Do you know more than a H.S. senior? Presented by: Paula Craw, CEPF®, ECMC

2 Today’s agenda Quiz Why do we care? What defines financial literacy? FLEC’s* 5 core competencies Tracking to accepted standards Resources *Financial Literacy and Education Commission – established by Congress in 2003

3 Why do we care? Recent economic crisis has highlighted the need for information, education & tools Pass rate for the last Jump$tart high school financial literacy test was 48.3% Correlation between financial literacy education and lower default rates 08v2.ppt Some states require schools to promote principles of economic education and financial literacy

4 Financial literacy defined But first, a few questions Do you have a program on your campus? If yes, what’s included?

5 Financial literacy defined But first, a few questions If yes, how did you decide what to include? If no, what concepts do you think define financial literacy?

6 Financial literacy defined Core competencies

7 Earning Spending Saving and investing Borrowing Protecting against risk

8 More on the competencies Core ConceptKnowledgeAction/Behavior EarningGross vs. net pay Benefits and taxes Education is important Understand your paycheck Learn about potential benefits and taxes Invest in your future SpendingThe difference between wants and needsDevelop a spending plan Track spending habits Live within your means Saving & InvestingSaved money grows Know about transactional accounts How to meet long-term goals and grow your wealth Start saving early; pay yourself first Understand and establish relationships with the financial system Save for retirement, child’s education and other needs BorrowingIf you borrow now, you pay back more later. Avoid high cost borrowing, plan, understand and shop around ProtectingAct now to protect yourself from potential catastrophe later Identity theft/fraud/scams Choose appropriate insurance Protect your identity Review your credit report

9 Industry standards National Standards in K-12 Personal Finance Education established by the Jump$tart Coalition for Personal Financial Literacy National Standards for Adult Financial Literacy established by the Institute for Financial Literacy

10 Why track to core competencies?

11 Why track to core competencies? 1) Ensure basics are covered 2) Increase credibility for your efforts/program 3) Standardize content 4) Help others understand what you’re doing for students

12 Resources

Paula Craw National Director, Outreach and Financial Literacy This presentation is intended to provide general guidance and resources to assist you. It is not intended to provide individual financial advice which may vary based upon personal circumstances.