Money $mart: bringing financial literacy to California classrooms.

now later or never?

CPAs understand better than most the financial illiteracy epidemic. In fact, it would be challenging to find a California CPA who was surprised that:

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* Average credit card debt among young adults (age 25-34) increased by 55 percent in the past decade, to $4,088, and average credit card debt among 18- to 24-year-olds increased 104 percent;

* The 2006 Retirement Confidence Survey found that a large majority of workers who have not put money aside for retirement have little in savings at all;

* The savings rate for American consumers continues to run into negative numbers;

* Almost 24 percent of undergraduate students reported using credit cards for tuition; or

* In 2006, 1.3 billion credit card holding Americans claimed bankruptcy.

For these reasons, among many others, CalCPA and CalCPA Institute have delved headfirst into tackling financial illiteracy and delivering personal finance education.

While the epidemic is far from eradicated, as CalCPA's financial literacy initiative approaches its four-year anniversary, CalCPA member volunteers have reached more than 20,000 Californians--including 10,000 in 2006. Venues for financial literacy outreach and education have ranged from senior centers and legislator townhalls, to the streets of Los Angeles and the Sacramento Convention Center.

By far, the most effective place to spread the word is California's high school classrooms. In 2006, CalCPA member volunteers presented personal finance lessons to almost 7,000 students. "CPAs who volunteer in schools provide an incredibly valuable service," says John McWilliams, CalCPA Financial Literacy Committee chair and accounting professor at San Francisco State University. "Helping young people prepare to take care of themselves and their families is a public service with the potential for significant primary and secondary benefit."

OUT OF THE OFFICE AND INTO THE CLASSROOM

It's the CPAs who volunteer their precious time that make the financial literacy program a success--and national model. As of February, CalCPA had more than 800 volunteer members.

"The hard work of members and staff of CalCPA has resulted in incredible progress in connection with high school students," says McWilliams.

Each volunteer is trained prior to any high school visit in three areas of personal finance--budgeting, credit and saving and investing. In addition to one-on-one training, CalCPA provides semi-monthly training for all volunteers. The training creates a forum for volunteers to share experiences and ideas from their visits. Volunteers are provided with the basic curriculum and offered ideas for instruction, but are encouraged to personalize each presentation and keep it relevant to their audience.

"I find the students show more interest if you use examples," says volunteer Jennifer Riva-Kirk, CPA who presented at Del Mar High School in San Jose.

The examples that usually work best are those that show how saving and investing a little, early and often, can reap huge rewards later. Compounding is a big hit, says Riva-Kirk, a principal with Robert R. Redwitz & Co., an Accounting and Consulting Corporation in Campbell. "They were very interested in understanding how to make their money grow."

Some volunteers use incentives, such as candy or money, to encourage class participation. Volunteer Todd Landry, a CPA and partner with Eadie & Payne LLP in Ontario, used chocolate coins as a reward for his financial literacy quiz. CPA Bruce Kajiwara, with Financial Network Investment Corp. in Sacramento, passed out $2 bills to students at Hiram Johnson High School in Sacramento who nailed correct answers.

Others use creative ways to deliver concepts, such as pulling out newspapers and building real-life budgets for seniors who plan to set out on their own after high school graduation.

Open communication between volunteers and instructors is another key to a successful visit. Teachers can offer volunteers meaningful insight about their students and the appropriate level at which to deliver information. Additionally, contact in advance of the visit helps eliminate any stress or anxiety related to walking into an unfamiliar situation. Armed with information on class size, academic level, grade and behavioral tendencies, volunteers can tailor their visit.

Since CalCPA's program includes a teacher component, teachers are also able to better prepare students for the visit. Volunteer Rocky Ludes, CPA, partner with Vance Thrift & Biller LLP Certified Public Accountants in Ventura, notes that one class had questions written out in advance of his presentation.

FINDING THE RIGHT PARTNER

In the early days of CalCPA's financial literacy initiative, eager volunteers were encouraged to "not reinvent the wheel," by longtime financial literacy advocates such as Stan Breitbard, CPA, a retired partner from PricewaterhouseCoopers. As then-chair of the California Jump$tart Coalition, Breitbard encouraged his colleagues to get out and meet others in the financial literacy arena and explore opportunities to partner and collaborate.

The advice proved valuable.

When CalCPA first expanded its successful CPA careers visits in high schools to include financial literacy, presenters used Dollars & Sense materials. Dollars & Sense (www.calcpa.org/dollars) is a CalCPA Institute program that brings financial literacy to communities in a workshop setting with a panel of CPA experts delivering information on a variety of financial literacy topics, followed by a Q & A session with the audience. Workshop participants appreciate the opportunity to get free financial advice from CPA experts who aren't trying to sell them anything.

While Dollars & Sense continues to be a huge success with adult audiences, the program just didn't work at the high school level.

Enter Angie Grainger, a Santa Rosa-based CPA with Moss Adams. In 2005, Grainger, still fairly new to CalCPA's Financial Literacy Committee, encountered high school curriculum prepared by the National Endowment for Financial Education. She was so impressed with the materials that she introduced them to a local program she is involved with, Youth Business Week. From there, the materials were introduced to CalCPA staff, who worked with NEFE for permission to integrate the materials into CalCPA's efforts. In fall 2007, as a NEFE statewide partner, CalCPA will be key player in rolling out an enhanced high school program throughout the state.

