4th QUARTER 2014 | VOL. 32 #4

Financial Counselor Versus Financial Coach: What’s the Difference Anway? 3

4

Research & Training Symposium:

Busting Myths about College Costs and Student Debt Research & Training Symposium:

Financial Well-Being

By Mary Bell Carlson, Ph.D. The latest buzz in the financial world is the

There are many types of services that

concept of a financial coach. This is an

a financial counselor can provide to

emerging field which has yet to prove itself

meet a variety of complex client issues,

in academic rigor and outcomes-based

such as goal setting, budgeting, money

research. With the news around financial

management, credit issues, debt

5 Research & Training Symposium: A New Chapter in Financial Education

coaching, the question remains: what is

management and consolidation, bankruptcy

6 Research & Training Symposium: Generational Issues in Financial Thinking 10 Starting a Financial Counseling Business 11 Are You LinkedIn? 13 Book Review: Spousonomics 14 AFCPE News

the difference between financial counseling

and foreclosure. Financial counselors are

and coaching anyway? Well, it seems the

also qualified to review basic employee

answer is as unique as the individuals who

benefit packages and help a client set up a

provide the services, but there are a few

basic financial plan for their future.

characteristics that are distinct. This article is intended to help set out the definitions

Financial counseling is often only thought of

of each practice along with the similarities

as helping with remedial issues, but more

and differences between the two.

often than not, financial counselors can assist with pro-active financial decisions,

Financial Counseling

such as understanding your retirement plan

Financial counseling is a collaborative effort

or basic investment terminology. Financial

between the counselor and their client to

counselors do not provide investment

help the client identify goals and potential

advice, or recommend one investment over

solutions to financial problems. Financial

another or sell products

counselors can also help clients improve communication about money and give

Often financial counseling is a short-term,

them appropriate coping skills or make

solution-focused approach that allows clients

recommendations to help them relieve

to take control of their financial lives and

the severity of financial issues. Financial

not become dependent on the counselor

counseling can help the client move

for ongoing maintenance. In contrast, a

along the spectrum of increasing financial

financial coach can have more of a long-

knowledge, promoting financial behavior

term approach to continue to encourage

change, and improving financial anxiety

the client over a longer period of time.

and wellness.

Continued on page 12

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4th QUARTER 2014

President’s Message

2014 Board of Directors Past President Rebecca Travnichek, Ph.D., AFC® University of Missouri Extension Savannah, MO Email: TravnichekR@ missouri.edu President Barry Wilkinson, AFC® United States Air Force Bellevue, NE Email: Barry.l.Wilkinson@ offutt.af.mil President-Elect Michael Gutter, Ph.D. University of Florida Gainesville, FL Email: [email protected] Secretary Kelli Jo Sauvé, AFC® Belvoir Federal Credit Union Washington, D.C. Email: Anthon@belvoir fcu.org Treasurer Jinhee Kim, Ph.D. University of Maryland Extension College Park, MD Email: [email protected]

Maryann Barry, AFC Airmen and Family Readiness Center McConnell AFB, KS Email: maryann.barry@ us.af.mil

®

Irene Leech, Ph.D. Virginia Tech Blacksburg, VA Email: [email protected] Dora Mays, Ph.D. MacDill Air Force Base Tampa, FL Email: [email protected]

By Barry Wilkinson, AFC® 2014 AFCPE President

With just one month left, I hope you are

and opportunities in the personal financial

planning to join us in Bellevue, Washington

field that could help each and every one of

for the 2014 AFCPE Annual Research and

us be more successful.

Training Symposium. Our hotel host this

 

year, the Hyatt Regency Bellevue, provides

Again, we have changed things up this year

Brenda Vaughn TG, Athens, GA Email: Brenda.Vaughn319 Brenda.Vaughn@ tgslc.org @gmail.com

us not only an inviting inside environment

by extending our opening session to allow

with many amenities but also access to

for small group work in constituencies.

unique shops and

We hope to gain

Robert Westrick TG Austin, TX TG, Email: Robert.Westrick@ tgslc.org. tgslc.org

restaurants in the

some insight into

Michael Wood, AFC Army Installation and Management Command San Antonio, TX Email: michael.a.wood@ us.army.mil

Members-at-Large Jerry Buchko, Buchko MA, AFC® Private Practice St. Paul, MN Email: jerry.buchko@ gmail.com

®

quaint downtown area just steps away.   First and foremost, I want to thank all who have worked diligently this year in the planning of AFCPE’s 31st Symposium. As AFCPE president, it is a great relief to have a fantastic staff, led by Executive Director, Rebecca

Editor: Jill Anne Ladouceur Email: [email protected] Technical Editor/Proof Editor/Proofreader: Reader: Barbara O’Neill, Ph.D., CFP®, Ph.D., CFP®, AFC®, CHC® Email: [email protected] Deadlines for The Standard are as follows: 1st Quarter—November 15 2nd Quarter—February 15 3rd Quarter—May 15 4th Quarter—August 15 The Standard (ISSN-1096). Published quarterly. Association for Financial Counseling and Planning Education 1940 Duke Street, Suite 200 Alexandria, VA 22314 Phone: (703) 684-4484 Fax: (703) 684-4485

www.afcpe.org 2

Wiggins, working tirelessly to make every detail seamless for attendees. The

I love this time of year when I get the opportunity to refresh and reenergize myself so that I am better armed to help my customers.

Symposium Task

the specific needs and desires of our members as it applies to those particular constituencies. Afterwards, we have fun networking opportunities planned for you while you discover and enjoy the local venues and relax from the day.   Thursday is packed with great learning opportunities! We’ll take action first thing with the Annual Business Meeting. We

Force has created a

are excited to share

truly substantive agenda of sessions so

some of the things that we have been

that you can take what you learn back to

working on this past year and also changes

your own communities.

to come. Following the meeting features

 

“How Literacy and Interventions Effect

This year we will start off with the first

Financial Behavior,” presented by Billy J.

general session, “Building Your Career

Hensley, Ph.D, NEFE and many, many more

in Personal Finance.” Dr. Mary Bell has

breakouts throughout the day.

brought together a diverse group of

 

members to define various career paths

Continued on page 7

2014 Symposium Research & Training Sypmosium:

Busting Myths about College Costs and Student Debt By Mark Huelsman, Senior Policy Analyst, Demos

AFCPE Research & Training

It’s no secret that

over the past 30 years. But despite more

for students to invest in themselves, and

Symposium Session

for some time now

and more families feeling the squeeze of

that the amount of debt will be more than

student loans have

student debt, there are some fundamental

recouped by the higher income a college

dwarfed all but

myths about college costs and the debt

degree brings.

