FLjumpstart

www.FLjumpstart.org

FLORIDA

Presented by: Rosanna M. Jacobsen, CRCMPresented by: Rosanna M. Jacobsen, CRCMVice President, Colonial Bank, N.A. &Vice President, Colonial Bank, N.A. &President, Florida Jump$tart Coalition for Personal Financial Literacy, IncPresident, Florida Jump$tart Coalition for Personal Financial Literacy, Inc

What isWhat is

One of 47 coalitions, 46 state and the District of Columbia. One of 47 coalitions, 46 state and the District of Columbia. The missing states are MD, DE, NE and HI. National The missing states are MD, DE, NE and HI. National Jump$tart Coalition is headquartered in Washington, D.C.Jump$tart Coalition is headquartered in Washington, D.C.

A state-wide advocate for Personal Financial LiteracyA state-wide advocate for Personal Financial Literacy

A clearinghouse for materials designed to promote personal A clearinghouse for materials designed to promote personal financial literacyfinancial literacy

A state-wide coalition of individuals and organizations A state-wide coalition of individuals and organizations committed to educating our youth about life-long financial committed to educating our youth about life-long financial wellness wellness

A 501(c)(3) not-for-profit corporationA 501(c)(3) not-for-profit corporation

FLORIDA

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““The Florida Jump$tart Coalition for Personal FinancialThe Florida Jump$tart Coalition for Personal FinancialLiteracy seeks to Literacy seeks to improve the personal financialimprove the personal financial

literacyliteracy of Floridians by focusing on the state’s youth of Floridians by focusing on the state’s youthby promoting and teaching personal finance skills soby promoting and teaching personal finance skills so

that individuals can make that individuals can make informed, responsibleinformed, responsiblefinancial decisions.”financial decisions.”

What Is Our Mission?What Is Our Mission?FLORIDA

What Is Our Purpose?What Is Our Purpose?

To prepare Florida’s youth to make better life-long To prepare Florida’s youth to make better life-long Financial Literacy/Money Management decisionsFinancial Literacy/Money Management decisions

To facilitate Financial Literacy through grassroots To facilitate Financial Literacy through grassroots networksnetworks

To work with our partners to identify ways Financial To work with our partners to identify ways Financial Literacy can be effectively integrated into Florida’s Literacy can be effectively integrated into Florida’s curriculacurricula

To work with our partners to raise awareness about the To work with our partners to raise awareness about the importance of Financial Literacyimportance of Financial Literacy

What Is Financial Literacy?What Is Financial Literacy? Financial Literacy is the ability through reading, Financial Literacy is the ability through reading,

analyzing, and communicating to make informed analyzing, and communicating to make informed decisions that affect material well-being.decisions that affect material well-being.

Financial Literacy is a life-long commitment.Financial Literacy is a life-long commitment.

Financial Literacy starts with the individual and is a Financial Literacy starts with the individual and is a community effort. It builds up from local to national community effort. It builds up from local to national levels.levels.

What Is the Need for Financial Literacy?What Is the Need for Financial Literacy?

The 2006 Jump$tart Coalition for Personal Financial Literacy The 2006 Jump$tart Coalition for Personal Financial Literacy survey reports a nation-wide mean correct score of just 52.4%survey reports a nation-wide mean correct score of just 52.4%

Ten hours of personal financial education can positively affect Ten hours of personal financial education can positively affect student spending and savings habitsstudent spending and savings habits

Only 21% of students between the ages of 16 and 22 say they Only 21% of students between the ages of 16 and 22 say they have taken a personal finance course in their schoolhave taken a personal finance course in their school

More than 20% of our 12-19 year olds have their own credit More than 20% of our 12-19 year olds have their own credit cards or have access to parents’ credit cards, and 14% have cards or have access to parents’ credit cards, and 14% have debit cardsdebit cards

45% of college students are in credit card debt, the average45% of college students are in credit card debt, the average credit card debt being $3,066credit card debt being $3,066

What Is the Need for Financial Literacy?What Is the Need for Financial Literacy?

