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AEHC Educational Emphasis
July 1,
2011 - June 30, 2013
Minor Focus - Individual and Family Resource
Management
As in many states across the nation, Arkansas families are struggling
to adjust to tough economic times. Individuals and families aspire to
remain financially secure while facing economic downturn, poverty, and
job loss.
Financial Crisis and Job Loss
Arkansas has the second highest poverty rate (18.8 percent) in
the country. Poverty in the rural Delta and Coastal Plains remains
substantially higher than poverty in urban counties.
Beginning in 2005, the estimated poverty rates across the state
have increased, especially in rural areas.
Pockets of extreme poverty remain throughout the state, and seven
counties in the Delta have a poverty rate of 25 percent or greater
Housing foreclosures have affected urban areas more than rural
areas of the state. The statewide foreclosure rate for November 2010
was 586 housing units per foreclosure. This compares to a rate of
1,590 for rural areas and 360 for urban areas.
Non-business bankruptcy filings in Arkansas have risen steadily
over the past several years from 9,288 in 2006 to 16,301 in 2010.
Arkansas employment grew a modest 3.5 percent from 2000 to 2009
as compared to 5.1 percent growth in the U.S. economy during this
period.
Arkansas lost nearly 44,000 manufacturing jobs from 2001 to 2008,
which has greatly affected the economic base of rural areas in
particular. The state lost 19 percent of its manufacturing
employment over this time period compared to a 17 percent loss
nationwide.
Credit Management and Saving
Revolving consumer credit (mostly credit cards) decreased at an
annual rate of 13 percent in 2009 (Federal Reserve). On average,
today's consumer has a total of 13 credit obligations on record at a
credit bureau. Of these 13 credit obligations, 9 are likely to be
credit cards and 4 are likely to be installment loans (FICO).
Personal saving rates have increased during the past couple of years
but are still lower than the recommended minimum 10%. (Bureau of
Economic Analysis).
Consumer Protection
In 2009, more than 8,000 Arkansans reported identity theft,
fraud, or other consumer protection complaints. The top consumer
complaint relate to identity theft, debt collection, internet
services, prizes/sweepstakes, catalog sales, imposter scams,
internet auctions, counterfeit scams, phone services, and credit
cards.
As in many states across the nation, Arkansas families are
struggling to adjust to tough economic times. Individuals and
families aspire to remain financially secure while facing economic
downturn, poverty, and job loss.
Financial Crisis and Job Loss
Arkansas has the second highest poverty rate (18.8 percent) in
the country. Poverty in the rural Delta and Coastal Plains remains
substantially higher than poverty in urban counties.
Beginning in 2005, the estimated poverty rates across the state
have increased, especially in rural areas.
Pockets of extreme poverty remain throughout the state, and seven
counties in the Delta have a poverty rate of 25 percent or greater
Housing foreclosures have affected urban areas more than rural
areas of the state. The statewide foreclosure rate for November 2010
was 586 housing units per foreclosure. This compares to a rate of
1,590 for rural areas and 360 for urban areas.
Non-business bankruptcy filings in Arkansas have risen steadily
over the past several years from 9,288 in 2006 to 16,301 in 2010.
Arkansas employment grew a modest 3.5 percent from 2000 to 2009
as compared to 5.1 percent growth in the U.S. economy during this
period.
Arkansas lost nearly 44,000 manufacturing jobs from 2001 to 2008,
which has greatly affected the economic base of rural areas in
particular. The state lost 19 percent of its manufacturing
employment over this time period compared to a 17 percent loss
nationwide.
Credit Management and Saving
Revolving consumer credit (mostly credit cards) decreased at an
annual rate of 13 percent in 2009 (Federal Reserve). On average,
today's consumer has a total of 13 credit obligations on record at a
credit bureau. Of these 13 credit obligations, 9 are likely to be
credit cards and 4 are likely to be installment loans (FICO).
Personal saving rates have increased during the past couple of years
but are still lower than the recommended minimum 10%. (Bureau of
Economic Analysis).
Consumer Protection
In 2009, more than 8,000 Arkansans reported identity theft,
fraud, or other consumer protection complaints. The top consumer
complaint relate to identity theft, debt collection, internet
services, prizes/sweepstakes, catalog sales, imposter scams,
internet auctions, counterfeit scams, phone services, and credit
cards.
Youth Financial Literacy
According to the most recent national Jump$tart survey of high
school seniors, the financial literacy of high school students has
fallen to its lowest level ever (2008). Arkansas students scored
just below the national average with an overall score of 47.
Financial education is especially critical for Arkansas youth
because of high poverty rates across the state. Poverty rates have
increased since 2005 with pockets of extreme poverty throughout the
state.
In a survey of young adults ages 23-28, 71% indicated that they
are very concerned about the country’s economic future. On average,
they have more than $14,000 in debt, carry a credit card balance,
and don’t save for the future. More than 40% of the young adults
surveyed, stated that they wish they had been taught more about
budgeting and saving before they entered the workforce. Looking at a
younger group, a survey of teens found that many don’t know how to
budget, don’t understand saving, and are unsure about how to invest.
According to the Survey of Consumer Payment Choice by the Federal
Reserve Bank of Boston (January 2010), the average age a U.S.
consumer gets their first credit card is 20.8. Another survey, How
Undergraduate Students Use Credit Cards, by Sallie Mae (April, 2009)
reported that 84% of American undergraduate students have a credit
card, with half having four or more credit cards. Since 2004,
students who arrived on college campuses as freshmen with a credit
card already in hand have increased from 23% to 39%.
According to the most recent national Jump$tart survey of high
school seniors, the financial literacy of high school students has
fallen to its lowest level ever (2008). Arkansas students scored
just below the national average with an overall score of 47.
Financial education is especially critical for Arkansas youth
because of high poverty rates across the state. Poverty rates have
increased since 2005 with pockets of extreme poverty throughout the
state.
In a survey of young adults ages 23-28, 71% indicated that they
are very concerned about the country’s economic future. On average,
they have more than $14,000 in debt, carry a credit card balance,
and don’t save for the future. More than 40% of the young adults
surveyed, stated that they wish they had been taught more about
budgeting and saving before they entered the workforce. Looking at a
younger group, a survey of teens found that many don’t know how to
budget, don’t understand saving, and are unsure about how to invest.
According to the Survey of Consumer Payment Choice by the Federal
Reserve Bank of Boston (January 2010), the average age a U.S.
consumer gets their first credit card is 20.8. Another survey, How
Undergraduate Students Use Credit Cards, by Sallie Mae (April, 2009)
reported that 84% of American undergraduate students have a credit
card, with half having four or more credit cards. Since 2004,
students who arrived on college campuses as freshmen with a credit
card already in hand have increased from 23% to 39%.
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