mortgages in the

that results from it. For some, this is absolutely true. But for

amount of debt on

Myth #1: College Costs Are Rising for No Apparent Reason

others, student loans are a particularly

sheets. It’s also no secret that student

The massive increase in tuition and fees

and private loans are nearly impossible to

loan debt is the

has occurred at all types of institutions—

discharge in bankruptcy, and there’s no

fastest growing form

public 2- and 4-year schools, private

ability to refinance federal loans, meaning

of debt—growing

schools, and for-profits—and the reasons

many borrowers are stuck with artificially

from a little over

vary by institution. But for public colleges

high interest rates. But more importantly,

$250 billion a decade

and universities—which educate around

student loan delinquencies and defaults

ago to $1.2 trillion

75 percent of all students in our higher

continue to rise. For students just out of

today. Around 20

education system—there is a direct line

school, upwards of 15 percent of their

years ago, a student

Americans’ balance

Hear more from Mark Huelsman at the AFCPE Research and Training Symposium to be held November 19–21, 2014, in Bellevue, Washington.

vicious form of debt. For one, both federal

between the higher costs facing students

federal loans are in default within three

had a less than one in two chance of

and the declining commitment that states

years. Student loan delinquencies have also

taking on debt if he or she wanted to

have made toward funding college. State

continued to rise after the recession, even

graduate. Now, almost 70 percent of

appropriations per student, which is the

as delinquencies in every other form of debt

graduates will have borrowed in order

primary source of funding for state colleges,

have declined since 2009.

to get a four-year degree, at an average

have dropped by almost a third over the

of around $30,000. With unemployment

past 25 years. And while disinvestment has

But when is student debt really not “good

remaining high, and middle-class wages

been a long-term process, 49 out of 50

debt?” When students don’t graduate—and

stagnating for decades, many are worried

states (all but oil and gas-rich North Dakota)

over 40 percent of students fail to get a

that student loans are both a drag on our

are spending less than they did before the

degree in 6 years—and when their degrees

current economy and preventing an entire

Great Recession.

don’t provide value. The latter is particularly a problem at for-profit schools, which

generation of Americans from preparing This, obviously, has meant that schools turn

educate around 10 percent of students but

to tuition to make up for the loss in funding.

are responsible for nearly half of all student

There are many reasons for the overall

The trend from higher education as a public

loan defaults.

increase in student debt—there are

good to a private investment has been

simply more students going to college, for

swift: 25 years ago, tuition covered about a

one—but the most noticeable cause is the

quarter of what colleges spent on educating

Myth #3: Undergraduate Student Debt Is Pretty Equally Distributed

explosion in tuition and fees across the

students; 10 years ago, it covered a third.

Like many other areas of our economy,

higher education spectrum. Indeed, the

Today, it covers nearly half (47.5 percent).

student debt is a particularly onerous

for their financial future.

burden on low-income students and

cost of college at public four-year schools

minorities. For example, our research at

20 years, and by 129 percent over the past

Myth #2: Student Debt Is Always “Good Debt”

30 years, even after adjusting for inflation.

There’s a general feeling among families—

schools—84 percent of low-income

To put this in perspective, middle-class

and policymakers—that student loan

income has increased by only 16 percent

debt is “good,” in that it represents a way

has increased by 83 percent over the past

Demos has shown that—just at public

Continued on page 15

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2014 Symposium

4th QUARTER 2014

Research & Training Sypmosium:

Financial Well-Being—What Is It and How Do We Achieve It? By Anita I. Drever, Ph.D., Director of Applied Research, Corporation for Enterprise Development

AFCPE Research & Training

Financial well-being—

During the presentation, the CFPB and

discuss the attitudes that mediate the

Symposium Session

what is it and how do

CFED will highlight findings that are likely

financial knowledge and behavior that drive

we achieve it? This is

to be of particular interest to financial

financial well-being, shedding light on the

the research question

counselors and planners. They will share

reasons why people may fail to act on their

at the heart of the

with the audience the definition of financial

financial knowledge—neglecting to save

Consumer Financial

well-being that emerged from the consumer

and manage their money as they know they

Protection Bureau’s

interviews. This definition is currently

should. For example, the CFPB and CFED

(CFPB) Financial

being used to inform the development

will talk about how financial self-efficacy—

Well-being Project.

of a psychometrically validated survey

belief in one’s ability to understand financial

The CFPB’s Financial

instrument that may be used to assess the

matters and accomplish financial goals—

Hear from Genevieve Melford of the CFPB at the AFCPE Research and Training Symposium to be held November 19–21, 2014, in Bellevue, Washington.

Well-being Project

is critical to the translation of financial

team—which includes

knowledge into financial behavior.

the Corporation for Enterprise Development (CFED), the Center for Financial Security

at the University of Wisconsin, the Urban Institute, and Vector Psychometric Group—is undertaking extensive research in an effort to gain new insights into these issues. To date, this work has involved nearly 90 in-depth qualitative interviews with practitioners and

Being ‘future oriented’ undergirds many behaviors that contribute to financial well being.

consumers from around the country and extensive review of several literatures.

Some other themes that will be highlighted during the presentation include how being ‘future oriented’ undergirds many of the behaviors that contribute to financial well-being such as financial goal-setting, budgeting and saving. The presentation will explore the importance of being able to do “financial research” in order to get information tailored to one’s own circumstances, as well as the role that upbringing and “financial mentors” play in

financial well-being of individuals, as well as

developing financial capability.

the outcomes of different financial capability As a result of this work, the research team

strategies. The audience will be invited to

Audience members should also walk

has arrived at some ground-breaking

give their perspectives on the degree to

away from the presentation with concrete

insights into what financial well-being is

which this consumer-based definition does

strategies for incorporating some of the

and the financial knowledge, behaviors

or does not align with the objectives they try

research insights into their work arising from

and attitudes that appear to drive it. These

to achieve with their clients.

the interactive discussion.

insights will be shared at the AFCPE

 

Research and Training Symposium

In addition, the CFPB and CFED will share

Anita Drever is CFED’s Director of Applied

in November. Through an interactive

some of their findings with respect to

Research. In this capacity she leads CFED’s

presentation, the audience will be invited to

the drivers of financial well-being. Since

research team and provides research and

reflect on the degree to which the research

the reason that most clients reach out to

evaluation guidance to CFED’s program initiatives

findings resonate with their own knowledge

financial planners and counselors is to

and external partners. Dr. Drever also directs

and experience, and to provide insight into

improve their financial well-being, many

research and evaluation projects including the

the research’s implications for practice.

of the drivers will likely be familiar to the

Consumer Financial Protection Bureau-funded

audience. The CFPB and CFED will also

Financial Well-being Project.

4

2014 Symposium

A New Chapter in Financial Education: Effective Returns By Billy J. Hensley, Ph.D., Director of Eductation, National Endowment for Financial Education®

AFCPE Research & Training

I’ve heard many

Symposium Session

conversations, debates, claims, and disagreements on the efficacy of financial education since I came to the National Endowment for

Hear from Billy J. Hensley of NEFE at the AFCPE Research and Training Symposium to be held November 19–21, 2014, in Bellevue, Washington.

