inside the vault - fall 2009

8/9/2019 Inside the Vault - Fall 2009

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Understanding college costs, and navigat-ing their way through the many sources o

nancial aid, can seem as daunting as anyterm paper, and the nations recent creditcrisis has made the task even more challeng-ing. This article addresses those challenges,

ocusing on the nancial needs o college-bound students, rom what makes up theoverall cost to what types o student loansare available, as well as the rising cost o college and the impact o the credit crisis onstudent loans.

The Overall Cost of CollegeThe expense o attending college extends

ar beyond tuition and ees. Typical costsalso include room and board, books and

supplies, transportation and other miscella-neous expenses.The share o a students overall college

costs represented by each o these catego-ries o expense varies by type o institution(private or public, two-year or our-year) andwhether a student attends an in-state orouto -state school. According to a 2007-08 College Board survey, published tuitionand ees constitute 67 percent o the total

expenses or students enrolled in a our-yearprivate college. This compares with 60 per-cent or out-o -state students enrolled in apublic college, 36 percent or in-state publicstudents and 17 percent or students attend-ing a public two-year college.

Paying for CollegeCollege students choose rom a variety o options to pay or the overall costs o theirhigher education. According to a 2008Sallie Mae-Gallup study, parents pick up thelargest portion, paying 48 percent o theoverall cost. On average, a student covers33 percent o the cost himsel or hersel ,using income, savings and loans. Grantsand scholarships account or an average o

15 percent, with support rom riends andrelatives making up the rest.The study, which involved interviewing

hundreds o amilies with college-agedstudents during the 200708 academic year,provides urther detail about the sourceo the unding. O the 48 percent parentscontribute, 32 percent comes rom income

As College Costs Rise,Student Loans Are Harder to Find

Whats YourQuestion?First Aid on

Financial Aid

EconomicSnapshot

Second Quarter Data

Bulletin BoardPig E. BankEconomics

Its Your Paycheck

ResourcesCards, Cars

and Currency

www.stlouis ed.org/education

High school students planning or college can look orward to multiplequestionsand not just those they might con ront on standardized tests.In addition to getting into college, students and their amilieshave to gure out how much college will cost, and how to pay or it.

Volume 13Issue 2

Fall 2009

A n E c o n o m i c E d u c A t i o n n E w s l E t t E r f r o m t h E f E d E r A l r E s E r v E B A n k s t . l o u i s

continued on Page 2

t h E f E d E r A l r E s E r v E B A n k o f s t . l o u i s : c E n t r A l t o A m E r i c As E c o n o m y


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and savings and 16 percent rom loans. Not surpris-ing, perhaps, students contribution is weighteddi erentlyonly 10 percent comes rom income andsavings, with 23 percent coming rom loans. Overall,then, students and their parents pay or a signi cantshare o the cost o collegeclose to 40 percentby borrowing money. The types o borrowing thatparents and students typically use include private andpublic educational loans, home equity loans, creditcards, other types o loans and withdrawals romretirement accounts.

The sources o unding amilies choose also varywith the amilys level o income.

On average, higher-income amiliesthose withincome o $100,000 or morepay a greater share

o college costs with income and savings than domiddle- and lower-income amilies. Middle-incomeamiliesthose with income between $50,000 and

$100,000rely on loans or a larger share o theircollege costs than higher- or lower-income amilies.Lower-income amilies, on average, obtain scholar-ships and grants or a greater share o their collegecosts than the other two groups.

C Ccontinued rom Page 1

Types of Loans for Education

The Sallie Mae-Gallup study rea rms the impor-tance o loans or many amilies, or whom savingsand income alone typically are not enough to pay or

all college costs. While students and their parentsuse many types o loans to pay or college, this article

ocuses on educational loans. Educational loans canbe divided into three broad categories: ederal stu-dent loans (Sta ord and Perkins), private educationloans and parent loans.

