Docstoc

EconomicCrisisYouth PP

Document Sample
EconomicCrisisYouth PP Powered By Docstoc
					The Economic Crisis: Do our youth have the skills to survive?
Financial Fitness Conference May 7, 2009 Alexandria, Minnesota

Jan Hodges Gilman & Sara Croymans University of Minnesota Extension Educators Family Resource Management

The Economic Crisis

How is the current economic situation impacting the youth that you work with?

Food Security/Support in MN
• 9.5 % of MN people living in households struggled with hunger or were “food insecure” 2005-2007 • Nearly 2 million visits to food shelves in 2007 in MN Food shelves distributed over 47 million pounds of food • 67% increase in food shelf visits in Minnesota since 2000 • 11% increase in food shelf visits Jan – Jun of 2008 • 12% of our children live in poverty
Source: 2008 Hunger Solutions Minnesota

Food Security/Support in MN continued
• 7 million free or emergency meals served to people in need in 2007 • Nearly 475,000 are eligible to receive food support, yet only 60% use the program • With full participation, MN could have an additional $394 million in federal dollars in the local economy
Rising joblessness, falling wages, and rapidly rising food costs mean that more and more families are stretched to the limit and beyond.
Source: 2008 Hunger Solutions Minnesota

Children in Poverties (percent), 2007 Minnesota Counties

Source: Children’s Defense Fund Minnesota http://datacenter.kidscount.o rg/data/bystate/StateLandin g.aspx?state=MN

Children Receiving Food Support (percent), 2007- Minnesota Counties

Source: Children’s Defense Fund Minnesota ; http://datacenter.kidscount.org/data/bystate/StateLanding.aspx ?state=MN

Children Receiving Free/Reduced Price Lunch (percent), 2006 - Minnesota Counties

Source: Children’s Defense Fund Minnesota, http://datacenter.kidscount.org/data/bystate/StateLanding .aspx?state=MN

Top “What’s In” Products Among Teens

Cell phones DVD’s MP3 players Digital cameras Hooded sweatshirts Plasma TV’s Home video games HDTV Graphic t-shirts

Athletic shoes

Source: Teenage Research Unlimited, Spring 2007

Total Spending on Fashion Dropped 20% but what about Miss Johnson?
• “I don’t really need the clothes, I want them.” Stephanie Johnson, junior at Apple Valley High School • “If I’m going somewhere special and I need something, I’ll pay full price. But if I’m shopping with friends, I’ll go through the sales racks first.”
Source: Piper Jaffray, 2009. http://www.piperjaffray.com/2col_largeright.aspx?id=1284

Challenging Economy Leads to Decline in Teen Spending
• Only 35% of teens surveyed had part-time jobs in the past six months, compared with about 50% in previous surveys. • Household breadwinners are digging deeper into their own wallets, spending an average of $915 on their teens in the past year, up from $883 a year ago. But down from fall of 2008 at $1085. • Jeffery Klinefelter said the scarcity of part-time jobs for teens helps explain the decline in their spending, but so does a three-year "fashion recession," which he said has yet to strike bottom.
Source: Piper Jaffray, 2009; http://www.piperjaffray.com/2col_largeright.aspx?id=1284

$$ Habits of Millennial Teens 12-17
Teens spent $179 billion in 2006 Spend average of $107 /week = $5564 /year Over 41% purchase online for average of $81/order 60% obtain money from parents 7% of teens have access to parent’s credit card 18% would like to have own credit card 56% have savings accounts Save 26% of the money they receive 10% have checking accounts 13% own stocks and bonds
Source: Teenage Research Unlimited, Spring 2007

Impact on Students
• Students fear having to leave school district due to home foreclosures
– (Gasca, Melissa (2009, Feb16). Stressed About Schools. Santa Clarita Valley The Signal)

• More teens seeking services of homeless shelters, often to lessen burden on parents
– (2008 August 21). Retrieved February 16, 2009, from News Channel 3 WWMT.com Muskegon County, MI Web site: http://www.wwmt.com/articles/major_1352557___article.html/gas_teens.html

• College graduates will have difficult time finding jobs • Increased fierce competition for college financial aid dollars • Students may delay 4 year university and start at community college
– (Hartman, Kristyn (2009 January 6). Tough Economic Times Hit Students Hard. Retrieved February 16, 2009, from cbs2chicago.com Web site: http://cbs2chicago.com/local/students.economic.harsdship.2.901499.html)

Family Finances & the Economy

Source: Junior Achievement®, 2009 Teens and Personal Finance Poll; www.ja.org

Teens and Employment

Source: Junior Achievement®, 2009 Teens and Personal Finance Poll; www.ja.org

Teens in the Workforce

Source: Junior Achievement®, 2009 Teens and Personal Finance Poll; www.ja.org

The Economy and Teen Spending

Source: Junior Achievement®, 2009 Teens and Personal Finance Poll; www.ja.org

Families and the Economy

Source: Junior Achievement®, 2009 Teens and Personal Finance Poll; www.ja.org

What Teens Want to Learn About Money
• 65% believe learning about money is “interesting” • 60% say learning about money management is one of their top priorities

• Teens are motivated to learn about money matters:
– – – – – budgeting savings and investing “to pay their bills” (88%) “to not have to rely on others for money (85%)” how to make money grow (89%)

