Mortgage Bankers Dallas August 7, 2014

Report
Building the Perfect Homebuyer
Dallas Mortgage Bankers Association
Laura Ewing, President
501(c)3 Texas wide nonprofit
tcee@economicstexas.org
www.economicstexas.org * www.smartertexas.org
Family Financial Literacy Night Hosted by
Austin Habitat for Humanity and TCEE
Texas
st
41
In Financial Security
• 27.7 percent of households are asset poor
Corporation for Enterprise Development (CFED).
• Excluding important assets such as a vehicle or home, the
(liquid) asset poverty rate increases to 50.6 percent of Texas
residents.
• The 2012 Assets & Opportunity Scorecard ranked Texas 41st in
the country overall for how their residents fare in terms of
achieving financial security across 52 measures in five
different issue areas. Many of Texas residents have jobs, but they lack adequate
savings or other assets to cover expenses for three months if they lose a steady income.
Asset poverty, the Scorecard™s signature measure, is a conservative estimate of financial
security since it counts all assets, including those ”such as a home” that would need to be
liquidated to be used for day-to-day needs. A more realistic measure of the resources
available to families is liquid asset poverty, which excludes assets such as a home or car that
are not easily converted to cash.
Don Baylor, CPPP 2012
Statistics Updated April 2014
• U.S. household consumer debt profile:
– Average credit card debt: $15,191
– Average mortgage debt: $154,365
– Average student loan debt: $33,607
• In total, American consumers owe:
– $11.68
trillion in debt
• An increase of 3.7% from last year
– $854.2 billion in credit card debt
– $8.15 trillion in mortgages
– $1,115.3 billion in student loans
• An increase of 13.9% from last year
Why is there a need to teach personal financial literacy?
–
–
–
–
The recent recession
The slow recovery
2/3 of all college students graduate with debt
60% of all Texas students are on free and reduced lunch
How do we develop a culture of wise spending and
saving?
HOW DO WE BUILD THE PERFECT HOMEBUYER?
Texas
Legislation For
A Smarter
Texas
Texas Council on Economic
Education
1801 Allen Parkway
Houston, TX 77019
www.economicstexas.org
www.smartertexas.org
Texas One of Only 22 States…
 To
require that seniors pass Economics for
graduation.
 The
senior level course is known as
Economics With Emphasis on the
Free Enterprise System and Its Benefits
Economics With Emphasis on the
Free Enterprise System and Its
Benefits
 Personal
Financial Literacy (PFL)
Standards/Student Expectations added to
Texas Essential Knowledge and Skills
(TEKS) in 2010
 How
2012
To Pay For College Added to TEKS in
Oh Where Are Those
Standards?
 Smartertexas.org
standards
 Tea.state.tx.us
and then TEKS
and then click on
and click on curriculum
And the Economics TEKS
say about housing:
(20) Personal financial literacy. The student
understands how to provide for basic needs
while living within a budget. The student is
expected to:
 (A) evaluate the costs and benefits of renting
a home;
 (B) evaluate the costs and benefits of buying
a home; and
 (C) assess the financial aspects of making
the transition from renting to home ownership.
Saving For College
The Why, When, and How
 Published
by RAISE Texas
 Parent and Student Guides Written by TCEE
 Download Book And Guides at
http://economicstexas.org/?page_id=5703
Resources for College






http://raisetexas.org/resources/collegesaving
sresources/ Saving for College
http://library.cppp.org/files/2/2012_05_JO_Co
st_Of_College.pdf
http://www.tgslc.org/tfaic/
http://www.aie.org/
collegeforalltexans.org
http://library.cppp.org/research.php?aid=119
9 The Cost of College: How Texas Students
and Families Are Financing College Education
SB 290: PFL In K-8 Math
 Will
take effect 2014-2015
 Testing begins 2015
 Texas Council on Economic Education,
Opportunity Texas, Raise Texas, Texas
Credit Union Foundation and others
played a key role in the writing of the
standards
2nd Grade Decision Making on
Responsible and Irresponsible
Borrowing



I need a pencil. I promise I’ll return it to you.
Last time I borrowed your pencil I returned it in
about a week. It was chewed on and too
small to sharpen anymore.
I only have a quarter and want to buy ice
cream with my lunch. I’ve borrowed small
amounts of money before and have always
paid it back.
I need $1.00 to buy a treat. I’ve never
borrowed money from you before. I don’t get
an allowance and I don’t do any chores
around the house.
How?

