By Mary Bell Carlson, Ph.D.

4th QUARTER 2014 VOL. 32 #4 Financial Counselor Versus Financial Coach: What s the Difference Anway? 3 Research & Training Symposium: Busting Myths about College Costs and Student Debt 4 Research & Training Symposium: Financial Well-Being 5 Research & Training Symposium: A New Chapter in Financial Education 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 By Mary Bell Carlson, Ph.D. The latest buzz in the financial world is the concept of a financial coach. This is an emerging field which has yet to prove itself in academic rigor and outcomes-based research. With the news around financial coaching, the question remains: what is the difference between financial counseling and coaching anyway? Well, it seems the answer is as unique as the individuals who provide the services, but there are a few characteristics that are distinct. This article is intended to help set out the definitions of each practice along with the similarities and differences between the two. Financial Counseling Financial counseling is a collaborative effort between the counselor and their client to help the client identify goals and potential solutions to financial problems. Financial counselors can also help clients improve communication about money and give them appropriate coping skills or make recommendations to help them relieve the severity of financial issues. Financial counseling can help the client move along the spectrum of increasing financial knowledge, promoting financial behavior change, and improving financial anxiety and wellness. There are many types of services that a financial counselor can provide to meet a variety of complex client issues, such as goal setting, budgeting, money management, credit issues, debt management and consolidation, bankruptcy and foreclosure. Financial counselors are also qualified to review basic employee benefit packages and help a client set up a basic financial plan for their future. Financial counseling is often only thought of as helping with remedial issues, but more often than not, financial counselors can assist with pro-active financial decisions, such as understanding your retirement plan or basic investment terminology. Financial counselors do not provide investment advice, or recommend one investment over another or sell products Often financial counseling is a short-term, solution-focused approach that allows clients to take control of their financial lives and not become dependent on the counselor for ongoing maintenance. In contrast, a financial coach can have more of a longterm approach to continue to encourage the client over a longer period of time. Continued on page 12

the Standard 4th QUARTER 2014 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: msgutter@ufl.edu 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: jinkim@umd.edu Members-at-Large Jerry Buchko, MA, AFC Private Practice St. Paul, MN Email: jerry.buchko@ gmail.com 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: ileech@vt.edu Dora Mays, Ph.D. MacDill Air Force Base Tampa, FL Email: dora.mays@us.af.mil Brenda Vaughn TG, Athens, GA Email: Brenda.Vaughn@ Brenda.Vaughn319 tgslc.org @gmail.com Robert Westrick TG, Austin, TX Email: Robert.Westrick@ tgslc.org. Michael Wood, AFC Army Installation and Management Command San Antonio, TX Email: michael.a.wood@ us.army.mil Editor: Jill Anne Ladouceur Email: ladjill@me.com Technical Editor/Proofreader: Reader: Barbara O Neill, CFP Ph.D.,, Ph.D., CFP, AFC, CHC Email: oneill@aesop.rutgers.edu 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 President s Message By Barry Wilkinson, AFC 2014 AFCPE President With just one month left, I hope you are planning to join us in Bellevue, Washington for the 2014 AFCPE Annual Research and Training Symposium. Our hotel host this year, the Hyatt Regency Bellevue, provides us not only an inviting inside environment with many amenities but also access to unique shops and restaurants in the 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 Wiggins, working tirelessly to make every detail seamless for attendees. The Symposium Task Force has created a truly substantive agenda of sessions so that you can take what you learn back to your own communities. This year we will start off with the first general session, Building Your Career in Personal Finance. Dr. Mary Bell has brought together a diverse group of members to define various career paths 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. and opportunities in the personal financial field that could help each and every one of us be more successful. Again, we have changed things up this year by extending our opening session to allow for small group work in constituencies. We hope to gain some insight into 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 are excited to share some of the things that we have been working on this past year and also changes to come. Following the meeting features How Literacy and Interventions Effect Financial Behavior, presented by Billy J. Hensley, Ph.D, NEFE and many, many more breakouts throughout the day. Continued on page 7 2

