Lexington, KY - The first trainers have yet to be trained, but a pioneering program to improve the money management skills of Kentuckians has already gotten national attention.
Eastern Kentucky University developed the Community Change Program to improve financial literacy as part of its stewardship efforts in Eastern Kentucky.
"As we were looking at statistics regarding our region, we saw financial literacy as an area where we could provide a real service and contribution," said Robert Rogow, dean of EKU's College of Business and Technology.
One statistic from the Federal Deposit Insurance Corporation showed that 27 percent of Kentuckians are unbanked or under-banked.
Rogow said Kentuckians need to have access to and be aware of adequate banking services to "be more effective in managing their own resources."
While Kentucky has stressed the value of education as a way to improve opportunities, "individuals may not have as good an understanding
of how financial literacy can impact their futures," Rogow said.
The U.S. Department of the Treasury had identified Eastern Kentucky as one of the areas in the country in real need of better financial literacy, but its attempts to address the problem had been mostly unsuccessful, said Ian Mooers, executive director of EKU's
Center for Economic Development, Entrepreneurship and Technology.
While EKU's program will rely on many of the educational materials developed by the treasury department, it will be, as Rogow calls it, a "train-the-trainer" type of program. EKU will take students from Eastern Kentucky, train them in various aspects of financial literacy and send them back to their respective communities to spread that wealth of knowledge.
"There is nothing better than a local person," Mooers said. "We are really excited about that."
The Community Change Program will start small, with a planned five to 10 students starting in the program in the fall. Rogow said the goal is to build up to about 30 students in the program each year.
Rogow said he is hopeful that financial institutions will be willing to partner with EKU to keep the program growing.
Already, Citizens Guaranty Bank, based in Irvine, Ky., has offered scholarships for students from Madison and Estill counties to enter the program.
"I challenge other financial institutions to become involved in the program and support it, too," said Kathy Samples, CEO of the bank.
The students will be trained in four aspects of financial literacy through EKU's
Department of Accounting, Finance, and Information Systems. The four areas include entrepreneurial small business finance, personal financial planning, personal money management and community financial literacy service learning.
The students will be given a certificate if they complete the program successfully. In the spring semester, the students will partner with a community organization to relay what they have learned and get college credit for providing that community service.
News reports from the program's announcement in February almost immediately generated calls from school districts and nonprofit groups. And the students can tailor their presentations depending on the needs of their community partners. An affordable-housing agency will want a different presentation than a high school.
Mooers said EKU will try to develop a measurement of the financial literacy in its service area before the students go out to provide training.
"We will be looking at this from a research angle," Mooers said. "Are we changing behavior?"
Mooers is hopeful it can be a model for transferring information that is free and available to people who may not recognize its importance.
"There are a lot of little pockets of people doing this, but no coordinated effort," Mooers said.
The Community Change Program "without a doubt makes (EKU) a leader in the commonwealth and, from what I can tell, in the nation," Kentucky State Treasurer Todd Hollenbach said at the news conference announcing the program. Financial literacy "is an absolute necessity for anybody to be successful," he added.
For the students, Mooers said he hopes the program can become a springboard for those interested in financial planning as a career.
For EKU officials, developing the program has already earned them an invitation to a treasury department national conference, where they will make a presentation this month.
EKU also has been contacted already by another state interested in the program.
Michelle Greene, deputy assistant secretary for financial education and financial access with the U.S. Department of the Treasury, said she hopes the program "can be a model for programs around the country. I'm hoping it will take off around Kentucky and beyond that."