FULL CIRCLE FINANCIAL LITERACY

Summit showcases programs geared to young and old

At the 2014 Financial Literacy Summit, it was apparent that financial literacy is far more than teaching young students the difference between wants and needs or how to manage a checking account. The conference, co-hosted by the Texas Bankers Foundation and IBAT Education Foundation at the Federal Reserve Bank of Dallas, revealed ways to educate an age range from elementary school students to "super adults" (more on them later).

Bank staff members who have implemented financial literacy programs for decades were in attendance, as well as teachers who were sponsored by banks to attend. Firsttime attendees came away inspired to start programs at their own bank. In total, around 80 individuals attended the Summit.

Panelists spoke about programs for students of all ages, financial literacy for older adults and making sound financial decisions when choosing health care services. Bankers came away with a wide range of program options, whether simple or complex, to put into action in their communities.

EDUCATION GEARED TOWARD ALL AGES

PlainsCapital Bank saw a void to be filled in financial literacy for middle school students. "They are often overlooked but young enough for their behavior to be impacted by financial literacy lessons," Carol Towne, executive vice president and chief marketing officer for the bank, says.

Towne and PlainsCapital chose to build a relationship with the nonprofit organization Jubilee Park & Community Center to help renovate their Teen Place - a community center in East Dallas.

Bank staff members teach programs written by the Texas Council of Economic Education at the renovated Teen Place - which really brings the bank's financial literacy efforts full circle. Towne says the middle school students are at an age when they're receptive to learning from the young adult role models from PlainsCapital Bank.

Dr. Rebecca Larson, a social studies teacher at Temple High School, has her students become experts on a specific financial literacy subject so they can teach the class. Dr. Larson's students master their subject, conduct a 15-minute lesson to the class and write a short test for the class to take.

Larson shared one anecdote that justifies the importance she gives financial education in her classroom:

"I had a student who worked at Whataburger. They weren't taking out taxes, social security from his paycheck - nothing. So at the end of the year he had to pay all of that. He had no idea those taxes had to be paid; he was devastated."

Because of stories like this, Larson incorporates calculating a paycheck and understanding insurance, debit cards and fraud into her curriculum.

Marcus Vasquez, CRA and fair lending officer at Woodforest National Bank, explained how and why his bank teaches the FDIC's Money Smart for Older Adults and partners with the Senior Housing Crime Prevention Foundation.

Vasquez discussed a time when he was working with some senior citizens. They were very receptive to learning from him but one man chimed in to say, "It's been a pleasure working with you but you need to stop calling me a senior - call me a 'super adult.'"

Though the "super adult" story drew laughs from the attendees, Vasquez is passionate about financial literacy for seniors because of a more personal experience.

Vasquez's former mentor almost fell victim to a telephone scam where he would have sent money to a stranger. The mentor told Vasquez about the telephone call and didn't seem particularly concerned; more alarmed at the story than his mentor, Vasquez gave him some financial literacy materials so his mentor could come to a conclusion himself on whether to send money. "If a former bank regulator of 30 years would actually consider that, I figured [financial literacy for older adults] really needed to be addressed," Vasquez says.

One study suggests older Americans lost at least $2.9 billion to financial exploitation in 2010. Woodforest National Bank attempts to counter this trend by teaching financial literacy programs for older adults and partners with the Senior Housing Crime Prevention Foundation to provide lock boxes to senior living facilities, so people less informed than Vasquez's former mentor don't become victims.

PUTTING FINANCIAL SKILLS INTO PRACTICE

Dede Moore and Angelo Ochoa, teachers at University High School/A.J. Moore Academies in Waco, teach their students to become IRS-certified to prepare taxes.

Students have to pass three levels of exams to become certified to prepare taxes using the 1040 tax form in partnership with the 1RS' Volunteer Income Tax Assistance program (VITA).

This sounds like an activity that would be almost impossible to convince high school student to take on, right? Ochoa says otherwise: "We've got some of these kids that are normally troublemakers and turn into total dorks debating taxes."

Equipping students with real life skills while they help lowto moderate-income members of their community get the most out of their tax return at no charge is quite the win-win scenario.

The students processed $3,629,566 of refunds in 2012; they filed 1,929 returns last year. They earn community service and some have gone on to careers in the financial industry.

SOLUTIONS FOR THE UNBANKED, UNDERBANKED

Matt Hull, executive director for the Texas Association of Community Development Corporations, introduced an alternative to payday lending.

"I think payday lending is the biggest financial crisis in Texas," Hull says. "We (Texas) are the profit center for payday lenders."

The numbers associated with predatory lending practices are staggering. Payday loan borrowers in Texas pay an average of $23 for every $100 borrowed for twoto three-week loans. Payday lenders are so successful in Texas that they outnumber McDonalds, Burger King and Wendy's locations in Texas - combined. High interest rates and balloon payments trapping Texans in a cycle of crippling debt is apparently a successful business model; Texas payday and auto title loans were a nearly $6 billion industry in 2013.

