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Wi$eUpFinancial Planning for Generations X and Y
Success Metrics
Nancy L. Granovsky, CFP®
Professor & Extension Family Economics SpecialistTexas AgriLife Extension Service, The Texas A&M
System
ASEC Fall Partners MeetingWashington, DC
October 22, 2008
What is Wi$eUp?
• A financial education program for Gen X and Y women developed by the U.S. Department of Labor – Women’s Bureau.
• Texas AgriLife Extension of The Texas A&M System developed the curriculum, maintains the website and provides national program management.
Why Wi$eUp?
• Gen X/Y women (especially those 22-35) need information to guide their financial planning.
• Gen X/Y women want to learn about financial planning in different ways.
» Internet-based distance learning
• Community-based educators need tools and curricula for outreach education.
Wi$eUp Scope and Content
• Approach emphasizes action steps individuals can take.
• Content is organized in learning modules around 8 basic content areas.
• Gen eXperiences are incorporated.
Wi$eUp’s 8 Modules
• Money for Life• Money Math• Money Basics• Credit in a Money World (Chapter 4)• Savings Basics (Chapter 5)• Insurance and Risk Management• Becoming an Investor (Chapter 7)• Achieving Financial Security
Gen eXperiences
All I could think about was landing my first job. I wouldn’t have to worry about money! I could finally buy what I wanted, when I wanted, so I did. I filled my apartment with all the things I had been dreaming of, including a to-die-for new wardrobe.
I wasn’t prepared when my apartment building burned down one day when I was at work, and I lost everything. Did I have renter’s insurance? No.....I didn’t think it could happen in a million years!
Now I tell everybody, “Don’t just think about today. Think about tomorrow.”
Wi$eUp’s Implementation Options
• Handbook alone for self-study.• Workshop Series with handbook.
• Instructor’s CD-ROM and PPTs
• Web Course with or without handbook. • www.wiseupwomen.org
• Combination of workshops + Web course
• Over 11,000 across the U.S. have “Wi$edUp.”
Other Program Components
• Over 110 volunteer financial experts respond to participant questions; Q and A’s are posted to website.
• Bi-monthly national teleconferences feature noted speakers and MP3’s and transcripts are posted to website.
National Partners and Others
• American Institute of Certified Public Accountants (AICPA)
• Bi-monthly conference call speakers• Mentors
• Financial Planning Association (FPA)• Financial Planning Perspectives posted• Mentors
• Service providers/replicators
DoL-WB Metrics
• Strategic Goal: Improve the Status of Working Women
• Outcome Goal: Better Earnings• Performance Goal: Increase
Women’s Financial Security• Output Measures: number of
participants, with annual increases.
Reduce Debt
• Intermediate Measures: % of participants who say they will reduce debt.
• Outcome Measures: % of participants who reduce debt.
Increase Savings/Investments
• Intermediate Measures: % of participants who say they will increase their savings/investments.
• Outcome Measures: % of participants who do increase their savings/investments.
Wi$eUp Assessments
• Pre-assessment before each unit– Captures current status/practices
• Post-assessment after each unit– Focuses on intentions/”plan to do”– Individuals can track their own
intentions via “My Financial Roadmap” online• You won’t do what you can’t remember!
Assessments, continued
• 3-month post-assessment, with two follow-ups to non-respondents– Challenges
• Low rate of response: 10-12%• High cost• How different are respondents from non-
respondents?
– Solutions?• Alternative approaches to evaluation
What We Are Learning
Pre-Assessment ResultsCredit
FY08
Total Non-Mortgage Debt Reported (n=1240)
“debt-free” 21.3%$1.00 - $1,000 10.2%$1,001 - $5,000 14.9% $5,000 - $10,000 10.0%$10,001 - $20,000 14.4% $20,001-$50,000 17.1%Over $50,000 6.9%No response 5.2%
Number of Credit Cards (n=1240)
None 30.1%One 14.8%Two 18.4%Three 10.5%Four 6.9%5+ 19.0%
When I pay my credit card bills, I generally:
Make the minimum payment 20.5%Make more than min payment 34.2%Pay my credit balances in full 22.2%No response 23.1%
(n=1240)
I know my debt-to-income ratio
YES 21.2%NO 70.6%No response 8.1%
(n=1240)
Recommended debt-to-income ratio is:
5-10 percent 19.5%10-15 19.3%15-20 18.5% correct response20-25 8.0%25-35 6.5%Over 35% 5.3%No response 22.8%
What We Are Learning
Post-Assessment ResultsCredit
FY08
Planning to…
Reduce over-all debt 64%Calculate debt-to-income ratio 67.0%Get copy of credit report 72.4%Start tracking credit spending 54.2%Protect identity more closely
69.9%
(n=1179)
Planning to…
Develop plan to reduce debt 69.6%
Pay most credit balancesin full each month 32.1%
(n=1179)
Knowledge about debt-to-income ratio
CORRECT ANSWERS ON
Pre-assessment 18.5% Post-assessment 23.6%
What We Are Learning
3-Month Post-Assessment Results
Credit
FY08
Credit Actions Taken (n=110)
Calculated debt-to-income ratio.
