Full text of Inside the Vault : Spring 2014

View original document

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

Volume 19
Issue 1
Spring 2014

A N EC O N O M I C E D U C AT 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 O F S T. LO U I S

The CARD Act: Has It Made a
Difference?
BY JEANNETTE N. BENNETT
© Thinkstock

Economic
Snapshot
The CARD Act

What’s Your
Question?
Understanding Credit
Cards

Resources
For Spring

www.stlouisfed.org/education_resources

n 2009, Congress passed the most substantial reforms in the credit card industry
in over 40 years—the Credit Card Accountability Responsibility and Disclosure of
2009 (the CARD Act). The CARD Act addresses many practices consumer advocates—and Congress—identified as problematic. Although the Truth in Lending
Act of 1968 mandated disclosure of information about the costs (terms) of credit,
there were few limits placed on the pricing practices (e.g., fees) of card issuers. Congress intended the CARD Act, often called the Credit Cardholders’ Bill of Rights, to
establish fair and transparent practices for credit cardholders. Put simply, the CARD
Act offers cardholders protections that can save them money. Fair practices include
lower fees and limits on interest rate increases. Transparent practices include better and timely communication so consumers know how much they are really paying
for credit. This article reviews some of the reforms initiated by the CARD Act and
their effects on credit card usage and consumer savings.

Credit Card Usage
Although credit card usage declined from
2006 to 2009, it rebounded soon afterward.
As shown in Figure 1, from 2009 to 2012 the
number of annual transactions increased
substantially for both general-purpose and
private-label credit cards.
General-purpose cards are issued by a
major electronic payment network, such as
Visa and MasterCard; are accepted by a wide
variety of merchants; and include credit,
debit, and prepaid cards. Private-label cards
are merchant specific—usable only at a particular merchant or chain of merchants, such

as Target and Macy’s, and include credit and
prepaid cards. Use of general-purpose credit
cards for remote transactions (when the
credit card is not present, e.g., online sales)
continues to grow. In 2012, they accounted
for two-thirds of all remote transactions.
In addition, from 2009 to 2012, the total
dollar value of credit card transactions—how
much is spent using credit cards—increased.
In 2012, the credit card subset of general–
purpose cards accounted for the highest
dollar value of general-purpose card transactions (53 percent), followed by debit cards (44
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 A’ S E C O N O M Y ®

The CARD Act
continued from Page 1

FIGURE 1

Number of
payments*

Credit card type

2009
(billions)

2012
(billions)

General-purpose

19.5

23.8

6.8 %

Private-label

1.5

2.4

17.1%

21.0

26.2

7.6%

Total

First, consumers must opt-in to allow transactions over
their credit limit. If they opt- in, they agree to pay overlimit fees. If they do not opt-in, transactions that would
exceed their credit limit will be denied. Second, overlimit fees must be reasonable and proportional to the
violation and are set at $25 for a first violation and $35 for
each subsequent violation within the next six months.
These new limits prevent the run-up in fees allowed
prior to the CARD Act. For example, say you were
charged an over-limit fee of $35 and then made your
minimum payment. If that payment didn’t take you
below your credit limit, you would be charged the
over-limit fee again on your next bill. With the old fee
structure, some consumers could—and did—end up
owing more and more every month.
Over-limit fees drastically declined after the implementation of the opt-in rule in February 2010, from an
incident rate of 7.9 percent of active accounts in the
fourth quarter of 2008 to a mere 0.4 percent by the
fourth quarter of 2010.4 Although consumer behavior
may have changed independent of the CARD Act, it is
likely that the CARD Act is responsible for much, if not
all, of the change.

Annual
increase

NOTE: * Payments here refers to purchases.
SOURCE: Federal Reserve System (2013).

percent) and prepaid cards (3 percent).1 From 2009 to
2012, the total dollar value for general-purpose credit
card transactions increased by an average of 9.3 percent
per year and 14.6 percent per year for private-label credit
cards.2
Did the CARD Act make the difference in credit card
usage? When implementation of the Act began, the
economy was in a recession. The increase could be in
response to the CARD Act, a weak economy, or both.