Federal student loans are the most commoneducational loans students and their amilies use to

nance higher education. These loans typically havelower interest rates than other types o loans, with

no credit check or collateral required. They come intwo basic ormsthe Sta ord loan and the Perkinsloan. Each is available or both undergraduate andgraduate students. Perkins loans are always subsi-dized by the ederal government, whereas Sta ordloans can be both subsidized or unsubsidized. Sta -

ord loans are more widely used; Perkins loans aremeant or students in extreme nancial need.


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Private education loans are another source o unding available to students. Private lenders com-

monly use students credit scores when issuingthese loans, which are o ten used when ederal loanamounts are not enough to pay or costs.

Parents also take out education loans or theirdependent children in the orm o the Parent Loan

or Undergraduate Students (PLUS). Loans throughthis ederal program can be used to cover any costsnot already met by the students nancial aid package.

Who are the Lenders?Both the government and nancial institutions

provide unding or student loans. Financial institu-tionsbanks, credit unions, thri ts and other lenders,including a variety o nonpro t organizations ormedspeci cally to make student loans in di erentstatesparticipate in student lending either by mak-ing student loans directly or by providing the unds

or ederal loans such as Sta ord and PLUS throughthe Federal Family Education Loan (FFEL) program.According to the web site www.FinAid.org, there areover 2,000 education lenders nationwide, althoughmost o the volume comes rom the top 50 lenders.That top 50 includes most o the big banks, as well asseveral nonpro t organizations. Sallie Mae, once a gov-ernment entity but now private, is the largest lender.

The Rising Cost of CollegeIn the last 10 years, the cost o higher education

has risen aster than the cost o the market basketo goods, a list o common consumer goods andservices whose prices are used to orm the con-sumer price index and thus track the rate o infation.Figure 1 shows the year-over-year increase in the U.S.Consumer Price Index or education and the totalmarket basket o goods. The cost o education hasrisen at an average rate o 4.5 to 7.5 percent annuallysince 1998, outpacing the range o 1 percent to 5.5percent or overall infation during that period.

Figure 2, rom a College Board survey, illustratesthe rising trend o college costs or both public andprivate our-year colleges over time in constant 2008

dollar terms. The costs included in these trends aretuition expenses, ees and boarding costs. The costor private institutions has risen at a aster pace thanor public institutions over the last 30 years. The

average published cost at our-year private institu-tions or the 2008-09 academic year was $34,132,compared with a cost o $15,434 in the 1978-1979

continued on Page 4

$60,000

$50,000

$40,000

$30,000

$20,000

$10,000

$0

9 9-0 0 0 2- 03 0 5- 06 0 8-0 987- 88 9 0-9 1 9 3-94 9 6-9778-79 81-82 84-85

Private Four-Year Public Four-Year

8

7

6

5

4

3

2

1

0

2005 2006 2007 20082001 2002 2003 20041998 1999 2000

Education Inflation (CPI) Total Inflation (CPI)

Fi re 2. T e A era e C st a F r-Year C e e Pr ra

Fi re 1. C pari E cati I ati wit T ta I ati

SOURCE: Sall e Mae/Gallup


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academic year. The cost or a our-year public school,on the other hand, was much lower: $14,333 in 2008-09.

College costs have risen steeply since the 2000-01academic year, especially at public institutions. Thecosts have risen by a total o 33 percent, even a teradjusting or infation over this eight-year period.These rising costs put a huge burden on students,especially in todays slow economy.

(Sources: Annual Survey of Colleges, the CollegeBoard, Integrated Postsecondary Education Data Sys-tem (IPEDS), U.S. Department of Education, NationalCenter for Education Statistics)

Impact of the Financial Crisis onStudent LoansThe current nancial crisis has presented extraordinarychallenges or amilies with college-bound students.As noted earlier, savings and personal borrowing,on the part o parents and students, account or thelargest share o higher education nancing. But asthe overall credit market has tightened, loan volumehas dropped sharply. (One study notes that 60 privatelenders originated $19 billion in personal loans in2008; by the end o January 2009, 39 o these lendershad stopped lending and the rest had tightened theirlending standards.) Borrowing by parents, especiallythrough home equity lines o credit, has diminishedsigni cantly as house prices have dropped. Banklending to consumers or personal expenses, such ascollege, has also slowed down.

