Innovation in Financial Literacy Education A look at Junior Achievement as a solution to economic self sufficiency 2013 Pathways to Prosperity Conference October 16-17 Sheraton Imperial Hotel Durham, NC
Sarah Cherne President & CEO Junior Achievement of Central Carolinas
Presentation Goals Introduce Junior Achievement Junior Achievement as part of the solution to Financial Literacy Innovation at the National Level JA Central North Carolina Financial Literacy Council of NC Purpose and background Current research and priority Next Steps
Junior Achievement Mission To inspire and prepare young people to succeed in a global economy
Junior Achievement USA Long-Term Aspiration Junior Achievement will be positioned in the United States as the thought leader and the deliverer of relevant, compelling and innovative educational experiences which build young peoples capacity, spur economic development, and contribute to America s global economic competitiveness.
JA Education Blueprint Summary: Meeting the Needs of 21st Century Learners
JA Education Blueprint Overview Vision is to implement a relevant, responsive, an innovative portfolio of learning experiences that allows students to think critically and communicate, collaborate and be creative problem solvers. Online delivery will include speaker and networking opportunities, resources, certification trainings, simulations, blogs, podcasts, ebooks, learning modules, surveys, case studies, real-life tools (Intuit, ebay), games, etc.- 24/7 On-site Delivery will offer opportunities will provide traditional curriculum delivery activities, but in enhanced way to include learning modules, opportunity for discussion and exploration surrounding relevant topics Better meets the needs of students, volunteers, educators and funders and helps make JA offices more efficient and effective and ultimately create an entrepreneurial workforce that is inspired and prepared.
Junior Achievement Pillars FINANCIAL LITERACY WORKFORCE READINESS ENTREPRE- NEURSHIP
Organizational Direction Societal Issues Youth Development Economic Development Education Development Financial Literacy Entrepreneurship Work Readiness
The Relevancy of JA Programs
Consequences of Financial Illiteracy Retirement Shortage Government Accountability Office reports that 1/3 of workers will have nothing saved in a 401(k) style account by 2050. Lack of Savings and Debt - WSJ reports that regardless of income, 70% of Americans live pay-check to pay-check. Bankruptcy and Foreclosure - Realty Trac reports that in 2009 one in 45 households were in default. Increase in Expenses - Census Bureau reports that approximately 60 million American adults have little or no access to banking services. Workplace Issues - USA Today reports lack of financial education is the most critical unaddressed workplace issue. Health & Relationships - Lack of financial literacy impacts ones health, employment and relationships.
The lack of financial literacy among Americans is the key contributing factor to the economic crisis. - President s Advisory Council on Financial Capability 36% of Americans don t know the interest rate on their credit card 38% of homeowners spend more than 30% of income on mortgage 42% of American parents do not discuss basic money needs with their children 50% of college students accumulate more than $5000 in credit card debt while in school 67% of students drop out of high school or graduate without the skills they need to succeed in college or work 65% of college students misunderstand or are surprised by aspects of their student loans 75% of American are only guessing what they need for retirement
* JA USA white paper on Solutions to the Workforce Skills Gap The Growing Skills Gap More than half (53%) of U.S. companies report a major challenge in recruiting non-managerial employees with the skills and knowledge needed 79% of organizations polled by ATSD report a skills gap within their organization (American Society of Training & Development) 40% of employers report that they struggle to fill entrylevel jobs because the candidates have inadequate skills By the year 2020, it is estimated that there will be a shortage of 1.5 million college graduates in the workforce
Why Entrepreneurship Matters Entrepreneurship Creates Jobs - On average, new firms in the US create three million jobs per year - America s 25.8 Million small businesses employ more than 50% of the private workforce Entrepreneurship Creates Net Wealth for Society - America s 25.8 Million small businesses generate more than half of the nation s GDP - Companies led by entrepreneurs allocate more than twice the percentage of their profits to charity than many of America s largest companies Entrepreneurship Motivates Young People - 54% of the nation s Millenials want to start a business or already have started one - When young people participate in entrepreneurship programs, interest in attending college increased 32% & occupational aspirations increased 44%
How JA is Helping Educate students in a relatable way Hands-on programs are proven most effective Provide students with skills to help them achieve lifestyle goals, help their families and provide for their livelihood Focus students on the reasons why these skills will make a difference Engage more than just educators to teach The business community may be the best to teach as they have practical application and skill in this arena Encourage Financial Literacy as a priority Junior Achievement helps the student connect the dots and experience hands-on why education is critical to success in the real world and that the mastery of essential skills such as math, reading and finance are critical to his or her future
