Do you know more than a H.S. senior?Presented by:

Paula Craw, CEPF®, ECMC

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Today’s agendaQuizWhy do we care?What defines financial literacy?FLEC’s* 5 core competenciesTracking to accepted standardsResources

*Financial Literacy and Education Commission – established by Congress in 2003

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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 www.ifap.ed.gov/presentations/attachements/1208C2108v2.ppt

• Some states require schools to promote principles of economic education and financial literacy

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Financial literacy defined • But first, a few questions

• Do you have a program on your campus?

• If yes, what’s included?

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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?

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Financial literacy definedCore competencies

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Core competenciesEarningSpendingSaving and investingBorrowingProtecting against risk

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More on the competenciesCore Concept Knowledge Action/Behavior

Earning Gross vs. net payBenefits and taxesEducation is important

Understand your paycheckLearn about potential benefits and taxesInvest in your future

Spending The difference between wants and needs

Develop a spending planTrack spending habitsLive within your means

Saving & Investing Saved money growsKnow about transactional accounts

How to meet long-term goals and grow your wealth

Start saving early; pay yourself firstUnderstand and establish relationships with the financial systemSave for retirement, child’s education and other needs

Borrowing If you borrow now, you pay back more later.

Avoid high cost borrowing, plan, understand and shop around

Protecting Act now to protect yourself from potential catastrophe laterIdentity theft/fraud/scams

Choose appropriate insurance

Protect your identityReview your credit report

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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

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Why track to core competencies?

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Why track to core competencies? 1) Ensure basics are covered2) Increase credibility for your efforts/program 3) Standardize content4) Help others understand what you’re doing for students

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Resourceswww.consumerfinance.govwww.mymoney.govwww.nefe.orgwww.cashcourse.orgwww.jumpstart.orgwww.finlit.orgwww.ecmc.org/financialliteracy

Paula CrawNational Director, Outreach and Financial Literacy757.374.6771pcraw@ecmc.org

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.