Source: Charles Schwab Teens & Money 2007 Survey; www.aboutschwab.com/teensurvey2007.pdf

Why Teens Want to Learn About Money Matters
To get married To get rich To get a good job To do the things I love To buy things I like To take care of family To not rely on others for money To pay my bills To stay out of debt 0% 20% 40% 60% 80% 100%

Source: Charles Schwab Teens & Money 2007 Survey; www.aboutschwab.com/teensurvey2007.pdf

Money Education Works!
Immediately after studying the NEFE HSFPP curriculum, it was found that: • Students showed statistically significant increases in all financial knowledge, behavior, and confidence questions. • About 60% of the students increased their knowledge about the cost of credit, auto insurance, and investments.
Evaluation of the NEFE High School Financial Planning Program® 2003-2004, Dr. Sharon Danes, University of Minnesota, Family Social Science Department.

Money Education Works
• About 40% of the students began to write goals for managing their money, to save money for their needs and wants, and to track their expenses. • 41% of the students increased their confidence in making financial decisions.
Evaluation of the NEFE High School Financial Planning Program® 2003-2004, Dr. Sharon Danes, University of Minnesota, Family Social Science Department.

Three month follow up survey found
After completing the curriculum: • 59% of the students indicated that they had changed their spending patterns by purchasing things they only needed and spend more wisely. • 60% indicated that they had changed their savings patterns.

Evaluation of the NEFE High School Financial Planning Program® 2003-2004, Dr. Sharon Danes, University of Minnesota, Family Social Science Department.

What skills do youth need to survive tough economic times?

What skills do our students need to survive tough economic times?
• • • • Goal setting Decision making Wants vs. needs Budgeting & money management • Managing credit & debt • Saving & investing • • • • Record keeping Communication skills Conflict resolution skills Identifying & securing resources • Risk management • Education & career planning • Others?

NEFE High School Financial Planning Program

HSFPP Unit Target Competencies
http://hsfpp.nefe.org/
1. Create a personal financial plan 2. Prepare a personal budget 3. Propose a personal saving and investing plan 4. Select strategies to use in handling credit and managing debt

5. Demonstrate how to use various financial services
6. Create a personal insurance plan which will minimize your financial loss

7. Examine how a career choice and lifestyle affect your financial plan

Instructors Web Site
hsfpp.nefe.org

Ordering NEFE High School Financial Planning Materials
http://hsfpplnefe.org Step One:
no mail or phone orders

Log In or Register

Step Two: Choose the HSFPP materials you need. Required Classroom Materials: •HS Instructors Manual 2006 •HS Instructors Manual CD 2006 •HS Students Guide 2006 Optional Materials: •HS Information Kit •HSFPP Brochure 2006 •HSFPP Certificates

Step Three: What date do you plan to start teaching the HSFPP?
– Shipping and handling may take up to three to four weeks to receive materials

Step Four: Where to Ship?
– What School or organization will be using these materials? – Provide material shipping information.

• Step five: Provide support and course feedback.
• Provide Extension Educators as a sponsor up to three names can be listed:
– – – – Sara Croymans, Regional Extension Educator Jan Gilman, Regional Extension Educator Becky Hagen Jokela, Regional Extension Educator Lori Hendrickson, Regional Extension Educator

Helping Children Cope in Unsettling Times
1. Assess level of support needed by children 2. Be reassuring and acknowledge feelings 3. Take care of your own needs 4. Maintain a normal routine, allow friends over 5. Spend family time together 6. Be optimistic 7. Be a good listener & observer 8. Discuss events in age-appropriate terms 9. Try to avoid excessive blaming or arguments 10. Communicate with school as needed

Resources for Helping Youth
University of Minnesota Extension
• • http://www.extension.umn.edu/ResourceManagement/ http://www.extension.umn.edu/toughtimes/

Minnesota Rural Life
• http://cehd.umn.edu/fsos/Centers/RuralMNLife/

eXtension
• http://www.extension.org/pages/Financial_Security:_Managing_Money_in_Tough _Times – www.extension.umn.edu/Nutrition/

• University of Minnesota Extension Nutrition Education Program,

Resources for Helping Youth
Smart About Money Website materials partnership by NEFE’s “Economic Survival Tips: What To Do Now” • http://www.smartaboutmoney.org/economicsurvivaltips/tabid/554/Defau lt.aspx National Association of School Psychologists. “Helping Children Cope in Unsettling Times: The Economic Crisis: Tips for Parents and Teachers”, 2008 • www.nasponline.org Teaching Tolerance: “Teaching in the Downturn” • www.tolerance.org/teach/magazine/features.jsp?p=0&is=44&ar=1011 JA Worldwide® Understanding the Financial Crisis: Origin and Impact • www.ja.org/files/UnderstandingFinancialCrisisSTUDENT.pdf

Questions

Evaluation

The Economic Crisis: Do our youth have the skills to survive?
www.extension.umn.edu
Jan Hodges Gilman University of Minnesota Extension Mankato Regional Office 1961 Premier Drive, Suite 110 Mankato, MN 56001 jgilman@umn.edu PH: 507-389-6749 Sara Croymans University of Minnesota Extension Morris Regional Office 46352 State Hwy 329 Morris, MN 56267 croym001@umn.edu PH: 320-589-7042