Financial Literacy

Trivia Questions

1. What percent of American households are “unbanked?” 5% 15% 20% 30%

Trivia Questions

2. What percent of American parents talk to their children regularly about personal finance? 72% 62% 52% 32%

Trivia Questions

3. What percent of Americans report they do not use a budget to manage their family’s expenses? 16%36%46%56%

Trivia Questions

• 4. What percent of Americans save less than 5% of their annual household income?80%60%40%20%

Trivia Questions

5. What percentage of Americans admit they spend more than they can afford? 25% 50% 75% 80%

Trivia Questions

6. How many billions did teens spend in 2006?

100 billion 126 billion 179 billion 208 billion

Trivia Questions

7. How many states require students to take a personal finance course to graduate? 7 states 17 states 27 states 37 states

Trivia Questions

8. How many American families filed for personal bankruptcy in 2007?

.5 million (500,000) 1 million 1.5 million 2 million

Trivia Questions

9. What percentage of Americans acknowledge they don’t save enough? 13% 23% 43% 63%

Trivia Questions

• 10. How much does the average household carry in revolving debt?

$5,000-$7,000$10,000 - $12,000$15,000 - $17,000$25,000 - $27,000

Money Talks Video

Trivia Answers

1. What percent of American households are “unbanked?”

Answer: 20%

Trivia Answers

2. What percent of American parents talk to their children regularly about personal finance?

Answer: 32%

Trivia Answers

3. What percent of Americans report they do not use a budget to manage their family’s expenses?

Answer: 36%

Trivia Answers

4. What percent of Americans save less than 5% of their annual household income?

Answer: 40%

Trivia Answers

5. What percentage of Americans admit they spend more than they can afford?

Answer: 25%

Trivia Answers

6. How many billions did teens spend in 2006?

Answer: $179 billion

Trivia Answers

7. How many states require students to take a personal finance course to graduate?

Answer: 7

Trivia Answers

8. How many American families filed for personal bankruptcy in 2007?

Answer: 1.5 million

Trivia Answers

9. What percentage of Americans acknowledge they don’t save enough?

Answer: 63%

Trivia Answers

10. How much does the average householdcarry in revolving debt?

Answer: $10,000 - $12,000

State of Financial Literacy in South Carolina

State of Financial Literacy

Financial literacy:

The ability to effectively evaluate and manage one’s finances in order to make prudent decisions toward reaching life goals and achieve financial well-being.

State of Financial Literacy

Financial literacy:

The ability to effectively evaluate and manage one’s finances in order to make prudent decisions toward reaching life goals and achieve financial well-being.

State of Financial Literacy

• South Carolina Council on Economic Education

• South Carolina Jump$tart Coalition partnered

• 2008 Survey of Personal Financial Literacy

• 16 South Carolina high schools participated

State of Financial Literacy

• The overall results: 79% of the students failed the test

• Only 2.3% of the students scored a C or better

• 6,856 High School Seniors

• Mean Score = 48.3% 

• Numbers to the Left of Answers are Proportion Giving Response

• Asterisk (*) indicates correct answer

State of Financial Literacy

• 52.3 % did not know their credit history could be checked once a year for free

Which of the following statements best describes your right to check your credit history for accuracy?– 47.7 a) Your credit record can be checked once a year for free.*– 5.3 b) You cannot see your credit record.– 13.8 c) All credit records are the property of the U.S.

Government and access is only available to the FBI and Lenders.

– 33.2 d) You can only check your record for free if you are turned down for credit based on a credit report.

State of Financial Literacy

• 63.8 % did not know that retirement income paid by a company is called a pension.

• Retirement income paid by a company is called:– 37.4 a) 401 (k).– 36.2 b) Pension.*– 3.6 c) Rents and profits.– 22.8 d) Social Security.

State of Financial Literacy

• 83.2 % did not know that stocks tend to have the highest growth over periods of time as long as 18 years.

• Sara and Joshua just had a baby. They received money as baby gifts and want to put it away for the baby's education. Which of the following tends to have the highest growth over periods of time as long as 18 years?– 4.7 a) A checking account.– 16.8 b) Stocks.*– 37.3 c) A U.S. Govt. savings bond.– 41.3 d) A savings account.

State of Financial Literacy

• 52.8% believed they would owe nothing if their credit card was reported stolen

• If your credit card is stolen and the thief runs up a total debt of $1,000, but you notify the issuer of the card as soon as you discover it is missing, what is the maximum amount that you can be forced to pay according to Federal law?– 17.3 a) $500– 16.9 b) $1000– 52.8 c) Nothing.– 13.0 d) $50*

State of Financial Literacy

• 63.2% did not know what type of insurance would cover the damage to their car if they caused an accident.

• If you have caused an accident, which type of automobile insurance would cover damage to your own car?– 16.1 a) Comprehensive.– 40.0 b) Liability.– 7.1 c) Term.– 36.8 d) Collision.*

State of Financial Literacyin America

• Two out of three Americans will probably not realize one or more of their major life goals because they have not developed a comprehensive financial plan.

• Now more than ever, the general public needs to learn how to meet their everyday financial needs and successfully plan for their future.

State of Financial Literacy

• Achieving financial literacy is a lifelong process.

• We have the power to change the financial habits of the people in our community.

SCACPA Financial Literacy Task Force

• Allison H. Ford, CPA, CFE, Chair

SCACPA Financial Literacy Task Force

– Adult GED programs

– Presentation to principals and educators at a State Department of Education conference

– Communications directly with Regional Education Centers, school districts and schools

SCACPA Financial Literacy Task Force

– Ad in South Carolina Council on Economic Education’s newsletter, For What it’s Worth

– Resources and curriculum offered to teachers through partnerships with DOE, RECs, SCCEE and Jump$tart

Financial Literacy Outreach

• How will you do your part?

• There are 512+ years of experience combined in this room

• 10 of you have 20+ years experience as a CPA

WIIFY? (What’s In It For You?)

– Voluntarism: You as a CPA and we as an Association and profession have an opportunity to make a huge impact and difference.

– Public confidence in CPAs continues to be very strong: your community will listen and respond to you as a CPA.

– Position yourself and your firm as an expert, authority and resource.

– Not to mention: public relations and marketing opportunities - client leads and referrals.

– Better yet, why NOT???

State of Financial Literacy

How will you do your part?

• Presentations for• Local schools

• Churches or places of worship

• Boys and Girls Clubs

• Non-profit organizations

• Civic and community organizations

• Places of employment and clients’ offices

• Circulate/forward literature, resources and information

Resources for Members

– SCACPA office (803) 791-4181– SCACPA Web site (www.scacpa.org)– AICPA’s 360 Degrees of Financial Literacy

Web site (www.360financialliteracy.org)– Feed the Pig Web site (www.feedthepig.org)– Resource list in your handouts

360 Degrees of Financial Literacy:

www.360financialliteracy.org

Life Crisis Section: Bankruptcy to Disaster Recovery

Feed the Pig.org

State of Financial Literacy

• Let SCACPA know what you are doing in the community to make a difference!

• And what you’d like to do!