FINANCIAL WELLNESS: WHAT ASSESMENT IS NEEDED TO MAKE THE CASE? - - PowerPoint PPT Presentation

FINANCIAL WELLNESS:

WHAT ASSESMENT IS NEEDED TO MAKE THE CASE? January 31, 2018

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Discussion Topics

• Data on Financial Knowledge of College Students
• Details about the SMU Financial Wellness Program
• Details about the UK Financial Wellness Program
• Assessment In Focus: Financial Based Retention Efforts

at UK

Current Statistics

• 57% of college graduates plan to move back in with their

parents (MonsterTrak).

• 62% of college graduates expect to leave school with an

average $27,236 in student debt (The Student Monitor).

• 39% of American adults have ZERO non-retirement savings

(National Foundation for Credit Counseling/NFCC]).

Current Statistics

• More than 19% of American households have

college debt (Pew Research Center).

• More than half of adults (56%) do not have a budget

(NFCC).

• 76% of college students wish they had more help to

prepare for their financial futures (KeyBank).

Data on Financial Knowledge of College Students

Sample Questions on a Financial Knowledge Instrument - Score on 13 Question Instrument

• Buying a single company’s stock usually provides a safer return than a stock

mutual fund.

• A 401 (k) retirement plan is a defined benefits plan.
• Higher insurance deductibles lead to lower insurance premiums.
• An annuity is a contract issued by a financial institution that guarantees a

series of payments for over a lifetime.

• Imagine that the interest rate on your savings account was 1% per year and

inflation was 2% per year. After 1 year, how much would you be able to buy with the money in this account?

Data on Financial Knowledge of College Students

Understanding of basic financial knowledge is low:

Financial Knowledge Instrument - Score on 13 Question Instrument

• Average Score of 68% - Sample of 695

LSU Sophomores in 2015

• Average Score of 74% - Sample of 108 UK

Students in Finance Course in Fall 2017 and Spring 2018

• Average Score of 64% - Sample of over

1,300 UK Freshmen in 2017

What information should be captured from the assessment?

Student Data Current Relationship with Money Financial Goals

All Students

• 1. Cost
• 2. Other
• 3. Reputation
• 4. Curriculum
• 5. Campus Atmosphere
• 6. Location
• 7. Advice of Family & Friends
• 8. Financial Aid
• 9. Academics

Reasons Students Questions Their Success:

Diverse Students

• 1. Cost
• 2. Curriculum
• 3. Reputation
• 4. Financial Aid
• 5. Other
• 6. Campus Atmosphere
• 6. Location
• 7. Advice of Family & Friends
• 8. Academics

*Data from freshman PRW survey

Relationship with Money

• 1. Spender
• 2. Saver
• 3. Giver

https://www.moneyharmony.com/moneyharmony-quiz

Pre-Assessment Quiz:

Sample questions –

• 1. After the presentation and activity I have a good understanding of

how to accomplish a financial goal?

• 2. After the presentation and activity I have a good understanding of

how to create and stick to a budget?

• 3. I was able to identify my relationship with money?
• 4. Rate your level of stress in regards to your personal finances?
• 5. How likely are you to meet with someone from the Financial Literacy

team if you experience difficulties with your finances?

• 6. Share any additional information about the presentation or activity:

Post-Assessment:

Financial Literacy Initiatives – The 4 Ps

Programming Daily Practice Partnerships Paying for…

(Scholarships & Financial Aid)

Current Financial Literacy Initiatives

Programming

• Financial Wellness Workshops
• Financial Literacy Month
• Residential Pop-up’s
• Classroom engagement
• Career Planning
• Training and Certification

Daily Practice

• One on one coaching sessions
• Telephone consultations
• Loan portfolios
• Student engagements
• Social media presence

Partnerships

• Student Athletics
• Hegi Family Career Development Center
• Financial Aid
• Residence Life & Student Housing
• Student Affairs

Paying for…

• Financial Aid/Scholarships
• Budget
• Career planning
• Loans
• Emergencies

Financial Wellness Center Housed in Health & Wellness Online, in classroom, peer to peer

UK Program

Why What How

UK Program – MoneyCats Peer to Peer

Pre-Assessment Instrument Monthly Meetings ”Big Picture” Concept Post-Assessment Evaluation

