Our Financial LiteracyMovement

Presentation by David D. ManclDirector, Office of Financial LiteracyWisconsin Department of Financial Institutions345 W. Washington Ave., Madison, WI 53703 (608) 261-9540, david.mancl@wisconsin.gov

Expanding Opportunities through

Financial Education

Strengthening Wisconsin's Financial Future

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 < $25,000)

Corporate Filing Agency for:

213,000+ LLCs (Limited Liability Companies)

101,000+ Corporations

Numbers are current as of 12/31/09

To ensure the safety and soundness of Wisconsin’s financial institutions, to protect consumers of financial services and to promote economic growth

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 WI’s financial competitiveness

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.

Message to Next Generation

You’re on your own!

National Survey of High School Seniors

Year Score (USA) Score (WI)

1997 57% NA 1999 52% NA 2002 50% 58.8% 2004 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.

State Financial Education Requirements (+5 since 2009)

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%)

WI Workplace Financial LiteracySurvey Results

• 33% NO financial education• Barriers

– Weren’t sure employees want it (…?) – Have no one to present

Challenges

Solutions

Financial Literacy Movement

• NAEP 2006 (Nat’l 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

• National Jump$tart Coalition

WISCONSINWISCONSIN

First-everState Coalition of the Year!

A financial education program for educators andthe thousands of students they teach

Thank You !!!

10th Anniversary

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

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

We are reaching educators . . .

A financial education program for educators andthe thousands of students they teach

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

2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

2010-11

0

100

200

300

400

500

600

700

Academic Year

WI Teachers Trained

2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

2010-11

0

100

200

300

400

500

600

700

Academic Year

WI Teachers Trained

2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

2010-11

010000

20000

30000

40000

50000

60000

70000

80000

Academic Year

Students Taught

Governor's Council onFinancial Literacy

“The Council’s mission will be to measurably improve the financial literacy of Wisconsin citizens.”

And,“…serve as a continuous sounding board for the Governor’s Office and the Department of Financial Institutions…”

5th Anniversary

Governor's Council onFinancial Literacy

Formal education in schools

Employee education

Emerging market

Fraud prevention

Family Financial Literacy

Council Priority

Financial Literacy Innovation awards for teachers$500 to $5000 to teachers and their schoolMOU between DFI and DPI

Total: $150,000

WI’s Model Academic Standards on Personal Finance

A. Relating Income and Education

B. Becoming a Critical Consumer

C. Community and Financial Responsibility

D. Planning, Saving, and Investing

E. Money Management

F. Risk Management

G. Credit and Debt Management

HistoricHistoric

Implementation

Implementation

Money Smart Week Wisconsin October 2-9, 2010

• “Rally” event at Executive Residence • Governor’s Proclamation • State agencies• 27 Communities Teams• 62 cities • 1000 partners

5th Anniversary

Participation

Green Bay Packer Donald Driver

Wisconsin State Capitol in Green

Oprah’s Debt Diet Coach

President’s 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

REAL Progress and Pathways to ProsperityREAL Progress and Pathways to Prosperity

Investor Education in Your WorkplaceInvestor Education in Your WorkplaceThis 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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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+ CU’s signed up

4200 Registered

30,000+ hours of coursework completed in < 25 weeks!!!!!!

YES. Groundbreaking results on knowledge and behavior!

REAL Progress and Pathways to ProsperityREAL Progress and Pathways to Prosperity

Expanding Opportunities through

Financial Education

Questions?... Thoughts?