Late Fees
When a credit card payment is not made on time,
the cardholder must pay a late fee. Although the CARD
Act did not change this fact, it established new rules
regarding late fees. First, it redefines “late.” Credit card
issuers may no longer consider a payment late if the
due date falls on a date the issuer does not receive
or process mail (e.g., a weekend or holiday) and the
payment is received in the mail the next business day.
In addition, card issuers must keep the due date the
same day each month and mail statements at least 21

Over-Limit Fees
Each credit card carries a credit limit—that is, a maximum amount of money that can be borrowed on that
card. Prior to the CARD Act, cardholders who exceeded
their limit were automatically charged over-limit fees.
From the mid-1990s through 2005, such fees more
than doubled, from under $15 to over $30 per month;
by 2008, the average monthly fee was $34.80.3 The
CARD Act initiated new rules regarding over-limit fees:
FIGURE 2

Average Credit Card Late Fees
$40
$26.84

$30

$23.13
$33.08

$20
$10
$0

‘08
Q2

‘08
Q3

‘08
Q4

‘09
Q1

‘09
Q2

‘09
Q3

‘09
Q4

‘10
Q1

‘10
Q2

‘10
Q3

NOTE: The average is calculated as the total late fees assessed divided by the number of late fees.
The shaded area indicates the period before the passage of the CARD Act.
SOURCE: CFPB Credit Card Database.

WWW.STLOUISFED.ORG/EDUCATION_RESOURCES

‘10
Q4

‘11
Q1

‘11
Q2

‘11
Q3

‘11
Q4

‘12
Q1

‘12
Q2

‘12
Q3

‘12
Q4

days before that due date; statements must include
a late-fee warning, the amount of the late fee, and
any additional penalty assessed for a late payment.
Finally, the Act requires that late fees be reasonable
and proportional to the violation: $25 for a first violation and $35 for each subsequent violation within the
next six months (the same as over-limit fees). From
the mid-1990s to 2005, the average late fee rose
from under $15 to over $30 and reached $33.08 by the
second quarter of 2008 (see Figure 2).5 In the two
years prior to the implementation of the new latefees rules, the percentage of active accounts with
a late fee ranged from a high of 26.1 percent in the
third quarter of 2008 to a low of 24.2 percent in the
fourth quarter of 2009.6 In the first full quarter after
the new rules went into effect (the second quarter
of 2010), the percentage dropped to 20.0 percent.
The percentage remained relatively constant until
the second half of 2012, when it increased to 22.2
percent, where it mainly held steady through 2013.
Did the CARD Act make a difference in the number of late fees assessed? Factors independent of
the CARD Act, such as an improved economy, may
have caused fewer late fees to be assessed. Another
possible influence is the decrease in the number of
subprime credit card cardholders (those with low
credit scores), who are more likely to incur penalty
fees. So, the extent to which the Card Act reduced
the number of late fees is difficult to know for sure.

Annual Fees
Some credit cards charge an annual fee for the
use of the card. Although the CARD Act did not
address annual fees, its implementation likely
increased these fees as card issuers looked to
replace revenue lost because of the new rules.
Beginning in the second quarter of 2010, there was
an increase in the percentage of accounts with
annual fees and in the average dollar amount of
annual fees. As a result, in 2012, cardholders paid an
additional $475 million in annual fees.7

APR Repricing
Credit cardholders pay interest in the form of
one or several annual percentage rates (APRs)
for the balances on their cards. For example, a card
may offer an introductory APR that is later raised;
purchases made during the introductory period
incur the introductory rate (until paid off) and
later charges incur the higher rate.
Prior to the CARD Act, cardholder agreements

established a penalty APR triggered by certain
cardholder behaviors. These triggers included
delinquency on the account and delinquency on
any other account held by the cardholder (a practice known as “universal default”). Additionally,
cardholder agreements generally contained a
provision permitting the issuer to increase the
interest rate at any time and for any reason.
Many issuers periodically reassessed the risk of
their customers’ accounts and changed the terms
and raised the APRs of those considered more
likely to default.
The CARD Act sharply curtailed repricing
practices and strictly limits the circumstances
in which issuers can increase the APR of existing balances. For rate increases that would
affect future transactions, the card issuer is
now generally required to give cardholders
45 days’ written notice and then reassess the
account at least once every six months and
lower the interest rate if warranted.
Overall, APR repricing declined after the
implementation of the Act in February 2010
and now remains at low levels, falling from 6.7
percent of active accounts in the second quarter
of 2008 to 1.5 percent in fourth quarter of 2012.8