COMING TO A SCHOOL NEAR YOU

Each financial literacy lesson is tailored to the time restraints of one class meeting, which can range from 45 to 90 minutes. A typical lesson runs about 50 minutes. While the NEFE High School Financial Planning Program covers six units, CalCPA volunteers may deliver one, all or any combination of the lessons. The goal is to have the teacher cover any material not covered by volunteers.

With each CalCPA visit, students receive a NEFE student guide and a copy of Quest, CalCPA's award-winning magazine that provides a definitive guide to CPA careers and tackles financial literacy essentials, such as money management, credit and savings and investing.

Both teacher and volunteer receive a comprehensive curriculum guide that offers many enrichment activities to extend learning beyond the six lessons. Gussie Powe, an instructor at Huntington Park High School, had students write reports on selected articles in Quest after their CPA visit.

CalCPA staff approaches more than 1,000 public and private high schools annually to offer CPA visits. Economics and business teachers are the most prevalent participants in the program, although English, mathematics and life skills teachers also have requested visits.

Instructors can request a financial literacy visit via fax, phone or e-mail. Then, based on location, a volunteer is sought. Once a volunteer is matched with a school, and the connection is confirmed, the two parties coordinate a date. CalCPA and NEFE ship all necessary materials directly to the school prior to the visit.

Upon completion of the lesson, volunteers are asked to provide feedback to assist future volunteers. "We had a lot of fun and look forward to doing it again," says Patti Capell when asked about her budgeting presentation at High Tech High School. "Count me in as one of your regulars. We (Frank Rimmerman + Co. LLP) have many young, talented representatives that would love to give back to the community in this way."

THE PROGRAM'S PROFITS

The program continues to flourish and with it the enthusiasm of volunteers, instructors and students. "I may have found my calling!" says CPA volunteer Angie Bhasin after completing her first financial literacy visit. Van Nuys-based volunteer Howard Levine, CPA, says, "Of course it was fun--hopefully the students felt so, too!"

Students have responded positively to the program. "The kids were engaged and I felt like many really took something away from it," says Mesa Verde High School teacher Patrick Pevelchik.

After completing a multi-session financial literacy lesson, Saman Hasmat, a senior at Sheldon High School in Sacramento, reflected, "In school we are taught classroom skills, but in this class we were enlightened with some life skills that we were unfamiliar with."

The experience is not only beneficial for the students, but also is an educational and rewarding experience for the teachers. After a visit by CalCPA volunteer Beth Symons, CPA, of Symons Accountancy in Galt, teacher Carrie Menlab says, "You have inspired me to make a few financial changes in my personal life as well."

A FINANCIALLY LITERATE FUTURE

CalCPA members may never stamp out financial illiteracy completely, but through high school visits and other CalCPA Institute efforts, member volunteers are constantly raising awareness and providing the information, tools and resources that move California toward a more financially literate future.

For more information on the program, or to sign up to become a volunteer, visit www.calcpa.org/members/knowledge/outreach, or contact Crystil Turner at crystil.turner@calcpa.org or (650) 802-2494.

Crystil Turner is CalCPA's community outreach manager. You can reach her at crystil.turner@calcpa.org.

RELATED ARTICLE: this little piggy is hungry

You don't need to spend money on that new, plasma flat-screen TV; feed the pig those dollars instead.

That money you spend on Starbucks coffee every morning? Make coffee at home, feed the pig and watch your savings grow.

Whatever the dubious spending in your life is, remember: The pig is hungry.

These are the messages being delivered by Feed the Pig, a major public service campaign that is the result of a collaborative effort between the Ad Council, AICPA and state CPA societies. The campaign is designed to encourage 25- to 34-year-olds to save. The campaign's "spokespig" is Benjamin Bankes, a savvy, anthropomorphic pig ready with tips on how to save for the future--and why.

The Feed the Pig website, www.feedthepig.org, includes the top 10 ways to save, various calculators to demonstrate the powers of saving today for tomorrow, and links to various other resources--including CalCPA.org--to help consumers make smart financial decisions.

While getting free advertising space, which this public service campaign requires, is challenging, reports of billboards, bus shelter posters, television and radio ads are streaming in from throughout California and across the nation. Perhaps you've seen the billboard that reads, "If money is burning a hole in your pocket, it's not a new pair of pants you need."

The campaign is designed to be a little edgy and get 25- to 34-year-olds thinking about savings, and, ultimately, turn those thoughts into actions.

CalCPA member Loni Ang, CPA, who falls in the campaign's demographic, is a huge proponent. "The Feed the Pig ads are great reminders of things we need to think of everyday," she says. "It is so hard to resist purchases or remember to put money in your 'piggy bank' when you have physical possession of the cash."

Ang, a 33-year-old financial adviser with Citigroup Smith Barney in Los Angeles is a strong proponent of personal finance education. She is a regular guest speaker at the University of Southern California on financial management, and has participated in CalCPA Institute's Dollars & Sense program. She will present a session on wealth management at the CalCPA Young and Emerging Professional conference in May.

--Damien B.M. English

RELATED ARTICLE: beyond the schools

CalCPA Institute's efforts to educate Californians on how to better manage their finances extend far beyond the classrooms and are forever expanding. So, if presenting to high school students isn't your thing, volunteer to work with college students, staff a tax hotline, provide pro bono tax preparation services, serve on nonprofit boards, work with the media or sit on a Dollars & Sense panel. For more information, contact Crystil Turner at crystil.turner@calcpa.org or (650) 802-2494.