Financial Education® (NEFE®) nearly five years ago. While few people deny the need for consumer savvy in today’s world of personal finance, the debate about how to build financial literacy

in ways that lead to healthier financial behaviors continues, fueled in part by mixed results from past research and a lack of agreement and evidence about what works. To understand and inform this debate, NEFE funded a meta-analysis titled, “The

First, the amount and timing of financial

insignificant for even the largest

Effect of Financial Literacy and Financial

education matters. The impact of

interventions. One-and-done clearly is not

Education on Downstream Financial

education on behavior varies with how

the answer. It is time we begin to consider

Behaviors,” by John G. Lynch, Jr., Ph.D.,

much instruction people receive and when

ways in which financial education can take

Daniel Fernandes, Ph.D., and Richard

they get it in relation to relevant decisions

place throughout life, linking to individuals’

G. Netemeyer, Ph.D. The study sought

or behaviors. Interventions with many

upcoming financial needs.

to answer this question: What is the

hours of education have larger effects

connection between financial education,

than shorter interventions, and effects on

Second, behaviors and literacy as

financial literacy, and the choices that

behavior from all types of interventions

measured to date are weakly linked.

people make about their finances?

are larger when measured right after

Only about 0.1 percent of the variability

Researchers investigated data from

the intervention than after a delay. One

in whether people perform healthy or

201 peer-reviewed studies and used a

challenge we currently face is defining

unhealthy financial behaviors is explained

single-measure to compare the findings,

“timely” and “relevant” in our work. The

by whether or not they were given a

resulting in three key conclusions that can

data show eventual diminishing returns

financial education intervention. An effect

be utilized as a primer for future research

as time elapses; after 22 months, the

and practice.

impact on behavior became statistically

Continued on page 7

5

the

Standard

2014 Symposium

4th QUARTER 2014

Generational Issues in Financial Thinking By Mark Taylor, Ph.D.

AFCPE Research & Training

How do generations’

financial counselors and educators will be

satisfaction and retention with specific,

Symposium Session

views of money,

Boomers and Xers, while younger Generation

immediately applicable ideas for developing

debt, “financial

NeXters, born after 1986 predominate the

the most productive, positive and effective

security” and the

higher education student body, military

work setting for all workers.

need for financial

enlistment and the ranks of entry-level

planning impact their

employees. NeXters have characteristics and

These sessions promise to be informative,

spending, borrowing

expectations that present unique challenges

thought provoking and fun. More information

and saving behavior,

to those of us charged with educating and

about Dr. Taylor and his programs can be

and how do these

counseling them around financial literacy

found at www.taylorprograms.com.

ideas impact

issues, just like they pose challenge to those

financial literacy

educating them at schools and supervising

Dr. Mark Taylor is an award winning speaker

and counseling

them in the workplace and military. Their

recognized internationally as an educator, expert and

efforts?  Raised in

issues with responsibility and self-esteem,

consultant who is on the forefront of transformations

very different social

consumer expectations, use of technology

in educational practice and workplace

eras, members

and styles of interacting can impact not

management. As an authority on generational traits,

of each group, at

only their financial awareness and behavior,

as well as the developmental issues and learning

least in the United

but also our outreach, educational and

outcomes of today’s young people, he is dedicated

counseling efforts.  

to helping colleges, universities, schools and other

Hear from Dr. Mark Taylor at the AFCPE Research and Training Symposium to be held November 19–21, 2014, in Bellevue, Washington.

States, tend to have different world views, and we can expect these differences

educational programs better understand and serve

to be seen in financial behavior, literacy

While we are all members of one of these

our students and clients. His insights as an educator

and planning. Understanding the typical

groups, we can’t assume that others share

will be especially valuable to financial counselors. 

generational values, traits, preferences and

our ideas about future planning, money,

His work with organizations and companies focuses

the interactional styles of both providers

spending and savings.  Programming

on helping people understand and work more

and service recipients can improve financial

may need to be adjusted with options for

effectively with the generational groups, especially

counseling, education and literacy outreach

members of each cohort group.   This

our young people from “Generation NeXt.” 

efforts. This keynote session on November

workshop will address the generational

19 will address generational issues in financial

issues and dynamics with suggestions

Building on over 30 years of experience in

thinking, planning and literacy, along with a

for improving financial counseling and

higher education, management and the helping

follow-up session on “Managing for Success

educational programs.

professions, including as a psychotherapist,

in the Multigenerational Workplace.”

professor, and in medical, academic and student

The follow-up session, “Managing

services adminisitration, Dr. Taylor has worked

“From Layaway to Bitcoin; Generational

for Success in the Multigenerational

with over 500 organizations, businesses and

Issues in Financial Thinking, Planning and

Workplace,” is for those who want more

schools in 47 states, in Canada and Europe, and

Literacy” will introduce the major differences,

information to help them in their leadership

has made presentations at many state, regional,

besides age, between the four current

efforts. Besides financial literacy issues,

national, and international events. Publications

generational cohort groups in the United

generational groups tend to have different

include numerous book chapters, invited pieces,

States today. The older generational groups

ideas about the workplace, different

and articles in professional journals including his

tend to be dramatically different from each

communication styles, and tend to

recent articles on “Teaching Generation NeXt.” Dr.

other. They include the Traditionals born

respond to different kinds of leadership

Taylor holds graduate degrees from the University

before 1945, Baby Boomers born from

styles. This session will revisit the cohorts

of Arkansas and academic appointments at

1945 to 1965, and Xers born between

with suggestions for improving  leadership,

Arkansas State University and the University of

1966 to around 1986.  The vast majority of

workplace communication, employee

Arkansas at Little Rock Graduate School.

6

2014 Symposium New Chapter in Financial Education

research and evaluation standard and

Continued from page 5

increasing the use of fully-experimental and quasi-experimental research studies

President’s Message Continued from page 2

are steps in the right direction. size below 0.1 percent is small. Effect sizes

Friday’s breakout sessions will provide you

at 0.4 percent and above are large. So, in

While our past collective work has had

with more tools and resources to use in

the aggregate, we are at the minimal point

impact, the level of effect needed to help

your business, office, or classroom. It is

of effectiveness. The looming challenge is

consumers has yet to be achieved. Let’s

also our time to honor our colleagues for

to create opportunities to build upon those

more fully embrace a culture that values

the great things that they have done with

classes and interventions that are proven to

a continual improvement of practice

our annual awards luncheon. We will close

work. We can start by raising the minimum

and research. One way to do this is to

out the symposium with a presentation

standard for effective intervention-based

better disseminate those projects that

from Mark Huelsman on “College

instruction and more

have demonstrated

Affordability and Student Debt,” a subject

widely disseminating

the most promise.

that we all are interested in.