APRs and Total Cost
As noted earlier, one credit card account
may be charged a variety of APRs. In addition
to an introductory offer, issuers sometimes
offer cardholders limited-time promotional
rates, for example, for balance transfers. In this
case, cardholders can save money by obtaining a lower interest rate on a balance that they
transfer from one card to another: That is, the
first card’s balance is paid off when the balance
is transferred to the second card, which has
a lower interest rate. Some credit cards offer
cash advances, which are available through an
ATM or bank, and charge a significantly higher
cash-advance APR for this privilege. When
an account has different balances at different
interest rates, the order in which payments are
applied to these various balances will impact
the overall cost for the cardholder.
Prior to the CARD Act, payments made on
an account with multiple APRs were applied
to the balance with the lowest interest rate
first. Now, card issuers must apply payments
to the balance with the highest interest rate

ENDNOTES
Federal Reserve System (2013, p. 14).

1
2

Federal Reserve System (2013, p. 41).

Consumer Financial Protection
Bureau (CFPB; 2013, p. 20).

CFPB (2013, p. 21).

CFPB (2013, p. 22).
CFPB (2013, p. 24).

CFPB (2013, p. 25).

7
8

CFPB (2013, P. 8)

CFPB (2013, p. 28).

10
11

CFPB (2013, pp. 7-8).

CFPB (2013, p. 76).

Federal Reserve System (2013, p. 32)

Federal Reserve System (2012, p. 36).

REFERENCES
Consumer Financial Protection
Bureau. “CARD Act Report: A
Review of the Impact of the Card
Act on the Consumer Credit Market.” October 1, 2013; http://files.
consumerfinance.gov/f/201309_
cfpb_card-act-report.pdf.
Federal Reserve System. “The 2013
Federal Reserve Payments Study:
Recent and Long-Term Payment
Trends in the United States:
2003-2012; Summary Report and
Initial Data Release.” December
19, 2013; http://www.frbservices.
org/files/communications/pdf/
research/2013_payments_study_
summary.pdf
J.D. Power. “2013 U.S. Credit Card
Satisfaction Study.” August 2013.

WWW.STLOUISFED.ORG/EDUCATION_RESOURCES

first. Although the Act doesn’t directly set interest rates, this
new rule essentially lowers the average rate for accounts with
multiple APRs, allowing consumers to pay off balances more
quickly.

the average late fee is lower now than in 2008. The ACT sharply
curtailed repricing practices, limiting the instances in which fees
may be charged and allowing cardholders to pay off balances more
quickly.
Overall, the Act required the credit card industry to shift away
from complex, often-confusing pricing to pricing that is more predictable and easier to understand. The costs consumers now pay
for using credit cards are more directly related to APRs and annual
fees, making it easier for them to anticipate costs and avoid fees.
According to J.D. Power (2013), satisfaction of credit cardholders is at an all-time high (Figure 3). Is this satisfaction related to
the CARD Act? It is difficult to know for sure, but it seems likely.
From 2009 (before the Act) to 2012 (after implementation of the
Act), credit card usage increased—both in the number of transactions and the overall value of transactions. This growth may be
related to improved satisfaction with the credit card industry. To
be sure, the CARD Act brought many improvements and has saved
consumers money.