As a result o this contraction, the Department o Education has seen a 10 percent increase in ederalstudent aid applications. This trend led Congress to

introduce legislation in 2008 to keep college nanc-ing channels open or amilies with college-boundstudents. President George W. Bush signed thelegislation into law as the Ensuring Continued Accessto Student Loans Act (ECASLA) on May 7, 2008.

ECASLA contains a variety o measures designedto ensure higher education nancing during the cur-rent turmoil in nancial markets. The measures areanchored by a loan buyback program, in which theDepartment o Education buys back ederal educa-tion loans rom private lenders in order to injectliquidity into student loan credit markets. The buy-back program targets Federal Family Education Loans(FFELs), which include the popular Sta ord and PLU

ederal loan programs.FFELs have been quite popular in the past. For

example, during the 2007-08 academic year, 7.5 mil-lion students and their amilies took advantage o this type o nancing, totaling roughly $91.8 billion.However, in early- to mid-2008, this market dried up,with major private lenders ceasing to make FFELsbecause they werent pro table. The loan buybackprogram was seen as an essential vehicle to getcredit fowing in this market again. Subsequent tothe initial passage o ECASLA, President Bush signeda one-year extension on ECASLAs loan buyback pro-visions so that the Department o Education couldbuy back FFELs through mid-2010.

ECASLA also increased the unsubsidized Sta ordloan limit by $2,000. Furthermore, the bill increased

the scope o the Academic Competitiveness Grant(ACG) and the National Science & MathematicsAccess to Retain Talent Grant (SMART) so that

Res rces A ai ab e t St e tsMany resources are a a lable or s uden s and am l essee ng und ng help or college. Go ernmen agenc es,nonprof organ za ons and pr a e ns u ons pro de aweal h o ree n orma on on he n erne regard ng s u-den loans, cos s, lenders and plann ng ools. S uden s andparen s should be able o fnd he n orma on hey need oplan and pay or college on he ollow ng web s es:

ttp:// a sa.e . ( ederal s uden a d web s e o er-ng onl ne appl ca on or ederal s uden loans)

www.c e e. (Depar men o Educa on web s e,he go o source or n orma on on pos -secondary

educa on) www.f ai . r (a comprehens e web s e on s uden

loans, scholarsh ps, a d and use ul l n s) www.c e eb ar .c ( n orma on on colleges,

s andard zed es ng and fnanc al a d rom a nonproforgan za on)

www. c e p. r (a ne wor o fnanc al ns u ons andschools pro d ng n orma on on he FFEL program)

www.st e ts. (U.S. go ernmen web s e pro d-ng l n s o o her go ernmen resources or s uden s

and paren s)

C Ccontinued rom Page 3


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students who had already been receiving ederallyunded Pell Grants could avail themselves o these

additional unding sources. In addition, ECASLA givesparents the option to de er repayment o PLUS loansuntil six months a ter the student nishes at leastpart-time enrollment at an institution o higher educa-tion. The bill also expands eligibility or PLUS loans toparents who are delinquent on medical or mortgagepayments. Further, ECASLA allows the Department o Education to designate institutions or Lender o LastResort (LLR) loans upon approval rom the Secretaryo Education, which increases the ability o individualschools to expand student loan access.

Although the ECASLA legislation is a positive rststep in ensuring credit or amilies with college-bound students, ederal lawmakers and the adminis-tration o President Obama may need to revisit thisissue as weakness in the nancial sector continues.

Rajeev Bhaskar and Yadav Gopalan are research associ-ates at the Federal Reserve Bank of St. Louis.

WhERE To lIvEGo local. I you have a public university near you, you

can live at home. Dorms and apartments are costly. I yougo away to school, live in the cheapest dorm. This is usuallythe one with the small rooms and the common bathroomdown the hall. The lack o privacy can be a good thingyou certainly get to know the people around you. Becausethey were likely the rst built on campus, they are locatedcloser to the classroom buildings. This cuts down ontransportation costs.

hoW To EATI you choose a meal plan, be realistic. Your parents wantyou to have a healthy break ast, lunch and dinner, so theywill choose the 21 meal/week plan. You, on the other hand,may choose to eat in the dining hall only 10 times each week.Switch your plan as soon as you can. I you have money ormeals le t over at the end o the plan period, spend it onsnacks or ruit at the campus store. Use it or lose it.