TCEE Lessons Are Online and Free to All
 Woodforest Bank Sponsoring Grades 2-3
 TCUF Sponsoring Grades 4-6
 PlainsCapital Bank Sponsoring Grades 7-8
 PlainsCapital Bank Sponsoring After School
Lessons
 Cornerstone Credit Union Foundation 1 K & 1 First
 Seeking Sponsors for Grades K to 1

Never Too Young: Personal Finance for After
School Learners from Council for Economic
Education
Lesson Downloads
Statistics on downloaded TCEE lessons for
grades 2-8 from late February 2014 through
July 23, 2014
Grand totals:
 Attended TCEE Training: 929
 Teachers who will use downloaded
materials: 55,115
 Students who will be reached with lessons:
592,725
--
Kindergarten & First Grade
Grades K-1 Incomplete
 Kindergarten:
 First
The Money Making Farm
Grade: What Do You Do At The Zoo?
Will be completed with additional funding.
HB 2662 High School PFL
 Introduced
by Representative
Marsha Farney
 Is a stand alone one semester course
 Not required for graduation
 Districts required to offer it
What are the House Bill 5
Endorsements for Graduation?
 (1)
STEM
 (2) Business and Industry
 (3) Public Services
 (4) Arts and Humanities
 (5) Multidisciplinary
Career and High School Math courses
Offer financial literacy standards
What Role Does Texas Council on Economic Education Play?
The Texas Council on Economic Education (TCEE)
Teaches Teachers
Who Teach Students
Who Are the Future of Texas
--John Anderson, TCEE Board Member
Jean Walker, MBA
West TX A&M
Steve Cobb, Ph.D.
University North TX
Cheryl McGaughey,
MBA, Angelo State U
Susan Doty, MBA
UT Tyler
Alberto Davila, Ph.D.
UT Pan Am
Nancy Shepherd,
Ph.D.
Stephen F. Austin
State University
Catherine Rinhart
Program Director
Cindy Manzano
Valerie Johse
Smarter Texas
Directors
Debbie Mackey
Stock Market Game™
Director
Laura Ewing
TCEE President
TCEE Center Directors and Staff Provide
Training All Over The Great State of Texas In
After School Programs, Personal Financial
Literacy (PFL), Social Studies Economics
Strand, Math PFL,
Career/CTE, Entrepreneurship, Economics,
Paying For College
Cherry Frye
Office Manager
Allen Reding
Web Manager
To Learn More About Personal
Financial Literacy Materials and
Lessons at the CEE Conference
Staff Development
Annually: 2000 Educators and 2.3 million students
Playful Economics
• Economics
• Entrepreneurship
• Career/Business
• Financial Literacy
Three Student Programs
Directly Reach 22,000 students annually
Stock Market Game™
Economics Challenge
Personal Financial Literacy (PFL) Challenge
10 week simulation
Research indicates improved math
scores on standardized tests
Grades 4 through 12
Teams of 2 to 5 students
Virtual $100,000 to invest
20,000 Texas students participate
annually
Legislative & Capitol Hill
Challenges
$15/team fees, help desk
Students visit Dallas for the first time.
and campus awards
Greenhill School parents thank TCEE.
$20 includes teacher training
$25 includes dinner awards
InvestWrite
Open to students participating in the
Stock Market Game™
Elementary, Middle and High School Competition
Cash prizes from Texas
Greenhill High School National Winner visited Wall Street
First and 9th Place National Winners From Texas in 2014
Economics Challenge
• Fall and Spring Online
Testing In Micro, Macro
and International
Economics
• Bellaire HS placed FIRST
in the Nation in the
Economics Challenge
• Funding provided by
State Farm
