financial literacy

Play Breadwinner and Learn about Financial Literacy

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Are you interested in learning more about financial literacy?

Want to practice budgeting and making sound financial decisions as an adult in Connecticut?

Play Breadwinner!

Breadwinner was created with the purpose of teaching others about how to manage your money in the Connecticut workforce. The hope is to get teenagers and young adults to practice budgeting and understand what goes into a singular month of living. You begin with finding an occupation and learn how much of your gross income you take home after taxes. All the data is based off of starting salaries in each occupation. From there you work through housing, utilities, and various expenses in the life of an adult. Test your ability to budget and learn what you value the most when making financial decisions.

The Breadwinner game app is in its testing phase and its creators would appreciate your feedback. UConn Extension financial literacy program is working on improvements and how to adjust the game to fit the needs of its target audience. If you play along and find areas of improvement or have suggestions for what to include, add them to the survey at the end. Play the game through the end and click the “Please help us improve the game” on the final results page to fill out the survey. If you are curious about learning more about the UConn Financial Literacy Program, please reach out to Faye Griffiths-Smith at faye.griffiths-smith@uconn.edu.

-Naiiya Patel

Expanding Access to Financial Literacy Resources with Naiiya Patel

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Naiiya PatelHey! I’m Naiiya Patel and this summer, I am working as the Financial Literacy for Youth and Young Adults intern at the UConn Extension New Haven County Center. The financial education program is run by Faye Griffiths-Smith. She teaches workshops across Connecticut educating the public and providing professional development opportunities related to important financial literacy topics such as budgeting, savings, credit, debt, being prepared for the unexpected, and money management. The resources presented in workshops provide necessary financial education on how to make informed decisions regarding finances. The workshops extend beyond teaching high school and college students.

Recently, we have been working with veterans, retirees, and refugee groups throughout Connecticut. The main goal is to provide this information as early as possible to Connecticut residents so that they can practice smart habits regarding their important financial decisions like buying a home or car, creating an emergency fund, or preparing for retirement. As an intern, I work behind the scenes to help make sure the workshops go smoothly. I assist in script refinement and supplemental research work regarding the specific topic we are teaching. Recently a bigger project we are working on is an online game for college and high school students. I update and crossmatch Connecticut data regarding salaries, taxes, apartments, and other expenses create a simulation of what it is like to navigate financial decisions as a young working adult. My internship also involves promoting various financial health and wellbeing topics by developing social media messaging on Twitter and Facebook. Part of my marketing work for the program involves a separate independent project where I will develop short educational videos on financial literacy topics such as a cash flow budget. 

Educator Spotlight: Faye Griffiths-Smith

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Financial Education Program Helps Participants Improve Their Lives

Managing family and personal finances well is a common challenge. Findings from recent studies show cause for concern regarding Americans’ financial practices. According to the 2018 FINRA Financial Capability Study, nationally:

  • 46% of individuals lack a rainy-day fund,
  • 34% of individuals can answer four or five questions on a basic five-question financial literacy quiz correctly,
  • 35% of individuals with credit cards paid only the minimum on their credit cards during some months in the last year, and
  • 19% of individuals reported that over the past year, their household spent more than their income.

UConn Extension’s financial education program provides workshops, professional development sessions, events, and resources to help Connecticut citizens improve their lives. Participants receive relevant, research-based information and tools to encourage them to adopt sound financial management practices.

Faye and colleagues from Connecticut Saves Week standing in front of banner
Faye Griffiths-Smith, third from right, and colleagues celebrate Connecticut Saves Week. Photo courtesy of Sydney Putnam.

“Shortly after I was hired, I conducted a needs assessment. Money management was the topic respondents indicated as most important to address,” says Faye Griffiths-Smith, UConn Extension’s family economics and resource management educator. “Today, there is increased recognition that financial capability has a strong impact on one’s ability to achieve economic stability and move toward financial security.”

The Extension Financial Education Program reaches adults and young people. One focus area is reaching people living on limited incomes, those making life transitions such as entering or returning to the workforce, or others experiencing financial challenges. Recent participants included veterans, senior center residents, adult education students, teens, summer youth employment students, and college students. “Reaching teens, college students, and other young adults at a point when they are likely to start facing important financial decisions is exciting because the information is highly relevant for them and many recognize it is important,” Faye says. “Engaging learning activities are a great way for them to experience their future financial lives.”

“As the incoming President of the Connecticut Jump$tart Coalition (www.jumpstart.org/connecticut) promoting financial literacy for youth, I look forward to working with teachers, other professionals, and volunteers from many organizations across the state on ways to increase the financial knowledge of our young people,” Faye says.

