Our Financial Literacy
Movement
Presentation by David D. Mancl
Director, Office of Financial Literacy
Wisconsin Department of Financial Institutions
345 W. Washington Ave., Madison, WI 53703
(608) 261-9540, david.mancl@wisconsin.gov
Expanding Opportunities
through
Financial Education
Strengthening Wisconsin's
Financial Future
To ensure the safety and soundness of Wisconsin’s financial institutions,
to protect consumers of financial services and to promote economic growth
Regulatory Responsibilities
214 state chartered banks
242 state chartered credit unions
13 state chartered savings institutions
112,000+ securities representatives (brokers & advisors)
Wisconsin Consumer Act (credit transactions < $25,000)
Corporate Filing Agency for:
213,000+ LLCs (Limited Liability Companies)
101,000+ Corporations
Numbers are current as of 12/31/09
Social and economic impact
of financial illiteracy
• Leading cause of divorce and suicides
• Bankruptcies at an all time high
Individual Costs
Cost to each consumer (over $600/yr)
• #1 impediment to WI’s financial competitiveness
Trends
• Living Longer
• Retirement responsibility shift
• Social Security benefits?
• Raising healthcare costs
• Debtor Class
• Unprecedented access to more
financial products and services
than ever before.
Message to Next Generation
You’re on your own!
National Survey of High
School Seniors
Year
Score (USA)
Score (WI)
1997
57%
NA
1999
52%
NA
2002
50%
58.8%
2004
52.3%
54.7%
2006
52.4%
53.1%
2008
48%
57%
College
62%
The high school survey was given to 6,856 high school 12th graders in 40
states. The college survey was given to 1,030 full time students nationwide.
State Financial Education Requirements (+5 since 2009)
WI Workplace Financial Literacy
Survey Results
• WI for-profit and non-profit businesses (380 responds)
• 66% provide some financial education
–
–
–
–
Outside provider, 70%
Posters, paycheck insert
Presentation by employee, 25%
Topics
• Investing for Retirement, 90%
• Benefits, health insurance, basic investing
– Reasons for providing it
• Perk (70%), morale & loyalty, employee demand (30%)
WI Workplace Financial Literacy
Survey Results
• 33% NO financial education
• Barriers
– Weren’t sure employees want it (…?)
– Have no one to present
Challenges
Solutions
Financial Literacy Movement
• NAEP 2006 (Nat’l Assessment of Educational Progress)
• National Financial Literacy and Education Commission
– Request comment on national strategy and core competencies
– Search on FLEC
• National Office of Financial Education
• Consumer Financial Protection Agency *
• National Institute of Financial and Economic Literacy
• National Jump$tart Coalition
WISCONSIN
First-ever
State Coalition of the Year!
10th Anniversary
A financial education program for educators and
the thousands of students they teach
Thank You !!!
We are reaching educators
Program participants’ knowledge rose 13%
Participants felt better prepared to introduce a course in financial
education in their schools
Participant evaluations rate the Institute training as “excellent”
-- Pre- and post-test administered and analyzed
A financial education program for educators and
the thousands of students they teach
We are reaching students . . .
We are reaching educators . . .
80% of the teachers implemented
financial literacy after attending the
Institute
Over 600 WI teachers trained. We trained
educators in technical colleges, correctional
institutions, youth volunteers, etc.
Students Taught
WI Teachers Trained
80000
700
70000
60000
50000
40000
30000
20000
10000
0
600
500
400
300
200
100
0
2003- 20042005- 200604
2007- 200805
06
2009- 201007
08
09
10
11
Academic Year
2003-20042005- 200604
2007- 200805
06
2009- 201007
08
09
10
11
Academic Year
-- Data from three separate surveys of all past participants
Governor's Council on
Financial Literacy
“The Council’s mission will be to measurably improve
the financial literacy of Wisconsin citizens.”
And,
“…serve as a continuous sounding board for the
Governor’s Office and the Department of Financial
Institutions…”
5th Anniversary
Governor's Council on
Financial Literacy
Formal education in schools
Employee education
Emerging market
Fraud prevention
Family Financial Literacy
Council Priority
WI’s Model Academic Standards on Personal Finance
A. Relating Income and Education
B. Becoming a Critical Consumer
C. Community and Financial Responsibility
D. Planning, Saving, and Investing
E. Money Management
F. Risk Management
G. Credit and Debt Management
Financial Literacy Innovation awards for teachers
$500 to $5000 to teachers and their school
MOU between DFI and DPI
Total: $150,000
5th Anniversary
Money Smart Week Wisconsin
October 2-9, 2010
•
•
•
•
•
•
“Rally” event at Executive Residence
Governor’s Proclamation
State agencies
27 Communities Teams
62 cities
1000 partners
Participation
16000
14000
12000
10000
Callers
8000
Attendees
6000
4000
2000
0
2006
2007
2008
2009
Green Bay Packer Donald Driver
Wisconsin State Capitol in Green
Oprah’s Debt Diet Coach
President’s Council
on Financial Literacy
• Money Math Lessons for Life
-middle schools
• National Financial Literacy Challenge
-high schools
• Community Financial Assess Pilot
-unbanked
-including FL in sub prime lending
• Financial Education Honor Roll
-employers, colleges/universities
-Model cities, states
• Baseline Survey of Adult Consumers
• Multimedia Consortium and Outreach
REAL Progress and Pathways to Prosperity
Investor Education in Your Workplace
This project is funded by a grant from the Investor Protection Trust (IPT). The IPT is a Washington, DC-based
nonprofit organization dedicated to investor education. Since 1993 the IPT has worked with the states to
provide the independent, objective investor education needed by all Americans to make informed investment
decisions. Visit www.investorprotection.org.
32
REAL Progress and Pathways to Prosperity
Program Goals:
Program Results:
•
Recruit 40 Credit Unions

80+ CU’s signed up
•
Register 4000 employees

4200 Registered
•
Complete 30,000 hours of online
coursework completed

30,000+ hours of coursework
completed in < 25 weeks!!!!!!
•
Make measurable impact on
employees / employers

YES. Groundbreaking results on
knowledge and behavior!
Expanding Opportunities
through
Financial Education
Questions?... Thoughts?