009, Washington, DC

2. What ISFS Does… Evaluates financial and investor education in all societal sectors: youth, adult, corporate, military, community, faith organizations. Benchmarks programs to identify and help educators replicate best practices. Assesses whether the education program works for all parties involved. Program participants Educators Funding organizations Policymakers

3. Seven Components of Successful Financial Education Programs 1.Unambiguous Mission and Goals* 2.Targeted Outreach 3.Adequate Resources 4.Relevant Curriculum* 5.Commitment to Evaluation* 6.Program Accessibility 7.Dynamic Partnering

4. *Unambiguous Mission and Goals 1.Debt elimination, money management, saving 2.Assessing risk tolerance, asset building, investing 3.Consumer/investor protection 4.Specific actions/behaviors: Spending vs. saving decisions Homeownership, financing Increase 401(k) participation Retirement planning

5. High Touch - High Tech Curriculum is Most Effective Successful content goes beyond financial factors: Employ a familiar frame of reference Hands-on, realistic, problem solving Teach how to access resources Encourage shared feelings, beliefs, attitudes Discuss contexts

6. Source: R esearch grant funded by the National Endowment for Financial Education (NEFE) 2007- 2008.

7. Feelings in Poor Financial Circumstances Trapped, caged Depressed, lacking motivation Angry and frustrated Afraid (to invest, to seek help) Hopeless (things will never change) Out of control Source: MARMC Study, May 2007

8. Feelings when in financial control Stress-free More confident Proud, happy Blessed with options Enjoy better personal relationships Source: MARMC Study, May 2007

9. *Commitment to Evaluation 1.Requires advance planning. 2.Reflects the goals of all parties: Program participants, students Educators Sponsors and funding organizations Policymakers 3.Is measurable.

10. Program Measures… 1.Performance Measures: were participants satisfied with the program? 2.Effectiveness Measures: did the education make a difference in the lives of participants? 3.Organizational Measures: have the sponsors and/or funding organizations achieved their objectives? 4.Policy Measures: does the education satisfy the goals of policymakers?

11. 1. Performance Measures Program growth. Satisfaction measures: Topics covered Quality of instruction Learning activities Time and convenience Length of instruction Facilities

12. Performance Measures…cont’d. Gathered from participants on post- educational evaluation forms. Are additive: they can be accumulated from course to course. Can be compared.

13. 2. Effectiveness Measures Cognitive changes: awareness, knowledge, attitudes, and values. Behavioral changes we want are actions: spend less, save more, eliminate debt, invest in 401(k), make risk adjustments in portfolio mix. Objective changes are proof of behavioral changes: increases and decreases in accounts, portfolio mix, net worth.

14. Effectiveness Measures…cont’d. Changes in awareness, knowledge, and attitudes can be ascertained from pre- and post-education forms. Behavioral changes require follow up to learn whether intentions were turned into action: debt elimination, saving, investing, changes in portfolio? Objective increases and decreases in financial accounts, portfolio mix, net worth. How will data be gathered?

15. 3. Organization’s Evaluation Goals Did the program fulfill the goals of the education sponsoring organization? Have the objectives of the funding organization (if different) been met as well? What about policy?

16. Evaluation Methods On-going, not one-time effort Subjective, objective measures: Logic Modeling or Framework: Input— Output—Impact. “Chaining” short-term, intermediate-and long-term outcomes. Trust your data sources and intuition. Have your work reviewed by others. Find resources to help you plan your evaluation.

17. 4. Policy Measures Macro level economic indicators? Wealth loss, home loss, job loss? Corporate sensitivity or legislation? Increasing retirement readiness? Debt/saving rates of populations? Well-being indicators? Research: what works, what doesn’t?

18. “I increased my savings $250 a month.” “Yes, I changed… I invest in my company 401(k) Plan now.” “Now that I see where I need to be, then I can change my investment strategy and add to plan contribution each pay period.” Does Financial Education Work?