2014 Symposium Research & Training Sypmosium: Busting Myths about College Costs and Student Debt By Mark Huelsman, Senior Policy Analyst, Demos It s no secret that AFCPE Research & Training Symposium Session for some time now student loans have dwarfed all but mortgages in the amount of debt on Americans balance sheets. It s also no secret that student Hear more from Mark loan debt is the Huelsman at the AFCPE Research and fastest growing form Training Symposium of debt growing to be held November from a little over 19 21, 2014, in Bellevue, Washington. $250 billion a decade ago to $1.2 trillion today. Around 20 years ago, a student had a less than one in two chance of taking on debt if he or she wanted to graduate. Now, almost 70 percent of graduates will have borrowed in order to get a four-year degree, at an average of around $30,000. With unemployment remaining high, and middle-class wages stagnating for decades, many are worried that student loans are both a drag on our current economy and preventing an entire generation of Americans from preparing for their financial future. There are many reasons for the overall increase in student debt there are simply more students going to college, for one but the most noticeable cause is the explosion in tuition and fees across the higher education spectrum. Indeed, the cost of college at public four-year schools has increased by 83 percent over the past 20 years, and by 129 percent over the past 30 years, even after adjusting for inflation. To put this in perspective, middle-class income has increased by only 16 percent over the past 30 years. But despite more and more families feeling the squeeze of student debt, there are some fundamental myths about college costs and the debt that results from it. Myth #1: College Costs Are Rising for No Apparent Reason The massive increase in tuition and fees has occurred at all types of institutions public 2- and 4-year schools, private schools, and for-profits and the reasons vary by institution. But for public colleges and universities which educate around 75 percent of all students in our higher education system there is a direct line between the higher costs facing students and the declining commitment that states have made toward funding college. State appropriations per student, which is the primary source of funding for state colleges, have dropped by almost a third over the past 25 years. And while disinvestment has been a long-term process, 49 out of 50 states (all but oil and gas-rich North Dakota) are spending less than they did before the Great Recession. This, obviously, has meant that schools turn to tuition to make up for the loss in funding. The trend from higher education as a public good to a private investment has been swift: 25 years ago, tuition covered about a quarter of what colleges spent on educating students; 10 years ago, it covered a third. Today, it covers nearly half (47.5 percent). Myth #2: Student Debt Is Always Good Debt There s a general feeling among families and policymakers that student loan debt is good, in that it represents a way for students to invest in themselves, and that the amount of debt will be more than recouped by the higher income a college degree brings. For some, this is absolutely true. But for others, student loans are a particularly vicious form of debt. For one, both federal and private loans are nearly impossible to discharge in bankruptcy, and there s no ability to refinance federal loans, meaning many borrowers are stuck with artificially high interest rates. But more importantly, student loan delinquencies and defaults continue to rise. For students just out of school, upwards of 15 percent of their federal loans are in default within three years. Student loan delinquencies have also continued to rise after the recession, even as delinquencies in every other form of debt have declined since 2009. But when is student debt really not good debt? When students don t graduate and over 40 percent of students fail to get a degree in 6 years and when their degrees don t provide value. The latter is particularly a problem at for-profit schools, which educate around 10 percent of students but are responsible for nearly half of all student loan defaults. Myth #3: Undergraduate Student Debt Is Pretty Equally Distributed Like many other areas of our economy, student debt is a particularly onerous burden on low-income students and minorities. For example, our research at Demos has shown that just at public schools 84 percent of low-income Continued on page 15 3

the Standard 4th QUARTER 2014 2014 Symposium 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 Symposium Session what is it and how do we achieve it? This is the research question at the heart of the Consumer Financial Protection Bureau s (CFPB) Financial Well-being Project. Hear from Genevieve The CFPB s Financial Melford of the CFPB at the AFCPE Well-being Project Research and Training team which includes Symposium to be held November 19 21, the Corporation 2014, in Bellevue, for Enterprise Washington. 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 consumers from around the country and extensive review of several literatures. As a result of this work, the research team has arrived at some ground-breaking insights into what financial well-being is and the financial knowledge, behaviors and attitudes that appear to drive it. These insights will be shared at the AFCPE Research and Training Symposium in November. Through an interactive presentation, the audience will be invited to reflect on the degree to which the research findings resonate with their own knowledge and experience, and to provide insight into the research s implications for practice. 4 During the presentation, the CFPB and CFED will highlight findings that are likely to be of particular interest to financial counselors and planners. They will share with the audience the definition of financial well-being that emerged from the consumer interviews. This definition is currently being used to inform the development of a psychometrically validated survey instrument that may be used to assess the Being future oriented undergirds many behaviors that contribute to financial well being. financial well-being of individuals, as well as the outcomes of different financial capability strategies. The audience will be invited to give their perspectives on the degree to which this consumer-based definition does or does not align with the objectives they try to achieve with their clients. In addition, the CFPB and CFED will share some of their findings with respect to the drivers of financial well-being. Since the reason that most clients reach out to financial planners and counselors is to improve their financial well-being, many of the drivers will likely be familiar to the audience. The CFPB and CFED will also discuss the attitudes that mediate the financial knowledge and behavior that drive financial well-being, shedding light on the reasons why people may fail to act on their financial knowledge neglecting to save and manage their money as they know they should. For example, the CFPB and CFED will talk about how financial self-efficacy belief in one s ability to understand financial matters and accomplish financial goals is critical to the translation of financial knowledge into financial behavior. 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 developing financial capability. Audience members should also walk away from the presentation with concrete strategies for incorporating some of the research insights into their work arising from the interactive discussion. Anita Drever is CFED s Director of Applied Research. In this capacity she leads CFED s research team and provides research and evaluation guidance to CFED s program initiatives and external partners. Dr. Drever also directs research and evaluation projects including the Consumer Financial Protection Bureau-funded Financial Well-being Project.

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 Financial Education Hear from Billy J. (NEFE ) nearly five Hensley of NEFE at the AFCPE Research and years ago. While few Training Symposium people deny the need to be held November 19 21, 2014, in for consumer savvy Bellevue, Washington. 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 Effect of Financial Literacy and Financial Education on Downstream Financial Behaviors, by John G. Lynch, Jr., Ph.D., Daniel Fernandes, Ph.D., and Richard G. Netemeyer, Ph.D. The study sought to answer this question: What is the connection between financial education, financial literacy, and the choices that people make about their finances? Researchers investigated data from 201 peer-reviewed studies and used a single-measure to compare the findings, resulting in three key conclusions that can be utilized as a primer for future research and practice. First, the amount and timing of financial education matters. The impact of education on behavior varies with how much instruction people receive and when they get it in relation to relevant decisions or behaviors. Interventions with many hours of education have larger effects than shorter interventions, and effects on behavior from all types of interventions are larger when measured right after the intervention than after a delay. One challenge we currently face is defining timely and relevant in our work. The data show eventual diminishing returns as time elapses; after 22 months, the impact on behavior became statistically insignificant for even the largest interventions. One-and-done clearly is not the answer. It is time we begin to consider ways in which financial education can take place throughout life, linking to individuals upcoming financial needs. Second, behaviors and literacy as measured to date are weakly linked. Only about 0.1 percent of the variability in whether people perform healthy or unhealthy financial behaviors is explained by whether or not they were given a financial education intervention. An effect Continued on page 7 5

