Kelli Grant

Stop! Wait! Make a Financially Literate College Decision

Kelli Grant 150x150 Stop! Wait! Make a Financially Literate College DecisionBy Kelli Grant, Consumer Reporter, CNBC.com

It may be Financial Literacy Month, but for high school seniors, April is also Big Decision Month. College acceptance letters are landing in mailboxes and inboxes, with the clock ticking down to a May 1 acceptance deadline at many schools.

To them I say, Stop! Wait! Don’t be so quick to say “yes” to that first-choice school. Your family’s financial future depends on making a financially literate decision.

Some 40 million Americans have student loan debt, which has mounted to $1.3 trillion. The Project on Student Loan debt estimates that borrowers in the Class of 2013 owed an average $28,400 in federal and private loans. Worse, many grads are falling behind on their payments: 11 percent were 90 or more days delinquent in the last quarter of 2014, according to a report from the New York Federal Reserve.  (For perspective http://www.cnbc.com/id/102431400, during the same quarter, 7 percent of credit card balances and 3 percent of auto and mortgage loans were delinquent.)

We’ve seen some aid in expanded income-based repayment plans and refinancing options, in start-ups experimenting with low-cost funding. More could be on the horizon http://www.cnbc.com/id/102493636 under President Obama’s Student Aid Bill of Rights.

But a big part of halting the cycle of student loan debt has to come from students and families making smart decisions about whether, how and how much to borrow. As I’ve written recently, the financial aid offers http://www.cnbc.com/id/102520397 that typically come packaged with those college acceptance letters aren’t always easy to decipher. And they’re worth more than a fast look. Parents and students need to sit down and talk about what those loans will amount to come graduation time and just how achievable that monthly payment will be on the typical starting salary of a high school music teacher, engineer or journalist.

It’s not just students who need to gut check their financial responsibility. Parents need to make sure they’re not taking on too much debt or hurting their chances of retirement. A recent T. Rowe Price survey found that 53 percent of parents with kids age 15 and younger would rather tap their retirement savings than have their child take on student loan debt, while 52 percent said they were willing to take on $25,000 or more in debt to cover college costs. Nor is it unusual these days for parents to provide some financial support http://www.cnbc.com/id/102496432 to their adult children, including help with those student loan payments.

Crunching the numbers might not give you the answer you want. But it will give you the information you need, to work on a brighter financial future.

POSTED: April 10, 2015 | BY: Daniel Thompson | TAGS: , , ,

Financial Literacy Month 2015 Kick Off

2014 financial literacy month 150x150 Financial Literacy Month 2015 Kick OffApril is Financial Literacy Month! Throughout the month, CEE and our affiliates will be conducting a full roster of events to shine a spotlight on the importance of economic and financial education. As part of our efforts, we will be sharing perspectives from leaders in the field right there on our blog. Look out for essays from guest bloggers throughout the month of April, including:

 

  • United States Senator Patty Murray, Senior Senator from Washington, Ranking Member on the Senate Committee on Health, Education, Labor, and Pensions
  • Congressman Steve Stivers, Ohio’s 15th District, Co-Chair of the House Financial and Economic Literacy Caucus
  • Richard Cordray, Director of the Consumer Financial Protection Bureau
  • David Wessel, Director of the Hutchins Center on Fiscal and Monetary Policy at the Brookings Institution
  • Raymond W. McDaniel, Jr., President and Chief Executive Officer, Moody’s Corporation
  • Kelli Grant, Consumer Reporter, CNBC.com
  • and more!

In addition to these to these great guest bloggers, we will also be featuring “Money Math Mondays” every week to introduce key concepts focused on financial literacy. These posts will provide fun number problems that parents can do with their kids from Bedtime Math and will link to lessons that relate to the topic on EconEdLink.

POSTED: April 1, 2015 | BY: Daniel Thompson | TAGS: , , , , , ,

Educators, Experts, Economic Leaders Convene in Dallas for 53rd Annual Financial and Economic Literacy Conference

dallas annual conference image Educators, Experts, Economic Leaders Convene in Dallas for  53rd Annual Financial and Economic Literacy Conference

Council for Economic Education to Host 500+ Attendees at Annual Conference 

DALLAS, TX (September 23, 2014) - The U.S. ranks square in the middle of the pack and far below expectations in financial literacy, according to recently released data from the OECD Programme for International Student Assessment (PISA). But fortunately, there are a growing number of educators, organizations and experts who are working to raise the bar for financial literacy education—and many of them will convene in Dallas next month for the 53rd Annual Financial and Economic Literacy Conference. Read more…

POSTED: September 23, 2014 | BY: Daniel Thompson | TAGS: , , , , , , , , ,

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