The Babson Financial Literacy Project
About the Babson Financial Literacy Project
Consistent with Babson’s mission to create great economic and social value everywhere, the Babson Financial Literacy Project (BFLP) is a not-for-profit program designed to help young adults, who do not otherwise have access to financial education, learn to manage their personal finances. The BFLP seeks to launch these young adults down a path leading to future financial prosperity and independence.
How the Program Is Designed
The BFLP is a turn-key modular financial literacy program that includes online content of 20- to 30-minute self-study units accessible by computer or mobile device, face-to-face interactive discussions, and highly engaging case studies and exercises to reinforce and extend the self-study preparation. The program relies on respected members of partner organizations to serve as coaches to deliver the content. Coaches need nothing more than a passion for helping young people—no formal expertise in financial matters is required. The BFLP provides the background needed for coaches to help others understand critical financial concepts and practice these skills in their daily lives. Coaches have everything they need to teach stored in the online knowledge platform, including detailed notes on how to facilitate discussion of the material, case studies and solutions, and online assessments to measure knowledge gains. In addition to training the coaches, the BFLP provides support through early delivery sessions. This delivery approach allows partner organizations to tailor the timing and location of delivery to meet programmatic needs.
By the end of the program, participants will understand the basics of setting goals, planning, banking, borrowing, and investing. They will demonstrate proficiency in:
- Setting financial goals, identifying spending priorities, and developing a personal budget and savings plan for the future
- Understanding credit cards, other types of loans, and credit scores
- Choosing a bank and savings vehicles, including 401(K) plans, traditional IRAs, and Roth IRAs
- Selecting basic investment options—stocks, bonds, and mutual funds—consistent with personal risk preferences and understanding fees
- Deciding whether and how to purchase auto, health, and renter’s insurance
- Understanding the financial implications of buying or renting housing and learning how to manage relationships with landlords and roommates