the Standard 4th QUARTER 2014 2014 Symposium Generational Issues in Financial Thinking By Mark Taylor, Ph.D. How do generations AFCPE Research & Training Symposium Session views of money, debt, financial security and the need for financial planning impact their spending, borrowing and saving behavior, and how do these Hear from Dr. Mark ideas impact Taylor at the AFCPE Research and Training financial literacy Symposium to be held and counseling November 19 21, efforts? Raised in 2014, in Bellevue, Washington. very different social eras, members of each group, at least in the United States, tend to have different world views, and we can expect these differences to be seen in financial behavior, literacy and planning. Understanding the typical generational values, traits, preferences and the interactional styles of both providers and service recipients can improve financial counseling, education and literacy outreach efforts. This keynote session on November 19 will address generational issues in financial thinking, planning and literacy, along with a follow-up session on Managing for Success in the Multigenerational Workplace. From Layaway to Bitcoin; Generational Issues in Financial Thinking, Planning and Literacy will introduce the major differences, besides age, between the four current generational cohort groups in the United States today. The older generational groups tend to be dramatically different from each other. They include the Traditionals born before 1945, Baby Boomers born from 1945 to 1965, and Xers born between 1966 to around 1986. The vast majority of 6 financial counselors and educators will be Boomers and Xers, while younger Generation NeXters, born after 1986 predominate the higher education student body, military enlistment and the ranks of entry-level employees. NeXters have characteristics and expectations that present unique challenges to those of us charged with educating and counseling them around financial literacy issues, just like they pose challenge to those educating them at schools and supervising them in the workplace and military. Their issues with responsibility and self-esteem, consumer expectations, use of technology and styles of interacting can impact not only their financial awareness and behavior, but also our outreach, educational and counseling efforts. While we are all members of one of these groups, we can t assume that others share our ideas about future planning, money, spending and savings. Programming may need to be adjusted with options for members of each cohort group. This workshop will address the generational issues and dynamics with suggestions for improving financial counseling and educational programs. The follow-up session, Managing for Success in the Multigenerational Workplace, is for those who want more information to help them in their leadership efforts. Besides financial literacy issues, generational groups tend to have different ideas about the workplace, different communication styles, and tend to respond to different kinds of leadership styles. This session will revisit the cohorts with suggestions for improving leadership, workplace communication, employee satisfaction and retention with specific, immediately applicable ideas for developing the most productive, positive and effective work setting for all workers. These sessions promise to be informative, thought provoking and fun. More information about Dr. Taylor and his programs can be found at www.taylorprograms.com. Dr. Mark Taylor is an award winning speaker recognized internationally as an educator, expert and consultant who is on the forefront of transformations in educational practice and workplace management. As an authority on generational traits, as well as the developmental issues and learning outcomes of today s young people, he is dedicated to helping colleges, universities, schools and other educational programs better understand and serve our students and clients. His insights as an educator will be especially valuable to financial counselors. His work with organizations and companies focuses on helping people understand and work more effectively with the generational groups, especially our young people from Generation NeXt. Building on over 30 years of experience in higher education, management and the helping professions, including as a psychotherapist, professor, and in medical, academic and student services adminisitration, Dr. Taylor has worked with over 500 organizations, businesses and schools in 47 states, in Canada and Europe, and has made presentations at many state, regional, national, and international events. Publications include numerous book chapters, invited pieces, and articles in professional journals including his recent articles on Teaching Generation NeXt. Dr. Taylor holds graduate degrees from the University of Arkansas and academic appointments at Arkansas State University and the University of Arkansas at Little Rock Graduate School.

2014 Symposium New Chapter in Financial Education Continued from page 5 size below 0.1 percent is small. Effect sizes at 0.4 percent and above are large. So, in the aggregate, we are at the minimal point of effectiveness. The looming challenge is to create opportunities to build upon those classes and interventions that are proven to work. We can start by raising the minimum standard for effective intervention-based instruction and more widely disseminating the strategies that have the greatest impact on 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 well. With better measurement, the effect of financial education would not be so much smaller than interventions in comparable domains, such as workplace instruction or career counseling. Emerging evidence suggests that finance-relevant traits are factors not properly accounted for in past investigations, such as a person s propensity to plan for the use of money or one s confidence in his or her ability to find relevant financial information. In addition, the meta-analysis showed that different types of studies in the literature yielded such disparate results more varied than science would predict that we must question to what extent those differences stem from widely varying research designs and analyses. Defining a minimum quality There is no such thing as an effective one-size-fitsall approach to financial education. research and evaluation standard and increasing the use of fully-experimental and quasi-experimental research studies are steps in the right direction. While our past collective work has had impact, the level of effect needed to help consumers has yet to be achieved. Let s more fully embrace a culture that values a continual improvement of practice and research. One way to do this is to better disseminate those projects that have demonstrated the most promise. Another is to look to other fields that have shown improvement in participant behaviors: for example, career and workplace education or schoolbased changes that have increased student scores in domains such as math, reading, and science. There is no such thing as an effective one-size-fits-all approach to financial education, but we do have the capacity to scrutinize our current work and upgrade our efforts. While I believe education alone is not the single answer to improving financial capability, it is an essential component if done well. I hope that within the next few years our community has created the best interventions within the field of schoolbased and adult instruction, and that due to our combined efforts, we can identify and transcend the factors that inhibit effective financial education. Billy J Hensley, Ph.D. is director of education at the National Endowment for Financial Education. He can be reached at BJH@nefe.org. President s Message Continued from page 2 Friday s breakout sessions will provide you with more tools and resources to use in your business, office, or classroom. It is also our time to honor our colleagues for the great things that they have done with our annual awards luncheon. We will close out the symposium with a presentation from Mark Huelsman on College Affordability and Student Debt, a subject that we all are interested in. I love this time of year when I get the opportunity to renew old friendships and make new ones, get away from the rigors of the job and learn the latest and greatest in the outside world, or just refresh and reenergize myself so that I return better armed to help my customers. During this past year, AFCPE has continued to change and grow. I have learned so many things as president and it truly has been a privilege to serve this magnificent organization. The staff, Board of Directors, Task Force Chairs and members are exceptional people and have worked tirelessly this year reinforcing the fact that AFCPE continues to Set the Standard. A leader is only as effective as the team that supports them and I have been honored to have been chosen as President to lead this team. As we start to face 2015 Michael Gutter, Ph.D, University of Florida, will assume the duties as president. Michael brought a wealth of knowledge to the Board and will be an outstanding president as he continues to lead AFCPE into the future. I look forward to seeing you in Bellevue, Washington for this year s Annual AFCPE Research and Training Symposium! You won t want to miss it. 7