Looking Forward
Implementation of the CARD Act, originally assigned to the
Board of Governors of the Federal Reserve System, is now the
responsibility of the Consumer Financial Protection Bureau
(CFPB). The Act requires the Bureau to review the consumer
credit market every two years, an important provision given
technological advances and changing trends in consumer behavior. According to the CFPB, an ongoing challenge is “translating
regulations related to disclosures largely written for a paper-andpencil world into the modern electronic world. 9 ” For example,
minimum payment warnings are required only on paper and
electronic billing statements. As use of online payment portals
grows, more and more consumers may fail to see any minimum
payment disclosure—thus defeating the purpose of the rule.
Additional areas of concern noted by the Bureau include addon products (e.g., debt protection and identify theft protection)
and rewards programs (e.g., points that can be used for travel).10
Deceptive marketing practices regarding add-on products are
a specific concern, where the costs and terms of the product
are not clear.11 Reward programs vary widely from card to card
and can be difficult to understand and compare. For these and
other concerns, the Bureau will continue to assess practices. In
keeping with the intent of the CARD Act—to make practices fair
and transparent for consumers—they will determine whether
additional regulations are warranted.
With increased popularity of online credit card usage, security
of personal information and unauthorized transactions using
credit cards (third-party fraud) is a growing concern. According
to the Federal Reserve System, “in 2012, the estimated number of
unauthorized transactions (third-party fraud) was 31.1 million, with
a value of $6.1 billion. Among the categories measured, 92 percent
of the number and 65 percent of the value of total unauthorized
transactions were made using general-purpose cards.”12 The Fed
further estimates that card-not-present fraud (remote transactions) is triple that of card-present fraud.13 Additional legislative
protection may be needed to further protect cardholders.

FIGURE 3

J.D. Power Credit Card Satisfaction Index

767
753

750
731

725

714

714
705

700
675
650

2008

2009

2010

2011

2012

NOTE: y-Axis does not start at zero.
SOURCE: J.D Power U.S., Credit Card Satisfaction Study,™ 2008-2013;
©2013 J.D. Power, McGraw Hill Financial, All Rights Reserved.

Conclusion
Congress enacted the CARD Act to bring fair and transparent
practices to the credit card industry. Consumer savings suggest
success: Fees have been capped and must be clearly communicated in advance, saving consumers money and allowing them to
make better-informed choices about spending. Over-limit fees,
are now practically nonexistent, since the opt-in provision of the
Act requires that cardholders must allow over-limit transactions
in the first place. The percentage of accounts charged late fees
has declined a few percentage points and remains steady, and
WWW.STLOUISFED.ORG/EDUCATION_RESOURCES

Industry Average

775
Based on a 1,000-point scale

Overall Satisfaction Index Score

800

2013

Glossary
Annual percentage rate (APR) – The percentage cost of credit
on an annual basis and the total cost of credit to the consumer.
Board of Governors – A federal government agency that is the
centralized component of the Federal Reserve System. The governors guide the policy actions of the Federal Reserve System.
Card-not-present transaction – A card transaction in which
the cardholder provides information from the card, including
the card number, expiration date, name of cardholder, and
security code to a merchant, but the card itself is not physically present to be seen or read by the merchant’s equipment.
Cash advance – Obtaining cash from a credit card instead of
using the card to make a purchase. The advance is an instant
loan, and finance charges are levied on the loan from the time
it is obtained until it is paid in full.
Consumer credit – Use of credit for personal purchases as
opposed to business purchases.
Consumer Financial Protection Bureau – An independent
agency within the Federal Reserve System with the purpose
of promoting fairness and transparency for financial products
and services.
Credit card – A card that represents an agreement between a
lender—the institution issuing the card—and the cardholder.
Credit cards may be used repeatedly to buy products or services
or to borrow money on credit. Credit cards are issued by banks,
savings and loan associations, retail stores, and other businesses.
CARD Act of 2009 – The Credit Card Accountability Responsibility and Disclosure Act of 2009 (CARD Act) is a federal law
passed by the U.S. Congress that provided new credit card
rules and amended previous acts with regulations prohibiting unfair credit card practices. This law, among other things,
requires changes on credit card disclosures, places restrictions
on credit card companies by limiting fees and rate increases,
and requires consistency in payment dates and times.

