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Financial Education Program Online

4 Elements of an Effective Financial Education Program

Young Adult at Computer

Recent studies have shown that young people are growing up without adequate financial education, and banks, credit unions, and employers have been stepping in to fill this gap. But as a corporation or financial institution, how can you be sure that the financial education program you choose is an effective one? Fortunately, the Consumer Financial Protection Bureau (CFPB) has laid out guidelines for what makes an effective financial education program.[1] Here’s what to look for:

  1. Content
    How strong is the content of the program, and what topics does the program cover? Ideally, a financial education program should cover a wide range of topics, including spending, saving, investing, credit, and money management. Also look for programs that speak to different life stages and employ age-appropriate methods and technologies.
  2. Utility
    Is the program easy to use—for both students and administrators? Is it available in other languages? Look for programs that can be accessed by multiple demographics and age groups, and on a range of devices, including computers, phones, and tablets.
  3. Quality
    Explore the quality of the program. How deep is the subject matter? Where are the facts coming from? And is it based on the most recent research in the field?
  4. Efficacy
    Perhaps most importantly, how do you know that the program is effective? A reputable financial education program should be able to demonstrate that students’ knowledge increases after taking the course. Look for programs that not only measure and document student progress, but also can show success after doing so in the past.

There are many financial education programs available in the marketplace, but not all of them are created equal. When you’re evaluating a new program, these four critical elements will ensure that you’re getting your money’s worth.

[1] Report from the Consumer Financial Protection Bureau: Youth Financial Education Curriculum Review. (October 2015). Retrieved January 27, 2017, from http://files.consumerfinance.gov/f/201509_cfpb_youth-financialeducation-curriculum-review.pdf

Celebrating w!se Personal Finance High School Winners

Working in Support of Education (w!se) released its annual ranking of the 100 Best w!se High Schools Teaching Personal Finance. We are thrilled to recognize more than half of the designees are EverFi partner schools utilizing the EverFi – Financial Literacy for High School resource during the 2016-2017 school year!

In addition, to commemorate the fifth anniversary of the “100 Best” ranking, w!se awarded the Silver Anniversary Cup to the highest performing schools for the past five consecutive years. Four of five winners are EverFi partner schools:

    Aviation High School –  New York City, NY

Holston High School – Damascus, VA

Passaic County Technical Institute – Wayne, NJ

Utah County Academy of Sciences – Orem, UT

Congratulations to all 100 schools, and thank you for your commitment to financial education!

FutureSmart Taught Me to Create a Financial Plan for My Future

Today we’re featuring a guest post from student Grace K who shares how FutureSmart helped her see that being prepared with a financial plan will allow her to achieve her ambitious career goals. Congrats to Grace for being one of our scholarship recipients!

Grace K

Student: Grace K
Teacher: Danielle Cunningham
School: Falls Lake Academy
State: North Carolina
Sponsor: MassMutual Foundation

“You said you have a dream…That dream…Make it come true! Make your wonderful dream a reality, and it will become your truth! If anyone can, it’s you!” -Pokémon

My name is Grace, and I am currently a student at Falls Lake Academy. Being a student means that college and real world experience are not far away, so there is a great encouragement to look towards my future in order to be well prepared. The eloquent quote above elucidates the importance of setting goals and believing in where they can take you.

I have many goals, dreams, and aspirations, but I’m going to need tools to propel me towards success in my career, financials, and other important aspects of life. I recently acquired some tools from the online resource FutureSmart. FutureSmart taught me vital skills such as saving money for large expenses, choosing a career that is enjoyable and provides good benefits, and how to invest in your interests to maintain both a healthy financial life and life of personal achievement. 

My biggest dream is to one day win the Nobel Prize in Physics and to find a cure for diabetes and cancer. This is because cancer and diabetes have impacted my family directly and countless others. With such lofty goals, there will be many steps along the way to get there. The only way to have my dream to become a reality is to work hard and focus on getting a spectacular education.

To accomplish this goal, I used the FutureSmart Lesson #4 “Investing in You” to learn how to best prepare for schooling in the future. My dream school is Princeton University for undergraduate education and Harvard University for my doctoral and post-doctoral education. Being out of state, the tuition will be quite high, so saving now is very important. It is also vital to talk to my school counselor to figure out about what scholarships and financial aid will be available.

After college, my goal is to become a physicist for NASA. However, in planning my career as a physicist, I learned that it is important to make sure that my job has good benefits and insurance. Due to my health issues, medical insurance will be especially important.

