building a better financial future - constant...

SESSION#1–CSIntroductionandMoneyManagementBasics 3/8/17

1

Building a Better Financial FutureCreditSmart® Training for New Instructors

SESSION #1 – CS Introduction and Money Management Basics

®

MARCH 8, 2017Freddie Mac®

CreditSmart®

• Freddie Mac strongly supports the benefit of credit education and building sound financial literacy skills among consumers.

• Well-informed and well-prepared homebuyers are on the best path to enjoying successful and sustainable homeownership.

• As part of this ongoing commitment, Freddie Mac developed CreditSmartEspañol, a multilingual financial education curriculum and consumer outreach initiative designed to help consumers build and maintain better credit, make sound financial decisions, and understand the steps to sustainable homeownership.

2Freddie Mac®


2

Your Producer - Carolina Valderrama• Affordable Lending & Housing Outreach Senior.

• Manages the CreditSmart® Program

• Responsible for training and education of Industry professionals

• Educates borrowers about alternatives to foreclosure

• Works with servicers and housing counseling agencies to support affordable and sustainable homeownership

• Graduate of Nicholls State University with a degree in Mass Communication. Holds a Post graduate degree in Paralegal Studies from The George Washington University and an Accredited Mortgage Professional Designation from the Mortgage Bankers Association.

Freddie Mac® 3

Certificate of Completion Eligibility• Register and attend all sessions under your registration link, not that

of your colleague.

• You must login via your laptop or desktop. GoToWebinar is not able to track your participation if you’re login via your cell phone.

• Must take and pass a 10 question post-webinar test with a score of 80% or higher.

• Respond to chat and poll questions, we encourage your participation.

4Freddie Mac®


3

Your Presenter - Cora R. Fulmore• Manager/Owner of the Mortgage & Credit Center, LLC• Creator of The Counselor’s Corner, Inc. an online training center for housing

professionals, with more than 4,000 members• Co-organizer of the first Florida Housing Counselor Network, statewide• More than 35 years of experience in mortgage & credit counseling and training• National Consultant for many organizations, current faculty member of

NeighborWorks since 1994; provide training in the area of:üCertification for ED’s and Program ManagersüHousing Counseling CertificationüForeclosure PreventionüCredit Counseling

• CreditSmart® trainer since 2001

Freddie Mac® 5

Disclaimer: I’ve made every effort to provide updated information for this presentation. However, today presentation is not a substitute for you staying abreast of industry changes and updates.

GoToWebinar PlatformToll Number: 1-415-655-0052Access Code: 179-339-730Webinar ID: 122-303-059

• A survey will pop up at the end of today’s webinar - please complete

• Your pop-up blocker must be disabled to view and complete the survey

We appreciate your feedback!

Freddie Mac® 6


4

4-Part Series + Bonus Class

ALL CLASSES ARE ON WEDNESDAYSCERTIFICATE ISSUED ONCE YOU HAVE TAKEN AND PASSED 10 QUESTION EXAM AFTER THE FINAL SESSION

*YOU MUST ATTEND ALL 4 SESSIONS* BONUS CLASS IS OPTIONAL

• SESSION #1

• SESSION #2

• SESSION #3

• SESSION #4

• BONUS CLASS

CS Introduction and Money Management Basics2:00 PM - 3:30 PM EDT

Building, Maintaining and Restoring Your Credit2:00 PM - 3:30 PM EDT

Thinking like a lender and Avoiding credit traps 2:00 PM - 3:30 PM EDT

Preparing for Homeownership and Avoiding Foreclosure2:00 PM - 3:30 PM EDT

Super Charging your Credit Counseling Program2:00 PM – 3:30 PM EDT

MARCH 8, 2017

MARCH 15, 2017

MARCH 22, 2017

MARCH 29, 2017

APRIL 5, 2017

7Freddie Mac®

• Adult Learning Techniques• Intro to CreditSmart®

Is there a need for CreditSmart?

• Module 1 -Your Credit andWhy it’s Important

Provides a basic intro to credit and financing terminology

• Module 2 - Managing Your MoneyFocus on “Needs vs. Wants

• Module 3 - Goal SettingHelps you to understand the importance of

Goal Setting

• Review / Homework Assignment

8Freddie Mac®


5

Learning Objective After completing this series, you will be able to:- Defend the needs of CreditSmart® within your community- Design a marketing plan for CreditSmart® outreach- Use CreditSmart® and it’s tools as a viable source for

educating consumers in your market- Design your CreditSmart® presentation around the 4

learning styles

9Freddie Mac®

Why is CreditSmart® Needed?

