Raising the Grade on Financial Education in Oklahoma April 25, 2016 John Pelletier Director
Oklahoma Population: 3.9 million Dairy Cows: 82,000 Bison Not Dairy Cows! Champlain College 2
Vermont Population: 630,000 Dairy Cows: 135,000 Maria Von Trapp Lived Here Champlain College 3
Vermont See the Bern Cameo Roles in 4 Batman Movies 6 Exploration Wells 1956-1984 Dairy Cows = Cheddar Cheese + Ice Cream! Champlain College 4
Oklahoma Persuasive Evidence that Climate Change is a Hoax Real Movie Stars: Brad Pitt, Chuck Norris and James Garner Champlain College 5
Oklahomans and Vermonters Agree on the Need to Increase the Personal Finance Knowledge of our Children! Champlain College 6
Topics • Personal Finance Education In Oklahoma High Schools • Personal Finance Education In High Schools Across the Nation • Teacher Training is Critical • Keys to Success • Why Financial Literacy is Relevant for our Youth Champlain College 7
VT Standards Today K -12 Sta nd a rd s: Persona l Dev elop m ent Sta nd a rd s Personal Econom ics : less than 1 Inch Career Choices : 1.5 inches Sustainability : 3.25 inches Champlain College 11
Personal Financial Literacy Passport • Earning an income • Understanding state and federal taxes • Banking and financial services • Balancing a checkbook • Savings and investing • Planning for retirement • Understanding loans and borrowing money, including predatory lending and payday loans • Understanding interest, credit card debt, and online commerce • Identity fraud and theft • Rights and responsibilities of renting or buying a home • Understanding insurance • Understanding the financial impact and consequences of gambling • Bankruptcy • Charitable giving
7 th to 12 th Grade—Will They Remember What They Were Taught 6 Years Ago? Does Not Need to be Taught in a Class that is a High School
The National Grade Curve
GRADE A: What Do These States Do?
Grade B: What Do These States Do?
2009 National Study: Teachers’ Background and Capacity to Teach Personal Finance* K-12 Teachers are as financially sophisticated as everyone else 63.8 % of teachers feel unqualified to use their states financial literacy education guidelines or standards (80% of states have adopted some type of guideline or standard) 8 9% of teachers agree or strongly agree that students should take a financial literacy course or pass a test for high school graduation Only 29.7% percent of teachers are teaching financial literacy education in any way—in existing classes or special classed on finance topics Only 37% of K-12 teachers had taken a college course with personal finance Only 11.6% of K-12 teachers had taken a workshop on teaching personal finance Less than 20 % of teachers reported feeling very competent to teach any of the six personal finance topics covered. * Authored by Wendy Way and Karen Holden as a conference paper for the Association for Financial Counseling and Planning Education Champlain College 21
R E S E A R C H R E P O R T | D E C E M B E R 1 5 , 2 0 1 5 P REPPED FOR S UCCESS A Study of Teacher Training, Financial Literacy & Classroom Outcomes
Participants
Teacher Training
Classroom Outcomes
Classroom Outcomes
Student Behavior
Generational Comparison
Website Launch: TeachFinLit.org
Why is Financial Literacy Relevant to Young People? • Huge decision at young age—whether to continue education or enter workforce • How to finance the cost of additional education Human Brain Develops into mid-20s Unfair to expect adult levels of decision-making before student’s brains are finished being built
Where are the Jobs and What Do They Pay? 41
44
How to Get a Million Bucks! Bachelor’s degree holders can expect to have median lifetime earnings that is at least $1 million more than someone that just has a high school degree 47
48
Majors Matter Champlain College 51
Why Students Choose Major Percenta ge of Seniors W ho Sa id the Follow ing Fa ctors Substa ntia lly Influenced Their Choice of Aca d em ic Ma jor: Academ ic interest or passion for topic 8 9% Fit for m y talents and strengths 8 9% Career m obility or advancem ent 59% Ability to find a job 55% Potential salary or earnings 52% Source: 2012 National Survey of Student Engagement 52
Champlain College 53
HOW MUCH DID I INVEST? WHAT’S MY RETURN? Champlain College 54
Champlain College 56
Making Less/ More Student Loans Champlain College 57
College Debt Levels National Average of College Debt for a Graduating Senior (2014) $28 ,950 69% gra d ua ted from p ublic a nd p riv a te nonp rofit colleges w ith stud ent loa n d ebt 17% of d ebt w a s com p rised of p riv a te loa ns tha t ha v e few er consum er p rotections a nd rep a y m ent op tions tha n fed era l loa ns Oklahoma Average of College Debt for a Graduating Senior (2014): $23,430 The 43rd Highest Debt Average out of the 50 States Portion with Debt: 55% Source: The Project on Student Debt Study—Student Debt and the Class of 2014 58
The Impact of Student Loans Champlain College 61
Economic Conditions Impact on Millennials 18 -34 year olds responding to survey asking how they have responded to econom y Millennial reaction to econom y: Postponed getting married Postponed having a baby Moved back in with parents Unpaid work to build skills Gone back to school Took a job just to pay bills Source: PEW Research Center 0% 10% 20% 30% 40% 50% 60%
National Averages of Younger Adults living with Parents 60 50 40 2003 30 2013 20 10 Source: Joint Center For Housing Studies of Harvard University 0 20-24 25-29 30-34 35-39
What is preventing saving for a home purchase for all First-Time Homebuyers ? 57% Student Debt 45% Credit Card Debt 42% Car Loan 23% Down Payment Savings 13% Childcare Costs 12% Health Care Source: National Association of Realtors, “2014 Profile of Home Buyers and Sellers” – All First-Time Homebuyer respondents, not only Millennials.
Generational Comparison from PEW Research How Millennials view their plight against their parent’s generation: 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% More Difficult Than Parents Easier Than Parents
Why is Financial Literacy Relevant to Young People? • Shrinking demographics--less workers supporting each retiree • Increased longevity—retirement is lasting longer • Increased personal responsibility and likely reduction in govt. benefits like Medicare and Social Security
Retirement—Your on Your Own Champlain College 68
Why is Financial Literacy Relevant to Young People? • Changing Labor Markets and Reduced Job Security: Uber and the gig economy; consultant not employee • Increasingly complex financial markets and products • Access to financial products at young age
Recommend
More recommend
