Our Financial Literacy

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Our Financial Literacy Movement
Presentation by David D. Mancl Director, Office
of Financial Literacy Wisconsin Department of
Financial Institutions 345 W. Washington Ave.,
Madison, WI 53703 [phone],
david.mancl_at_wisconsin.gov
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Expanding Opportunities through Financial
Education
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Strengthening Wisconsin's Financial Future
To ensure the safety and soundness of Wisconsins
financial institutions, to protect consumers of
financial services and to promote economic growth

• Regulatory Responsibilities
• 214 state chartered banks
• 242 state chartered credit unions
• 13 state chartered savings institutions
• 112,000 securities representatives (brokers
  advisors)
• Wisconsin Consumer Act (credit transactions lt
  25,000)
• Corporate Filing Agency for
• 213,000 LLCs (Limited Liability Companies)
• 101,000 Corporations

Numbers are current as of 12/31/09
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• Social and economic impact
• of financial illiteracy
• Leading cause of divorce and suicides
• Bankruptcies at an all time high
• Individual Costs
•   Cost to each consumer (over 600/yr)
• 1 impediment to WIs financial competitiveness

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• Trends
• Living Longer
• Retirement responsibility shift
• Social Security benefits?
• Raising healthcare costs
• Debtor Class
• Unprecedented access to more
• financial products and services
• than ever before.

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• Message to Next Generation
• Youre on your own!

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National Survey of High School Seniors

• Year Score (USA) Score (WI)
• 1997 57 NA
•  
• 1999 52 NA
•  
• 2002 50 58.8
•  
• 52.3 54.7
• 2006 52.4 53.1
• 2008 48 57

College 62 The high school survey was given
to 6,856 high school 12th graders in 40 states.
The college survey was given to 1,030 full time
students nationwide.
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State Financial Education Requirements (5 since
2009)
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WI Workplace Financial LiteracySurvey Results

• WI for-profit and non-profit businesses (380
  responds)
• 66 provide some financial education
• Outside provider, 70
• Posters, paycheck insert
• Presentation by employee, 25
• Topics
• Investing for Retirement, 90
• Benefits, health insurance, basic investing
• Reasons for providing it
• Perk (70), morale loyalty, employee demand
  (30)

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WI Workplace Financial LiteracySurvey Results

• 33 NO financial education
• Barriers
• Werent sure employees want it (?)
• Have no one to present

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• Challenges
• Solutions

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• Financial Literacy Movement
• NAEP 2006 (Natl Assessment of Educational
  Progress)
• National Financial Literacy and Education
  Commission
• Request comment on national strategy and core
  competencies
• Search on FLEC
• National Office of Financial Education
• Consumer Financial Protection Agency
• National Institute of Financial and Economic
  Literacy

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WISCONSIN
First-everState Coalition of the Year!
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10th Anniversary
A financial education program for educators
and the thousands of students they teach
Thank You !!!
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• We are reaching educators
• Program participants knowledge rose 13
• Participants felt better prepared to introduce a
  course in financial education in their schools
• Participant evaluations rate the Institute
  training as excellent
• -- Pre- and post-test administered and
  analyzed

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A financial education program for educators
and the thousands of students they teach
We are reaching educators . . .

• We are reaching students . . .
•  
• 80 of the teachers implemented financial
  literacy after attending the Institute

Over 600 WI teachers trained. We trained
educators in technical colleges, correctional
institutions, youth volunteers, etc.
-- Data from three separate surveys of all past
participants
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Governor's Council onFinancial Literacy
The Councils mission will be to measurably
improve the financial literacy of Wisconsin
citizens. And, serve as a continuous sounding
board for the Governors Office and the
Department of Financial Institutions
5th Anniversary
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Governor's Council onFinancial Literacy
Formal education in schools Employee
education Emerging market Fraud prevention Family
Financial Literacy
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Council Priority
Historic

• WIs Model Academic Standards on Personal Finance
• Relating Income and Education
• Becoming a Critical Consumer
• Community and Financial Responsibility
• Planning, Saving, and Investing
• Money Management
• Risk Management
• Credit and Debt Management

Implementation

• Financial Literacy Innovation awards for teachers
• 500 to 5000 to teachers and their school
• MOU between DFI and DPI
• Total 150,000

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Money Smart Week Wisconsin October 2-9, 2010
5th Anniversary

• Rally event at Executive Residence
• Governors Proclamation
• State agencies
• 27 Communities Teams
• 62 cities
• 1000 partners

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Participation
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Green Bay Packer Donald Driver
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Wisconsin State Capitol in Green
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Oprahs Debt Diet Coach
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Presidents Council on Financial Literacy

• Money Math Lessons for Life
• -middle schools
• National Financial Literacy Challenge
• -high schools
• Community Financial Assess Pilot
• -unbanked
• -including FL in sub prime lending
• Financial Education Honor Roll
• -employers, colleges/universities
• -Model cities, states
• Baseline Survey of Adult Consumers
• Multimedia Consortium and Outreach

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REAL Progress and Pathways to Prosperity
Investor Education in Your Workplace

• This project is funded by a grant from the
  Investor Protection Trust (IPT). The IPT is a
  Washington, DC-based nonprofit organization
  dedicated to investor education. Since 1993 the
  IPT has worked with the states to provide the
  independent, objective investor education needed
  by all Americans to make informed investment
  decisions. Visit www.investorprotection.org.

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REAL Progress and Pathways to Prosperity

• Program Goals Program Results

• Recruit 40 Credit Unions
• Register 4000 employees
• Complete 30,000 hours of online coursework
  completed
• Make measurable impact on employees / employers

• 80 CUs signed up
• 4200 Registered
• 30,000 hours of coursework completed in lt 25
  weeks!!!!!!
• YES. Groundbreaking results on knowledge and
  behavior!

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Expanding Opportunities through Financial
Education
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Questions?... Thoughts?