the Standard 4th QUARTER 2014 2014 Symposium Symposium Poster Hallmark Sessions Effectiveness of Online Financial Education in Rural States Carrie Lei Johnson, SDSU Extension, Joel Schumacher, Montana State University Extension Financial Education: Debt and Savings Behavioral Changes Lauren Robinson, Texas A&M University, Rebekka Dudensing, Texas A&M University Nancy Granovsky, Texas A&M AgriLife Extension, Joyce Cavanagh, Texas A&M AgriLife Extension Identity Theft Risk Reduction Factors: Results From an Online Survey Barbara O Neill, Rutgers University, Jing Jian Xiao, University of Rhode Island Cooperative Extension Outreach and Education of the Affordable Care Act Taylor Lynn Spangler, University of Florida, Martie Gillen, University of Florida, Brittany Stahl, University of Florida The Impact of Traditional Education and Financial Sophistication on Searching for Financial Information Areerat Lertchaipitak, Department of Personal Financial Planning, Texas Tech University Financial Counseling: A Synthesis of Research Papers Published in Journal of Financial Counseling and Planning Jing Jian Xiao, University of Rhode Island, Frances C. Lawrence, Louisiana State University Alyssa Francis, University of Rhode Island Money Scripts of Students in a Personal Financial Planning Class Ryan H. Law, University of Missouri From Financial Literacy to Financial Health For Life Lucy M Delgadillo, Utah State University PowerPay Debt Elimination Tool Goes Mobile Margie Memmott, Utah State University Dean Miner, Utah State University, Stacey MacArthur, Utah State University Helping Families Recover Financially After a Disaster: A Webinar Series for Helping Professionals Sara Croymans, University of Minnesota Extension, Lori Hendrickson, University of Minnesota Extension, Becky Hagen Jokela, University of Minnesota Extension Financial Educator Certificate Program Mary Jo Katras, University of Minnesota Extension Catherine Solheim, University of Minnesota Veronica Deenanath, University of Minnesota Dung Mao, University of Minnesota The Structure of Debt and Assets among Low Income Near-Retirees: Implications for Financial Education Yoon G. Lee, Utah State University, Loryn E. Law, Utah State University, Sammy Bosshardt, Utah State University, Sara Wilkinson-Lamb, Adult Education Instructor, Daggett County Jail Financial Education Designed to Assist Students for Post-Secondary Success Jessica Kailer, Personal Money Management Center, Ann House, Personal Money Management Center Web Based Financial Challenge and the use of Email Marketing Service Sailesh Acharya, University of Florida, Barbara O Neill, Rutgers University, Elaine A. Courtney, University of Florida, Michael Gutter, University of Florida Intergeneratonal Land Transfer Collaborative Education Becky Hagen Jokela, University of Minnesota Extension, Cindy Petersen, University of Minnesota Extension Exploring Cultural Meanings of Financial Management: The American Indian Case Jennifer Garbow, University of Minnesota Extension, Rebecca Hagen Jokela, University of Minnesota Extension, Sharon Danes, University of Minnesota Extension Using a Poverty Simulation to Increase Awareness and Community Support for Financial Empowerment Brittany Stahl, University of Florida, Michael Gutter, University of Florida, Martie Gillen, University of Florida Assessing Impacts of a Financial Literacy Program on Peer Educators Pamela Chow, University of Hawaii, Stacy-ann Miyashiro, University of Hawaii Rosita Chang, University of Hawaii, Barbara Watanabe, University of Hawaii, Dean Nushida, University of Hawaii Secure, Comfortable, Shaky, and Disastrous: Examining the Current Financial Situations of College-Aged Youth Maja Gillespie, University of Idaho, Nancy Deringer, University of Idaho, Erin Chapman, University of Idaho Simulating Money Management and Life Skills with Prison Populations Karen Richel, University of Idaho Extension, KD Hatheway- Dial, University of Idaho, Joey Peutz, University of Idaho Extension, C. Brian Cleveley, University of Idaho Virtual Tech & Design, Lori Wahl, University of Idaho What s in a Name? Exploring and Defining Financial Delivery Methods Mary Jo Katras, University of Minnesota Extension 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 Performance Shan Lei, University of Missouri-Columbia, Rui Yao, University of Missouri-Columbia 8