So what's the solution? Hull says it's the Community Loan Center that partners with employers to offer fairly priced small-dollar loans with reasonable terms. The loan maxes out at $1,000 and repayments are deducted from the employee's paycheck. This multibank approach offers CRA credit to banks that invest in the program.

MODERNIZING A CLASSIC RESOURCE

A staple of financial literacy programs, the Federal Reserve Bank of Dallas released an updated version of its Building Wealth guide, choosing the Summit as the first time to release the new guide to the general public.

Julie Gunter, community development director at the Dallas Fed, introduced the updated guide that is still a free resource.

Building Wealth features a story with new characters, worksheets, new content regarding the Affordable Care Act and more. The guide can be ordered for free from the Dallas Fed's website and is available for download as a PDF or as a smartphone app.

WHAT DOES HEALTH CARE HAVE TO DO WITH FINANCIAL LITERACY?

Bert Marshall, president of Blue Cross and Blue Shield of Texas, spoke about how the decisions we make when it comes to health care can greatly affect our financial wellbeing.

Marshall touched on finding the right doctor in your network to keep costs down and understanding the prices of health plans and prescription drugs.

Having served on the board of Habitat for Humanity in Oklahoma City, Marshall witnessed a majority of applicants looking for homes whose financial troubles were related to health care costs while they were uninsured.

To drive home how damaging health care costs can be, Marshall quoted Dave Ramsey, a New York Times best-selling author on money matters: "Medical bills are the number one cause of bankruptcy."

Blue Cross and Blue Shield has resources on understanding the importance of wellness and prevention to cut down on expensive trips to the ER; the average visit to the ER costs more than $1,300, according to materials provided by Marshall.

SPREADING THE KNOWLEDGE

Health care knowledge, financial education for students of all ages, financial education for "super adults," free resources, established programs that earn CRA credit - the information is all out there. Banks can be an incredible avenue for distributing this knowledge to members of their communities.

The opportunity is here for banks to make an impact in their communities, not only because informed, financially savvy customers make the best customers, but because it's the right thing to do. ^

OTHER HIGHLIGHTS

* Welcoming attendees was Alfreda Norman, vice president/community affairs officer with the Federal Reserve Bank of Dallas.

* Texas Department of Banking Commissioner Charles Cooper also welcomed the attendees and stressed the importance of financial education because "better-educated citizens create better bank customers."

* Keynote speaker Lorrie Hess kicked off the Summit by emphasizing the need for financial education in Texas. She shared stories that reminded attendees they may never know the influence they have had on those they teach.</p>

* Jimmy Campbell, president and CEO of Community Bank in Fort Worth, joined Tieman "Tee" Dippel III, president of The Brenham National Bank; Charles "Mack" Neff, president and CEO of Integrity Bank, Houston; and Jeffrey Wilkinson, president and CEO of Pioneer Bank, Dripping Springs in discussing their banks' financial literacy programs and how they are making a difference in their communities.

* Ed Lette, president and CEO of Business Bank of Texas, N.A., Austin, and Michael Johnson, assistant vice president/branch manager of Capital One Bank, Dallas, presented on the importance of providing small businesses with tools, resources and support through education programs.

* Kurt Swiger, director of business development for EverFi, shared data that shows providing education experiences builds trust and that trust leads to loyal customers.

* Laura Ewing, president and CEO of the Texas Council on Economic Education, and Patricia Hardy, State Board of Education member (District 11), discussed the new mathematics TEKS (Texas Essential Knowledge and Skills) that are being implemented in kindergarten to eighth grade classrooms this fall.

* Leilani-Lim Villegas, financial education coordinator for the Texas Department of Banking, shared some ideas of what bankers could do in their communities and encouraged them to make an action plan.

* In an interactive session, Linda Talley taught the attendees to be aware of non-verbal communication skills when dealing with customers and in teaching consumer education lessons.

* Attendees learned more about proven financial literacy programs from Linda Gabriel, community affairs specialist, FDIC, who gave an update on the Money Smart program; Michael Williams, partner development representative with GreenPath Debt Solutions, who presented on the Banking Is program; and Kurt Swiger who presented on the web-based EverFi program, which is endorsed by TBA.

FINANCIAL LITERACY RESOURCES

Community Loan Center

www.rgvcommunityloancenter.com

Academy of Finance

resaof.wix.com/resaof

Texas Education Agency - Personal Financial Literacy List of Approved Materials

www.tea.state.tx.us/index2.aspx? id=2147489327

Texas Council on Economic Education

economicstexas.org/

Texas Department of Banking - Financial Education

www.dob.texas.gov/consumerinformation/financial-education

Building Wealth (Federal Reserve Bank of Dallas)

www. dal lasf ed. org/cd/wealth/

Money Smart (FDIC)

https://www.fdic.gov/consumers/ consumer/moneysmart/index.html

EverFi

www.everfi.com/

Banking Is

www.learntobank.com/

Be Covered Texas

texas.becovered.org/