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In Review: Howard University Financial Literacy Curriculum

Debby Lindsey-TalieferoLynne Kelly

William BrentRussell Price

4th Annual Financial Literacy Leadership Conference October 3, 2011

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Purpose

To provide a better understanding of relevant factors that may influence the success of financial education at Howard University.

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Literature

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School of Business, Howard University

Principles of Personal Financial-Business Majors FINA 320

Personal Money Management Elective-Non Business Majors FINA 210

Business Orientation Module MGMT 001

Managerial Economics BECN-330 Microeconomics for Business GECN 501 Seminars

Money ManagementCredit Smart

Investment

HU’s Financial Literacy Curriculum

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HU’s Financial Literacy Construct

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Methodology Survey data

Financial literacy assessment (HU-NJS), n=166

HU Student Credit Habits & Behavior (HU-SCH&B) n=1,109

Descriptive & Inferential Statistics Mean, mode Frequencies, relative frequencies t-test difference between proportions Regression analysis

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NJS (n=1,032) and HU (n=166) Financial Literacy Scores (FLS)

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

Income 70.0% 71.9%

Money Management 53.6% 54.1%

Saving and Investment 53.6% 54.0%

Spending 67.5% 68.2%

Credit 61.0% 62.6%

Total Financial Literacy 62.2% 63.1%

JumpStart College Howard University

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NJS’ Business and Economics Majors and HU FLS

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

Income 69.3% 71.9%

Money Management 54.9% 54.1%

Saving and Investment 56.4% 54.0%

Spending 66.3% 68.2%

Credit 60.8% 62.6%

Total Financial Literacy 62.4% 63.1%

JumpStart College-Business/Economics

Howard University

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NJS’ African American Students and HU FLS

0.0%

20.0%

40.0%

60.0%

80.0%

Income 62.4% 71.9%

Money Management 45.3% 54.1%

Saving and Investment 46.3% 54.0%

Spending 62.0% 68.2%

Credit 56.0% 62.6%

Total Financial Literacy 55.3% 63.1%

JumpStart College-African American

Students

Howard University Response (%)

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Descriptive Summary of Measures used in the Financial Literacy Model

Category Mean/ModeDependent Variable: Total Financial Literacy Knowledge 63.1% = mean scoreIndependent Variables:Demographic and Family CharacteristicsAge 60.2% = 21 years old or lessGender 67.5% = femaleStudents Expected Income 68.7% = $50,000 or greaterParent's Education 83.7% = Some college or moreParent's Income 54.4% = $80,000 or moreFormal Learning ActivitiesGPA 68.7% = 3.0 or greaterStudent's Highest Expected Level of Education 81.9% = Graduate or professional degreePersonal Finance Course in College 89.8% = Did not take courseCollege Money/Investment Seminar 68.1% = Did not take seminarExperimental Learning ActivitiesStudent Loan Debt 50.0% = Student loan debt > $20,000Credit Card Debt 78.3% = Student credit card debt < $1,000Auto Loan 93.4% = Did not have auto loansMortgage Loan 95.2% = Did not have mortgagesBank Account 98.2% = Had checking accountFrequency of Balancing Checkbook 59.6% = Rarely balance checkbookTax Prepared on Computer 80.7% = Did not prepared taxes electronically

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Financial Literacy Model

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Factors Influencing Financial Literacy Knowledge

College course in personal finance Seminars in money management and

investments Having a checking account Balancing checkbook frequently Having student loans Preparing taxes on-line academic performance (GPA)

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Factors Influencing Money Management ((HU-SCH&B)

quantitative skills academic performance (GPA) student’s employment status having checking account student’s social class understanding credit report and score

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Summary & Conclusion Socio-economic and demographic

characteristics Students financial awareness. Curriculum effectiveness

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Are there any unique socio-economic

and demographic characteristics of the evaluated students that may impact financial learning?

majority of HU students expect to pursue advanced degree come more often from middle-income

families parent attended some college.

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Are the evaluated students financial aware. If so, what are the key factors that influence their awareness? If not, what areas are they deficient?

HU students’ financial literacy performance

statistically no different than NJS’ room for improvement HU

FLS=63.1% a minimum, 70% FLS.

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Are the current financial literacy educational paradigms effective? Review revealed:

Courses are effective in increasing total financial knowledge.

Greatest impact on FLS experimental, then formal learning

Continue with the seminars on Money Management/Investments and the Personal Finance and Personal Money Management courses.

Seminars and courses are under utilized/too infrequently

Need marketing strategy to increase enrollment

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The Last Word Warren Buffet once said, “Someone’s

sitting in the shade today because someone planted a tree a long time ago.”

Financial Literacy: Bridge to a Greener Tomorrow. Not only does the “greener tomorrow” imply more savings, investments, and greenbacks for our nation’s students but also that we’re saving more trees for a greener tomorrow, too.

Jump$tart, 2008