10


6

Credit Myths• You need a perfect credit score to get credit.• I have to carry a balance on my credit card to improve my score• All credit scores are the same• Closing multiple accounts will help my credit score• Paying off a negative item on my report makes it disappear• When an account is changed off, I no longer owe the debt• Co-signing has no real risks• My income affects my credit score• I’m penalized for checking my credit score

11Freddie Mac®

CFPB December 2016 Consumer Complaints

12Freddie Mac®


7

Score Distribution 2016

13Freddie Mac®

3/6/17 U.S. Population 326,474,013

14,691,330

43,421,044

66,600,699

http://www.scoreinfo.org/overview-of-fico-scores/credit-statistics/

14Freddie Mac®


8

CFPB Credit StudyConsumer Financial Protection Bureau (CFPB) published a report finding that 26 million Americans are “credit invisible.” This figure indicates that one in every 10 adults do not have any credit history with a nationwide consumer reporting agency.

The report also found that Black consumers, Hispanic consumers, and consumers in low-income neighborhoods are more likely to have no credit history.

15Freddie Mac®

Personal Savings Rate - 5.4%

16Freddie Mac®


9

Course Overview

• CreditSmart® is a Financial Literacy Program• Developed taking into consideration the four learning

styles• Pre-packaged presentation with handouts and activities• You will learn how credit impacts the cost of credit

17Freddie Mac®

CreditSmart® Online Training- FREE- Can be used to provide Financial Education- Accepted by most state and local

governments- Modules can completed within 20-30

minutes- The modules divided into four financial

educational tracks to help customize your clients’ training

18Freddie Mac®


10

Module 1: Your Credit & Why It Is ImportantModule 2: Managing Your MoneyModule 3: Goal SettingModule 4: Banking Services, An Important Step Module 5: Establishing & Maintaining CreditModule 6: Understanding Credit ScoringModule 7: Thinking Like a Lender Module 8: Avoiding Credit TrapsModule 9: Restoring Your CreditModule 10: Planning for Your Future Module 11: Becoming a HomeownerModule 12: Preserving Homeownership: Protecting Your Home Investment

19Freddie Mac®

20Freddie Mac®


11

CreditSmart is available in five different languages, including English, Spanish (CreditSmart Español), plus Chinese, Korean, and

Vietnamese (CreditSmart Asian).

21Freddie Mac®

Terms of Use

• Modules can be presented independently• Materials cannot be altered• The groups you train may charge a fee for the cost, however not for

profit• Must adhere to the promotion standards

- Trademark- Must mention Freddie Mac- Marketing material – must be approved

CreditSmart® standards:

22Freddie Mac®


12

CreditSmart®

Group Training

Online w/Certificateor

Online w/o Certificate

23Freddie Mac®

HOW ADULTS LEARN

24Freddie Mac®


13

The Active Training Credo (Silberman, 1998)- What I hear, I forget.

- What I hear and see, I remember a little.

- What I hear, see, and ask questions about or discuss with someone else, I begin to understand.

- What I hear, see, discuss, and do, allows me to acquire knowledge and skill.

- What I teach to another, I master.

Impact of Active Learning

25Freddie Mac®

Cone of Learning

26Freddie Mac®


14

Adult learners want…• To know the why behind learning

• Learning must be applicable to their lives

• Learning must be practical and solve a problem

• Trainers to acknowledge that they “the learner” have experience that help serve as resources to their ongoing learning

• Intrinsic and/or extrinsic motivators

27Freddie Mac®

Knowing your audience is critical!

ADULT LEARNING STYLES28Freddie Mac®


15

Four learning styles:• Kinesthetic: Learn best when they are able to move and do things. Handouts

and group exercises are good.• Tactual: Learn best when they are able to feel through personal relationships.

Group exercises are recommended.• Visual: Learn best when they are able to see, watch, read and view. Power points,

flip charts and visual handouts are great for this type of learner.• Auditory: Learn best when they are able to hear, speak, discuss and think out

loud. This type of person would be good as a group leader to report out on group exercises.

29Freddie Mac®

What type of learning are you?

30Freddie Mac®


16

Icebreaker

31Freddie Mac®

“What Type of Spender Are You?”Impulsive (These individuals buy items without planning their purchase and often buy things they don’t need.

Passive (These individuals don’t like to shop and usually buy items without comparing prices or asking questions.

Esteem (These individuals shop for things that they think will impress others, thus boosting their image and esteem.)

Fanatical Saver(These individuals are so busy looking for bargains that they may not realize all the time and energy that they’ve spent outweighs the bargain itself.)

Avoidance (These individuals shop to avoid/escape dealing with the stresses of daily life.)

Recreational (These individuals shop to kill time.)