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 Personal Finance, Pilot Program for Alabama Teachers Ruth Brock, Alabama Cooperative Extension System/Auburn University Student Loan Exit Counseling: A Refresher For AFCPE Members Paul F. Goebel, University of North Texas Financial Recovery After Disaster: On Demand Videos Lori Hendrickson, M.Ed, University of Minnesota Extension, Sara Croymans, University of Minnesota Extension, Lori Scharmer, North Dakota State University Extension Service, Patricia Olson, University of Minnesota Extension Creating a Comprehensive Assessment Plan for Financial Counseling and Education Danielle Champagne, University of North Texas What Determines Households Retirement Savings After the Great Recession? Michael Cheung, Ohio State 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 Boots to Backyards: A Mentor Program Toward Financial Stability and Successful Home Ownership Joyce Cohen, Purple Heart Homes USA Educating Consumers and Businesses on the ACA: Lessons Learned from Implementing a Statewide ACA Education Initiative Graham McCaulley, University of Missouri Extension, Janet LaFon, University of Missouri Extension, Nellie Lamers, University of Missouri Extension, Brenda Procter, University of Missouri Extension, Trish Savage, University of Missouri Extension Youth Credit Score Education Luke Erickson, University of Idaho Extension, Lyle Hansen, University of Idaho Extension Removing the Silos: The Creation of Student Financial Education Sharon Cabeen, Student & Institutional Success-TG The Business Model of Scalable and Transformational Financial Coaching Andrew Victor Posner, The Capital Good Fund Financial Coaching and Behavior Change: What Can Counselors and Educators Learn? Alena C. Johnson, Utah State University, Lucy Delgadillo, Utah State University, Luke Erickson, University of Idaho Extension, Cindy Stokes, Utah State University 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 Britt, Kansas State University, Melanie Mendiola, Kansas State University, Gregory Schink, Kansas State University, Racquel Tibbetts, Kansas State University, Scott Jones, Kansas State University Motivating College Students to Get Financial Literate Sandra J. Huston, Texas Tech University Utilizing Technology to Maximize Financial Education Impact Phil Schuman, Indiana University, Morgan McMillan, Indiana University How to Organize, Market, Deliver, Evaluate, and Archive Financial Education Twitter Chats Barbara M. O Neill, Rutgers University, Elizabeth Kiss, Kansas State University, Susan Shockey, NIFA-USDA, Erik Anderson, University of Idaho Together: A Couples Program to Improve Communication, Coping and Financial Management Skills Mariana Falconier, University of Maryland, Jinhee Kim, University of Maryland Financial Skills Among Married and Single Adults: Implications for Educators Travis Parry, Utah State University, Lucy Delgadillo, Utah State University Free Tax Preparation, Financial Education & Counseling: Recipe for a Taxpayer Layer Cake Rebecca J. Travnichek, University of Missouri Extension, Vivian J. Mason, University of Missouri Extension, Shatomi N. Luster, University of Missouri Extension, Nellie J. Lamers, University of Missouri Extension, Meridith J. Berry, University of Missouri Extension, Andrew Mark Zumwalt, University of Missouri Extenison Kinesthetic Learning Activities That Work Cindy R. Stokes, Utah State University, Lucas Martin, Utah State University, Alena C. Johnson, Utah State Universitiy, Ellie Hansen, 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 with Incarcerated Audiences Carol Bralich, University of Wisconsin Extension, Missy 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 Difference? Lyssa L. Thaden, American Student Assistance, Jacquie Carroll, American Student Assistance Personal Finance Teaching Efficacy: A Measurement Kurt A. Schindler, Banco Popular de Puerto Rico, Kristy L. Archuleta, Kansas State University 9

the Standard 4th QUARTER 2014 Starting a Financial Counseling Business By Lauren Welch, AFC, Thrive Financial Counseling, LLC I started my own financial counseling business in March of 2014. While it was still fresh on the brain, I wanted to share a few things I learned. As I began my search for resource for beginning a new business, I found great step-by-step resources from my local small business center and the small business administration. Here are just a few things that were available through those resources: Legal structure Business naming Business plans Financing Websites I also set up an Employee Identification Number (EIN) and a business bank account. Check your state s small business department of commerce website for a checklist on important items. I found it is important to not rush the process in the beginning of developing my business. As a military family we were getting ready to move, so this was perfect timing to get the ball rolling to begin my new business. When looking to learn more from other financial professionals I used the AFCPE s website (www.afcpe.org) to find AFCs who owned businesses in the area. I requested informational interviews with the business owners. I also used my membership in social media groups to ask questions of other financial professionals who were military spouses and had businesses that they moved from one location to another. Once I had the foundation for the business completed, I offered free counseling to 10 friends and also some prospective clients through giveaways. This helped to expand awareness of my business a great deal. By providing pro bono sessions, I found it to be very helpful in my evaluation of what worked for me. I was able to tweak each piece from start to finish with my initial clients. I also surveyed groups to target as my client base to find out what might help me work with them as clients. I developed branding for my business and created a website with my goals in mind and the surveys received from potential clients. As a start up, I tried to keep expenses to a mininum. I listened to free social media and small business marketing webinars which helped me gain more knowledge. I created a company name, logo and brand to market myself. But some things I found were important for me to spend money on while developing the business. I spent money on: Quickbooks, along with a free class from the local small business center called Quickbooks 101 Business cards Website with a business email address through GoDaddy Business licenses and fees It was challenging for me to find an insurance company to provide me Errors and Omissions Insurance (E&O) for my home-based business. It is important to have insurance due to the risk financial counseling presents. Errors and Omissions insures financial professionals if the services did not give the result the client was looking for, or if the client took the information given them and made a poor decision then decided the financial professional was to blame. I decided to create a waiver in the new client agreement the client signs, as well as verbalizing with the client the intent of financial counseling services. Keep in mind that if you move your business, depending on the legal type of entity you have chosen, you may have to pay additional business licensing, incorporation or local county fees. There are no military spouse benefits, discounts or exclusions to small businesses when connected to a Permanent Change of Station (PCS) move. Your state corporation commission website will have the specifics. Here are two additional tips for those who are thinking about developing your own business from one newbie to another: 1. Don t put an address in your branding materials. With three moves within the first year of business, I saved money by not having to reprint materials. When I arrived in the new location, I got a post office box which made me feel more permanent. 2. I have connected with many local organizations and groups to market my business. I have also found local area vendors and networking pages, along with military spouse groups where you can present or be a guest speaker. For more information about Thrive go to, www. thrivefinancialcounseling.com. Lauren Welch can also be contacted at lauren.welch@ thrivefinancialcounseling.com.