University administrators state that they lose more students to credit University administrators state that they lose more students to credit card debt than to academic failurecard debt than to academic failure

The US has the lowest personal savings rate of any major The US has the lowest personal savings rate of any major industrialized nation, 1% industrialized nation, 1%

Average U.SAverage U.S. credit card debt. credit card debt per household is on the rise: from per household is on the rise: from $2,985 in 1990 to $9,024 in 2004, with an average interest rate of $2,985 in 1990 to $9,024 in 2004, with an average interest rate of 14.71% (with similar in 2005) 14.71% (with similar in 2005)

More than half of American families are not saving enough to More than half of American families are not saving enough to preserve their standard of living in retirementpreserve their standard of living in retirement

What is the Benefit to the What is the Benefit to the Community and its Partners?Community and its Partners?

Association with a nationally recognized advocate on Association with a nationally recognized advocate on financial educationfinancial education

A state-wide partner who can support financial education A state-wide partner who can support financial education initiativesinitiatives

Access to a variety of teacher training and teaching materialsAccess to a variety of teacher training and teaching materials

Access to a variety of resources through our statewide Access to a variety of resources through our statewide membershipmembership

Access to current state and national researchAccess to current state and national research

What is the Benefit to the Community What is the Benefit to the Community and its Partners? (continued)and its Partners? (continued)

Access to a comprehensive library of Access to a comprehensive library of

financial education materials for all grades, financial education materials for all grades, all in one locationall in one location

Access to partner funded teacher training Access to partner funded teacher training seminarsseminars

Single source for financial education research Single source for financial education research and informationand information

Florida Jump$tart Website: Florida Jump$tart Website: www.FLjumpstart.org

Florida Jump$tart Website: Florida Jump$tart Website: www.FLjumpstart.org (continued) (continued)

Board of DirectorsBoard of DirectorsRosanna JacobsenRosanna JacobsenPresidentPresidentColonial Bank, N.AColonial Bank, N.A..**

Jessica CecereJessica CecereVice PresidentVice PresidentConsumer Credit Counseling Service of WPB*Consumer Credit Counseling Service of WPB*

Tom KaneTom KaneTreasurerTreasurerRaymond James Financial Services, Tampa* Raymond James Financial Services, Tampa*

Brenda HubbardBrenda Hubbard

SecretarySecretary

Florida Institute of CPAsFlorida Institute of CPAs

Laura Royer, Laura Royer, Cooperative ExtensionCooperative ExtensionUniversity of Florida, Gainesville*University of Florida, Gainesville*

Elizabeth Gladden, Ex OfficioElizabeth Gladden, Ex OfficioFla. Dept. of Education, Family & Consumer Fla. Dept. of Education, Family & Consumer Sciences, Office of Workforce Department*Sciences, Office of Workforce Department*

** Founding Board Member Founding Board Member

Al DuarteAl DuarteInCharge Education Foundation, Inc.* InCharge Education Foundation, Inc.*

Janet HamerJanet Hamer

Federal Reserve Bank of Atlanta, Federal Reserve Bank of Atlanta, Community Affairs* Community Affairs*

Steve St. AmandSteve St. AmandJunior Achievement, JacksonvilleJunior Achievement, Jacksonville**

Jim DeSantisJim DeSantis

Florida Council on Economic Education*Florida Council on Economic Education*

Cassandra GraysonCassandra GraysonFlorida Credit Union League*Florida Credit Union League*

Marsha CantrellMarsha Cantrell

Florida Department of Financial ServicesFlorida Department of Financial Services

Fritzlaine PowellFritzlaine Powell

University of Central Florida University of Central Florida

John Olsen, John Olsen, Financial Education AdvisorFinancial Education AdvisorFDIC, Florida and Alabama* FDIC, Florida and Alabama*

Is a Financial Literacy Campaign Is a Financial Literacy Campaign Necessary? Necessary?

How many families filed for personal bankruptcy in 2005?How many families filed for personal bankruptcy in 2005? Over 2 million families: It went down in 2006 because of new law

implemented in October 2006,but it is increasing again in 2007.