I your school o ers only a debit card or you to use withmeals, be sure to keep track o each expense. Especially oncampus, it is very easy to overspend at the co ee shop andthe vending machines.

Get a job in the dining hall. Employees usually eat orree during their shi ts. You can eat and earn money!

hoW To gET ARoundI you live on or near campus, a car is likely not neces-

sary. Sure, its a great convenience, but you will pay or gas,maintenance, a parking permit and parking nes when you

inevitably park in the wrong places. Our grads noted thatthere is usually someone going where you want to go, andall you have to do is o er to help with the gas.

BookS And SuPPlIESThe message rom the graduates was buy used. Its much

cheaper and the used copies sometimes include bene cialnotes rom the previous owner. I you miss the used booksat the campus bookstore, try hal .com, amazon.com, craigslistor other online vendors. I you belong to campus organiza-tions, ask the other members i theyve taken the course you

will be taking and then o er to buy or borrow their book.

hoW To SPEnd YouR SummERSThe consensus was to take at least one summer course.

There were lots o good reasons, but the nancial reason isthat it might get you out a semester early, or it will reduceyour load during your last semester or two or the all-important job hunt. That lighter load might also help youboost your g.p.a. just in time or the labor market scrutiny.Some o those summer courses can be taken at the com-munity college, a cheaper alternative. A good alternative isa paid internship, which helps you gain college credit, workexperience and great re erences.

BEST AdvICEGet only one credit card and use it only in an emergency.

Be care ul with the debit card, too. Use cash. Dont betempted by the vending machines and the co ee shop.Save money whenever you can.

WE ASkEd CollEgE gRAdS FoR Budg ET AdvICE ThEY Could oFFER InComIng FREShmEn


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g l o s s a r y

Aca e ic C petiti e ess gra ts (ACg) are grants awarded tostudents who can demonstrate that they completed a rigorous

high school program o study be ore enrolling in college. Eligiblestudents receive up to $750 or their rst year o college, and $1,300or the second year i they also maintain a 3.0 grade point average

in college. The grant is awarded to students over and above anyother grants or scholarships.

C s er Price I ex (CPI) is a measure o the prices paid byurban consumers or a market basket o consumer goods andservices.

E s ri C ti e Access t St e t l a s Act (ECASlA) is an actsigned by President George W. Bush on May 7, 2008, designed tokeep college nancing channels open or amilies with college-bound children. It contains a variety o measures to ensurehigher education nancing is available during the current marketconditions. It allows the Department o Education to buy back

ederal education loans rom private lenders. It increases theunsubsidized Sta ord Loan limit by $2,000, increases the scopeo the Academic Competitiveness Grant (ACG) and the NationalScience & Mathematics Access to Retain Talent Grant (SMART),gives parents the option to de er repayment o PLUS loans untilsix months a ter the student nishes at least part-time enrollment,expands eligibility or PLUS loans to parents who are delinquenton medical or mortgage payments and allows the Department o Education to designate institutions or Lender o Last Resort (LLR)loans, which increases the ability o individual schools to expand

student loan access.Fe era Fa i y E cati l a s (FFEls) is a category o loans thatincludes both the Sta ord and PLUS ederal loan programs.

Fe era Pe gra tsare examples o nancial aid money that a stu-dent does not have to repay. Pell grants usually are awarded onlyto undergraduate students who have not yet earned a bachelorsor pro essional degree. The amount o the grant to a particularstudent is determined by the students nancial need, collegecosts and enrollment status. The maximum available amount o the grant can vary rom year to year; or the 2009-10 academicyear the maximum possible amount o the Pell grant is $5,350.