the strategies that have

Another is to look to

 

the greatest impact on

other fields that have

I love this time of year when I get the

shown improvement in

opportunity to renew old friendships and

participant behaviors:

make new ones, get away from the rigors

for example, career

of the job and learn the latest and greatest

and workplace

in the outside world, or just refresh and

education or school-

reenergize myself so that I return better

based changes

armed to help my customers.

that have increased

 

student scores in

During this past year, AFCPE has

domains such as

continued to change and grow. I have

math, reading, and

learned so many things as president

science.

and it truly has been a privilege to serve

behavior. The third and most gripping point is that future studies need improvement. Enhancing educational interventions is imperative, but the tools we use to evaluate impact need to be enhanced as

There is no such thing as an effective one-size-fitsall approach to financial education.

this magnificent organization. The staff,

well. With better

There is no such

Board of Directors, Task Force Chairs

measurement, the

thing as an effective

and members are exceptional people and

one-size-fits-all

have worked tirelessly this year reinforcing

effect of financial education would not be so much

approach to financial education, but we

the fact that AFCPE continues to “Set the

smaller than interventions in comparable

do have the capacity to scrutinize our

Standard.” A leader is only as effective as

domains, such as workplace instruction

current work and upgrade our efforts.

the team that supports them and I have

or career counseling. Emerging evidence

While I believe education alone is not

been honored to have been chosen as

suggests that finance-relevant traits are

the single answer to improving financial

President to lead this team. 

factors not properly accounted for in

capability, it is an essential component if

 

past investigations, such as a person’s

done well. I hope that within the next few

As we start to face 2015 Michael Gutter,

propensity to plan for the use of money or

years our community has created the best

Ph.D, University of Florida, will assume

one’s confidence in his or her ability to find

interventions within the field of school-

the duties as president. Michael brought

relevant financial information. In addition,

based and adult instruction, and that due

a wealth of knowledge to the Board and

the meta-analysis showed that different

to our combined efforts, we can identify

will be an outstanding president as he

types of studies in the literature yielded

and transcend the factors that inhibit

continues to lead AFCPE into the future.  

such disparate results—more varied than

effective financial education.

 

science would predict—that we must

I look forward to seeing you in Bellevue,

question to what extent those differences

Billy J Hensley, Ph.D. is director of education at

Washington for this year’s Annual AFCPE

stem from widely varying research designs

the National Endowment for Financial Education.

Research and Training Symposium! You

and analyses. Defining a minimum quality

He can be reached at [email protected].

won’t want to miss it.

7

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2014 Symposium

4th QUARTER 2014

Symposium Poster Hallmark Sessions

Effectiveness of Online Financial Education in

Using a Poverty Simulation to Increase Awareness

Rural States—Carrie Lei Johnson, SDSU

Disaster: A Webinar Series for Helping

and Community Support for Financial

Extension, Joel Schumacher, Montana State

Professionals—Sara Croymans, University

Empowerment—Brittany Stahl, University of

University Extension

of Minnesota Extension, Lori Hendrickson,

Florida, Michael Gutter, University of Florida,

University of Minnesota Extension, Becky

Martie Gillen, University of Florida

Financial Education: Debt and Savings Behavioral Changes—Lauren Robinson, Texas A&M

Hagen Jokela, University of Minnesota

University, Rebekka Dudensing, Texas A&M

Extension

University Nancy Granovsky, Texas A&M

Financial Educator Certificate Program—Mary Jo

Assessing Impacts of a Financial Literacy Program on Peer Educators—Pamela Chow, University of Hawaii, Stacy-ann Miyashiro,

AgriLife Extension, Joyce Cavanagh, Texas

Katras, University of Minnesota Extension

University of Hawaii Rosita Chang, University

A&M AgriLife Extension

Catherine Solheim, University of Minnesota

of Hawaii, Barbara Watanabe, University of

Veronica Deenanath, University of Minnesota

Hawaii, Dean Nushida, University of Hawaii

Identity Theft Risk Reduction Factors: Results From an Online Survey—Barbara O’Neill, Rutgers University, Jing Jian Xiao, University of Rhode Island

Dung Mao, University of Minnesota The Structure of Debt and Assets among Low

Secure, Comfortable, Shaky, and Disastrous: Examining the Current Financial Situations

Income Near-Retirees: Implications for

of College-Aged Youth—Maja Gillespie,

Financial Education—Yoon G. Lee, Utah

University of Idaho, Nancy Deringer,

of the Affordable Care Act—Taylor Lynn

State University, Loryn E. Law, Utah State

University of Idaho, Erin Chapman, University

Spangler, University of Florida, Martie Gillen,

University, Sammy Bosshardt, Utah State

of Idaho

University of Florida, Brittany Stahl, University

University, Sara Wilkinson-Lamb, Adult

of Florida

Education Instructor, Daggett

Cooperative Extension Outreach and Education

The Impact of Traditional Education and

County Jail Financial Education Designed

Simulating Money Management and Life Skills with Prison Populations—Karen Richel, University of Idaho Extension, KD Hatheway-

Financial Sophistication on Searching for

to Assist Students for Post-Secondary

Dial, University of Idaho, Joey Peutz,

Financial Information—Areerat Lertchaipitak,

Success—Jessica Kailer, Personal Money

University of Idaho Extension, C. Brian

Department of Personal Financial Planning,

Management Center, Ann House, Personal

Cleveley, University of Idaho Virtual Tech &

Texas Tech University Financial Counseling: A Synthesis of Research

Money Management Center Web Based Financial Challenge and the use of

Design, Lori Wahl, University of Idaho What’s in a Name? Exploring and Defining

Papers Published in Journal of Financial

Email Marketing Service—Sailesh Acharya,

Financial Delivery Methods—Mary Jo Katras,

Counseling and Planning—Jing Jian Xiao,

University of Florida, Barbara O’Neill, Rutgers

University of Minnesota Extension

University of Rhode Island, Frances C.

University, Elaine A. Courtney, University of

Lawrence, Louisiana State University Alyssa

Florida, Michael Gutter, University of Florida

Francis, University of Rhode Island Money Scripts of Students in a Personal Financial

Intergeneratonal Land Transfer Collaborative Education—Becky Hagen Jokela, University

Planning Class—Ryan H. Law, University of

of Minnesota Extension, Cindy Petersen,

Missouri

University of Minnesota Extension

From Financial Literacy to Financial Health For Life—Lucy M Delgadillo, Utah State University PowerPay Debt Elimination Tool Goes Mobile­—

8

Helping Families Recover Financially After a

Exploring Cultural Meanings of Financial Management: The American Indian Case— Jennifer Garbow, University of Minnesota

Demystifying Student Loans: Helping Minority Students Better Understand and Utilize Student Loans—La Tasha Shevlin, University of Minnesota Extension Coordinating a Volunteer Financial Mentoring Program: Training, Implementation, and Impact—Taylor Lynn Spangler, University of Florida, Michael Gutter, University of Florida The Impact of Financial Planning on Portfolio

