passing the buck: preparing generation next to be financially literate
TRANSCRIPT
Passing the Buck: Preparing Generation Next to Be Financially Literate
Financial Hardships of College Students
• First-Year College ExpensesIn 2007, approximately half of all first-year BGSU student survey participants expected to cover their educational expenses through a college loan. Source: BGSU Office of Institutional Research
• Graduating Senior SurveyIn 2007-2008, 38% of graduating senior survey participants at BGSU disclosed that they would owe $20,000 or more in student loan debt. Source: BGSU Office of Institutional Research
Financial Hardships of College Students
• Trends show that many students are paying more to borrow for college. A growing number of students are taking out private loans, which typically have higher interest rates than federally subsidized loans.
• From 2004-2005, the number of undergraduate and graduate students who took out private student loans grew approximately 30%. Source: Alliance Bernstein Investments
Financial Hardships of College Students
• Average published tuition and fees at public two-year colleges in 2007-08 were 4.2 percent higher than in 2006-07.
• Average published tuition and fees for in-state students at public four-year colleges and universities in 2007-08 were 6.6 percent higher than they were in 2006-07.
• Average published tuition and fees for out-of-state students at public four-year colleges and universities in 2007-08 were 5.5 percent higher than they were in 2006-07.
Source: College Board
Financial Hardships of College Students
• Average published tuition and fees at private four-year colleges and universities in 2007-08 were 6.3 percent higher than they were in 2006-07. Source: College Board
• Average published tuition and fees at for-profit institutions in 2007-08 were 6.2 percent higher than in 2006-07.Source: College Board
Financial Hardships of College Students
• It takes students an average of more than six years in public four-year colleges and more than five years in private four-year colleges to earn a bachelor’s degree. Source: Trends in College Pricing 2006
• Estimates of the annual cost of textbooks and supplies range from $805 to $1,229.Source: College Board
Creating Student Money Management Services
• Students expressed a need for financial education given ever increasing costs for higher education expenses
• BGSU President led the way in creating this service for students
Creating Student Money Management Services
• Hired a part-time Director in July 2007 to oversee the creation of the program and implement services.
• Added two half-time grads in August 2007 & 1 full-time staff member in January 2008
• Program largely relied on student volunteers to get the word out about the program
• Funded by Success Challenge monies
Mission & Vision
“Students First!”
• “It’s more than a motto at Student Money Management Services (SMMS). Student is more than the first word in our office name. Students are the first consideration in everything we do. This philosophy is enabling SMMS to maximize student success in relation to personal finance.”
Source: SMMS Annual Report, 2007-2008
Researching Best Practices
• University of North Texas http://moneymanagement.unt.edu/index.html
• University of Iowa http://imu.uiowa.edu/osl/money/index.php
• Texas Tech University http://www.orgs.ttu.edu/r2b/money_management.php
Creating Content• Individual Financial Education
Sessions (IFES)
• Falconomics Group Seminars (FGS)– Good Debt, Bad Debt: The Truth About
Credit Cards – Banking for Your Life @ BGSU – I Got a Job! . . . Now What? Money
Management Principles for the New Professional
– Movin' On . . . Movin' Out – Spending Plans: Making the Most of Your
Money – Soar Your Score! Understanding Credit
Reports and Scoring
• Special Programs
Marketing the Service
• Creation of a website: www.bgsu.edu/smms
• Signed up for free website resources through the National Endowment of Financial Education: www.nefe.com
• Linked to State Treasurer’s office: www.yourmoneynowonline.org
• Partnered with key offices on campus (i.e., Financial Aid, Bursar, Residence Life, Student Employment)
Marketing the Service
• Participation in campus events and class presentations
• Through the Office of Marketing & Communications contracted with , Dick Jones Communications, Inc resulting in local, regional, and national exposure for the program
Financial Literacy Survey
• In collaboration with Office of Institutional Research, created a baseline survey to assess student’s knowledge, behavior, and attitudes about personal finance
• Survey to launch in Spring 2009
Assessment of Learning Outcomes
• Analyze – to examine critically and in detail so as to identify key factors, causes, and possible results. Students will learn the various costs associated with attending BGSU, and become familiar with financial resources and assistance available to meet those costs and make sound financial decisions.
• Budget – an itemized estimate of expected income and expense for a given period in the future along with a plan of operations based on such an estimate. BGSU students learn how to develop and manage a spending plan.
• Commit – to pledge to take some course of action. BGSU students make reasoned decisions and act on those decisions related to banking, debt issues, credit cards, savings plans, identity theft, and insurance matters.
Assessment of Learning Outcomes
4.44.454.54.554.64.654.74.754.84.854.9
Analyze
Budget
Commit
TotalAvg.
What We Have Learned To Date
“In the Middle of Difficulty Lies Opportunity”• Staffing• Student Involvement• No such thing as too much PR• Clarifying what we don’t do (i.e., provide advice
on stocks, bonds, etc.)• Funding
Questions
