Financial Literacy Skills and Your Students

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Financial Literacy Skills and Your Students
PresenterPam Jerome NYS Higher Education
Services Corporation (HESC), Manager of
Consulting Services
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Need for Financial Literacy

• 76 of college students have credit cards
• 56 of final year students have 4 cards or more
• Many students are accumulating debt at a record
  pace final year students carry an average of
  2,864.00 in credit cards alone

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Need for Financial Literacy

• Students lack basic financial management skills.
  Students facing financial difficulty are
  susceptible to dropping out of school and
  defaulting on their loans. 

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Financial Awareness and Consumer Training for
Students (FACTS)

• Develops financial literacy for your students at
  your school.
• Professional staff from HESC will provide
  training for you, your staff and your students.
• Money Wise 411 is designed specifically for high
  school students in order to develop skills and
  avoid credit card debt!

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Training Outline

• Importance of Saving
• Establishing Short and Long Term Goals
• Develop a Spending Plan
• The Cost of Driving a Car
• Use of Debit vs. Credit
• Cell Phones
• Prevent Identity Theft

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Session Options

• Student Assemblies
• Student Workshops
• Lesson Plans
• Parent Nights

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FACTS works!

• Approx. 2,600 students received training at 61
  different sessions throughout NY state
• Students agree they are better able to manage
  their finances, and they would recommend FACTS to
  a friend!

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FACTS works!

• High school counselors also agree
• The students were able to extract valuable
  information from the presentation
• The students really seemed to enjoy the
  presentation. I was thrilled to see the students
  actively participating

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Sessions Provided At

• Rye Neck High School
• Seton Catholic High School
• Ossining High School
• Williamsville High School
• Manhattan Bridges High School
• Lyme Central School
• Marcellus High School
• Albany High School

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Cost of Driving Someone Elses Car

• This chart estimates the monthly responsibilities
  of maintaining a car without a loan payment

• Monthly Cost of Operating a Car
• Maintenance(4 oil changes) 10
• Repairs/Parts 30
• Fuel 70
• Insurance(1,800-2,500/yr) 200
• Annual Registration(60) 5
• Total 315

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Cost of Owning a Car

• Owning and operating a car can cost more than the
  vehicles purchase price and financing costs

• Monthly Cost of Purchasing,Financing and
  Operating a Car
• Loan payment 240
• Maintenance(4 oil changes) 10
• Repairs/Parts 30
• Fuel 70
• Insurance(2,500-4,000) 200 - 300
• Annual Registration(60) 5
• Total 555 - 655

This chart estimates the monthly cost of
purchasing, financing and operating a 10,000
vehicle to be driven and insured by a 20 year old
male. In this example, a 2,000 down payment was
made, and the balance was financed at 16
interest for 5 years.
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Writing a Check

1. Date the check
2. Write the name of the person or firm to whom the
   check will be payable
3. Enter the amount of the check (in figures) next
   to the dollar sign

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Writing a Check

1. Write the amount of the check (in words) on the
   line beneath the Pay to the order of line
2. Sign your name on the bottom line EXACTLY as it
   appears on the bank signature card
3. Use the Memo line to record the purpose of the
   payment

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ATM Card vs. Debit Card

• ATM
• 24 hour access to your money
• Daily limits on withdrawal amounts
• Fees charged when used at ATMs not owned by your
  bank

• Debit
• Purchase amount is automatically deducted from
  your checking account
• Card may be used for Credit purchases too
• Some banks charge a fee when the card is used as
  Debit

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Debit vs. Credit Card

• Debit
• Purchase amount is automatically deducted from
  your checking account
• Provides alternative payment method to cash
• No interest charged

• Credit
• Purchases made with credit card are paid for with
  a loan from bank (billed monthly)
• Interest accrues monthly
• Try to pay in full every month. At least, pay
  more than the minimum payment amount required

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• Students Need
• The Right Message, (Money Wise 411) at
• The Right Time, (this year) using
• The Right Media!! (Money Wise 411 PowerPoint
  delivered by HESC professionals or your trained
  staff)

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Questions?

• Thank You!
• FACTS contacts
• 
  
  Pamela
  Jerome,
• Manager, Consulting Services, [phone]
• pjerome_at_hesc.org
• Joseph Gorman,
• Manager, School Counselor Services, (518)
  486-6281
• jgorman_at_hesc.org