Margie Memmott, Utah State University

Extension, Rebecca Hagen Jokela, University

Performance—Shan Lei, University of

Dean Miner, Utah State University, Stacey

of Minnesota Extension, Sharon Danes,

Missouri-Columbia, Rui Yao, University of

MacArthur, Utah State University

University of Minnesota Extension

Missouri-Columbia

2014 Symposium

Symposium Breakout Sessions Managing for Success in the Multigenerational Workplace—Dr. Mark Taylor Hands on Banking—Gladys Everts, Wells Fargo Take Action in Your Community—Brent Nesier, NEFE, Billy Hensley, NEFE, Susan Sharkey, NEFE How Are You Doing? 25 Financial Wellness Metrics—Barbara M. O’Neill, Rutgers University Racial Financial Disadvantage—Schane D. Coker, Purdue University Results of Financial Education Boot Camp: Building Teachers’ Capacity to Teach

Extension, Brenda Procter, University of Missouri Extension, Trish Savage, University

Implications for Educators—Travis Parry, Utah

of Missouri Extension

State University, Lucy Delgadillo, Utah State

Youth Credit Score Education—Luke Erickson, University of Idaho Extension, Lyle Hansen, University of Idaho Extension Removing the Silos: The Creation of Student

University of Missouri Extension, Shatomi N.

The Business Model of Scalable and

J. Lamers, University of Missouri Extension,

Victor Posner, The Capital Good Fund

Meridith J. Berry, University of Missouri

Can Counselors and Educators Learn?— Alena C. Johnson, Utah State University,

Videos—Lori Hendrickson, M.Ed, University of Minnesota Extension, Sara Croymans, University of Minnesota Extension, Lori Scharmer, North Dakota State University

Luster, University of Missouri Extension, Nellie

Transformational Financial Coaching—Andrew

Extension System/Auburn University

of North Texas

Cake—Rebecca J. Travnichek, University of Missouri Extension, Vivian J. Mason,

Teachers—Ruth Brock, Alabama Cooperative

Financial Recovery After Disaster: On Demand

Counseling: Recipe for a Taxpayer Layer

Student & Institutional Success-TG

Financial Coaching and Behavior Change: What

AFCPE Members—Paul F. Goebel, University

University Free Tax Preparation, Financial Education &

Financial Education—Sharon Cabeen,

Personal Finance, Pilot Program for Alabama

Student Loan Exit Counseling: A Refresher For

Financial Skills Among Married and Single Adults:

Extension, Andrew Mark Zumwalt, University of Missouri Extenison Kinesthetic Learning Activities That Work—Cindy

Lucy Delgadillo, Utah State University, Luke

R. Stokes, Utah State University, Lucas

Erickson, University of Idaho Extension, Cindy

Martin, Utah State University, Alena C.

Stokes, Utah State University

Johnson, Utah State Universitiy, Ellie Hansen,

Finance Facts Fun—Madeleine Greene, AFCPE Get More People to Come. Get More People to Come Back!—Syble Solomon, LifeWise Strategies, LLC Coping with Financial Stress in College—Sonya

Utah State University Financial Education and Financial Capability—Jing Jian Xiao, University of Rhode Island, Barbara O’Neill, Rutgers Cooperative Extension Breaking Barriers to Improve Financial Capability

Extension Service, Patricia Olson, University

Britt, Kansas State University, Melanie

with Incarcerated Audiences—Carol Bralich,

of Minnesota Extension

Mendiola, Kansas State University, Gregory

University of Wisconsin Extension, Missy

Creating a Comprehensive Assessment Plan for Financial Counseling and Education—Danielle Champagne, University of North Texas What Determines Households’ Retirement

Schink, Kansas State University, Racquel Tibbetts, Kansas State University, Scott Jones, Kansas State University Motivating College Students to Get Financial

Savings After the Great Recession?—Michael

Literate—Sandra J. Huston, Texas Tech

Cheung, Ohio State University

University

The Changing Landscape of Student Loans— Ryan H. Law, University of Missouri The Role of Medical Debt in Consumer Bankruptcy—Levi N. Pace, University of Utah, Jean M. Lown, Utah State University

Utilizing Technology to Maximize Financial Education Impact—Phil Schuman, Indiana University, Morgan McMillan, Indiana University How to Organize, Market, Deliver, Evaluate, and

Bablick, University of Wisconsin Extension 2014 Free Financial Apps Recap for Android Phones—Todd R. Christensen, Debt Reduction Services Inc. Retirement Saving and the Use of Financial Software—Qianwen (Rachel) Bi, Texas Tech University, Sandra J. Huston, Texas Tech University, Michael S. Finke, Texas Tech University Can Financial Literacy Programs Make a

Archive Financial Education Twitter Chats—

Difference?—Lyssa L. Thaden, American

Boots to Backyards: A Mentor Program Toward

Barbara M. O’Neill, Rutgers University,

Student Assistance, Jacquie Carroll,

Financial Stability and Successful Home

Elizabeth Kiss, Kansas State University,

Ownership—Joyce Cohen, Purple Heart

Susan Shockey, NIFA-USDA, Erik Anderson,

Homes USA Educating Consumers and Businesses on the

University of Idaho Together: A Couples’ Program to Improve

ACA: Lessons Learned from Implementing a

Communication, Coping and Financial

Statewide ACA Education Initiative—Graham

Management Skills—Mariana Falconier,

McCaulley, University of Missouri Extension,

University of Maryland, Jinhee Kim, University

Janet LaFon, University of Missouri Extension,

of Maryland

Nellie Lamers, University of Missouri

American Student Assistance Personal Finance Teaching Efficacy: A Measurement—Kurt A. Schindler, Banco Popular de Puerto Rico, Kristy L. Archuleta, Kansas State University

9

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Standard

4th QUARTER 2014

Starting a Financial Counseling Business By Lauren Welch, AFC®, Thrive Financial Counseling, LLC I started my own financial counseling business

friends and also some prospective clients

made a poor decision then decided the

in March of 2014. While it was still fresh on

through giveaways. This helped to expand

financial professional was to blame. I

the brain, I wanted to share a few things I

awareness of my business a great deal. By

decided to create a waiver in the new

learned. As I began my search for resource

providing pro bono sessions, I found it to be

client agreement the client signs, as well

for beginning a new business, I found great

very helpful in my evaluation of what worked

as verbalizing with the client the intent of

step-by-step resources from my local small

for me. I was able to tweak each piece from

financial counseling services.

business center and the small business

start to finish with my initial clients. I also

administration. Here are just a few things that

surveyed groups to target as my client base

Keep in mind that if you move your

were available through those resources:

to find out what might help me work with

business, depending on the legal type of

them as clients. I developed branding for

entity you have chosen, you may have

•

Legal structure

my business and created a website with my

to pay additional business licensing,

•

Business naming

goals in mind and the surveys received from

incorporation or local county fees. There

•

Business plans

potential clients.

are no military spouse benefits, discounts

•

Financing

•

Websites

or exclusions to small businesses when As a start up, I tried to keep expenses to a

connected to a Permanent Change of

mininum. I listened to free social media and

Station (PCS) move. Your state corporation

I also set up an Employee Identification

small business marketing webinars which

commission website will have the specifics.