Are You LinkedIn? By Andi Wrenn, MA, AFC When I talk to people about social media, many tell me they just don t have time. Why should you use LinkedIn? Over 161 million users around the world have joined LinkedIn and participate in job searches, sales leads, professional content posts, informative groups, and connecting with other professionals. Job Searches Companies use LinkedIn to post jobs. Some are posted within groups specific to the field you are in. You can easily search keywords to find what is posted on LinkedIn in your field of interest. Another way that LinkedIn is used is by Human Resources (HR) professionals, headhunters, and recruiters to find candidates with the skills that they desire in a qualified candidate. Your home page has a section that shows you jobs you may be interested in. Sales Leads Do you want to find other businesses to reach out to so that you can offer them your services? With LinkedIn, you can search your area for contacts affiliated within the company you wish to work for. Learn about the key roles in the company from their profiles. Research the company itself to be more informed prior to making a pitch to provide financial services to them. Also use LinkedIn to find other professionals to gain referrals is a great resource for many financial professionals. You can connect with them, learn about their business, and then when you have clients in need of services, you can refer them to that professional. You may want to connect with attorneys, divorce mediators, pastors, therapists, and psychologists, to name a few. Professional Content Posts As with many other social media sites, you can share professional content that interests you and the professionals that you are connected with. Twitter feeds can be posted through your LinkedIn account. If you see content posted by one of your contacts in your daily feed, you can comment on it and have discussions. This is a great way to stay connected to what is trending in personal finance and to the other financial professionals in your network. Informative Groups The last time I checked, you could be in up to 30 groups on LinkedIn. You can set your group preferences to send you an email to update you on what is going on in the group(s) that you participate. Some groups are more active than others. Some people join groups to share their research, blogs, and promote their business. Participate in groups to have meaningful discussions related to the topics that interest you. Participate in discussions, give feedback on things posted in groups, and share things you find of interest. You can find groups by searching keywords of topics that interest you. Connecting with Others LinkedIn has a few ways you can connect with others you know. The best way is connecting to your email database. I suggest you do not send a blast out to everyone you have ever had as an email contact. Go through the list and send a personal message to those who you know. Once you have connections, you can categorize them into groups so that you can easily see who you have in each category. Some categories I have include Family, Friends, Military, Extension, Financial Professionals, FINRA Fellows, My Company, Counselors, Mediators, and Clients. My smallest groups are Family and Friends. Staying connected with the financial professionals in your groups is what makes for great networking. Send your connections messages to keep your connections strong. Try to get together with your connections when you can, or have a conversation via phone. Just connecting via social media is not as strong as those real connections. There are two other things you can do to help build stronger bonds with your connections. Recommendations are one of the best things you can do to share with others when you have a professional connection that deserves recognition for the work they do. LinkedIn also prompts you to endorse people for their skills and expertise, but a recommendation means a lot more. I hope this helps you to understand some of the aspects of LinkedIn that make it a great way to be connected to other professionals and to connect with possible clients and businesses. I am happy to help answer questions you have on this social media tool and any others. Go get connected! Andi Wrenn, MA, AFC has been involved in social media and online marketing since 1995. She has two Linked In groups that she manages and is an active participant in other groups as well. You may contact her at andi.m.wrenn@gmail.com. 11