Financial Wellness Center Housed in Health & Wellness Online, in classroom, peer to peer

UK Program – The Future

Why What How Future

Predicted Retention of UK Grant Recipients

Fall 16 – Spring 17 Fall 16 – Fall 17 Predicted Retention without One-Time Grant 70.8% 57.7% Predicted Retention with One-Time Grant 90.4% 72.9% Actual 89.9% 75.8%

UK Persistence Grants – FY17 Program

• FY 17 Program: Freshmen to Sophomore Financial

Persistence Program

• Range for 178: $577 - $12,168; Average - $7,206 or ~$1.28m
• Avg. of those who retained (135) - $6,879
• Avg. of those who retained and met with SFW (15) - $6,540

UK Persistence Grants

20 40 60 80 100 120 140 160 180 200 One-Time Grant Recipients Recipients Who Met with SFWC 1:1

One-Time Grant Recipients and SFW Retention by Numbers

Retained Students

UK Persistence Grants

• FY 17 Program: Freshmen to Sophomore Financial Persistence Program
• Range for 178: $577 - $12,168; Average - $7,206 or ~$1.28m
• Avg. of those who retained (135) - $6,879
• Avg. of those who retained and met with SFW (15) - $6,540
• FY 18 Program: Expanded to 400 Freshmen, 135 Sophomores, and

Require Financial Wellness 1:1

UK Persistence Grants – The Next Steps

Predicted Retention of UK Grant Recipients

Fall 17 – Spring 18 Fall 17 – Fall 18 Predicted Retention without One-Time Grant 68.4% 51.9% Predicted Retention with One-Time Grant 87.1% 64.4% Actual 89.3% N/A

UK Persistence Grants – FY18 Program

• Financial Knowledge is Low
• Poor Financial Decisions are impacting persistence
• University-Based Financial Wellness programs can help
• Efforts require a broad-based University commitment and years of

consistent, data-focused efforts

• Assessment is still in the early stages and Universities must remain

focused and committed

Summary

Questions/Discussion

Contact Information

Lottia Windham Eric N. Monday Senior Student Financial Operations Executive Vice President for Specialist/Financial Literacy Finance and Administration Southern Methodist University University of Kentucky lwindham@mail.smu.edu emonday@uky.edu

FINANCIAL WELLNESS:

WHAT ASSESMENT IS NEEDED TO MAKE THE CASE? January 31, 2018

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EXTRA SLIDES

Undergraduate Race & Ethnicity

0.00 10.00 20.00 30.00 40.00 50.00 60.00 70.00 80.00 90.00 100.00 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Geographic Information

• Texas (62.2%)
• California (3.09%)
• Florida (1.25%)
• Georgia
• New York
• Connecticut
• Oklahoma
• Missouri
• Tennessee
• New Jersey
• North Carolina

PRESENTATION

PERSPECTIVE

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The implications of poor financial management can affect more than students’ finances. It can affect their academic performance, mental and physical well-being, and even their ability to find employment after graduation. (Bodvarsson & Walker, 2004; Lyons, 2003, 2004)

PRESENTATION

COST

Neal Raisman Study – Cost of Attrition Of 1,669 Institutions, the average annual cost of attrition…$9.9 Million

…requiring a campus solution

Neal Raisman Study – Cost of Attrition Of 1,669 Institutions, the average annual cost of attrition…$9.9 Million

…requiring a campus solution

PRESENTATION

TYPES OF FINANCIAL WELLNESS PROGRAMS

Interactive Online Programs Individual Counseling Game-Based Education Classroom-Based Programs Event-Based Programs

PRESENTATION

KEY ATTRIBUTES OF SUCCESSFUL PROGRAMS

Accessible Assessment Awareness of Services Behavioral Change Focus Branded Program Connects with Students

PRESENTATION

KEY ATTRIBUTES OF SUCCESSFUL PROGRAMS

• Financial Wellness Advisory Board
• Administrators, staff and students
• Academic and Student Affairs
• Peer Educators/Coaches
• Strategy for Student Transition…
• College Alumni Career

APPLY GUIDING PRINCIPLES

Department of Treasury Core Competencies Institute for Financial Literacy Benchmarks