Number (EIN) and a business bank

helped me gain more knowledge. I created

account. Check your state’s small business

a company name, logo and brand to market

Here are two additional tips for those who

department of commerce website for a

myself. But some things I found were

are thinking about developing your own

checklist on important items. I found it is

important for me to spend money on while

business from one newbie to another:

important to not rush the process in the

developing the business. I spent money on:

beginning of developing my business. As a military family we were getting ready to

1. Don’t put an address in your branding Quickbooks, along with a free class

materials. With three moves within the

move, so this was perfect timing to get the

from the local small business center

first year of business, I saved money by

ball rolling to begin my new business.

called “Quickbooks 101”

not having to reprint materials. When I

•

Business cards

arrived in the new location, I got a post

•

Website with a business email address

office box which made me feel more

When looking to learn more from other

•

financial professionals I used the AFCPE’s

through GoDaddy

website (www.AFCPE.org) to find AFCs who

•

Business licenses and fees

owned businesses in the area. I requested

•

permanent. 2. I have connected with many local

It was challenging for me to find an

organizations and groups to market my

informational interviews with the business

insurance company to provide me Errors

business. I have also found local area

owners. I also used my membership in

and Omissions Insurance (E&O) for my

vendors and networking pages, along

social media groups to ask questions of

home-based business. It is important

with military spouse groups where you

other financial professionals who were

to have insurance due to the risk

can present or be a guest speaker.

military spouses and had businesses that

financial counseling presents. Errors and

they moved from one location to another.

Omissions insures financial professionals

For more information about Thrive go to, www.

if the services did not give the result

thrivefinancialcounseling.com. Lauren Welch

Once I had the foundation for the business

the client was looking for, or if the client

can also be contacted at lauren.welch@

completed, I offered free counseling to

took the information given them and

thrivefinancialcounseling.com.

10

Are You LinkedIn? By Andi Wrenn, MA, AFC®

When I talk to people about social media,

Professional Content Posts—As with

who you have in each category. Some

many tell me they just don’t have time.

many other social media sites, you can

categories I have include Family, Friends,

Why should you use LinkedIn? Over 161

share professional content that interests

Military, Extension, Financial Professionals,

million users around the world have joined

you and the professionals that you are

FINRA Fellows, My Company, Counselors,

LinkedIn and participate in job searches,

connected with. Twitter feeds can be posted

Mediators, and Clients. My smallest

sales leads, professional content posts,

through your LinkedIn account. If you see

groups are Family and Friends. Staying

informative groups, and connecting with

content posted by one of your contacts

connected with the financial professionals

other professionals.

in your daily feed, you can comment on it

in your groups is what makes for great

and have discussions. This is a great way

networking. Send your connections

Job Searches—Companies use LinkedIn

to stay connected to what is trending in

messages to keep your connections

to post jobs. Some are posted within groups

personal finance and to the other financial

strong. Try to get together with your

specific to the field you are in. You can easily

professionals in your network.

connections when you can, or have a

search keywords to find what is posted on

conversation via phone. Just connecting

LinkedIn in your field of interest. Another

Informative Groups—The last time

via social media is not as strong as those

way that LinkedIn is used is by Human

I checked, you could be in up to 30

“real” connections.

Resources (HR) professionals, headhunters,

groups on LinkedIn. You can set your

and recruiters to find candidates with the

group preferences to send you an email

There are two other things you can do

skills that they desire in a qualified candidate.

to update you on what is going on in

to help build stronger bonds with your

Your home page has a section that shows

the group(s) that you participate. Some

connections. Recommendations are one

you jobs you may be interested in.

groups are more active than others. Some

of the best things you can do to share

people join groups to share their research,

with others when you have a professional

Sales Leads—Do you want to find other

blogs, and promote their business.

connection that deserves recognition for the

businesses to reach out to so that you can

Participate in groups to have meaningful

work they do. LinkedIn also prompts you to

offer them your services? With LinkedIn,

discussions related to the topics that

endorse people for their skills and expertise,

you can search your area for contacts

interest you. Participate in discussions,

but a recommendation means a lot more.

affiliated within the company you wish to

give feedback on things posted in groups,

work for. Learn about the key roles in the

and share things you find of interest. You

I hope this helps you to understand some of

company from their profiles. Research

can find groups by searching keywords of

the aspects of LinkedIn that make it a great

the company itself to be more informed

topics that interest you.

way to be connected to other professionals

prior to making a pitch to provide financial

and to connect with possible clients and

services to them. Also use LinkedIn to

Connecting with Others—LinkedIn has

businesses. I am happy to help answer

find other professionals to gain referrals

a few ways you can connect with others

questions you have on this social media tool

is a great resource for many financial

you know. The best way is connecting

and any others. Go get connected!

professionals. You can connect with them,

to your email database. I suggest you do

learn about their business, and then when

not send a blast out to everyone you have

Andi Wrenn, MA, AFC® has been involved

you have clients in need of services, you

ever had as an email contact. Go through

in social media and online marketing since

can refer them to that professional. You

the list and send a personal message

1995. She has two Linked In groups that

may want to connect with attorneys,

to those who you know. Once you have

she manages and is an active participant in

divorce mediators, pastors, therapists,

connections, you can categorize them

other groups as well. You may contact her at

and psychologists, to name a few.

into groups so that you can easily see

[email protected].

11

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Standard

4th QUARTER 2014

Counselor Vs. Coach

differences are great as well. Financial

Continued from page 1

coaching is a solutions-focused,

Financial Coaching

While there are a variety of types of

collaborative process, led entirely by the

models used in both financial counseling

client. The coach provides support and

and coaching, one thing is certain: there

Financial coaching is defined as a personal

accountability for reaching the client’s goals.

is room for both in our profession. The

finance expert who is knowledgeable

Counseling, on the other hand, is often a

counselor focuses on “what and how”

about the same types of areas that

shorter engagement, based on problem

of behavior change while the coach

financial counselors are, but they may not

resolution and focused on

focuses on “why” the change is important.

be experts in the financial arena. Instead, the client is the expert in the relationship

Coaching is set up to complement While counseling provides technical

counseling, and coaches and counselors

and the coach helps encourage and

information and expert advice to clients,

should work together to refer clients as

promote positive financial behavior change.

a coaching relationship provides advice

various needs arise. In fact, it has been

A financial coach gets to know you

and encouragement in a process driven

suggested that the first step for a client

individually and wants to keep a continuing

by the client but not technical information.

with a financial issue should see a financial

relationship with the client to educate and

Coaching does not provide acute crisis

counselor before engaging a coach.