Fees – Money charged to service an account or as a penalty.
Fraud – Intentional and deliberate misrepresentation of facts
for profit or gain in violation of laws and regulations.
Interest – The price of using someone else’s money; the price
of borrowing money.
Interest rate – The percentage of the amount of a loan that is
charged for a loan. Also, the percentage paid on a savings account.
Introductory rate – A generally low interest rate offered for a
limited time as an incentive to use a credit card.
Minimum payment – The minimum amount a cardholder must
pay each month to remain a borrower in good standing.
Recession – A period of declining real income and rising unemployment; significant decline in general economic activity
extending over a period of time.
Truth in Lending Act (1969) – A federal law that requires the
disclosure of information about the cost of credit. Both the
finance charges and APR must be displayed prominently on
forms and statements.
Unauthorized transaction (third-party fraud) – A transaction
made or attempted by an individual who is not authorized by
the account holder or cardholder to use the given payment
instrument (e.g., check, credit card, or debit/ATM card) to purchase goods and services, initiate funds transfers, or withdraw
cash from an ATM.
Universal default – The practice of applying an increased APR
on all of a consumer’s credit card accounts—both existing
balances and new transactions—when the APR was changed
on one account because the consumer engaged in some
particular behaviors raising his or her credit risk.

Debit card – A plastic card similar to a credit card that allows
money to be withdrawn or payments to be made directly
from the cardholder’s bank account.
Default – Failure to promptly pay interest or principal when due.
Disclosure – The act of revealing information; disclosure by
creditors requires APRs and fees charged to be displayed
prominently on forms and statements.
Federal Reserve System (The Fed) – The central bank of the
United States.

stlouisfed.org/education

WWW.STLOUISFED.ORG/EDUCATION_RESOURCES

ECONOMIC SNAPSHOT

The CARD Act
Current Economic Data

1. Based on the chart below, what happened to the number of
general-purpose credit card transactions after the CARD
Act? Which type of transactions increased the most?
General-purpose credit card transactions increased, with cardnot-present transactions increasing the most.

Q1-’13

Q2-’13

Q3-’13

Q4-’13

Growth rate
Real GDP

1.1%

2.5%

4.1%

2.6%*

Inflation rate
Consumer Price Index

1.2%

0.4%

2.2%

1.1%

Civilian unemployment
rate

7.7%

7.5%

7.2%

7.0%

* Third estimate.
SOURCE: GDP, Bureau of Economic Analysis; www.bea.gov;
unemployment and consumer price index, Bureau of Labor Statistics; www.bls.gov.

Card-Present vs. Card-Not-Present General-Purpose
Credit Card Transactions
Billions
23.8

19.5

5.8
(24%)

Total

2. The CARD Act included provisions to protect young consumers and reformed how credit cards are marketed and issued to
students. Based on the chart below, after the CARD Act, what
changed for consumers 18 to 20 years of age?

Card-not-present

3.8
(19%)

15.8
(81%)

The percent of consumers under 21 years of age who opened a
credit card account decreased after the CARD Act. However, the
decline started in 2009, prior to the implementation of the CARD
Act, so may have been partially caused by the recession.
18.0
(76%)

Card-present

Percent of Consumers 18 to 20 Years of Age Who Have
Opened a Credit Card Account
40
2009

2012

33.6%
30.1%

22.9%

NOTE: Numbers may not add up due to rounding.
SOURCE: Federal Reserve System (2013, p. 18).

16.7%

15.5%

14.4%

10
0
2007

2008

2009

SOURCE: CFPB Consumer Credit Panel.

WWW.STLOUISFED.ORG/EDUCATION_RESOURCES

2010

2011

2012

ECONOMIC SNAPSHOT

The CARD Act
3. Based on the table on the right, which three-year period
saw the largest increase in general-purpose and privatelabel credit card transactions? Does the CARD Act appear
to have affected the number of credit card transactions?

Number of transactions
(billions)
Credit card
type

The three-year period from 2009 to 2012 saw the largest
increase in general-purpose credit card transactions—an
increase of 4.3 billion. However, during that same period,
private-label credit card transactions increased by the greatest
percentage—17.1 percent. These data suggest that the CARD
Act increased the number of credit card transactions.

Generalpurpose
Private-label
Total
Ttransactions

CAGR

2003

2006

2009

2010

2009-12

15.2

19.0

19.5

23.8

6.8%

3.8

2.7

1.5

2.4

17.1%

19.0

21.7

21.0

26.6

NOTE: CAGR, compounded annual rate of growth.
SOURCE: Federal Reserve System (2013, p. 41).

