Federal Deposit
Insurance Corporation

The new video (33 minutes in English, 42 in Spanish) "is designed for anyone teaching basic financial education," said Lee Bowman, the FDIC's National Coordinator for Community Affairs. He said that while the video provides an overview of the Money Smart program (intended primarily for low- and moderate-income adults), it also gives "good basic guidance on how to teach a financial education class, including an emphasis on the importance of advanced preparation."

The video is a complement to instructor guides that are part of the Money Smart curriculum and train-the-trainer workshops the FDIC holds for Money Smart educators at banks, community groups and other organizations. To see the video online, order a free copy in DVD or VHS format or learn more about Money Smart teacher training programs in general, go to http://www.fdic.gov/consumers/consumer/moneysmart/trainthetrainer.html.

In addition, Money Smart News has compiled the following 10 suggestions to help any financial educator prepare an effective, inspirational presentation to adult students:

1. Know your audience. Do some early research, such as by including a survey or pre-session questionnaire with registration materials, to identify students' special needs. For example, if most or all of the students will be senior citizens, new immigrants or low-income individuals, think about the financial issues that matter to them and plan to have discussions, handouts and visual aids that could be helpful.

Joan Lok, an FDIC Community Affairs Specialist in Baltimore, also likes to start the first class with an "icebreaker" – a question to each participants such as, "What would you do with a million dollars?" Why? "Their answers often give me an idea of how each student values and manages money and other insightful information about each person's needs," she said.

Also discuss with your program's administrators whether special support services may be needed by your students, such as child care, transportation, on-site translation or sign-language interpretation.

2. Be sensitive to the students' financial problems and needs. "Regardless of income level and education level, a lot of people don't ask for help or seek financial education until they are on the verge of getting into trouble with their bills," Lok said. "Financial educators have to be very sensitive to the needs of the student. You don't say, 'You should have come for help before you opened 10 credit cards and ran up all those debts.' Instead, deliver the message with a non-judgmental, positive and encouraging attitude."

3. Use personal anecdotes. No matter how your background may differ from your students, they still can relate to and be inspired by your true stories of mismanaging money or misunderstanding key concepts. For example, tell them if you made a mistake when you applied for a loan or borrowed too much on a credit card…and what you learned from your experience. These stories can illustrate or emphasize special concepts or messages, generate discussion and maintain the students' interest.

4. Involve everyone in the discussion. Adults learn best if they participate and speak in class and don't just listen to lectures. Build in time for class exercises and open-ended questions that encourage participants to talk about their experiences or concerns. Compliment participants on interesting or insightful comments.

5. Make the subject matter relevant. Adults must see value in what you're teaching and how it applies to their world. Explain the potential benefits if they follow your recommendations. And remember to focus on topics that are the most pressing for your students. Example: Class participants who are living paycheck to paycheck will relate better to a discussion on how to reduce spending and increase income than to the basics of buying a home.

6. Practice effective speaking techniques. You want to "be yourself" and be as relaxed as possible in class. But you also should be conscious of what you need to do to hold your students' attention. Make eye contact with participants. Avoid stiff body-language, pacing or other nervous habits. Show energy and enthusiasm, which will help convey the importance of the financial topics you are discussing. Use hand gestures to support and liven up your presentation. And, speak clearly, with a minimum of "uhs" and "ums" in your sentences. Many of the best instructors take the time to practice before friends, family members or even in front of a mirror at home.

7. Take it slow. "Because money is so personal, you need to pace your delivery to give students extra time to absorb what you're telling them and apply it to their own situation," said Lok. "It's not like teaching math and 'three minus two is one.' When you're talking about credit cards, people will naturally start thinking about their own credit card and if they should look for a better deal. It becomes a more personal and more difficult process."

8. It's OK to be creative. "Varying your teaching methods and departing from the scripts can help keep participants' interest," said Liz Kelderhouse, an FDIC Community Affairs Officer in Kansas City. She also encourages financial educators to arrange field trips to financial institutions. "One of our Money Smart partners that teaches financial education to Latino immigrants arranges for a monthly visit to a nearby bank branch," Kelderhouse added. "The class participants look forward to meeting bank personnel and many of them open their own accounts."

9. Bring in outside speakers. Good examples include a local banker, a community leader who overcame financial struggles earlier in life, and a government official from a financial or consumer protection agency (perhaps a local representative of the Social Security Administration who can talk about retirement planning). "Guest speakers can add variety and valuable information to a class," noted Kelderhouse. "They also introduce the students to other resources they can turn to for help with their financial planning or important transactions."

10. Ask the students, "How did I do?" At your last class, hand out a course evaluation, such as the one included in the Money Smart materials, or conduct your own assessment. "Ask the students what they liked and what they want to see in the future," said Kelderhouse. "That way, you can build on those comments and make the sessions more effective."