Personal Financial Literacy
Challenge
•
Teams of 4 compete in
online test for state finals
•
Winning state team and
teacher win cash
•
First place state team
attends regional and
national finals at St. Louis
Federal Reserve Bank
•
Funded by State Farm
•
Bellaire HS Placed 5th in
Nation in 2014
Smarter Texans Save
Children’s Savings Accounts
• Opportunity Texas and
TCEE Worked with
Amarillo ISD in Major
Treasury Department
Research on Youth
Savings.
• Teacher training and
financial literacy lessons
important
• Opportunity Texas
Sponsors Texas Pilots on
Children’s Savings
Accounts in 2014-2016.
TCEE Will Provide PFL
Staff Development and
Lessons. Tentative plan is
to work with Dallas ISD.
Why encourage young people to save?
Elliott and Beverly in the paper The Role of Savings and Wealth in Reducing
Wilt Between Expectations And College Attendance (2010) state that -
•when a savings account is set up for students,
they are 4 times more likely to go to college
and/or complete post high school training.
•if students have a savings account in their name,
they are 7 times more likely to go to college.
Why Connect Financial Education and
Savings Accounts?
• Academic achievement – educational savings
account ownership is associated with higher
scores on math achievement tests
• Improved college aspirations – children with
< $500 in savings for college are 3X more likely to
attend and 4X more likely to graduate from
college
• Financial health - students with a savings account
7 years later were 2X more likely to have a
savings account and 4X more likely to own stocks
A FINANCIAL LITERACY PROGRAM SPONSORED BY
Helping young people learn to think, choose, and make better
economic and financial choices in a global economy
www.economicstexas.org
www.smartertexas.org
501(c)3 Texas wide nonprofit
1801 Allen Parkway, Houston, TX 77019
tcee@economicstexas.org
www.economicstexas.org * www.smartertexas.org
P: 713.655.1650
Presenter: Laura Ewing/President
The TCEE programs are made possible by the following TCEE partners.
EnviroChem
Services, Inc.
John Anderson
Trout
Foundation
copyDR.
Less B. Fox
RBC Wealth Management
Board of Directors
James Cooper - Chairperson
James C. Cooper, Inc.
Marcus McCue
Guardian Mortgage Co., Inc.
Joe Adams - Treasurer
Texas - Omaha Group LLC
Dawn Moeder
Lane Gorman Trubitt, L.L.P.
Anthony Daddino
Meadows, Collier, Reed, Cousins,
Crouch & Ungerman, L.L.P.
Andrew DeLauro
Citibank
Thomas Fleissner
Houston Information Team, L.LC.
Donna Normandin
Frost Bank
Ed Segner
Retired
Wayne Goettsche
WKG Consulting
Robert Smith
Texas A&M University at
Galveston
John Ivie
Basdin & Ivie P.C.
Pete Villarreal
PlainsCapital Bank
Laura Jaramillo
Wells Fargo
Director Emeritus:
John Anderson
Anderson Investments
Sherry Kiser
Federal Reserve Bank of Dallas
Director Emeritus:
Carol Trout
Trout Foundation
1801 Allen Parkway,
Houston, TX 77019
P: 713.655.1650
F: 713.655.1655
Laura@economicstexas.org
Catherine@economicstexas.org
Cindy@economicstexas.org
Valerie@economicstexas.org
smg@economicstexas.org
Cherry@economicstexas.org
allen@economicstexas.org
www.economicstexas.org****WWW.smartertexas.org
Helping young people learn to think, choose and make better economic decisions.
And Your Question IS???
Ask Laura Ewing, Marcus McCue
and/or Aaron Gladstone

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