encourage them to keep improving. The

resolution. Financial counselors cannot

These professions are complementary yet

coaching process helps client’s performance

act as therapists, but they help develop

distinct, and when we work together, we

improvements to meet goals mutually set by

solutions for their clients. Counselors are

build the profession as a whole.

the coach and client. One of the main distinctions between

considered experts in their field, while a financial coach is not an expert per se but

While in the life or executive coaching world,

knowledgeable in the field.

a client-directed relationship is appropriate,

a financial counselor and coach is

there are situations in which a client or a

that coaching is not designed to be a

Coaches may have financial expertise or

coach with limited understanding of the

therapeutic relationship or to manage a

training, but most importantly they are

comprehensive financial lifecycle, can do

crisis. Often, financial coaches are to help

considered a coach who listens, asks

harm. That is why AFCPE and Sage Financial

clients with asset building programs and

informed questions and helps clients refine

Solutions have partnered together to offer

provide the needed encouragement and

their own goals, objectives and strategies.

standardized financial coach trainings.

support to make good financial behavior

Coaches hold their clients accountable for

changes. Coaching helps boost a client’s

their intended goals and focuses on goal

This model of financial coach training is

self-control and provide flexibility to change

setting and achieving; counseling also

rooted in core financial content of the

strategies as needed. Ultimately, coaching

focuses on goals, but they are more likely

AFC(R), allowing the professional to know

is different from counseling since it focuses

to deliver education.

when and how to apply the right technique

more on ongoing financial behavior change utilizing goal setting and monitoring.

at the right time. It provides standardization With a counselor, the goal is to strive to

for the field and fully integrates counseling

educate the client to be their own resource

and coaching skills.

Similarities

and not dependent on their advice.

Financial counseling and coaching are

Counseling can help deal with an acute

Note: A special thanks to J. Michael Collins work

complimentary yet distinct activities in

crisis or technical problems that often

at University of Wisconsin-Madison for his insight

the continuum of financial capability. A

require goals to be set and often clients face

into these two fields. For more information on

well-trained coach uses many of the same

serious financial problems that are critical

his research, please see http://fyi.uwex.edu/

skills as an effective counselor, such as

issues. Coaches, on the other hand, are

financialcoaching/what-is-coaching/.

listening, using powerful questions, and

focused on positive psychology that helps

brainstorming to support a client in the

the client focus on managing the details of

Mary Bell Carlson, Ph.D., is director at National

achievement of their goals.

their lives, which may include non-financial

Association of County Organizations based

strategies. With coaching the responsibility

in Washington, D.C. She can be reached at

Differences

for identifying solutions belongs to the client,

[email protected].

As many similarities as there are between

while in counseling the onus of solutions

financial counselors and coaches, the

remains primarily with the counselor.

12

Spousonomics: Using Economics to Master Love, Marriage and Dirty Dishes Written by Paula Szuchman and Jenny Anderson

Reviewed by Barbara O’Neill, Ph.D., CFP®, AFC®, CHC®, Rutgers University

Spousonomics: Using Economics to Master

advantage” (the ability to produce one

to couples’ decisions, and Chapter 7,

Love, Marriage, and Dirty Dishes is an

good relative to another). The marital

Asymmetric Information, which describes

interesting book that seamlessly combines

application is the time it takes spouses

the benefits of marital transparency.

information about economics and personal

to perform household tasks and time

relationships, specifically marriage. Its

saved for more pleasurable activities by

Chapter 8, Intertemporal Choice, explores

basic premise is that economic theories

managing a household effectively.

the impact of current decisions on future

and principles can be used to minimize

consequences, the behavioral finance

marital conflicts and maximize happiness.

Chapter 2, Loss Aversion, explains the

error of “hyperbolic discounting” (not

Since financial practitioners deal with both

behavioral finance principle of loss aversion

valuing things in the future as much as

financial and relationship “issues,” the book

and its application to spousal exchanges. In

having them today), and the benefits of

is a valuable professional tool as well as

Chapter 3, Supply and Demand, the authors

commitment devices (e.g., signing up for

useful for personally applicable insights that

apply a bedrock economic principle to a topic

employer retirement plan deductions).

it provides.

that couples frequently quarrel about: no, not

In Chapter 9, Bubbles, boom and bust

money, but the frequency of having sex.

cycles are introduced with the 1500s “Tulip

This 318-page book includes 10 chapters

Mania” and then applied to marriages,

that describe different aspects of

including a “Couples Confidence

marriage. Each chapter begins

Index.” The final chapter,

with a description of an economic principle with real life examples followed by its application to married couples. The chapters conclude with case studies of real couples who were interviewed by the authors, Paula Szuchman,

Spousonomics seamlessly combines information about economics and personal relationships…

Game Theory, describes how spousal strategizing can lead to happiness invoking theories such as game theory and the “Nash Equilibrium” named for the Nobel laureate profiled in the movie, A Beautiful Mind.

a Wall Street Journal editor, and Jenny Anderson, a New York

Spousonomics is an enjoyable

Times reporter. The case studies are based

Moral Hazard is the topic of Chapter 4,

read and includes stories about the

on very honest and insightful interviews

which explores the concept that people

authors’ own lives as case studies to

conducted with dozens of married couples.

behave differently when they believe there

illustrate the application of economic

Also sprinkled throughout the book are

are no consequences to their actions.

concepts. It also includes dozens of

quantitative results of the authors’ survey of

Spouses who took partners for granted,

research studies (in addition to the authors’

around 1,000 people, who answered more

didn’t pull their weight, and “let themselves

study) that are referenced with endnotes.

than 60 questions about married life, and

go” are profiled. Chapter 5, Incentives,

Besides teaching readers valuable ideas to

short biographies of various economists and

discusses the uses and misuses of

improve their marriage, the book provides

other scholars who ideas are cited.

rewards to influence behavior. The theme

a useful review of economic principles.

of cooperation between spouses continues

Financial counselors and educators might

Chapter 1, Division of Labor, discusses

in Chapter 6, Trade-Offs, which explains

find the case studies useful professionally,

the principles of “division of labor” based

and applies economic principles such as

especially those that deal with money

on specialization and “comparative

“marginal benefit” and “opportunity cost”

management and financial decisions.

13

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Standard

4th QUARTER 2014

Notes from the Executive Director By Rebecca Wiggins | AFCPE Executive Director

As I write this article, we are in the final

Barry Wilkinson, appointed Dr. Mary Bell

employers alike! Job-seekers can now

countdown to the 2014 AFCPE Annual

as the Chair. Together with her colleagues:

upload and save a résumé to our site,

Research and Training Symposium!