JA Elementary Class Programs Elementary Programs The Junior Achievement Elementary School Programs Include six sequential themes for k-5 grade students. Students learn the basic concepts of business and economics and how education is relevant to the workplace. Five required volunteer led lessons. Grade Kindergarten - First Grade - Second Grade - Third Grade - Fourth Grade - Fifth Grade - Program JA Ourselves JA Our Families JA Our Communities JA Our City (pictured right) JA Our Region JA Our Nation
JA Middle Grade Class Programs Middle Grade Programs The Junior Achievement middle grades programs build on concepts the students learned in Junior Achievement's elementary school program and help teens make difficult decisions about how to best prepare for their educational and professional future. The programs supplement standard social studies curricula and develop communication skills that are essential to success in the business world. Six required volunteer-led lessons. Grade Program 6 th 8 th JA Global Marketplace 6 th 8 th JA Economics for Success (pictured right) 6 th 8 th JA It s My Future
JA High School Class Programs High School Programs As high school students begin to position themselves for their future, there are many unanswered questions about what lies ahead. Junior Achievement's high school programs help students make informed, intelligent decisions about their future, and fosters skills that will be highly useful in the business world. With a range of programs, Junior Achievement teaches about concepts relating to entrepreneurship, financial literacy, and work readiness. The volunteers bring real-life business experience and guidance into the classroom at a time that represents an essential crossroads for young people. Grade Program 9 th 12 th JA Be Entrepreneurial 9 th 12 th JA Personal Finance (pictured right) 9 th 12 th JA Success Skills 9 th 12 th JA Exploring Economics 9 th 12 th JA Job Shadows
JA BIZTOWN-CHARLOTTE
IMPACT REPORT 2012-2013
JA BizTown Impact Results After completing pre and post-test evaluations, students reflected an average knowledge gain of 21% Students reflected an 82% knowledge gain on questions specific to financial decisions, budgeting and opportunity cost 92% of students stated that the things they learned in JA will be important later in the future 90% of students indicated that JA taught them how to manage their money 84% of students reported that the things they learned in JA will help them get a good job 83% of students stated that JA helped connect what they learned in the classroom to real-life 79% of students reported that JA made them realize the importance of staying in school
JA Classroom Programs Impact Results After completing pre and post-test evaluations, students reflected an average knowledge gain of 23%: 11% gain for Our City; 47% gain for Our Region; 25% gain for Our Nation 4th grade students reflected a 98% knowledge gain on questions related to understanding revenue and expenses 5th grade students reflected a 60% knowledge gain on questions related to understanding entrepreneurship and how it works On average 22% more 5th grade students expressed an interest in starting their own business after participating in JA 90% of 5th grade students reported that the things they learned in JA will help them get a good job 87% of students stated that the things they learned in JA will be important later in the future 84% of students indicated that JA taught them how to manage their money 78% of 5th grade students reported that JA made them realize the importance of staying in school
North Carolina Financial Literacy Council
COUNCIL PURPOSE Established on July 10, 2009 the purpose of the Financial Literacy Council is as follows: The council shall meet quarterly & (1)monitor and assist the Department of Public Instruction in the coordination of statewide delivery of financial education within the public school system, (2)shall identify programs designed to increase financial literacy of North Carolinians outside the public schools systems, and (3) shall work to expand access to financial education resources and programs in communities across North Carolina.
Recent Research Champlain College-2013 Report Card- North Carolina B 4 Keys to HS Financial Literacy Consumer Financial Protection Bureau (CFPB)-2013 Problem Young people are ill equipped to make financial decisions Young people are entering a marketplace for financial services that is complex Strategies Teach financial concepts early as part of curriculum at all grades Make financial literacy HS graduation requirement Include financial management questions on standardized tests Innovative and hands-on learning should be provided to students Have ample opportunities and incentives for teachers Parents and guardians should be involved at home and provided tools Additional CFPB work Establish various offices to target specific populations Examine its progress meeting Dodd-Frank Act s mandate to improve financial literacy
North Carolina Efforts North Carolina State Treasurer Top priority Focus is awareness and learning Created Website North Carolina Financial Literacy Guide Student Center Advanced Money Management-Focus on college students NC Council on Economic Education Partnered with state colleges and universities Offers training and work shops for students and educators Academic competitions focused on financial literacy Jump $tart National coalition-local Coalition has 36 members Works to provide educators with resources and raise awareness
Next Steps of the Council Three Sub Committees focused on increasing financial literacy at different stages of life: Grades k-12- Grade 11-College Adult Each Subcommittee will conduct a SWOT analysis including all new research as well as encompassing the work of the prior council in each of the three areas Next steps are to report to the committee at the next meeting: November 21, 2013.
THANK YOU & QUESTIONS?