Incorporating Financial Literacy Education into Your Program

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Incorporating Financial Literacy Education into
Your Program
Individual Development Accounts

• Presenters Adrianna Kezar and Hannah Yang
• Center for Higher Education Policy Analysis
• Rossier School of Education
• University of Southern California
• http//www.usc.edu/dept/chepa/accounts/

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Opportunity

• An existing tool to help the lowest of the
  low-income students gain access and be retained
  in college
• Individual Development Accounts or IDAs.

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What is an IDA?

• An IDA is a matched savings account
• Example
• For every 1 a student saves, receive 2 in
  matched funds
• Save up to 2,000, earn up to 4,000 in matched
  funds
• Savings and match can help pay for college!

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and more...

• IDA programs also include case management,
  asset-specific training, and financial education.

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How does an Education IDA work?

• Open an IDA account with a community agency
• Save in a bank account
• Complete a financial education course
• Develop financial skills
• Learn to establish build credit
• Create an education plan
• Spend funds at an educational institution

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Education IDA uses

• No
• Room Board
• Student loans
• Electronics
• Car/transportation
• Parking

Yes Tuition Fees Books Supplies Equipment
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Who qualifies?
Persons inFamily or Household Ex AFI limits 200 of Poverty Guidelines (2007)
1 20,420
2 27,380
3 34,340
4 41,300
5 48,260
6 55,220
7 62,180
8 69,140
For each additional person, add 6,960
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Study Findings

• The major finding from this study is that
  education IDAs have the most potential, not as a
  stand alone tool, but offered bundled with other
  services. Especially those working with
  low-income students.
• For example, TRIO and GEAR UP programs!
• The IDA replicates the kind of work they are
  already conducting and they do not have to
  perform any tasks beyond their current
  responsibilities.

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How do you start offering IDAs?

• Partner with Community agency
• Directory of IDA programs in your state
  http//www.cfed.org/focus.m?parentid31siteid374
  id599
• Assets for Independence (AFI) project locator
  http//www.acf.hhs.gov/assetbuilding/
• Example of CASA of Oregon

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How do you start offering IDAs?

• Partner with a education nonprofit you are
  related to
• Potential example
• Approach the leaders of your institution to offer
  IDAs
• Potential example
• Refer them to the AFI website for information on
  how to apply
• http//www.acf.hhs.gov/programs/ocs/afi/applying.h
  tml

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Get Involved Re-infuse financial education into
your program

• Directors of TRIO programs nationwide were
  emailed a survey
• 51 of TRIO programs offer financial education
  (caveat)
• Why offer financial education?

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Survey Results

• Most financial education offered is optional
• Most common format in-person group sessions
• 78 of financial education were taught by program
  staff who usually also created the
  curriculum/materials
• Network with your colleagues, they may have a
  curriculum you can use!
• If they didnt teach it themselves other staff on
  their campus taught the financial education
• Some programs worked with organizations outside
  of their intuitions to offer financial education

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Financial Education Resources

• See handout
• AFI has a tool on how to choose a curriculum,
  although it is for IDA practitioners some of the
  concepts are helpful
• http//www.acf.hhs.gov/programs/ocs/afi/finlit/Cho
  osingaCurriculum.htm
• See Curriculum example
• Lets review together

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Any Questions?

• Also visit our website for more information on
  IDAs and financial education
• http//www.usc.edu/dept/chepa/accounts/
• Thank you for joining this session!