49%
Reduced debt since taking Wi$eUp.
46%
Now making as large a payment as possible on credit card bills.
55%
Now tracking credit card purchases.
50%
Credit Actions Taken (n=110)
Reduced dollar amount of my debt.
37%
Making minimum payment on most of my credit cards.
14%
Making more than minimum payment on most of my cards.
50%
Paying off credit card balances in full every month.
34%
Credit Actions Taken (n=110)
Paying off debts with highest interest rate first.
37%
Consolidated debts at lower interest rate.
14%
Reduced my debt-to-income ratio.
12%
What We Are Learning
3-Month Post-Assessment Results
Savings/Investments
FY08
Savings – Actions Taken(n=110)
I now “pay myself first” 52%
I am saving at least 10% of my income
40%
I have started an emergency fund (3-6 mo living expenses) and have made 2 or more deposits to it
40%
Savings – Actions Taken(n=110)
I am now saving money to pay cash for one or more “big ticket” items instead of charging them to my credit card.
55%
I have started to save for a down payment on a house.
17%
I have started to save for a college education for me or someone in my family.
29%
Savings – Actions Taken(n=110)
I have increased the amount of money that I am saving for retirement.
31%
I increased my savings or investments to meet my other financial goals.
34%
Investing – Actions Taken(n=110)
I have estimated how much I should be saving/investing for retirement.
35%
I have started to participate in a retirement plan at work.
33%
I have increased my retirement plan contributions at work.
18%
I have changed my investment mix as a result of what I have learned.
25%
Age
28 (25.45%) — 18–2413 (11.82%) — 25–2913 (11.82%) — 30–3412 (10.91%) — 35–39 7 (6.36%) — 40–4414 (12.73%) — 45–4915 (13.64%) — 50+ 8 (7.27%) — no response
Gender
91 (82.73%) — Female18 (16.36%) — Male1 (0.91%) — No response
Reaching Diverse Audiences
(n=110)Hispanic or Latino (all races) 22%Black or African-American 28%White or Anglo 41%American Indian/Alaska Native/Native Hawaiian/Pacific Islander 6%Asian <2%Other <2%No Response <2%
Educational Attainment(n=110)
19 (17.27%) — Some high school or less8 (7.27%) — HS graduate or GED1 (0.91%) — Vocational or technical
degree21 (19.09%) — Some college15 (13.64%) — Associate's degree27 (24.55%) — Bachelor's degree16 (14.55%) — Post-graduate degree(s)3 (2.73%) — No response
Satisfaction with Financial Progress since Wi$eUp
19 (17.27%) — Extremely satisfied42 (38.18%) — Very satisfied38 (34.55%) — Somewhat satisfied 9 (8.18%) — Not satisfied at all 2 (1.82%) — No response
(n=110)
How helpful was the Wi$eUp experience to you,
personally?
23 (20.91%) — Extremely helpful47 (42.73%) — Very helpful33 (30%) — Somewhat helpful 5 (4.55%) — Not helpful at all 2 (1.82%) — No response
(n=110)
What they wrote…
• I have started to pay more attention to my bill statements and understanding my bills.
• I am satisfied with my financial progress throughout using Wi$eUp because it has help me to manage my money and save it for important uses.
What they wrote…
• I could be doing better, but I have not taken any action.
• I want to stay with your program & re-take the course.
• The most important benefit of the program is helping you save money a quicker faster way.
What they wrote…
• The courses made me actually put numbers down for goals. That was very helpful.
• The most important benefit of being involved in the WiseUp program is that it helps you better to situate all of your financial needs in a better and more organized way. It also helps you to save your money in a manageable way and for beneficial reasons.
Benefits mentioned..
• Income to debt ratio information.• Actually seeing my "debt to
income ratio". • The benefits of starting early!• I learned a good amount of
information about financial responsibilities that I did not know.
Insights mentioned..
• All women should participate, regardless of age.
• It'll help women be aware of financial options and ways to help themselves.
• It's a course everyone should take.
Would you recommend Wi$eUp to others?
104 (94.55%) — Yes 4 (3.64%) — No 2 (1.81%) — No response
(n=110)
Thank You…..• Nancy Granovsky, CFP®
• [email protected]• 2251 TAMU Texas
A&M University College Station, TX 77843-2251
• Websites: http://fcs.tamu.edu http://wiseupwomen.org
• TEL: 979-845-1869