Fe era S pp e e ta E cati opp rt ity gra t (FSEog) is agrant available to low-income, undergraduate students. Priorityin awarding these grants is given to students determined to haveexceptional needthose with the lowest expected amily contri-butions as determined by the FAFSA (see Q&A). The amount o FSEOG grants ranges rom $100 to $4,000 per academic year.

Pare t l a r u er ra ate St e ts (PluS) is a ederal loanprogram that allows parents o dependent undergraduate students

to borrow money to cover any expenses related to a students col-lege attendance. The amount borrowed can be up to the ull costo attendance.

Per i s l a is a ederal loan available to undergraduate studentswho have extreme nancial need at any one o the approximately1,800 colleges and universities that participate in the Federal Per-kins Loan Program. The amount o the loan is limited to $4,000per academic year.

nati a Scie ce & mat e atics Access t Retai Ta e t gra ts(SmART) are grants that can und up to $4,000 o the third and

ourth academic years or college students who show promise inmath, physical and li e sciences, technology, engineering or oreignlanguage. To quali y or a SMART grant, students must already bea Pell grant recipient and maintain at least a 3.0 grade point aver-age on a ull-time degree path in one o the approved majors atan accredited our-year college. In addition, recipients must takecourses in their major during each term they are subsidized by theSMART grant.

Sta r l a (S bsi ize ) is a ederal loan available to studentswho demonstrate su cient nancial need. The amount availablethrough this program ranges rom $2,625 to $18,500 per academicyear, depending on actors that include an individual students

nancial status and student status (year in school and numbero academic years remaining). The ederal government pays theinterest on these loans while the student is in school and duringany grace periods or de erment periods when the student is nolonger in school.

Sta r l a (u s bsi ize ) is a ederal loan available or whichstudents do not have to demonstrate nancial need. Like thesubsidized Sta ord Loan, the available amount ranges rom $2,625to $18,500. Students obtaining unsubsidized Sta ord Loans areresponsible or all interest payments during the li e o the loan,including interest that accumulates while the student is still inschool. I a student chooses not to begin repayment during thetime he or she is in school, the interest that accumulates is capital-

izedit is added to the principal amount o the loan and will haveto be repaid at the higher interest rate.


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Q. W at is f a cia ee ?

A. Financial need is the di erence between the costo attendance or a student going to college and theamount the student and his or her amily is expectedto contribute toward that cost. (The terms FinancialNeed, Cost o Attendance (COA) and ExpectedFamily Contribution are commonly used duringthe nancial aid application process.) I the amounto college aid a student receives doesnt und thestudents entire nancial need, the student and his orher amily must make up the di erence.

Q. W at is c st atte a ce?

A. The cost o attendance, also re erred to as thestudent expense budget, is the annual cost o attend-ing college or a particular student. The cost o attendance includes tuition, books, ees, room andboard, transportation, and out-o -pocket expenses.The cost o attendance or a particular student isused to determine that students nancial need.

Q. W at are t e req ire e ts r a st e t t bee i ib e r st e t ai ?

A. To be eligible to receive ederally unded collegeaid, a student must be a United States citizen or legalresident. In some states, non-citizens may receiveassistance through state unds to attend college.

Q. W at is FAFSA?

A. FAFSA is the Free Application or Federal StudentAid, the application orm that students and theirparents ll out at the beginning o the nancialaid application process. Along with the completedapplication, which is available online at www.FAFSA.ed.gov, students and their parents submit income tax

orms when applying or nancial aid. The in orma-tion on the FAFSA is used to determine the amount astudent can a ord to pay or college. It is important

or students and their parents to complete the ormas soon as possible a ter Jan. 1 o each year, because

ederal unds or college nancial aid are awarded ona rst-come, rst-awarded basis.

Q. A ter I f e a FAFSA r I recei e a St e tAi Rep rt (SAR). W at is t e p rp se t e

rep rt?A. A ter receiving a completed nancial aid appli-cation rom a student, the government produces aStudent Aid Report, which indicates the studentsexpected amily contribution (EFC). The governmentsends the expected amily contribution to the col-leges requested by the student.