the Standard 4th QUARTER 2014 Counselor Vs. Coach Continued from page 1 Financial Coaching Financial coaching is defined as a personal finance expert who is knowledgeable about the same types of areas that financial counselors are, but they may not be experts in the financial arena. Instead, the client is the expert in the relationship and the coach helps encourage and promote positive financial behavior change. A financial coach gets to know you individually and wants to keep a continuing relationship with the client to educate and encourage them to keep improving. The coaching process helps client s performance improvements to meet goals mutually set by the coach and client. One of the main distinctions between a financial counselor and coach is that coaching is not designed to be a therapeutic relationship or to manage a crisis. Often, financial coaches are to help clients with asset building programs and provide the needed encouragement and support to make good financial behavior changes. Coaching helps boost a client s self-control and provide flexibility to change strategies as needed. Ultimately, coaching is different from counseling since it focuses more on ongoing financial behavior change utilizing goal setting and monitoring. Similarities Financial counseling and coaching are complimentary yet distinct activities in the continuum of financial capability. A well-trained coach uses many of the same skills as an effective counselor, such as listening, using powerful questions, and brainstorming to support a client in the achievement of their goals. Differences As many similarities as there are between financial counselors and coaches, the 12 differences are great as well. Financial coaching is a solutions-focused, collaborative process, led entirely by the client. The coach provides support and accountability for reaching the client s goals. Counseling, on the other hand, is often a shorter engagement, based on problem resolution and focused on While counseling provides technical information and expert advice to clients, a coaching relationship provides advice and encouragement in a process driven by the client but not technical information. Coaching does not provide acute crisis resolution. Financial counselors cannot act as therapists, but they help develop solutions for their clients. Counselors are considered experts in their field, while a financial coach is not an expert per se but knowledgeable in the field. Coaches may have financial expertise or training, but most importantly they are considered a coach who listens, asks informed questions and helps clients refine their own goals, objectives and strategies. Coaches hold their clients accountable for their intended goals and focuses on goal setting and achieving; counseling also focuses on goals, but they are more likely to deliver education. With a counselor, the goal is to strive to educate the client to be their own resource and not dependent on their advice. Counseling can help deal with an acute crisis or technical problems that often require goals to be set and often clients face serious financial problems that are critical issues. Coaches, on the other hand, are focused on positive psychology that helps the client focus on managing the details of their lives, which may include non-financial strategies. With coaching the responsibility for identifying solutions belongs to the client, while in counseling the onus of solutions remains primarily with the counselor. While there are a variety of types of models used in both financial counseling and coaching, one thing is certain: there is room for both in our profession. The counselor focuses on what and how of behavior change while the coach focuses on why the change is important. Coaching is set up to complement counseling, and coaches and counselors should work together to refer clients as various needs arise. In fact, it has been suggested that the first step for a client with a financial issue should see a financial counselor before engaging a coach. These professions are complementary yet distinct, and when we work together, we build the profession as a whole. While in the life or executive coaching world, a client-directed relationship is appropriate, there are situations in which a client or a coach with limited understanding of the comprehensive financial lifecycle, can do harm. That is why AFCPE and Sage Financial Solutions have partnered together to offer standardized financial coach trainings. This model of financial coach training is rooted in core financial content of the AFC(R), allowing the professional to know when and how to apply the right technique at the right time. It provides standardization for the field and fully integrates counseling and coaching skills. Note: A special thanks to J. Michael Collins work at University of Wisconsin-Madison for his insight into these two fields. For more information on his research, please see http://fyi.uwex.edu/ financialcoaching/what-is-coaching/. Mary Bell Carlson, Ph.D., is director at National Association of County Organizations based in Washington, D.C. She can be reached at MBell@naco.org.

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 Love, Marriage, and Dirty Dishes is an interesting book that seamlessly combines information about economics and personal relationships, specifically marriage. Its basic premise is that economic theories and principles can be used to minimize marital conflicts and maximize happiness. Since financial practitioners deal with both financial and relationship issues, the book is a valuable professional tool as well as useful for personally applicable insights that it provides. This 318-page book includes 10 chapters that describe different aspects of marriage. Each chapter begins 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, a Wall Street Journal editor, and Jenny Anderson, a New York Times reporter. The case studies are based on very honest and insightful interviews conducted with dozens of married couples. Also sprinkled throughout the book are quantitative results of the authors survey of around 1,000 people, who answered more than 60 questions about married life, and short biographies of various economists and other scholars who ideas are cited. Chapter 1, Division of Labor, discusses the principles of division of labor based on specialization and comparative advantage (the ability to produce one good relative to another). The marital application is the time it takes spouses to perform household tasks and time saved for more pleasurable activities by managing a household effectively. Chapter 2, Loss Aversion, explains the behavioral finance principle of loss aversion and its application to spousal exchanges. In Chapter 3, Supply and Demand, the authors apply a bedrock economic principle to a topic that couples frequently quarrel about: no, not money, but the frequency of having sex. Spousonomics seamlessly combines information about economics and personal relationships Moral Hazard is the topic of Chapter 4, which explores the concept that people behave differently when they believe there are no consequences to their actions. Spouses who took partners for granted, didn t pull their weight, and let themselves go are profiled. Chapter 5, Incentives, discusses the uses and misuses of rewards to influence behavior. The theme of cooperation between spouses continues in Chapter 6, Trade-Offs, which explains and applies economic principles such as marginal benefit and opportunity cost to couples decisions, and Chapter 7, Asymmetric Information, which describes the benefits of marital transparency. Chapter 8, Intertemporal Choice, explores the impact of current decisions on future consequences, the behavioral finance error of hyperbolic discounting (not valuing things in the future as much as having them today), and the benefits of commitment devices (e.g., signing up for employer retirement plan deductions). In Chapter 9, Bubbles, boom and bust cycles are introduced with the 1500s Tulip Mania and then applied to marriages, including a Couples Confidence Index. The final chapter, 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. Spousonomics is an enjoyable read and includes stories about the authors own lives as case studies to illustrate the application of economic concepts. It also includes dozens of research studies (in addition to the authors study) that are referenced with endnotes. Besides teaching readers valuable ideas to improve their marriage, the book provides a useful review of economic principles. Financial counselors and educators might find the case studies useful professionally, especially those that deal with money management and financial decisions. 13