Transactions
4. The chart on the right shows interest rates (APRs) for general-purpose credit cards relative to FICO scores before
and after the implementation of the CARD Act. Based on
the chart, answer the following questions:
a. Which range of FICO scores had the highest APR in
2008? In 2012?

Retail APRs For New General-Purpose Accounts
(Excludes Promotional APRs)

22.0%

In both 2008 and 2012, the highest APR applied to the lowest
FICO scores (600-619).

17.6%

APR %

b. From 2008 to 2012, how much did the APR change for
the highest FICO scores?

20
15

15.8%
13.4%

For the highest FICO scores, the APR from 2008 to 2012
increased by 4.2 percentage points (from 13.4 percent to
17.6 percent).

5
0

c. What trend in APRs can be identified for all ranges of
FICO scores?

600-619

620-639

640-659 660-679

680-699

700-719

720-739

740-759

760+

FICO SCORE RANGES
2008

2012

After the CARD Act, APRs increased for all ranges of FICO scores.
d. How does a FICO score affect the APR charged?
In general, the lower the FICO score, the lower the APR charged.

WWW.STLOUISFED.ORG/EDUCATION_RESOURCES

WHAT ’S YOUR QUESTION?

Understanding Credit Cards
1. Online credit card transactions continue to increase and
third-party fraud is especially high for remote transactions
using general-purpose credit cards. How might technology
increase credit card security?

The Card Act did not specifically address cash advances.
However, because payments must generally be applied to
balances with the highest APR first—and cash advances tend
to have higher APRs—customers can potentially pay off cash
advances more quickly. Possibly in response to this change and
to increased revenue from cash advances, card issuers increased
cash advance fees from an average of 3.9% in late 2008 to an
average of 4.9% in late 2012. As a result, cardholders are taking
fewer and smaller cash advances.

Most traditional credit cards store account information on a
magnetic strip. A more-secure—and thus more fraud-resistant—
card is the smart card. The smart card encrypts and stores data
on an embedded microchip that generates a new code each
time the card is used. Smart cards are already used in many
countries, including limited use in the United States, but U.S.
credit card companies are not required by law to make the
switch. The cost of changing to the technology is high, so it may
take a while to become commonplace in the United States. In
2012 there were about 13.4 million chip-initiated general-purpose credit card transactions in the United States, or 74 of every
100,000 such transactions.

SOURCE: CFPB (2013, p. 90).

4. How do credit cards, prepaid credit cards, and
debit cards differ?
A credit card allows the cardholder to borrow money—through
purchases or cash withdrawals—up to a certain credit limit. The
cardholder must repay the card issuer. The balance may be paid
all at once (to avoid interest charges) or over time, with interest
accrued, through monthly payments. While there is no final date
for repayment, the cardholder must make a minimum payment
each month.
A prepaid credit card allows people to “load” a specific dollar
amount up front onto the card. When a prepaid card is used, the
transaction (dollar) amount is automatically withdrawn (paid
for) from the value (balance) of the card. Total purchases are
limited to the value of the card.
A debit card is tied to the cardholder’s bank account. When a
debit card is used, the transaction (dollar) amount is withdrawn
directly from the cardholder’s bank account. Total purchases are
limited to the amount of money in the bank account.

SOURCE: http://www.cnbc.com/id/101412123 and Federal Reserve System
(2013, p. 17).

2. Credit card disclosures can be lengthy, printed in small
type, and difficult to understand. Does the CARD Act prove
helpful to consumers regarding these issues?
The CARD Act did not explicitly mandate changes in the length
and form of credit card agreements. However, perhaps because
the CARD Act addressed fair and transparent practices, many
card issuers voluntarily streamlined the presentation and content of their agreements between 2008 and 2012. For instance,
they made agreements shorter on average and consolidated
terms and conditions. They also used simpler language. For
example, “finance charge” was change to “interest charge.”
SOURCE: CFPB (2013, pp. 7 and 65)..