For housing, my wish is to live in a nice house in an urban area and have both home and auto insurance. Insurance is something I learned about in FutureSmart Lesson #6: Your Financial Future, be prepared! If something unexpected were to happen, being prepared could save money that can be used in the future. My want for having a successful career and not have to worry about money dictates that it is imperative to begin saving now, especially for college and retirement. You cannot plan for everything in life, but it is necessary to be prepared for the things that can be controlled, such as financial management. These vital skills are ones that I learned from FutureSmart.

Learn more about the FutureSmart financial education course: https://everfi.com/k12/future-smart/

Financial Marketing and Millennials: By the Numbers

For financial institutions seeking to attract the millennial demographic, using technology is the key—especially technology that is optimized for mobile devices. Not convinced? Here are some mind-blowing statistics around millennials and mobile that you should know to influence your financial marketing strategy:

Financial marketers looking to engage millennials must leverage mobile technology as part of their financial marketing strategy.

Financial marketers focused on engaging millennials must leverage mobile technology as part of their financial marketing strategy.

  • Millennials (people between the ages of 18 and 34) have the highest rate of mobile usage of any other demographic.
  • A whopping 97% of millennials have used a mobile device to access online content. For 1/5 of millennials, mobile devices are the only way they access the Web.[1]
  • The average adult checks their phone 30 times a day. That sounds like a lot. But the average millennial checks their phone more than 150 times a day![2]
  • Does your website work well on all devices? Because 40% of people will abandon their first choice of a search result if it isn’t mobile friendly.[3]
  • Are your emails optimized for mobile, as well? We hope so, because 91% of people checking email on their phones will ignore marketing emails if they are not optimized or linking to pages that are mobile-friendly.[4]
  • When it comes to financial education, we here at EverFi found that 36% of our adult users used their phones to access our financial education content—in 2017 alone.
  • Does your bank or credit union offer financial education? Because millennials are 24% more likely than Baby Boomers to value financial education from their bank as an important feature.[5]

Taken together, these statistic make it clearer than ever: banks and credit unions that want to attract millennials should be focusing on providing a great mobile experience for this demographic.

For more information on how to connect with this “mobile generation,” download our new white paper, The Financial Marketer’s Guide to Acquiring Millennial Consumers Through Mobile.

 

[1] 2016 U.S. Cross-Platform Future in Focus. (n.d.). Retrieved December 16, 2016, from http://www.comscore.com/ Insights/Presentations-and-Whitepapers/2016/2016-US-Cross-Platform-Future-in-Focus

[2] SMW Staff (2016). Millennials Check Their Phones More Than 157 Times Per Day | Social Media Week. Retrieved February 23, 2017, from https://socialmediaweek.org/newyork/2016/05/31/millennials-check-phones-157-timesper-day

[3] De, D. (n.d.). Financial services in a mobile-fi rst world. Retrieved December 16, 2016, from http://forum2016.com/ wp-content/uploads/presentations/Financial_Services_In_a_Mobile_First_World.pdf

[4] Van Rije, J. (n.d.). The ultimate mobile email statistics overview. Retrieved December 16, 2016, from http://www. emailmonday.com/mobile-email-usage-statistics

[5] Study: Millennials Value Financial Education, Guidance and Mobile Account Access from Their Financial Services Providers. (2016). Retrieved December 16, 2016, from http://www.prnewswire.com/news-releases/study-millennials-value-fi nancial-education-guidance-and-mobile-account-access-from-their-fi nancial-services-providers-300346661.html

How Your Bank Can Improve Family Financial Wellness

Recent research from EverFi has revealed significant gaps in family financial capability in the United States, with only 43 percent of all parents reporting that they feel prepared to talk about finances with their children. Fortunately, as trusted sources of financial information, banks and credit unions are perfectly positioned to help families fill these financial literacy gaps. Here are five ways your bank can make a difference.

Only 43 percent of parents feel prepared to talk about finances with their kids. Learn 5 ways financial institutions can foster family financial wellness.

Only 43 percent of parents feel prepared to talk about finances with their kids. Learn 5 ways financial institutions can foster family financial wellness.

Provide resources for financial education

Ideally, the financial education you provide should cover three audiences: children, adults, and parents talking to children. Make sure these resources are available as an unbiased set of resources and resist the urge to sell to your customers.

Make these resources readily available

In addition to offering financial education to your loyal customers, your bank should also make your resources readily available and searchable on your website for new prospects.