Q. h w I w w c f a cia ai I aetti r y c e e r i ersity?

A. Colleges and universities noti y students o their nancial aid packages directly, by sending anaward letter to the student. The award letter detailsthe con guration o the nancial aid package theschool is o ering and also includes any requirementsattached to the nancial aid o er.

Q. W at is a ra t?

A. A grant is money provided to a student that doesnot have to be repaid.

w h a t s y o u r q u e s t i o n ?

First Aid on Financial Aid

continued on Page 8

iStockphoto, Lisa Klumpp


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W y q ?continued rom Page 7

w h a t s y o u r q u e s t i o n ?

Q. W at is erit-base ai ?

A. Merit-based aid is any orm o nancial aidawarded on the basis o a students personal achieve-ment or individual characteristics, without re erenceto nancial need. Merit-based nancial aid awardsare also known as scholarships. Much merit-basedaid is awarded based on grade point averages andnational test scores, such as scores on the ScholasticAptitude Test (SAT) and the American College Test(ACT).

Q. Ca st e ts a t eir a i ies se a s tpay r c e e?

A. Many students and their parents use loans to payor part o the costs o attending college. Some o

the loans come rom ederal loan programs speci -cally or college; students and their parents alsoobtain private loans rom a variety o sources.

Q. W at are e era a pr ra s?

A. Federal loan programs allow students to borrowmoney to help pay or their college expenses. Loansobtained through ederal loan programs may comeeither directly rom the ederal government or roma private lender. Students obtaining loans through

ederal loan programs must repay both the principal(the amount borrowed) and interest ( ees charged

or borrowing the money). The interest rate chargedor ederal loans is o ten lower than that charged or

loans rom other sources.

Q. W at types e era a s are t ere?

A. There are several di erent types o ederal stu-dent loans: the Sta ord Loan (subsidized), Sta ordLoan (unsubsidized), Federal Perkins Loan and Fed-eral Parent Plan or Undergraduate Students (PLUS)

loans. Brie in ormation about each o these types o loans is included in the glossary.

Q. W at types pri ate a s are a ai ab e?

A. In addition to ederal student loan programs,students and their parents may seek money rom pri-vate loans. Such loans may come rom banks, creditunions, li e insurance policies or home equity loans.Whether student or parent, an individual borrow-ing a private loan must quali y or the loan by beingcredit worthy; the lender will establish the terms o the loan, with the interest rate dependent on theborrowers credit history.

Q. W at are w r -st y pr ra s?

A. Work-study programs are campus-basedprograms that provide part-time jobs orstudents with nancial need. Individualuniversities and colleges award a particularamount o work-study unding and availablework hours to individual students basedon the award amount, class schedule andacademic standing.

Q. W at is a e w e t?

A. Endowments are private campus-based

unds that come rom money given to thecollege rom private sources, intended ora variety o purposes. Endowment undsare o ten intended to help some studentspay or tuition. Usually private collegeshave these kinds o unds available, whereasstate colleges do not.


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e c o n o m i c s n a p s h o t

q3-08 q4-08 q1-09 q2-09

g w r Real Gross Domestic Product 2.7% 5.4% 6.4% 1.0%*

i f r Consumer Price Index 6.2% 8.3% 2.4% 1.3%

C v u m m r 6.1% 6.9% 8.1% 9.3%

*Second estimate

1. W 529 p ?

A 529 Plan re ers to Section 529 o the InternalRevenue Code allowing states, state agencies oreducational institutions to sponsor a tax-advantagedsavings plan, legally known as a quali ed tuitionplan. The two types o 529 Plans include the pre-paid tuition plans and college savings plans. Pre-paidplans allow savers to purchase uture credit hoursat a reduced price. The savings plans most o tenconsist o mutual unds chosen rom among undschosen by the state.

2. W m dv 529 ?

A 529 Plan o ers several investment unds rom

which to choose. The saver does not pay taxes onthe money withdrawn rom a 529 account whenthe money is used to pay or a quali ed educationexpense. I the saver would ever claim bankruptcy,money in a 529 plan is protected rom creditors,(with some limitations). Several state plans areopen to savers rom other states, so savers can shoparound or the plan thats best or them.