the 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 countdown to the 2014 AFCPE Annual Research and Training Symposium! For the AFCPE staff and Board of Directors, the Annual Symposium signifies a cornerstone and culmination of the year s work. It is both a reflection of the strategic efforts we have planned and implemented, as well as a launching pad for future planning. We look forward to connecting with our membership and celebrating the organization s achievements. At the 2013 Symposium, we took a trip down memory lane, back to the founding days of 1983 through AFCPE s evolution from a volunteer organization to the wellrespected professional association that it is today. Although the 30th Anniversary and rich history are certainly worthy of celebration, we used that time to set our sights on a strategic vision for our successful future. During the symposium, we heard a lot of feedback about what our members and certificants need from AFCPE specifically the need for defined career paths and career support. In response to your requests, we have spent much of this year focused on developing resources and information to help support careers in personal finance. Following the Symposium, a Career Task Force was formed. AFCPE Board President, 14 Barry Wilkinson, appointed Dr. Mary Bell as the Chair. Together with her colleagues: Ryan Law, Lucas Martin, James Bibbee, Thomas Duffany and Jerry Buchko, the Task Force has laid the important groundwork for career tracks. The work of this Task Force will be seen throughout the 2014 Annual Research and Training Symposium. With a focus on attracting and supporting future leaders The Annual Symposium signifies a cornerstone and culmination of the year s work. of our field, the task force will roll out AFCPE s new mentorship program in a special welcome session. There will also be a general session along with interactive breakout sessions focused specifically on careers. And, thanks to your generous donations and support, we are excited to have many students and emerging professionals in attendance, many of whom are recipients of our first annual Student Scholarship. Along with the Career Task Force efforts, AFCPE has been focusing on several other career initiatives. This summer, we updated our online Career Center to enhance the benefits to job-seekers and employers alike! Job-seekers can now upload and save a résumé to our site, allowing employers to access their unique qualifications, and allowing candidates to receive alerts when relevant jobs are posted. Likewise, employers who list open positions gain direct access to qualified professionals at a lower price than most job boards. And with links to other relevant job board networks, the Career Center offers a much greater reach! AFCPE is also in the process of developing an online financial counseling tool. We are working with Solutions for Progress to design a tool specifically for AFCPE professionals to use with clients. Through an online platform, the tool will provide resources and forms that both you and your clients can maintain during and between sessions. We believe the tool will be a strong asset to you and an enhancement to your practice. We are excited to introduce the tool at the 2014 AFCPE Symposium, where there will be hands-on demonstrations for you to try it for yourself! With an incredible line up of speakers and cutting edge information shared through research and practice, the AFCPE Annual Symposium continues to be an incredible opportunity for professionals. We hope you will join us, either for the first time, or once again, to expand your education, share your knowledge and grow in your career!

Student Debt Continued from page 3 students (those who receive Pell Grants) must borrow to graduate, compared to 47 percent of their higher-income peers. And this is after these students have already received a grant that is supposed to defray some of the cost of college. Likewise, 83 percent of black students must borrow at public schools, compared to 64 percent of white students. The numbers are even starker at private and for-profit schools (where nearly all students borrow). Myth #4: We Have Lots of Ways to Help Struggling Borrowers The Federal government is offering solutions for current borrowers. These include the creation and promotion of income-based repayment (IBR) plans such as Pay As You Earn, as well as other options for struggling borrowers like deferment and forbearance. The trouble is, while all of these options provide quick relief for a borrower whose income is well below his or her ability to make a monthly loan payment, they all end up increasing the total amount that a borrower will pay over the life of the loan (the exception being if someone has a low enough income for 20 years to be eligible for loan forgiveness). There s also evidence that both the forgiveness provisions at the end of the rainbow income-based repayment, and Public Service Loan Forgiveness, primarily help those with graduate degrees (who typically earn more) over students with two- or four-year degrees (or those who dropped out). Practitioners should be well aware of everything in their arsenal to help struggling borrowers and students including various repayment options, but also which schools are likely to provide the most value in terms of cost and future success. But we also need to know that these forms of borrower relief will not alone lower the cost of college, or slow the increase in student debt. To do so, we need to recommit to investing in higher education, and providing real tools and options for those who have taken on debt to do so. Mark Huelsman joined Demos in 2014 and serves as a Senior Policy Analyst. His research at Demos focuses primarily on college affordability, student debt, financial aid, and state investment in higher education. Prior to joining Demos, Mark worked as a research analyst at the Institute for Higher Education Policy, where he worked on several research projects and authored several publications on federal financial aid, student loan debt and repayment, institutional accountability, and the need for better higher education data. He has also served as a policy analyst at the New America Foundation, where he focused on issues related to asset building and college savings for low-income households. A native of Cincinnati, Ohio, Mark holds a B.A. in Government and Politics from the University of Maryland, College Park and an Ed.M. in International Education Policy from Harvard University. Congratulations New Certificants AFCPE Accredited Financial Counselor Graduates (5/28/14 08/19/14) Bailey, Theresa Barbour, Leslie Brantuas, Holly Diley, Melissa Field, Nicole Hitchcock, Elliott Marino, Patricia McLean, Marjorie Thank you to this issue s contributors: Mary Bell Carlson, Ph.D. Anita Drever, Ph.D. Billy J. Hensley, Ph.D. Mark Huelsman Barbara O Neill, Ph.D., CFP, AFC, CHC Murray, Vonnita Neal, Chelsea Richards, Jennifer Seaman, Patricia Sherman, Dolores Teel, Monica Walen, Rebecca AFCPE Certified Housing Counselor Graduate (5/28/14 08/19/14) Walsh, James 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.