Increasing Financial Capability in Young People:
Engaging approaches that build financial, social, and
personal assets
Developed by: Inger Giuffrida
August 5, 2014 from 10:45 a.m. to 12:30 p.m.
Opener
• Group 1: What experiences do young people have with money
or financial issues?
• Group 2: What resources do they have?
• Group 3: What emotions do they have around money and
financial issues?
• Group 4: What do they want to get out of financial capability
work?
• Group 5: Where do we as staff and practitioners serving
young people want them to get?
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Session Objectives
• Explain the relationships among financial, social, and personal assets using
a balanced portfolio model.
• Describe specific strategies and systems for building financial capability that
lead to financial, social, and personal asset development.
• Use specific tools, information, and techniques to engage and support
young people in financial capability.
• Describe ways to make financial information contextually relevant using the
materials developed by the Jim Casey Youth Opportunities Initiative (Keys
to Your Financial Future).
• Explain the roles adults can play that can support and provide
opportunities for young people to increase their financial capability and
develop financial, social, and personal assets.
• Use one activity to introduce credit scoring.
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Financial Capability
• What is financial capability?
• How is it different from other approaches?
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Knowledge &
Skills
Access to
Products,
Services, and
Support
Financial
Capability
Experiences
Ability to Use
K, S, and E
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Financial coaching
and counseling
Experiences—
”normal”, risktaking opportunities
with money and
consequences
Peer-based financial
education
Involvement of
youth in the
planning, design
and implementation
of financial
capability
Increasing
Financial
Capability
of Youth
Ongoing access to
information,
products, services,
and support
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“Financial Independence” Means . . .
• “Being stable with your money”
• “Learning; learning is most valuable—learning
what brings happiness”
• “Being independent and self-sufficient;
having an emergency fund”
• “Understanding components so you know
what you’re working with; having overall
knowledge of financial components”
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Biggest Obstacles
• College loans and college debt
• Not having a place to “fall back to” as a young person
from care
• Systems like having to have deposits for things; “we
don’t have anything to back us up”; no support
• Not having education or a career path—need degrees
• Not having money and income to reach goals; having
money or income comes first
• Not having one-on-one help with a plan
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Most Important Topics
• Finding money to save in my budget—50%
• Ways to save and invest—33%
• Understanding taxes—why I pay them, how to avoid
paying too much, how the money is used, etc.—33%
• Reading a credit report and improving credit
history—33%
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Most Important Topics
• Understanding lease agreements and rights are a
renter –17%
• Finding financial aid including loans for postsecondary education and training—17%
• Understanding how my beliefs and attitudes about
money influence my relationship with money—17%
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Most Preferred Way to Build Financial
Capability
• Which approach to building financial capability do youth
tend to prefer?
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Most Preferred Way to Build Financial
Capability
• One-on-one sessions with a financial coach or mentor—86%
• Financial education in a training session with my peers—
14%
• Through social media or technological applications
(Facebook, MySpace, Blogs, Texts) —0
• Using online financial literacy curriculum (working
independently with a computer based curriculum that
includes simple games, quizzes, short video clips, etc.) —0
• Playing online or IRL games—0
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Keys to Your Financial Future:
Products
Participant’s
Workbook
Facilitator’s
Guide
Video
Tutorial
Online
Toolkit
Modules 1-7
Modules 1-7
-Facilitator’s Notes
&
-Visual Aids (PPT)
Financial Coaching
-Participant Workbook
-Facilitator’s Guide
-Props (Tools)
-Video Tutorial
-Evaluations
- Curriculum Overview
(PPT)
-Appendices
Keys to Your Financial Future: Modules
• Module 1: Asset Building: Unlocking the door to
long-term benefits building
Core Modules
• Module 2: Good Credit: Your score in the game
of life
Prior to
enrollment in
Opportunity
Passport™
• Module 3: Money Management: Cashing in on
financial success
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Keys to Your Financial Future: Modules
• Module 4: Education and Training: The power of knowledge for
work and college
• Module 5: Housing: Reality in realty
• Module 6: Transportation: Enjoy the ride
• Module 7: Saving and Investing: Making the change by keeping it
About the Module Names
The module names were developed by the 2012 Jim Casey Youth
Opportunities Initiative Youth Leadership Institute through a collaborative
brainstorming session.
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Keys to Your Financial Future: Repeating
Competencies
•
Competencies addressed contextually in multiple sessions for the purposes
of reinforcement.
– Setting goals
– Building assets
– Contingency planning
– Protecting assets (including your identity)
– Operating as a savvy consumer
– Making decisions/evaluating the risks and returns of a product, service
or situation
– Making and keeping a budget
– Managing cash flow
– Fixing or improving credit and/or managing and reducing debt
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Asset-Building Framework
• Asset
– something that you own that has value.
– you must own it, be able to control it, and be
able to make decisions about it.
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Balanced Asset Building Portfolio
Physical
Assets
Financial
Assets
Productive
Assets
Social
Capital
Portfolio = a grouping of assets.
Your asset building portfolio is basically the assets you have and
are working towards.
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Why Credit Reports & Scores ARE
Important
• A bank or credit union may use them to decide whether to
give you a loan.
• A credit card company may use them to decide whether to
give you a credit card.
• A landlord may use them to determine whether to rent an
apartment to you.
• An insurance company may use them to determine whether
to give you insurance coverage and the rates you will pay for
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coverage.
Why Credit Reports & Scores ARE
Important
• A utility company may use them to figure out how much
deposit you must pay before they will turn on your electric or
gas.
• A cell phone provider may use them to determine what
plans you may be eligible for and the rates you will pay.
• A potential employer may use reports to determine whether
you will get a job.
• Credit scores are completely based on information in your
credit reports.
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The Credit Reporting Agencies
• Equifax
• Experian
• TransUnion
May have different
information. Must check all 3.
– If over 18, order from website, call them or write to them.
– Use www.annualcreditreport.com for annual free report.
– May not be useable if you have been the victim of identity
theft.
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Can You Have a Credit Report if You are
Under 18?
• You cannot have credit report if you are under 18 unless:
– You are an emancipated minor
– You are an authorized user on someone’s credit card
– You have student loans
– You live in a state where you can be younger than 18 to
enter into a financial contract
– Your identity has been stolen and used by someone else
to get credit or services
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Exercise in Pairs
• Calculate your final credit score using the 15 cards.
• Start with the first card, and go through them in
order.
• Notice which actions make your score go UP, go
DOWN and those that have no affect.
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FICO Score Distribution
Types of Credit
Used, 10%
New Credit, 15%
Payment History, 35%
Length of Credit History,
15%
Amounts Owed &
Credit Utilization Rate,
30%
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Roles for Adults
Role for Youth
Access to
Products,
Services, and
Support
Knowledge &
Skills
Financial
Capability
Experiences
Ability to Use
K, S, and E
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Thank you for participating
• Inger Giuffrida, Financial Educator and Asset Building
Consultant
• Email: inger.giuffrida@gmail.com
• Phone and text: 405-819-7039
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