Educate employees

Your employees are on the front lines of meeting with customers, so making their personal financial education an on-going process ensures your customers are getting the best engagement and information possible.

Embrace banking for kids

Along with offering financial education for kids, your bank can also promote entry-level accounts for young people interested in learning financial capability on a small scale. This allows kids to practice working with financial institutions and learning about money—early on.

Support financial education in schools

School-based financial education can make a big difference in improving financial capability. By supporting and promoting these programs, your financial institution can increase accessibility to education for underbanked communities—and also help to fulfill your CRA requirement.

 

For more information on EverFi’s research into family financial wellness, and how financial institutions can get involved, download our free white paper, 5 Strategies Every Bank Can Use to Improve Family Financial Capability, here.

4 Solutions to Reach Underbanked Communities

4 Solutions to Reach Underbanked Communities

For banks and financial institutions, engaging underbanked communities is key to spreading financial education and maintaining compliance under the Community Reinvestment Act (CRA). Fortunately, by leveraging technology and embracing the needs of students and young adults, reaching underbanked communities has never been more possible.

Download Guide: 4 Solutions to Reach Underbanked Communities

Download our free guidebook, Technology is the New Branch: 4 Solutions to Reach Underbanked Communities, and learn about the trends, statistics, and strategies that will help you better meet the financial needs of your community.

Here are four solutions for using financial education to connect with the underbanked:

  1. Go mobile. Mobile usage has skyrocketed over the last several years, but enacting a comprehensive mobile strategy for financial education is especially important for reaching people with low-to-moderate incomes. Since smartphones are less expensive than computers and can perform most of the same functions, many use them as their main source of technology.
  2. Scale with digital. To reach more people in a way that is both scalable and cost effective, embrace digital learning. By providing financial education programs online or through an app, more people can have access to the information they need.
  3. Break down language barriers. A 2014 study by the National Council of La Raza found that 33 percent of Spanish speakers selected their bank with language accessibility in mind. Offering financial education solutions in multiple languages helps eliminate these barriers.
  4. Think beyond credit scores. According to FICO, 53 million people—the majority of whom are millennials or low-to-moderate income households—don’t have a credit score, making this standard that banks and credit unions use to evaluate consumers problematic. Instead, certificates and test scores for financial education courses could be used to determine credit risks for underbanked populations.

Employing strategies to reach underbanked communities means the next generation will be more informed and confident about their financial decision-making—and these four solutions are a great place to start. Learn more about how your financial institution can better reach underbanked communities.

To learn more about EverFi, visit us at EverFi.com/FinancialEd.

The Future of Community Reinvestment Act Compliance

The Future of Community Reinvestment Act Compliance

Since Congress signed the Community Reinvestment Act (CRA) in 1977, financial institutions have had a legal obligation to provide banking access and education to communities—particularly underbanked communities—within their geographic footprint. That obligation has not changed over the years, but the communities, as well and the ways in which financial institutions meet their needs, has. This relationship will continue evolve alongside technology. Here’s what the CRA future has in store.

Download Our Guide the Evolving Bank Branch: A Look at Tomorrow’s Community, Technology, and CRA

Download Our Guide the Evolving Bank Branch: A Look at Tomorrow’s Community, Technology, and CRA

 

Streamlined evaluation process

Technology has offered companies unprecedented access to data—and that data is becoming easier to gather, sort, and transmit. This will allow for a much simpler evaluation process and, potentially, an automated data collection system that would make the reporting and compliance process easier and more transparent for both FIs and regulators.

Increased access to financial education

Financial education is crucial to successfully engaging with underbanked communities and helping young people become financially capable; for FIs, providing that education is becoming easier and more accessible as technology improves. Not only does greater education accessibility help FIs maintain CRA compliance, but as financial education service platforms become more personalized and customized, more data can be collected about individual learners. This will help FIs measure both the effectiveness of their programs and the financial wellness of their communities.

Greater focus on the the individual

Thanks to this increased ease of data collection, expect the requirements of the Community Reinvestment Act to become significantly more individualized in scope. With so much information about the individual available, it’s likely that financial capability will be determined by more than just a credit score. Instead, FIs can determine loan risks on a more individualized basis, allowing for a greater number of underbanked populations to qualify for services.

Data-driven processes and predictive analytics are already changing the playing field. In the future, expect these two factors to play an increased role in not only how CRA regulators evaluate compliance, but how FIs engage with the communities they serve as well.

To learn more about how FIs can meet and exceed Community Reinvestment Act requirements through technology and financial education, visit EverFi.com/FinancialEd.