This is a continuation of the financial education section of our series.
You can read more about financial education here.
A number of major banks have recently started certifying financial literacy as a requirement for students in their programs, and this is another way that banks are trying to provide students with more information and tools to make decisions in the financial world.
While some banks have already done this, the process for this certification is different than most.
The first thing to note about financial literacy certification is that it’s an academic requirement.
There are some stipulations, including:A minimum of $20,000 in total assets (including bank accounts, checking accounts, savings accounts, brokerage accounts, and retirement accounts) must be maintained to qualify for the financial literacy certificate.
Students must be able to use the financial institution’s bank software to make financial decisions.
This is similar to how financial institutions work with students who are certified in accounting, but students also have the option to work directly with an accountant.
A minimum $100,000 (plus $50,000 for living expenses) must have been invested in a Roth IRA, 401(k), or 403(b) plan to qualify.
Students who have already completed a financial education certificate must take another exam to receive certification.
The exam will consist of three sections.
The first will consist only of a written test that will ask students about the basics of financial literacy, the second will ask them to list financial items and categories, and the third will ask about specific financial products and services.
The most important point to remember is that students who have completed a certification will still be required to take another written exam.
If students do not pass the written exam, the bank can revoke their certification and re-evaluate students.
This process is different from the other financial education certifications that banks offer.
The other certifications require that students pass the financial-literacy-level exam, which can take anywhere from two to eight hours.
If you have any questions about the process of financial education (or if you’re considering applying to any of the certification programs), feel free to reach out to us at [email protected]
Read more: How to become a financial-aid certified student in 2018