Why is Financial Education
Important in Texas?
TCEE Smarter Texas
Conference
Leilani Lim-Villegas
Financial Education Coordinator
Texas Department of Banking
Dedicated to Excellence in Texas Banking Since 1905
Financial Education
Mission Statement
Bankers – Helping Texans in
making informed decisions about
budget, credit, asset building
and debt management
through financial education.
Financial Education Coordinator
Responsibilities
Serve as the Department’s
point of contact to address
financial education issues in
Texas.
Financial education training for
bankers.
Provide bankers with financial
education tools and materials to
take back to their communities.
Financial Education Coordinator Efforts
Bank Visits (since May 2006)
Financial Education Online Survey
for Banks (August 2006)
Teach Financial Literacy in Schools
and Communities (since January
2007)
Statewide Financial Education
Workshops (October 2015)
Texas Department of Banking
Why Is Financial Education
Important?
Financial Education Affects
Everyone
Youth
Adults
Senior Citizens
Why is Financial Education
Important?
The goal of financial education is to empower
consumers to better manage their money,
prepare a budget, initiate savings plans, manage
debt and make informed decisions about credit
and financial products.
Why is Financial Education
Important? (cont’d)
More young adults filed for bankruptcy
than graduated form college (ABA
Education Foundation).
Basic money management skills are often
lacking in adults today and many parents
feel unprepared to teach their kids about
money.
Financial Illiteracy: A Vicious Cycle
Many teachers are not trained to teach
personal finance, and many have never
taken a basic economics course.
The uneducated about banking services
turn to check cashing services or payday
lenders to address their financial needs,
and pay higher fees.
Texas Department of Banking
How Does Texas Rank on Financial
Education in the U.S?
How Does Texas Rank?
10 states rank in the bottom, including Texas in both
“financial literacy” (39th place overall) and “financial
behavior (44th) “Source: Financial Industry Regulation
Authority (FINRA), April 2015
Texans are strongest at budgeting and weakest at
credit management. Source: Office of Consumer
Credit Commissioner, June 2013
There are more payday lenders than McDonalds and
Starbucks combined. Texas has 2,243 single payment
title loan locations, one-fourth of the national market.
Average monthly payment is $341.59. Source: Pew
Charitable Trusts, Auto Title Loans, March 2015
How Does Texas Rank? (Cont’d)
Half of those of those auto title loan locations make
payday loans as well. Average annual percentage rate
in Texas is 306%. Average size title loan is $1,240.
Source: Pew Charitable Trusts, Auto Title Loans, March
2015
25% of Texas kids live in poverty. Source Center for
Public Policy Priorities, State of Texas Children 2015,
March 2016
Corporation for Enterprise Development CFED 2015
Assets & Opportunity Score Card, Texas ranks:
 47th in subprime credit
 41st in unbanked households
 44th in student loan default rate
 50th in high school degree attainment
 40th in low-wage jobs
Youth Financial Literacy Is A
Priority
Research has proven time and time again that personal
financial management skills and lifelong habits are best
developed during youth, the earlier the better.
In 2014, the American Student Financial Assistance
Association reported that 55%
of college students acquired their
first credit card during their initial year
in college, which can lead to the
accumulation of excessive debt at an early age.
Financial Education Video
Houstonville
MicroSociety at Sam Houston Elementary
McAllen, Texas
https://www.youtube.com/watch?v=vgJnjju6a0I
2005 Financial Literacy Bills
Senate Bill 851 (Sen. Shapleigh)
House Bill 492 (Rep. Wooley)
Effective September 1, 2005
Requires the incorporation of financial literacy in
Texas schools.
MoneySmart
– Curriculum covers from banking basics to
owning your own home.
– Interactive online training available.
– Program is translated in several
languages.
– Free of charge
www.fdic.gov
Building Wealth
The Federal Reserve Bank of Dallas
• Wealth Creation: Learn
the Language
• Budget to Save
• Save and Invest
• Take Control of Debt
• Free of Charge
www.dallasfed.org
IBAT Education Foundation
 How Community Bankers Can Meet
the Texas High School Education
Legislative Mandate
 Teach the Teacher Seminars
www.ibat.org
Texas Bankers Association
Since 1977, the American Bankers Association and
the Texas Bankers Association have worked together
through a grassroots network of dedicated banker
volunteers to promote financial literacy among all age
groups.
www.texasbankers.com
Texas Department of Banking
Financial Education
Online Survey
Financial Education
Online Survey Results (cont’d)
Is Your Bank Interested in Providing
Financial Education Services to People
in Your Commuinty?
No
14%
Yes
86%
154 Texas Banks Responded to the Survey
Financial Education
Online Survey Results
Does Your Bank Conduct
Financial Education Training
for Your Community?
Yes
40%
No
60%
Financial Education
Online Survey Results (cont’d)
Does Your Bank Have a Person
Over Customer Financial Education?
Yes
21%
No
79%
Financial Education Videos
GOODING
Funding the Future Live
“Coolest Financial Advisors in America”
http://fundingthefuturelive.org/
http://fundingthefuturelive.us9.listmanage.com/track/click?u=5074dca02cd2e74da09ddb51a&id=17c3a96421&e
=429f98df6b
Contact Information
Leilani Lim-Villegas
Financial Education Coordinator
[email protected]
(512) 475-1337
www.dob.texas.gov
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Texas Department of Banking Financial Education