What is the percentage of families who liveWhat is the percentage of families who live beyond their means?beyond their means? 40% of American families

How many credit cards does the average household have?How many credit cards does the average household have? 9 credit cards

What is the average debt of compulsive gamblers?What is the average debt of compulsive gamblers? $70,000

Is a Financial Literacy Campaign Is a Financial Literacy Campaign Necessary? (continued)Necessary? (continued)

Recent Survey Results of a large university in Florida:Recent Survey Results of a large university in Florida: 320 students surveyed during Summer and Fall 2006320 students surveyed during Summer and Fall 2006 20% work part-time off campus20% work part-time off campus 84% work to earn spending money84% work to earn spending money 92% have a checking account92% have a checking account 86% have a savings account86% have a savings account 36% receive 1-2 credit card offers per week36% receive 1-2 credit card offers per week 31.2% own at least one credit card31.2% own at least one credit card 35.3% received their first credit card in high school35.3% received their first credit card in high school

Is a Financial Literacy Campaign Is a Financial Literacy Campaign Necessary? (continued)Necessary? (continued)

23.4% use their credit cards at least once per week23.4% use their credit cards at least once per week 7.5% have a balance between $500-$1,0007.5% have a balance between $500-$1,000 50% pay for their purchases with an ATM/Debit card50% pay for their purchases with an ATM/Debit card 31.8 % pay the entire balance of the credit card on a 31.8 % pay the entire balance of the credit card on a

monthly basismonthly basis 53.1% do not have a monthly budget53.1% do not have a monthly budget 47.5% do not know how long negative information 47.5% do not know how long negative information

will stay on their credit reportwill stay on their credit report 75.9% indicated an interest in attending a free credit 75.9% indicated an interest in attending a free credit

counseling session to learn how to manage financescounseling session to learn how to manage finances

National TrendsNational Trends

The State of Financial Literacy in AmericaThe State of Financial Literacy in America In a nation where nearly a third of high school seniors In a nation where nearly a third of high school seniors

already use a credit card, a higher proportion have an already use a credit card, a higher proportion have an ATM card, and more than 1.5 million families filed ATM card, and more than 1.5 million families filed for personal bankruptcy last year, the need for for personal bankruptcy last year, the need for personal financial literacy is apparent. Yet fewer personal financial literacy is apparent. Yet fewer than 30 percent of young Americans are given the than 30 percent of young Americans are given the opportunity to take as much as one week’s worth of opportunity to take as much as one week’s worth of course work in money management or personal course work in money management or personal finance in high school.finance in high school.

Making a Case for Financial Making a Case for Financial LiteracyLiteracy

The following statistics further describe the state of financial literacy in The following statistics further describe the state of financial literacy in America today. America today.

American Children, Teenagers and Young Adults:American Children, Teenagers and Young Adults: Of the 4,000 students who took the Jump$tart personal finance survey in Of the 4,000 students who took the Jump$tart personal finance survey in

2004, 65.5% received failing scores. (1) 2004, 65.5% received failing scores. (1) A study of 1,065 teens found that 21% of 18 and 19-year-olds have credit A study of 1,065 teens found that 21% of 18 and 19-year-olds have credit

cards. (2) cards. (2) People in the 18 to 24 age bracket spend nearly 30% of their monthly People in the 18 to 24 age bracket spend nearly 30% of their monthly

income just on debt repayment - double the percentage spent in 1992 (10% income just on debt repayment - double the percentage spent in 1992 (10% of net income is a recommended amount for debt obligation). (3) of net income is a recommended amount for debt obligation). (3)

American children, teens and young adults (ages 8-21) earned about $211 American children, teens and young adults (ages 8-21) earned about $211 billion in 2003. This group is spending at a rate of approximately $172 billion in 2003. This group is spending at a rate of approximately $172 billion per year. (4) billion per year. (4)

The average 21-year-old in the U.S. will spend moreThe average 21-year-old in the U.S. will spend more than 2.2 million in than 2.2 million in their lifetime. (5)their lifetime. (5)

Making a Case for Financial LiteracyMaking a Case for Financial Literacy

American Families:American Families: 40% of Americans say they live beyond their means. (6) 40% of Americans say they live beyond their means. (6)

Between 25 million and 56 million adults are unbanked (i.e. not using Between 25 million and 56 million adults are unbanked (i.e. not using mainstream, insured financial institutions.) (7) mainstream, insured financial institutions.) (7)

The average household with debt carries approximately $10,000 to $12,000 in The average household with debt carries approximately $10,000 to $12,000 in total revolving debt and has 9 credit cards. (1) total revolving debt and has 9 credit cards. (1)

