Financial Education:Financial Education:An Alternative Route to CRA An Alternative Route to CRA

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Erin Scheithe, NC Bankers AssociationErin Scheithe, NC Bankers Association

Why Financial Education?Why Financial Education?

Americans have approximately $1 Americans have approximately $1 trillion in revolving credit card debt. trillion in revolving credit card debt. Only about half make the minimum Only about half make the minimum monthly payment.monthly payment.

Nationally, those under 25 are the Nationally, those under 25 are the fastest-growing age group filing for fastest-growing age group filing for personal bankruptcy.personal bankruptcy.

In the past two years, home mortgage In the past two years, home mortgage foreclosures reached a record high. foreclosures reached a record high.

Why Financial Education?Why Financial Education?

Lack of financial education is a growing problem facing people in all age groups and socio-economic levels across the country.

The financial literacy of our youth is of particular concern as we strive to right the wrongs of the past decade.

Financial education for school-aged children and homeownership education should be top priority.

Why focus on NC youth?Why focus on NC youth?

North Carolina high school students scored lower than the national average on the Jump$tart Coalition’s biannual financial literacy survey. Less than 5 percent of students surveyed scored a “C” or better and just 25 percent received a passing grade (60 percent or higher).

The North Carolina dropout rate is higher than the national average, although it has declined in the last year.

Why focus on NC youth?Why focus on NC youth?

The NC Department of Public Instruction requires 5 hours of personal finance instruction before graduation. Typically this occurs in the 10th grade, in a Civics/Economics course. Due to budget cuts, this mandate is not funded. The knowledge and comprehension of the

material tested in the end of grade level tests. Material that is not tested often is overlooked as teachers struggle to teach what will be on the tests.

CRA Credit PossibilitiesCRA Credit Possibilities

School Savings ProgramSchool Savings Program – Expand the – Expand the benefits of a minor savings account and benefits of a minor savings account and offer a savings program in a local school.offer a savings program in a local school.

Camp ChallengeCamp Challenge – Invest in a summer – Invest in a summer camp program for underserved middle camp program for underserved middle school youth.school youth.

Moneypalooza at MarblesMoneypalooza at Marbles – Invest in a – Invest in a new financial education project at new financial education project at Marbles Kids Museum in Raleigh. Marbles Kids Museum in Raleigh.

School Savings ProgramsSchool Savings Programs

Establish a relationship with a local Establish a relationship with a local school. If you’re just getting started, school. If you’re just getting started, work with an elementary school. work with an elementary school.

Clearly define what your program Clearly define what your program will include – Will it be a deposit will include – Will it be a deposit collection program? Or a student-collection program? Or a student-run mini bank?run mini bank?

North Carolina Bankers Association © 2009

School Savings ProgramsSchool Savings Programs

Deposit Collection programDeposit Collection program – Bank – Bank employees make regular visits to employees make regular visits to school to pick up deposits, which they school to pick up deposits, which they process at the branch.process at the branch. Less maintenance and banker staff-time Less maintenance and banker staff-time

required.required. Good way to establish relationship with Good way to establish relationship with

school. school. Brand your project by giving students Brand your project by giving students

piggy banks with your bank logo. piggy banks with your bank logo. North Carolina Bankers Association © 2009

School Savings ProgramsSchool Savings Programs In-School BankIn-School Bank – a student-run “mini-bank” – a student-run “mini-bank”

Elementary and Middle School levelElementary and Middle School level Older students work as tellers, branch managers, Older students work as tellers, branch managers,

marketing specialists;marketing specialists; Usually deposit-only, occasionally small withdrawals;Usually deposit-only, occasionally small withdrawals; Branch is open on a regular basis – usually once a Branch is open on a regular basis – usually once a

week, during lunch or in the morning before school. week, during lunch or in the morning before school. Middle and High School levelMiddle and High School level

Can be a full-service branch, offering small dollar loans, Can be a full-service branch, offering small dollar loans, withdrawals, etc. withdrawals, etc.

Offer companion curriculum to create a “for-credit” Offer companion curriculum to create a “for-credit” class.class.

North Carolina Bankers Association © 2009

Financial EducationFinancial Education

Provide financial education to Provide financial education to students in your community. students in your community. Suggest a field trip to the bank. Give young Suggest a field trip to the bank. Give young

students a tour of the bank and a basic students a tour of the bank and a basic savings lesson. savings lesson.

Visit a school and teach a lesson. A variety of Visit a school and teach a lesson. A variety of low-cost and free curricula are available. low-cost and free curricula are available.

Host a Kids’ Night at the Bank with staff Host a Kids’ Night at the Bank with staff available to open minor savings accounts, available to open minor savings accounts, 529 plans, 529 plans, IRAs and other savings accounts. Include IRAs and other savings accounts. Include door prizes, refreshments and balloons. door prizes, refreshments and balloons.

North Carolina Bankers Association © 2009

Camp ChallengeCamp Challenge

For the past 16 years, NCBA has For the past 16 years, NCBA has operated a summer camp focused on operated a summer camp focused on financial literacy, well before it was a financial literacy, well before it was a hot topic.hot topic.

Nearly 8,000 students have benefited Nearly 8,000 students have benefited from from Camp ChallengeCamp Challenge, learning smart , learning smart money habits and gaining the skills money habits and gaining the skills necessary to become leaders. necessary to become leaders.

Campers attend on scholarships, which Campers attend on scholarships, which are funded by your North Carolina are funded by your North Carolina banks and other non-profits.banks and other non-profits.

Campers climb to the top of Hanging Rock in Stokes County as a demonstration of how far they have come and what they have learned while at Camp.

Camp ChallengeCamp Challenge

We need your help to make We need your help to make Camp Camp Challenge Challenge 20102010 the best summer yet! the best summer yet! Volunteer as a personal finance instructor or Volunteer as a personal finance instructor or

guest speakers during the summer months. guest speakers during the summer months. Novices welcome – we host a train-the-trainer Novices welcome – we host a train-the-trainer session!session!

If you are interested in sponsoring a camper, If you are interested in sponsoring a camper, we’ll do our best to make sure a child from we’ll do our best to make sure a child from your area is the recipient of the scholarship. your area is the recipient of the scholarship.

Spread the word! Tell a community group or Spread the word! Tell a community group or your school system about your school system about Camp ChallengeCamp Challenge. .

MoneypaloozaMoneypalooza at Marbles at Marbles

The NCBA helped to fund a permanent The NCBA helped to fund a permanent financial education exhibit called financial education exhibit called MoneypaloozaMoneypalooza at Marbles Kids Museum at Marbles Kids Museum in Raleigh.in Raleigh.

Marbles is a hands-on, minds-on museum Marbles is a hands-on, minds-on museum that inspires imagination, discovery and that inspires imagination, discovery and learning through extraordinary learning through extraordinary adventures in play. adventures in play.

Moneypalooza aims to promote healthy Moneypalooza aims to promote healthy money habits through play. The exhibit money habits through play. The exhibit will open in January 2010. will open in January 2010.

Does your financial institution want to be a part of Moneypalooza?

There are many opportunities for sponsor investment ranging from $1,000 - $15,000.

Please contact Erin Scheithe (NCBA) at 919-781-7979 or Arinn Widmayer (Marbles Kids Museum) at 919-847-1074 for more information.

Erin ScheitheErin ScheitheCommunity Outreach DirectorCommunity Outreach Director

NC Bankers AssociationNC Bankers AssociationPhone: 800/662-7044Phone: 800/662-7044

Email: Email: erin@ncbankers.org

North Carolina Bankers Association © 2009