NOTES: Money Matters

These are my notes from Money Matters: Teaching Financial Literacy Skills, the GPLS Wednesday Webinar by Trudi Green and Teri Hanna (archived here / Powerpoint slides here).

(Thanks to Buffy Hamilton, whose tweets I shamelessly used to bolster my own notes.)

  • Money Matters: Because Your Future Matters
  • 33% of Americans carry credit card balances up to $10,000
  • Negative information stays on your credit for 7 years
  • FINRA Investor Education Foundation – FINRA Report: 1500 surveyed, half had trouble with regular expenses, no rainy day funds, non-bank borrowing
  • 52% – own financial knowledge is good, but many incur late fees and other expenses, fail to comparison shop, and cannot calculate interest.
  • Financial literacy is one of the competencies in the IMLS 21st Century Museum and Library Skills report.  IMLS report themes: financial, environmental and health literacy & global awareness
  • 54% of Americans pay their credit card balance in full each month
  • Georgia is 3rd in the nation in bankruptcies, 12% “Unbanked” (45% of those without a high school diploma)
  • Smart Investing @ Your Library – partnership w/ FINRA & ALA/RUSA, > $3m in grants, invitation only
  • OneAthens / Partners for a Prosperous Athens – community-wide forum, education key goal, better-educated workforce: more jobs & better-paid workers
  • Money Matters classes: community programs, 6 hours of basic financial instruction, “graduates” qualify for GED scholarships
  • Benefits of GED / diploma: increase earning power, more job opportunities, jobs with better benefits, financial security
  • Grant idea: partner with Athens-Clarke Literacy Council, library offers financial literacy classes, ACLC offers GED scholarships
  • Putting the grant together: Take Money Matters class; learn about finance, credit, banking, etc.; complete 6 classes; complete GED exam; get a job; earn good wages; manage money better because of Money Matters classes
  • Grant covers: salary, library materials, printing, publicity, LearningExpress
  • All consumers are legally entitles to receive a free copy of their credit reports annually from each of the 3 credit-reporting bureaus
  • In general, millionaires have money because they have made good, sound financial decisions, not because they inherited it.
  • Credit Card Act of 2009: new requirements phased in starting Aug 2009-2010.  Consumer protections: limited interest rate increases, right to opt out, limits on over-the-limit fee, subprime credit cards, protection of young consumers (limited credit to young adults, under 21), enhanced consumer disclosures (min. payments).
  • White House Fact Sheet: Reforms to Protect American Credit Card Holders
  • Credit card companies are required to disclose the consequences of only making the minimum payment each month.
  • Detailed disclosure on the new law
  • Comprehensive guide to the Credit CARD Act.
  • Morningstar: What New Credit Card Rules Mean for You.
  • What the new law means to you: higher upfront costs (annual fees), fewer “reward” cards, shorter grace periods, account closures & credit limit reductions (no advance notice required), no cap on interest rates, less accessibility for low income & bad credit
  • Credit Score Factors: 35% On-time payment, 30% capacity use, 15% length credit history, 10% types credit used, 10% past credit applications
  • FICO score – there are other scores available, but FICO is the gold standard
  • Course development: FINRA modules, Money Matters Advisory Board, GED pilot program
  • Grant allowed the library to put together a stronger financial literacy collection: the basics, retirement, mortgages, college, sophisticated investors, ValueLine & LearningExpress testing database
  • ACCL | Money Matters: Because Your Future Matters
  • Money Matters series: 6 one hour classes, GED scholarship opportunity, offered at GED program locations
  • Money Matters classes: managing your credit score, investing basics, investing II, Money Matters for Engaged & Newly Married Couples
  • Sustainability: establish the ongoing need for the program, evaluate to ensure needs are being met, determine cost to continue
  • Replicability: do your homework, start small, look for partners (credit union, local colleges), other grants
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