3. Credit cards can be used for cash withdrawals, either at
an ATM or by using one of the checks that come with the
monthly statement. How do these transactions compare
with credit card purchases? Were these transactions
affected by the CARD Act?
Card issuers view cash advances and credit card purchases differently. First, the credit limit for each may be different—one limit for
purchases and a separate, lower limit for cash advances. Second,
purchases have an interest-free grace period: If you pay your bill on
time, you will not pay interest. Interest charged on cash advances
starts immediately, and there is no grace period. Issuers also charge
a fee for each cash advance. This may be a flat fee but is usually a
percentage of the cash advance. For example, if you make a $500
cash withdrawal, you could be charged a 5% transaction fee, so you
will owe an additional $25 before any interest is charged. In addition,
a higher APR is usually charged for cash advances.

WWW.STLOUISFED.ORG/EDUCATION_RESOURCES

BULLETIN BOARD

ALL LOCATIONS

Whiteboards + Children’s Books = Economic
and Personal Finance Education
July 21, 2014 | 8:30 a.m. to 3:00 p.m. CDT;
9:30 a.m. to 4:00 p.m. EDT
Registration: http://externalweb.stls.frb.org/
newsroom/events/index.cfm?id=544&preview=1
For all locations: Little Rock, Louisville, St. Louis,
and Memphis

LITTLE ROCK

Making Economic Connections, Heifer
International
June 17, 2014 | 9:00 a.m. – 3:30 p.m. CDT
Federal Reserve Bank of St. Louis—Little Rock Branch
Registration: http://www.stlouisfed.org/education_resources/events/

Tinkering Around with Economics,
Museum of Discovery
June 17, 2014 | 9:00 a.m. – 3:30 p.m. CDT
Federal Reserve Bank of St. Louis—Little Rock Branch
Registration: http://www.stlouisfed.org/newsroom/events/index.cfm?id=551
Additional workshops will be held at Arkansas Educational Cooperatives. Visit the Educational Cooperative
websites for information and to register.

LOUISVILLE

Life Fundamental$ Summit: Teaching
Dollars & Sense

Registration: Check the KY Association for Career
and Technical Education website: https://acteonline.
org/acte/

MEMPHIS

Faces and Places: Entertaining
Economics

Bank Contacts
Little Rock
Kris Bertelsen
501-324-8368
Kris.A.Bertelsen@stls.frb.org
Louisville
Erin Yetter
502-568-9257
Erin.A.Yetter@stls.frb.org

June 3, 2014 | 8:30 a.m. – 3:30 p.m. CDT
Itawamba Community College, Belden, MS
Registration: 662-407-1500 or rakelly@iccms.edu

Presidential Economics

Memphis
Jeannette Bennett
901-579-4104
Jeannette.N.Bennett@stls.frb.org

June 17, 2014 | 8:30 a.m. – 3:30 p.m. CDT
Federal Reserve Bank of St. Louis—Memphis Branch
Registration: http://www.stlouisfed.org/education_
resources/events/

St. Louis
Mary Suiter
314-444-4662
Mary.C.Suiter@stls.frb.org

Personal Finance Training for Secondary
Teachers

Barb Flowers
314-444-8421
Barbara.Flowers@stls.frb.org

June 11 – 12, 2014 | 9:00 a.m. – 4:00 p.m. CDT
West Tennessee Research and AG Center
Jackson, TN
Registration: http://fcs.tennessee.edu/hsfpp/
index.asp

Scott Wolla
314-444-8624
Scott.A.Wolla@stls.frb.org
Jennifer Bradford
314-444-4608
Jennifer.L.Bradford@stls.frb.org

July 17 – 18, 2014 | 9:00 a.m. – 4:00 p.m. CDT
Agricenter International, Memphis, TN
Registration: http://fcs.tennessee.edu/hsfpp/index.asp

Focus on the Economy
July 30 – 31, 2014 | 8:30 a.m. – 3:30 p.m. CDT
BancorpSouth Arena, Tupelo, MS
Registration: Visit www.mscee.org and click on
“Focus on the Economy.”