32Freddie Mac®


17

“How Did I Learn About Money?”• On Your Own• Media• Family / Parents• Friends• Hard Knocks• Co-workers

33Freddie Mac®

Two Hats

Learner Trainer

50% 50%

34Freddie Mac®


18

Educational Track One

• Module 1 – Your Credit and Why it’s Important• Provides a basic intro to credit and financing terminology

• Module 2 – Managing Your Money• Focus on “Needs vs. Wants

• Module 3 – Goal Setting• Helps you to understand the importance of Goal Setting

Money Management Basics

35Freddie Mac®

36Freddie Mac®


19

37Freddie Mac®

38Freddie Mac®


20

39Freddie Mac®

CreditSmart Online

40Freddie Mac®


21

CreditSmart Online

41Freddie Mac®

CreditSmart Online

42Freddie Mac®


22

CreditSmart Online

43Freddie Mac®

38 44Freddie Mac®


23

45Freddie Mac®

46Freddie Mac®


24

40 47Freddie Mac®

48Freddie Mac®


25

49Freddie Mac®

Judy Jones Needs –vs.– Wants

Judy meets Duane marries and later has a babyJ

Judy 17, off to collegeJ

Judy & Duaneready for retirement J

50Freddie Mac®


26

Needs -vs.- Wants Worksheet

51Freddie Mac®

52Freddie Mac®


27

53Freddie Mac®

54Freddie Mac®


28

55Freddie Mac®

56Freddie Mac®


29

57Freddie Mac®

58Freddie Mac®


30

59Freddie Mac®

60Freddie Mac®


31

61Freddie Mac®

Why are you interested in CreditSmart®?

What are your goals for implementing this program?

62Freddie Mac®


32

Review 1. Identify the 3 learning styles?

1. The Personal Saving rate January 2017 was _____ ?

2. Credit is a _____________.

3. _________ __________is the amount of income before taxes & insurance is deducted.

4. Achieving goals gives one a sense of ____________ & _________________.

5.4%

privilege

Gross Income

confidence accomplishment

Kinesthetic/tactual, visual & auditory

63Freddie Mac®

Resources• Freddie Mac CreditSmart - http://www.freddiemac.com/creditsmart/• CreditSmart Consumer’s Guide –

http://www.freddiemac.com/creditsmart/guide/pdf/CSCW_2_M1_YourCredit&WhyItIsImportant.pdf• FINRA Foundation – http://www.finrafoundation.org• Financial Literacy Funding – https://www.financialeducatorscouncil.org/financial-literacy-funding/• MindTools – https://www.mindtools.com/pages/article/newHTE_90.htm• Google Wallet – https://www.google.com/wallet/• Generation Wealth – http://www.generationwealthy.org/videos/• Command Your Cash – https://usaaef.org/tools-media/publications/financial-planning-and-goal-

setting/rsrc/FinancialPlanning.pdf• Look for the RED Flags – https://usaaef.org/files/resource/q/rsrc/Red_Flag_Credit_Test.pdf• Mint.com – https://www.mint.com

64Freddie Mac®


33

Freddie Mac® 65

Education Techniques• Maintain an informal atmosphere

• Act as a facilitator - not the expert

• Relate the material to real life situations

• Post the AGENDA and refer to it

• Incorporate a variety of training materials and techniques

Freddie Mac® 66


34

Education Techniques• Build on earlier statements

• Encourage sharing & discovery

• Give participants time to evaluate their learning

• Maintain a setting of trust

• Be yourself and have FUN

Freddie Mac® 67

Bright Ideas• Use “show-and-tell” items or props to make examples more real

and relatableWhat “show-and-tell” props did I use?

• Provide tools to assist in applying new knowledgeWhat tools did I use to reinforce points made?

• Test progress and check for understandingWhat did I use to test your understanding?

• Share a story of hope or inspirationWhat story did I share to give hope and/or inspiration?

Freddie Mac® 68


35

Module 1: Your Credit & Why It Is ImportantModule 2: Managing Your MoneyModule 3: Goal SettingModule 4: Banking Services, An Important Step Module 5: Establishing & Maintaining CreditModule 6: Understanding Credit ScoringModule 7: Thinking Like a Lender Module 8: Avoiding Credit TrapsModule 9: Restoring Your CreditModule 10: Planning for Your Future Module 11: Becoming a HomeownerModule 12: Preserving Homeownership: Protecting Your Home Investment

Freddie Mac® 69

Homework Assignment Review 1. Go to http://www.freddiemac.com/creditsmart/consumer_training.html to

check out CreditSmart Online Consumer Program, share with your colleagues

2. Go to http://www.usfinancialcapability.org/downloads/NFCS_2015_Report_Natl_Findings.pdf to review the Financial Capability Study.

3. What agency provides Consumer Education within your state? Is financial education part of their focus?

4. Create an activity that could be used for one of the modules presented today. The activity should engage the audience. The activity can be as simple as a 2 minute presentation.

Freddie Mac® 70


36

Final Business

Freddie Mac® 71

Freddie Mac® 72

DDoonn’’tt FFoorrggeett ttoo

building a better financial future - constant...

Documents