Ryan Law, Lucas Martin, James Bibbee,

allowing employers to access their unique

For the AFCPE staff and Board of

Thomas Duffany and Jerry Buchko, the Task

qualifications, and allowing candidates

Directors, the Annual Symposium signifies

Force has laid the important groundwork for

to receive alerts when relevant jobs are

a cornerstone and culmination of the year’s

career tracks.

posted. Likewise, employers who list open

work. It is both a reflection of the strategic

positions gain direct access to qualified

efforts we have planned and implemented,

The work of this Task Force will be seen

professionals at a lower price than most job

as well as a launching pad for future

throughout the 2014 Annual Research

boards. And with links to other relevant job

planning. We look forward to connecting

and Training Symposium. With a focus on

board networks, the Career Center offers a

with our membership and celebrating

attracting and supporting future leaders

much greater reach!

the organization’s achievements.

AFCPE is also in the process of developing an online

At the 2013 Symposium, we took a trip down memory lane, back to the founding days of 1983 through AFCPE’s

The Annual Symposium signifies a cornerstone and culmination of the year’s work.

financial counseling tool. We are working with Solutions for Progress to design a tool specifically for AFCPE professionals to use with

evolution from a volunteer

clients. Through an online

organization to the well-

platform, the tool will provide

respected professional

resources and forms that

association that it is today. Although the

of our field, the task force will roll out

both you and your clients can maintain

30th Anniversary and rich history are

AFCPE’s new mentorship program in a

during and between sessions. We believe

certainly worthy of celebration, we used that

special welcome session. There will also

the tool will be a strong asset to you and

time to set our sights on a strategic vision

be a general session along with interactive

an enhancement to your practice. We are

for our successful future.

breakout sessions focused specifically on

excited to introduce the tool at the 2014

careers. And, thanks to your generous

AFCPE Symposium, where there will be

During the symposium, we heard a lot of

donations and support, we are excited

hands-on demonstrations for you to try it

feedback about what our members and

to have many students and emerging

for yourself!

certificants need from AFCPE—specifically

professionals in attendance, many of

the need for defined career paths and career

whom are recipients of our first annual

With an incredible line up of speakers and

support. In response to your requests, we

Student Scholarship.

cutting edge information shared through

have spent much of this year focused on

research and practice, the AFCPE Annual

developing resources and information to

Along with the Career Task Force efforts,

Symposium continues to be an incredible

help support careers in personal finance.

AFCPE has been focusing on several

opportunity for professionals. We hope you

other career initiatives. This summer,

will join us, either for the first time, or once

Following the Symposium, a Career Task

we updated our online Career Center to

again, to expand your education, share your

Force was formed. AFCPE Board President,

enhance the benefits to job-seekers and

knowledge and grow in your career!

14

Congratulations New Certificants

Student Debt Continued from page 3

more) over students with two- or four-year degrees (or those who dropped out).

students (those who receive Pell Grants)

AFCPE Accredited Financial Counselor® Graduates (5/28/14 – 08/19/14)

must borrow to graduate, compared to 47

Practitioners should be well aware of

percent of their higher-income peers. And

everything in their arsenal to help struggling

Bailey, Theresa

Murray, Vonnita

this is after these students have already

borrowers and students—including various

Barbour, Leslie

Neal, Chelsea

received a grant that is supposed to defray

repayment options, but also which schools

Brantuas, Holly

Richards, Jennifer

some of the cost of college. Likewise, 83

are likely to provide the most value in terms

Diley, Melissa

Seaman, Patricia

percent of black students must borrow at

of cost and future success. But we also

Field, Nicole

Sherman, Dolores

public schools, compared to 64 percent

need to know that these forms of borrower

Hitchcock, Elliott

Teel, Monica

of white students. The numbers are even

relief will not alone lower the cost of college,

Marino, Patricia

Walen, Rebecca

starker at private and for-profit schools

or slow the increase in student debt. To

McLean, Marjorie

(where nearly all students borrow).

do so, we need to recommit to investing in higher education, and providing real tools

Myth #4: We Have Lots of Ways to Help Struggling Borrowers

and options for those who have taken on

AFCPE Certified Housing Counselor

debt to do so.

Graduate (5/28/14 – 08/19/14)

for current borrowers. These include the

Mark Huelsman joined Demos in 2014 and

Walsh, James

creation and promotion of “income-based

serves as a Senior Policy Analyst. His research at

repayment” (IBR) plans such as Pay As You

Demos focuses primarily on college affordability,

Earn, as well as other options for struggling

student debt, financial aid, and state investment

borrowers like deferment and forbearance.

in higher education. Prior to joining Demos, Mark

The trouble is, while all of these options

worked as a research analyst at the Institute for

provide quick relief for a borrower whose

Higher Education Policy, where he worked on

income is well below his or her ability to

several research projects and authored several

make a monthly loan payment, they all

publications on federal financial aid, student loan

end up increasing the total amount that a

debt and repayment, institutional accountability,

borrower will pay over the life of the loan

and the need for better higher education data.

(the exception being if someone has a low

He has also served as a policy analyst at the New

enough income for 20 years to be eligible

America Foundation, where he focused on issues

for loan forgiveness). There’s also evidence

related to asset building and college savings for

that both the forgiveness provisions at

low-income households. A native of Cincinnati,

Anita Drever, Ph.D.

the end of the rainbow income-based

Ohio, Mark holds a B.A. in Government and

Billy J. Hensley, Ph.D.

repayment, and Public Service Loan

Politics from the University of Maryland, College

Forgiveness, primarily help those with

Park and an Ed.M. in International Education

graduate degrees (who typically earn

Policy from Harvard University.

The Federal government is offering solutions

Thank you to this issue’s contributors: Mary Bell Carlson, Ph.D.

Mark Huelsman Barbara O’Neill, Ph.D., CFP®, AFC®, CHC®

New Webinar Series National Disability Institute (NDI), the first national non-profit dedicated exclusively to building a better economic future for people with disabilities, and AFCPE® created a new, three-part webinar series designed to equip financial counselors with the needed tools to address the unique financial challenges of people with disabilities and instill lifelong financial best practices. Watch for more information via email.

Mark Taylor, Ph.D. Lauren Welch, AFC Rebecca Wiggins Barry Wilkinson, AFC® Lauren Welch, AFC® Andi Wrenn, MA, AFC®

15

Presorted Std. US Postage PAID Columbus Ohio Permit No 7536

Association for Financial Counseling and Planning Education 1940 Duke Street, Suite 200 Alexandria, VA 22314

Mark Your Calendar for the 2014 Research and Training Symposium

We believe… Everyone has financial desires that affect their lives every day. Better financial decisions lead to a better quality of life. People can make better decisions when they are supported by a trained professional. Academics, research, and practical experience inform professional financial counselors and educators. Setting the standard for performance and a forum for learning will provide a consistently higher level of service.

November 19–21, 2014 Hyatt Regency Bellevue, Bellevue, Washington Registration Is Open and Early bird pricing is available until October 1st. www.afcpe.org/conference/registration/

Purpose… To advance the profession of Personal Finance by promoting and supporting the field of personal financial counseling and education.