3. W m d dv 529 ?

Money in a 529 plan can only be used or collegeexpenses; money withdrawn or any other purpose issubject to taxes and penalties. The investment unds

in a 529 plan are subject to the ups and downso the stock market. The money invested is notinsured like money saved in FDIC-insured savings

accounts. There are many ees associated with 529plans. A 529 plan may be counted among parentsassets and reduce the nancial aid a student mightotherwise have received.

4. W m x c v v cc , m m k

cc CD ?

Parents may want to hold their savings in FDIC-insured accounts. They may not be con dent thattheir child will go to college. Parents may eel 529plans are too complex, both in choosing the appro-priate plan and in the tax treatment.

C ed c s v V c

GALLUP. All r gh s reser ed.Repr n ed w h perm ss on rom www.Sall eMae.com/HowAmer caPays. 0% 20% 40% 60% 80% 100%

Savings, Money Market Accounts or CDs

Stocks or Bonds

529 College Savings Plan

Mutual Funds

Retirement Savings Account

Checking AccountCollege Savings Reward Program

Coverdell Education Savings Account

Pre-Paid or Guaranteed State College Savings Plan

Percent Yes

25%

A Trust

Other

59%

41%

33%

29%

29%

18%

14%

11%

10%

9%

s c d q 2009


10/12

10

b u l l e t i n b o a r d

L O U i S v i L L E

p e. b k ec m c W kOct. 14, 20094:30 p.m. to 7 p.m.Evansville, Ind.

Pig E. Bank is the lead characterin the St. Louis Feds Piggy Bank Primer lesson series, whichteaches economic and nancialconcepts to students in grades K-4.

h w : Contact GregValentine at 812-465-1610 [email protected].

ec C m sOct. 20-21, 2009Princeton, Ind.

Econ Camp is a two-day con erence or high schooleconomics teachers. Learn about concepts identi ed inIndiana Economics Standards while sharing best teachingpractices and promoting inclusion o economics in thehigh school curriculum.

h w : Go to www.econed-in.org/econcamps.

asp or contact Greg Valentine at [email protected].

g D W kNov. 19, 20094 p.m. to 7 p.m.Murray, Ky.

I you teach history, economics or government, thiscurriculum is per ect or you. The curriculum includessix stand-alone lessons allowing teachers to select thoselessons most appropriate or their students. The lessonsinclude simulations, group work and other active strategies

to engage students.h w t re ister : Contact Patricia Lassiter at 270-293-0284.

M E M P H i S

F c p c : W D i M ec m d W D iM y ?Nov. 4, 20098 a.m. to 3:30 p.m.Holiday InnUniversity of MemphisMemphis, Tenn.

This one-day con erence,designed or educators in grades5-12, will cover the role o scalpolicy in the economy. RobertRasche, Executive Vice Presidentand Senior Policy Adviser at theFederal Reserve Bank o St. Louis,will provide content. Hands-on lessons and activities orteaching will be eatured in breakout sessions.

h w t re ister: Register online at w ww.stlouis ed.org/education_resources.

L i t t L E R O C k

ec m c s mm :

t g n sOct. 26, 20099 a.m. to 4 p.m.University of Arkansas, FayettevilleFayetteville, Ark.

Going Green is the topic o this summit being held oreconomics, business, marketing and science teachers.Teachers will hear speakers and receive lesson plans andother resources that will help them teach economicsrelated to this topic.

h w t re ister: Contact Julie Kerr at 501-324-8296 or julie.a.kerr@stls. rb.org.

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The Federal Reserve Bank of St. Louis is partner-ing with the Cooperating School Districts of St. Louis to provide content via video conferencefor students.

In Plain English: Jan. 15, 20109 a.m. to 10 a.m.10:30 a.m. to 11:30 a.m.and 1 p.m. to 2 p.m.

