University of Georgia College of Family & Consumer Sciences

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Program Overview

University of Georgia College of Family & Consumer Sciences

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Financial Literacy

• Being knowledgeable, educated, and informed on issues of managing money and assets, banking, investments, credit, insurance, and taxes;

• Understanding basic concepts underlying the management of money and assets; and

• Using that knowledge and understanding to plan and implement financial decisions.

University of Georgia College of Family & Consumer Sciences

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Why Is It Important?

• Well-informed, well-educated consumers make better decisions, increasing their economic well-being.

• Secure families contribute to vital, thriving communities, and foster economic development.

• Informed consumers help keep unscrupulous sellers out of the market.

University of Georgia College of Family & Consumer Sciences

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Trends

• Shifting responsibility for long-term well-being away from employers and government to individuals.

• Increasing sophistication of the financial marketplace.

• Increasing reliance upon credit reports for pricing of consumer products.

• Information security

University of Georgia College of Family & Consumer Sciences

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Evidence

• High school seniors averaged 52% on a recent Jump$tart Coalition test of financial literacy.

• The average score on a “Money Skills” test of high school seniors was 35%.

• The average score for 1700 adults completing a basic consumer skills test was 75%.

University of Georgia College of Family & Consumer Sciences

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More Evidence

• About 60% of U.S. households revolve credit card balances (average balance of $4,100 in 1998).

• 1 of 5 families with incomes under $50,000 spend at least 40% of after-tax income on debt service.

• In the 12 months before July 2002, one of every 39.8 Georgia households filed for bankruptcy.

• In 2000, credit card issuers sent each household an average of 3 credit card offers per month.

University of Georgia College of Family & Consumer Sciences

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Financial Literacy Education

An important component of community economic

development

University of Georgia College of Family & Consumer Sciences

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OPEN a Gateway to a Better Life

• Ongoing—over a period of weeks or months

• Proactive—focus on prevention• Experiential—participants “learn

by doing”• Needed—addresses the financial

information needs of the learner

University of Georgia College of Family & Consumer Sciences

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What is the

• Funded by the Governor’s Office of Consumer Affairs

• Pilot program• Purpose: To reach target

audiences and the public with information to improve economic education and well-being.

?

                                                                                                                                                                                                                                          

University of Georgia College of Family & Consumer Sciences

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Financial Secure Georgians

The Vision:

University of Georgia College of Family & Consumer Sciences

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The Mission:

Promoting financial securitythrough

education and outreach

University of Georgia College of Family & Consumer Sciences

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What is the target area of

the ?

21 Counties: Bleckley, Candler, Crawford, Crisp, Dodge, Dooly, Emanuel, Houston, Jeff Davis, Johnson, Laurens, Macon, Peach, Pulaski, Schley, Taylor, Telfair, Toombs, Tattnall, Treutlen, and Wilcox

University of Georgia College of Family & Consumer Sciences

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The 4 Components of the are:

Adult Program • Goal setting

• Decision-making

• Developing spending plans

• Time & Stress management

• Using financial tools

University of Georgia College of Family & Consumer Sciences

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Youth Program• Financial Champions (Middle School)• High School Financial Planning

Program• Teaching Children About Money (for

parents)

The 4 Components of the are:

University of Georgia College of Family & Consumer Sciences

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are:

Tax Education Program• Outreach to inform workers of tax credits.• Promote advanced payment EITC option.• Free tax assistance to:

– Minimize dollars spent for tax preparation.– Reduce participation in refund anticipation loan

programs.

• Economic Development

The 4 Components of the

University of Georgia College of Family & Consumer Sciences

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2000 EITC Benefits & Rank(By Percent of Population Receiving EITC)

• Emanuel (16) 38%• Telfair (19) 36.7%• Treutlen (24) 35.9%• Toombs (30) 34.6%• Johnson (33) 33.9%• Candler (41) 32.9%

• Tattnall (51) 31.4%

• Jeff Davis (52) 31.3%

• Dodge (53) 31%• Laurens (61)

29.1%• Bleckley (79)

25.2%

University of Georgia College of Family & Consumer Sciences

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2000 EITC Benefits & Rank(By Percent of Population Receiving EITC)

• Crawford (105) 19.5%

• Crisp (22) 36.1%• Dooly (17) 36.8%• Houston • Macon (8) 40.0%

• Peach • Pulaski (65)

28.2%• Schley (45) 32.6%• Taylor (32) 34.0%• Wilcox (44) 32.7%

University of Georgia College of Family & Consumer Sciences

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2000 Total EITC Benefit for 11 County Service Area

(Original Counties)

$47,253,780

University of Georgia College of Family & Consumer Sciences

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2000 Total EITC Benefit for 10 County Service Area

(Expansion Counties)

$23,326,138*

*Excluding Peach & Houston Counties

University of Georgia College of Family & Consumer Sciences

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CFL Outreach and Community Education

• Promote financial literacy for the community at large– media campaigns– exhibits– Workshops– Seminars

The 4 Components of the

are:

University of Georgia College of Family & Consumer Sciences

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Partnership Opportunities

• Refer clients or employees for educational programs.

• Develop financial literacy programs for targeted audiences (check bouncers, individuals denied credit, etc.)

• Collaborate to implement an Individual Development Account (IDA) program.

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Questions?