Strength in Numbers

The UConn Extension Financial Education Program collaborates with agencies and organizations to enhance the financial capability and economic security of Connecticut citizens. Collaborations are key to reaching diverse audiences that might otherwise be unaware of available resources. Complex financial products and services make it harder for people to be aware of all their options. Training agency and organization professionals is another way to expand the impact of Extension’s financial education and information. These staff reach their clients or students with information as financial topics and concerns arise.

Faye has provided financial empowerment training for hundreds of social service agency staff through Your Money, Your Goals, a program developed by the Consumer Financial Protection Bureau.

“Through collaboration with United Way of Greater Waterbury, I’ve also had the opportunity to provide financial coaching training and technical assistance for volunteers who work with agency client  requesting this assistance,” Faye shares. Being a financial educator involves more than performing financial calculations and staying current on the myriad of products and services available as well as the impact of legislative changes on our finances. It gets to the heart of what people believe is important about how they live. It involves listening, learning about their situations, and guiding them in identifying their options while addressing financial decisions they face.

Article by Stacey Stearns

Making Every Penny Count: 4-H and Financial Education

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child looking at a jar of moneyAccording to a 2014 study conducted by the Connecticut Jump$tart Coalition for Personal Financial Literacy, only 10% of Connecticut high school students participated in a personal finance class annually. Fewer than 20 high schools required students to take a personal finance course prior to graduation. According to the Report on the Economic Well-Being of U.S. Households in 2015 by the Federal Reserve System, “Forty-six percent of adults say they either could not cover an emergency expense costing $400, or would cover it by selling something or borrowing money.” Young people need opportunities to learn about money and practice those skills to prepare for their financial futures.

Every 4-Her has the opportunity to learn about finances through their projects and activities. As a member of a local 4-H Club, they are likely to pay dues to cover the cost of their various activities. This fee (usually a dollar or two) may be used to pay for snacks, a club t-shirt, jacket, or supplies. Most clubs have officers including a treasurer who will record these funds under the supervision of an adult leader. In addition to learning about the financial aspects of their specific project such as animal husbandry, science and technology, leadership and community service, 4-H members can register for projects such as money management, consumer education, or financial literacy.

When 4-H members begin a project, they need to write down their project goal. This is great practice for managing their own finances as they will need to identify their personal financial goals and determine their priorities. 4-H members complete project record sheets for their major projects. If they spent money to complete their project, they document it. For example, when a 4-H member has a horse project, they need to consider all the costs involved in keeping that animal alive, healthy, and safe. They inventory their supplies and write down the financial value of those items. Expenses related to feeding and health such as veterinarian bills and costs related to participating in competitions are recorded. This practice reminds them that there are usually costs involved in almost any project they choose. A 4-H alumnus reports “We had to keep records of animals, breeding, litters, sales, [and] showing [events] as well as expenses such as grain, hay, feed and water bowls, carrying cages for showing, and entry fees… becoming responsible for keeping a written record for expenses and income.” In a consumer and family science project such as sewing or childcare, they record any expenses or financial values of items related to their projects such as patterns, fabric, and thread in sewing, or games, books, videos, or craft supplies to entertain young children.

4-H members have the opportunity to serve on county and state planning committees such as 4-H Citizenship Day and 4-H Advisory committees. They review the costs related to the event from the previous year to help in determining the budget for this year’s event. As a committee, they will discuss different ideas for the event and will learn that any changes they make in the program may also affect the final cost, learning financial decision-making and the need to balance income and expenses. In addition, they can become involved in county fair boards where one responsibility of each officer role is financial management. One 4-Her shared “When I was treasurer, I learned more about the financial system in 4-H. I was required to count money during the fair weekend and compare the income to past years. As Coordinator of home arts, I was responsible for calling a vendor with a request for tables. I had to know the estimated amount needed and get the estimate for the fair meeting. For entertainment, I was responsible for filling out forms for performers to ensure they were paid.“

Throughout a youth’s time in the UConn 4-H program, there are many opportunities to learn and practice financial decision-making and responsibility.

For more financial literacy resources visit https://financialliteracy.uconn.edu/

Article by Faye Griffiths-Smith, Extension Financial Educator and Margaret (Peggy) Grillo, 4-H Youth Development Educator

Saving for the Unexpected

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In Celebration of America Saves Week and Connecticut Saves Week February 25th through March 2nd, 2019

shutterstock money treeHave you ever been taken by surprise by an expense such as a car or home repair, a refrigerator that needs to be replaced immediately, or school expenses? Often we need to act quickly so that we can get to work, keep a small problem from getting bigger, or make it possible for a child to participate in school activities. Managing regular bills can be hard enough without shock of additional bills. In one of the professional development workshops I teach, I ask the participants work together in small groups to list examples of unexpected financial events in their lives and those of their clients. As you might guess, once they get started, they have no trouble creating very long lists.

