Download Financial literacy

MASFAA 2013
October 6th – 9th, 2013
Indianapolis, Indiana
Reality Store™ - Preparing
for the Next Generation of
College Bound Students
Amy Gaffney, University of Dubuque
Jayne Dinse, South Central College
Agenda




2
What is financial literacy?
Why financial literacy?
What is the Reality Store?
Adaptations
What is financial literacy?

3
Financial literacy is the ability to
understand how money works in the
world: how someone manages to earn or
make it, how that person manages it, how
he/she invests it (turn it into more) and
how that person donates it to help others
Why financial literacy?

2 in 5 US adults gave themselves a C, D, or F on their
knowledge of personal finance

56% admit they do not have budget

1/3 or more than 77 million Americans, do not pay all of
their bills on time

2 in 5 adults indicated they are now saving less than
they were one year ago and 39% do not have any nonretirement savings
National Foundation for Credit Counseling, Inc., Financial Literacy Exposes Significant Gaps in Grasp of Personal Finance Skills, April 2012
4
Why financial literacy?

41% US moms said they wish they were more informed
about managing money/being financially responsible, so
they could pass that knowledge on to their kids.1

While 89% of K-12 teachers agree that students should
either take a financial education course or pass a
competency test for high school graduation, relatively
few teachers believe they are adequately prepared to
teach personal finance.2

81% of parents feel it is there responsibility to teach
their kids about money and savings.3
◊
◊
◊
5
1 iVillage, iVillage and Pass from American Express (SM) Partner to Launch The Talk to Mobilize Moms to
Talk to Teens About Money, September 15, 2010.
2 National Endowment for Financial Education, Are Teachers making the Grade in Personal Finance
Education?, May 4, 2010
3 DoughMain, Study Reveals Need for Tools to Help Parents Teach Kids About Savings, February 17, 2012
Why financial literacy?
6

About half of senior girls shopped two or more weeks to pick out
a prom dress and half of senior boys spent 2 or more weeks
deciding whom to ask the prom
◊ In contrast, nearly half of high school seniors spent five or
fewer hours learning how to pay for college.1

87% of high school seniors report that their parents are their
primary resource for information about money management and
personal finance issues, but only 22% report that they talk to
their parents about money management “frequently” and 44%
say that they “sometimes ask their parents questions” about
personal finance.2
◊
1 Sallie Mae, Sallie Mae survey reveals high school seniors spend more time planning for prom than financial planning for college, May 11, 2011
◊
2 Capital One, As High School Graduates Open The Gifts, Parents Have Key Opportunity to Talk Money Management , June 14, 2011.)
What is the Reality Store™?
7

MASFAA Family Education Concerns committee
annually sponsored event

An interactive activity for eighth grade students
designed to teach them budgeting skills, the
correlation of educational level to employment
opportunities and income variance

The Reality Store™ is a trademarked name for this
activity [MASFAA has been granted permission to use]
What is the Reality Store™?

The traditional Reality Store™ event will
require:
◊ Cooperative
school
◊ 20 volunteers
◊ 4 hours of time for actual activity
◊ Travel for volunteers to location
◊ School supplies and t shirts for students
◊ T shirts for volunteers
8
IASFAA





9
Started offering annually its own version
of the Reality Store™ in 2007
Contact a school in an outlying community
IASFAA member volunteers throughout
the state
School supplies
Pizza afterwards for students, volunteers
Costs for Reality Store™






School supplies – pencils, folders, flyers,
calculators, bags
Copies of worksheets for students
Volunteers, time and travel
Food
Donation to school
Miscellaneous supplies
◊
◊
◊
10
Signage for stations, online resources, participant
survey (students and volunteers)
“Bingo wheel”
Method to determine marital status (ping pong balls)
How it has evolved

Over time things change
◊ Resources
Funds by IASFAA
• Back packs
• Calculators
• Folders
• T-Shirts
•
11
How it has evolved
◊
Volunteers
Leadership symposium participants
• School staff
• Parents
•
The school & local businesses that participated
in 2011 and have continued the event on their
own…..
…….without IASFAA!
12
How it has evolved
◊ Time
•
allotment
4 hours, 3, 2, even 1 hour
◊ Facility
•
•
13
Gymnasium, cafeteria
Classroom
ICAN
14

The Iowa College Access Network (ICAN)
empowers Iowans to achieve their educational and
career goals through statewide comprehensive
outreach, initiatives and partnerships with schools,
groups and businesses.

ICAN hosts its own Life Store event, similar to
Reality Store™

Developed an alternative method of presenting a
classroom lecture rather than 18 station process
University of Dubuque stats


Population = undergrads, graduates,
seminary, and doctorate
Undergrads
◊ Enrollment
(2012-13) = 2013
◊ Undergrads = 1676
◊ 1st generation = 597
◊ Pell = 55%
15
UD adaptation
16

Personal Financial Stewardship class

Offered PFS as a J-term course

2012 first event at local Middle School

College students taking PFS hosted the
event rather than professional staff
UD Challenges
17

UD did not have a budget for this event

UD did not have the staff for the event

Only attended Reality Store™ once myself

RISKY!
UD Advantages
18

J-Term

Faculty & staff

Local school cooperated

IASFAA supplies
Other events
19

Indian Hills Community College hosted for
freshmen fall 2012 using IHCC staff, #70
students participated

Allen College of Nursing held the event for
summer program of high school age students

Upper Iowa University hosted 4 events in the
2012-13 year in area communities – inspired
by parents!
Summary of Adaptations



Number of volunteers or hosts (1 – many)
Audience – 8th graders through college
students
Style of event:
◊ Traditional
– 18 stations, etc…
◊ Classroom setting - Powerpoint or Prezzi
◊ Hybrid – present classroom style for first few
stations, then remaining stations use funnel
process
20
Additional ideas





21
Additional resources (Department of Ed
materials, National Foundation for Credit
Counseling, Inc., Jump Start Coalition,
etc… )
Bookmarks promoting website or event
Sample press release
Pictures of event
Donations – calculators, flyers, booklets
on budgeting, pencils
What is the goal?

51% of high school students surveyed wished their
current high school offered financial literacy
instruction for them and their families to prepare for
college costs

55% of teens surveyed say they want to learn more
about how to manage their money
◊
◊
22
College Savings Foundation, High School Students Unprepared for Rising Costs of
College with Deep Divide Between Funding Plans and Actions, says College Savings
Foundation’s Survey of American Youth, February 22, 2012.
Capital One, Capital One’s Annual Back-to-School Shopping Survey Reveals Gap in
Back-to-School Budget Expectations Between Parents, Teens, August 15, 2011.
Your thoughts?



23
Tactics, strategies you have tried?
What are your hesitations?
Challenges?
Resources





24
Jump Start Coalition www.jumpstart.org
National Endowment for Financial
Education www.nefe.org
Practical Money Skills www.practicalmoneyskills.com
My Money www.mymoney.gov
Many, many of the vendors of our state
associations and MASFAA
Questions
Presented by

Amy Gaffney
◊ Associate
Director of Student Financial
Planning, University of Dubuque, IA
[email protected]

Jayne Dinse
◊ Financial
Aid Director, South Central College,
MN
[email protected]
26