What is the Federal Reserve andwhat does it do? We cant wait

to talk to your students about our nations central bankThe Federal Reserve. Certainly you and your students havesome questions. Please join us on Jan. 15.

t g DApril 6, 2010

David Wheelock, Vice President and Research Economisto the Federal Reserve Bank o St. Louis will discuss theDepression, rom this countrys deepest, darkest days to itsescape into a sound and unctioning economy.

T re ister y r c assr r a i e c ere ce:Go to http://csdtechpd.wordpress.com or e-mail Rebecca

Morrison at [email protected].

e c : a k s Jan. 26, 20109 a.m. to 3:30 p.m.Mosaic Templars, Little Rock, Ark.

The topic or this workshop is A rican-American entrepre-neurs rom Arkansas. Integrate economics, Arkansas his-tory and amous Arkansans into your lessons just in time tocelebrate Black History Month in February.

h w t re ister: Contact Julie Kerr at 501-324-8296 or julie.a.kerr@stls. rb.org.

K d , M d C d lSaturday, Dec. 5, 20099 a.m. to 3:30 p.m.Itawamba Community CollegeTupelo CampusAdvanced Education CenterTupelo, Miss.

This one-day pro essional devel-opment workshop is especiallydesigned or educators in gradesK-6. CEU credit will be awarded toattendees.

h w t re ister: Call 662-620-5240or e-mail jeannette.n.bennett@stls. rb.org.

I you are looking or resources or teaching economics orpersonal nance, please visit our web site. We have lessonplans, articles, curricula, online courses and more. Our website address is: www.st is e . r /e cati _res rces .

Are you interested in pro essional development or your-sel , or your school, or your school district? I so, contact:

litt e R c :Billy Britt at billy.j.britt@stls. rb.org

l is i e: Caryn Rossiter at caryn.j.rossiter@stls. rb.org

me p is: Jeannette Bennett at jeannette.n.bennett@stls. rb.org

St. l is:Barb Flowers at barbara.fowers@stls. rb.org

Bank Contacts

Little Rock

Billy Britt501-324-8368

LouisvilleCaryn Rossiter502-568-9257

Memphis Jeannette Bennett901-579-4104

St. Louis Mary Suiter314-444-4662

Barb Flowers314-444-8421

J i o r E- ai list!All o us would like to have ewer post-cards, advertisements and brochuresstu ed in our mailboxes. So, in the spirit o reducing the clutter on your counter top,desk, kitchen table, etc., we would like tocontact you by e-mail, whenever practical.

Please go to our web site and join our mail-ing list.www.st is e . r /e cati _res rces/s bscribe.c


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st. LOUIs, MOpErMIt NO. 444

Inside the Vault is writtenby economic education sta at the Federal Reserve Banko St. Louis, P.O. Box 442,St. Louis, Mo., 63166.The views expressed arethose o the authors and arenot necessarily those o theFederal Reserve Bank o St. Louis or the FederalReserve System. Please directall comments and questionsabout the publication to 314-444-8421 or barbara.fowers@stls. rb.org.

f e a t u r e d r e s o u r C e s

Cards, Cars and Currency is a curriculum unit or use in high school personalnance classes. The curriculum challenges students to learn about three speci c

areas o personal nance: credit cards, debit cards and purchasing a car. The unit isdivided into ve lesson plans. The activities in each lesson plan are designedto address problem-solving, critical thinking and higher levels o learning, usingreal-world scenarios.

T e ess s ca be w a e at:www.stlouis ed.org/education_resources/curriculum_units.c m

Economic educators at the Federal Reserve Bank o St. Louis o er workshops onCards, Cars and Currency . For in ormation contact:

litt e R c : Billy Britt, billy.j.britt@stls. rb.orgl is i e:Caryn Rossiter, caryn.j.rossiter@stls. rb.orgme p is: Jeannette Bennett, jeannette.n.bennett@stls. rb.orgSt. l is: Barbara Flowers, barbara.fowers@stls. rb.org

Cards, Cars and CurrencyCards, Cars and Currency

A Federal Reserve Bank of St. LouisHigh School Personal Finance Curriculum

P.O. Box 442St. Louis, MO 63166

inside the vault - fall 2009

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