50.8% of college-age adults agree with this statement: “I have experienced 50.8% of college-age adults agree with this statement: “I have experienced repeated, unsuccessful attempts to control, cut back or stop excessive money repeated, unsuccessful attempts to control, cut back or stop excessive money use.” (8) use.” (8)

In 2005, savings rates dipped to minus 0.5 percent, something that hasn't In 2005, savings rates dipped to minus 0.5 percent, something that hasn't happened since the Great Depression in 1932 and 1933. A negative savings rate happened since the Great Depression in 1932 and 1933. A negative savings rate means that Americans spent all their disposable income and dipped into past means that Americans spent all their disposable income and dipped into past savings or increased their borrowing. (9) savings or increased their borrowing. (9)

Americans shelled out more than $24 billion in credit card fees in 2004, an 18% Americans shelled out more than $24 billion in credit card fees in 2004, an 18% increase over the previous year. (10)increase over the previous year. (10)


College StudentsCollege Students:: 45% of college students are in credit card debt, 45% of college students are in credit card debt,

the average credit card debt being more than the average credit card debt being more than $3,000. (1) $3,000. (1)

University administrators state that they lose University administrators state that they lose more students to credit card debt than to more students to credit card debt than to academic failure. (11)academic failure. (11)


Bankruptcies, Defaults, and ForeclosuresBankruptcies, Defaults, and Foreclosures:: The number of 18 to 24-year-olds declaring The number of 18 to 24-year-olds declaring

bankruptcy has increased 96% in 10 years. (12) bankruptcy has increased 96% in 10 years. (12) In 2002, more people filed for bankruptcy than In 2002, more people filed for bankruptcy than

graduated from college in 2002. (13) graduated from college in 2002. (13) Personal bankruptcies nearly doubled in the past Personal bankruptcies nearly doubled in the past

decade, including more than 1.6 million people who decade, including more than 1.6 million people who filed for personal bankruptcy in 2003. (14) filed for personal bankruptcy in 2003. (14)

Home foreclosures in 2002 reached the highest rate in Home foreclosures in 2002 reached the highest rate in 30 years. (15)30 years. (15)


Financial Literacy Education:Financial Literacy Education: 38 states have personal finance standards or guidelines,38 states have personal finance standards or guidelines, 21 states with standards require them to be implemented, 21 states with standards require them to be implemented, 8 states require a course with personal finance content,8 states require a course with personal finance content, 7 states require students to take a personal finance course to 7 states require students to take a personal finance course to

graduate. (16) graduate. (16) More than 9 in 10 adults and students believe it is important More than 9 in 10 adults and students believe it is important

for the people of the United States to have a good for the people of the United States to have a good understanding of economics. However, only half of high understanding of economics. However, only half of high school students say they ever have been taught economics in school students say they ever have been taught economics in school. (16)school. (16)


Sources:Sources:(1) Jump$tart Coalition, 2005(1) Jump$tart Coalition, 2005(2) Junior Achievement, 2005(2) Junior Achievement, 2005(3) Generation Broke: The Growth of Debt Among Young Americans(3) Generation Broke: The Growth of Debt Among Young Americans(4) Harris Interactive, 2003(4) Harris Interactive, 2003(5) Share-Save-Spend.com(5) Share-Save-Spend.com(6) Fort Worth Business Press 2002(6) Fort Worth Business Press 2002(7) Oversight Hearing on Financial Education and Literacy, 2004(7) Oversight Hearing on Financial Education and Literacy, 2004(8) MyVesta 2002(8) MyVesta 2002(9) U.S. Commerce Department, 2006(9) U.S. Commerce Department, 2006(10) Cardweb.com, 2005(10) Cardweb.com, 2005(11) Utah Mentor, 2003(11) Utah Mentor, 2003(12) Richmond Credit Abuse Resistant Education (CARE) Program(12) Richmond Credit Abuse Resistant Education (CARE) Program(13) U.S. Department of the Treasury(13) U.S. Department of the Treasury(14) Annual Hawaii Economic and Financial Literacy Conference, 2004(14) Annual Hawaii Economic and Financial Literacy Conference, 2004(15) Senate Resolution 48, 2003(15) Senate Resolution 48, 2003(16) National Council on Economic Education, 2003(16) National Council on Economic Education, 2003

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