lois a. vitt, founding director
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FINANCIAL LITERACY EDUCATION: Building Support for Sustainable Programs. Lois A. Vitt, Founding Director. Second Annual Financial Literacy Leadership Conference October 5, 2009, Washington, DC. What ISFS Does…. - PowerPoint PPT PresentationTRANSCRIPT
Lois A. Vitt, Founding Director
FINANCIAL LITERACY EDUCATION:Building Support for Sustainable Programs
Second Annual Financial Literacy Leadership Conference October 5, 2009, Washington, DC
What ISFS Does…
• Evaluates financial and investor education in all societal sectors: youth, adult, corporate, military, community, faith organizations.
• Benchmarks programs to identify and help educators replicate best practices.
• Assesses whether the education program works for all parties involved.
• Program participants
• Educators
• Funding organizations
• Policymakers
Seven Components of Successful Financial Education Programs
1. Unambiguous Mission and Goals*
2. Targeted Outreach
3. Adequate Resources
4. Relevant Curriculum*
5. Commitment to Evaluation*
6. Program Accessibility
7. Dynamic Partnering
*Unambiguous Mission and Goals
1. Debt elimination, money management, saving
2. Assessing risk tolerance, asset building, investing
3. Consumer/investor protection
4. Specific actions/behaviors:• Spending vs. saving decisions• Homeownership, financing• Increase 401(k) participation• Retirement planning
High Touch - High Tech Curriculum is Most Effective
Successful content goes beyond financial
factors:
• Employ a familiar frame of reference
• Hands-on, realistic, problem solving
• Teach how to access resources
• Encourage shared feelings, beliefs, attitudes
• Discuss contexts
Source: Research grant funded by the National Endowment for Financial Education (NEFE) 2007-2008.
Feelings in Poor Financial Circumstances
• Trapped, caged
• Depressed, lacking motivation
• Angry and frustrated
• Afraid (to invest, to seek help)
• Hopeless (things will never change)
• Out of control
Source: MARMC Study, May 2007
Feelings when in financial control
• Stress-free
• More confident
• Proud, happy
• Blessed with options
• Enjoy better personal relationships
Source: MARMC Study, May 2007
*Commitment to Evaluation
1. Requires advance planning.
2. Reflects the goals of all parties:
• Program participants, students• Educators • Sponsors and funding organizations• Policymakers
3. Is measurable.
Program Measures…
1. Performance Measures: were participants satisfied with the program?
2. Effectiveness Measures: did the education make a difference in the lives of participants?
3. Organizational Measures: have the sponsors and/or funding organizations achieved their objectives?
4. Policy Measures: does the education satisfy the goals of policymakers?
1. Performance Measures
• Program growth.
• Satisfaction measures: Topics covered Quality of instruction Learning activities Time and convenience Length of instruction Facilities
Performance Measures…cont’d.
Gathered from participants on post-educational evaluation forms.
Are additive: they can be accumulated from course to course.
Can be compared.
2. Effectiveness Measures
• Cognitive changes: awareness, knowledge, attitudes, and values.
• Behavioral changes we want are actions: spend less, save more, eliminate debt, invest in 401(k), make risk adjustments in portfolio mix.
• Objective changes are proof of behavioral changes: increases and decreases in accounts, portfolio mix, net worth.
Effectiveness Measures…cont’d.
• Changes in awareness, knowledge, and attitudes can be ascertained from pre- and post-education forms.
• Behavioral changes require follow up to learn whether intentions were turned into action: debt elimination, saving, investing, changes in portfolio?
• Objective increases and decreases in financial accounts, portfolio mix, net worth. How will data be gathered?
3. Organization’s Evaluation Goals
• Did the program fulfill the goals of the education sponsoring organization?
• Have the objectives of the funding organization (if different) been met as well?
• What about policy?
Evaluation Methods
• On-going, not one-time effort
• Subjective, objective measures:• Logic Modeling or Framework: Input—
Output—Impact.• “Chaining” short-term, intermediate-and
long-term outcomes.• Trust your data sources and intuition.• Have your work reviewed by others.• Find resources to help you plan your
evaluation.
4. Policy Measures
• Macro level economic indicators?• Wealth loss, home loss, job loss?• Corporate sensitivity or legislation?• Increasing retirement readiness?• Debt/saving rates of populations?• Well-being indicators?• Research: what works, what doesn’t?
•“I increased my savings $250 a month.”
•“Yes, I changed… I invest in my company 401(k) Plan now.”
•“Now that I see where I need to be, then I can change my investment strategy and add to plan contribution each pay period.”
Does Financial Education Work?