F INANCIAL E DUCATION F OR C OLLEGE S TUDENTS AT T HE U NIVERSITY OF A RIZONA Prof. Michael Staten Director, Take Charge America Institute University of Arizona SFEPD Fourth Annual Financial Literacy Leadership Conference October 3, 2011

P ERSONAL F INANCE L ANDSCAPE IN A RIZONA University of Arizona – No Financial Planning major or professional certification program – No “for-credit” requirement for personal finance coursework State of Arizona – Dept. of Education adopted a high school graduation requirement for coursework including economics and personal finance – 1 semester course, required of all graduating seniors as of May 2012 – Approximately 80% econ; 20% personal finance

T HE T AKE C HARGE A MERICA I NSTITUTE AT THE U NIVERSITY OF A RIZONA Norton School of Family and Consumer Sciences – Take Charge America Institute for Consumer Financial Education and Research – Mission: Create research-based educational outreach programs

TCAI’ S S TRUCTURE University of Arizona Take Charge America Institute University of Arizona Take Charge America Institute Educational Advisory Board Institute Advisory Board Research Advisory Council Educational Programming Family Economics & Financial Education Credit-Wise Cats Office of Economic Education Consumer Jungle Young Adult Web site Research Behavioral Economics APLUS Study Youth Based Education Evaluation Effectiveness of Credit Counseling University Coursework

TCAI’ S S TRUCTURE University of Arizona Take Charge America Institute University of Arizona Take Charge America Institute Educational Advisory Board Institute Advisory Board Research Advisory Council Educational Programming Family Economics & Financial Education Credit-Wise Cats Office of Economic Education Consumer Jungle Young Adult Web site Research Behavioral Economics APLUS Study Youth Based Education Evaluation Effectiveness of Credit Counseling University Coursework

Team of 13 University of Arizona undergraduate financial education ambassadors Building a financially informed youth in southern Arizona Directly impacting over 21,000 youth and adults in the Tucson community by conducting more than 260 workshops each year

T ARGET A UDIENCE Developing a Spending Plan Savings Selecting a Credit Card Understanding Credit Reports Understanding Paychecks Income vs. Education Identity Theft Organizations on the University of Arizona campus – Clubs – Classrooms – Athletic Dept. – Orientation and other programs for students Tucson Community – High Schools – Middle Schools – Community Groups Workshop Topics

Workshop materials build on the Institute’s award- winning curriculum for high school – Family Economics and Financial Education (FEFE) – “Essentials” version of lessons for each of the CWC topics include in-class activities – CWC team members are trained and mentored to conduct workshops for grades

Annual capstone event for schools that hosted Credit-Wise Cats workshops Personal finance-focused, team competition Teams apply knowledge gained from the workshops Teams work through fun financial stations to build “virtual” wealth to be applied toward the goal of homeownership Competition judged by a board of community partners Over 20 community partners support the competition Capstone Event for Schools: Arizona Financial Face-Off

TCAI’ S S TRUCTURE University of Arizona Take Charge America Institute University of Arizona Take Charge America Institute Educational Advisory Board Institute Advisory Board Research Advisory Council Educational Programming Family Economics & Financial Education Credit-Wise Cats Office of Economic Education Consumer Jungle Young Adult Web site Research Behavioral Economics APLUS Study Youth Based Education Evaluation Effectiveness of Credit Counseling University Coursework

U NIVERSITY C OURSEWORK Money, Consumers and Family (General Ed, lower division course, 3 credits) – Interweaves sociology, psychology and economics in a discussion of personal finance decisions – Highly popular with freshman/sophomore students – Counts toward University Gen Ed requirements Family and Personal Finance (Junior level elective, 3 credits) – Intermediate course in personal financial management – Focused more heavily on savings/investment options and credit decisions Graduate level professional development coursework for teachers in personal finance and economics

INDV 102 C OURSE E NROLLMENT T RENDS AND P ROJECTION Total to Date: N= 3,000 Students

TCAI’ S S TRUCTURE University of Arizona Take Charge America Institute University of Arizona Take Charge America Institute Educational Advisory Board Institute Advisory Board Research Advisory Council Educational Programming Family Economics & Financial Education Credit-Wise Cats Office of Economic Education Consumer Jungle Young Adult Web site Research Behavioral Economics APLUS Study Youth Based Education Evaluation Effectiveness of Credit Counseling University Coursework

F AMILY E CONOMICS AND F INANCIAL E DUCATION (FEFE) P ROJECT “Provide educators with no-cost curriculum materials and the skills and confidence to effectively teach family finance”

FEFE C URRICULUM : B Y E DUCATORS, F OR E DUCATORS Design Easy-to-implement (ready- to-teach) Activity-based Linked to state standards Family focused Continually updated through the year – New activities introduced – Encourage educators to provide feedback What’s available Grade 7-12 focus 100+ lesson plans Course recommendations Simulations Project-based learning Web-based networking with teachers nationwide

FEFE W EB SITE : WWW. FEFE. ARIZONA. EDU Free of Charge!

TCAI’ S S TRUCTURE University of Arizona Take Charge America Institute University of Arizona Take Charge America Institute Educational Advisory Board Institute Advisory Board Research Advisory Council Educational Programming Family Economics & Financial Education Credit-Wise Cats Office of Economic Education Consumer Jungle Young Adult Web site Research Behavioral Economics APLUS Study Youth Based Education Evaluation Effectiveness of Credit Counseling University Coursework

Short term - To understand how young adults form financial behaviors and financial self-confidence Longer Term - How these financial behaviors affect - and are affected by – their life experiences APLUS Synopsis Arizona Pathways to Life success for University Students (APLUS): Research Goals

2,000 students (1/3 of the entering freshman class at the U of Arizona) participated in the online survey Focused on how family background, parental roles, high school work experience and financial socialization affected financial literacy, confidence and well-being. APLUS Synopsis Wave 1 Data Collection February - April, 2008

H OW P OSITIVE S OCIALIZATION L EADS TO F INANCIAL W ELL -B EING Parental teaching and dialogue with students Work High school financial education Continued parental role Modeling and expectations More financial knowledge More feelings of control over financial Behaviors More positive attitudes about healthy financial behaviors More positive relationships with parents Higher academic Achievement Better physical and mental health Positive Socialization Model Pre-college experiences And AffectDrive First-year of college How students think about finances and financial behavior How students are affected

Pathfinders (31%) Most engaged in defining their own financial style See themselves as actively choosing their own approach Followers (39%) Tend to follow their parents’ guidance and imitate their parents’ style of financial management Least concerned about exploring finances on their own Drifters (30%) Least accepting of their parents’ style, but haven’t established one of their own Financial behaviors tend to be worse than their peers, although financial knowledge and awareness is solidly average APLUS Synopsis Three Waves of Surveys since 2008 Reveal Student Financial Identities