Several recent studies have indicated that many of us are not prepared financially to deal with the unexpected events in our lives. The Federal Reserve Report on the Economic Well-Bing of U.S. Households in 2017 (https://www.federalreserve.gov/publications/files/2017-report-economic-well-being-us-households-201805.pdf) pointed out the 40% of households could not cover an unexpected $400 expense. DataHaven’s 2018 Community Wellbeing Survey (www.ctdatahaven.org/reports/datahaven-community-wellbeing-survey) found that 50% of Connecticut adults estimated that their savings would last less than 6 months. As challenging as it can be to deal with unanticipated bills, there are steps we can take to improve our ability to weather such events in the future.

Create an Emergency Fund

Having a cash cushion can help increase your family’s or household’s financial stability. Knowing you have money available can help reduce financial stress and give you more options for how to handle different situations.

How do I get started?

Make it your goal and develop a plan to achieve it. Even a small amount of money saved over time adds up. If you could save $10 a week for a full year, you would $520. Will you be receiving a tax refund? Plan to save at least a portion. A review of your current spending can be helpful in identifying opportunities to save money. Many of my workshop participants have suggested setting up a separate savings account specifically for this purpose. Direct deposit is an excellent way to make saving a habit.

How much money do I need in an emergency fund?

While the best answer to this question really depends on the specifics of your situation, here are a couple of suggestions. If you currently do not have money set aside for emergencies, set a goal with a dollar amount such as $500 or $1000 and timeframe by which you plan to achieve it. Identify the steps you are going to take to help you move closer to that goal. If you already have some money set aside, calculate how much money you would need to cover basic living expenses for a period of six months or possibly longer. If that amount of money seems like more than you can possibly save, do not let that be a deterrent. Break it down into a series of short-term goals. For example, focus on what you feel you can reasonably do over the next three months and keep track of your progress.

Anticipate the Unexpected—Plan!

It is human nature not to want to face certain realities. However, we could likely prepare better if we anticipated some likely events and planned how to deal with them effectively. For example, appliances have a limited life expectancy and will need repair or replacement. Tires for a car anticipated to last for an approximate amount of mileage. A home will require maintenance to its various systems. Just as a weather forecaster keeps track of different conditions to anticipate what is likely to happen with the weather, we can also do that in regard to our finances. Though we will not be 100% correct all the time, we can develop a plan to help us be better prepared.

For more information, contact Faye Griffiths-Smith, UConn Extension Personal and Family Financial Educator at faye.griffiths-smith@uconn.edu or visit www.financialliteracy@uconn.edu.

Connecticut Saves Week February 25 through March 2 is a great time to assess your savings and make plans to improve your financial security. Part of the national America Saves Campaign, the Connecticut Saves Coalition is coordinated by the UConn Extension Financial Education Program with the support of these partnering organizations: the Connecticut Department of Labor; the Connecticut Department of Banking; Connecticut State Library; Hartford Job Corps Academy; the Better Business Bureau Serving Connecticut; Human Resources Agency, Inc.; the Connecticut Association for Human Services; Chelsea Groton Bank; and others. Visit www.connecticutsaves.org.

Article by Faye Griffiths-Smith

Take the Connecticut Saves Pledge!

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3 steps for saving moneyCT Saves Campaign February 24- March 2nd
Take the Connecticut Saves Pledge by texting “CTSaves” to 877877 or pledging online at www.ConnecticutSaves.org.

Save with a plan. Did you know savers with a plan are twice as likely to save successfully for things like retirement and their (or their children’s) education?

Save the easy way…automatically. Never miss a beat when it comes to saving. Make it so easy that you never have to think about it. Set aside money automatically.

Save for the unexpected. Putting aside a few dollars a week into a savings account for unexpected costs can build financial security—and relieve a lot of anxiety!

Save to retire. Studies show few Americans have adequate savings for retirement but it’s never too late or too early to start saving.

Save the extra. Did you know you’re more likely to save a windfall than a small amount consistently over time? Hack that psychology by saving your bonuses, raises and tax refunds.

Save as a family. Good saving habits start at home. Model good financial habits for your children, and teach them to do the same. Help them open their own savings accounts!

For more information please visit https://financialliteracy.uconn.edu/.