June 23-24, 2014 | 9:00 a.m. – 4:00 p.m. EDT
Holiday Inn, Hurstbourne, Louisville, KY.
Registration: www.econ.org/summit14

Kentucky Career and Technical
Education Summer Program
June 22 – 23, 2014 | 8:00 a.m. – 5:00 p.m. EDT
Galt House, Louisville, KY

WWW.STLOUISFED.ORG/EDUCATION_RESOURCES

BULLETIN BOARD

S T. L O U I S

Get Money Smart!
April 8, 2014 | 3:30 – 7:00 p.m. CDT
Federal Reserve Bank of St. Louis
Registration: www.stlouisfed.org/education_
resources/events/

Advanced Placement Economics
Conference
June 18 - June 20, 2014 | 3:30 – 7:00 p.m. CDT
Federal Reserve Bank of St. Louis
Registration: www.stlouisfed.org/education_
resources/events/

Getting to the Core through Economics
and History: A Conference for Middle
and High School Teachers
June 17, 2014 | 8:00 a.m. – 3:15 p.m. CDT
Federal Reserve Bank of St. Louis
Registration: www.stlouisfed.org/education_
resources/events/

Global Economic Forum
June 30 and July 1, 2014 | 8:30 a.m. – 3:30 p.m. CDT
Federal Reserve Bank of St. Louis
Registration: www.stlouisfed.org/education_
resources/events/

WWW.STLOUISFED.ORG/EDUCATION_RESOURCES

FEATURED RE SOURCE S

For Spring
April is National Financial Literacy Month. The
Federal Reserve Bank of St. Louis supports financial
literacy by providing classroom-ready resources and
professional development programs for educators.
(See the Bulletin Board section of this newsletter.)
Here are some resources for teaching personal
finance content and skills in the K-12 classroom.

9-12

K-5

CARDS, CARS, AND CURRENCY ONLINE COURSE

BEATRICE ‘S GOAT

In this lesson students listen to the story
of Beatrice and her family. The students
learn what it means to save and use
estimation to decide whether or not
people have enough money to reach a
savings goal. They also work through a set
of problems requiring them to identify how much additional
money people must save to reach their goals. Students learn
what opportunity cost is and identify the opportunity costs of
savings decisions made by Beatrice and her family.

LESS THAN ZERO

Students learn about saving, savings goals,
interest, borrowing and opportunity cost
by reading Less Than Zero. Students use
a number line and a line graph to track
spending and borrowing in the story.

6-8

PERSONAL FINANCE 101 CHATS

Chats in the form of instant messages
will help students learn basic personal
finance skills, such as using prepaid
debit cards and getting a car loan.

This is a set of five personal finance
online programs encourages participants
to learn about three areas of personal
finance: credit cards, debit cards, and
purchasing a car. The programs can be
used together or individually to enhance
personal finance learning.

CREDIT CRED ONLINE COURSE

Credit can be a powerful tool when you
know how to use it wisely. This course
teaches about different types of credit
and the costs associated with using
credit. Participants learn the importance
of building strong credit by borrowing
wisely and paying promptly, arranging credit for making
major purchases such as a car or home, avoiding common
credit mistakes, and monitoring their own credit. They also
learn about credit reports, your credit scores, and steps
they can—and should—take to build their own credit cred!

NO-FRILLS MONEY SKILLS

This video series covers a variety of personal finance topics.
The brief videos use clear, simple language and graphic
elements so that viewers can better
visualize the personal finance content
presented. In the end, they will see how
important these concepts are to their
everyday lives.

IT’S YOUR PAYCHECK ONLINE COURSE

This set of 9 lessons is designed to introduce participants to a variety of personal
finance topics, including the link between
education and income, budgeting, the
benefits of saving, and credit reports.
These lessons help participants make
sense of W-2s, W-4s, pay-day loans, and APRs in an interactive
online format. .

WWW.STLOUISFED.ORG/EDUCATION_RESOURCES

Inside the Vault is written
by economic education staff
at the Federal Reserve Bank
of St. Louis, P.O. Box 442,
St. Louis, MO 63166.
The views expressed are
those of the authors and are
not necessarily those of the
Federal Reserve Bank of
St. Louis or the Federal
Reserve System.

printed on recycled paper using 50% post-consumer waste

Would you like to receive our
monthly e-newsletter about
new resources and programs?
Subscribe here:
www.stlouisfed.org/education_resources/
econ-lowdown-newsletter/

Full text of Inside the Vault : Spring 2014

FRASER