AFCPE 2024: Ten Take-Aways and a Barbservation

I recently returned home from the 2024 Symposium of my professional “home,” the Association for Financial Counseling and Planning Education® or AFCPE®. This conference serves an amazing mix of researchers, practitioners, and educators whose work positively impacts the financial wellness of U.S. families. 

Below are my key take-aways from #AFCPE2024 and a Barbservation:

 

Motivational Techniques- These approaches can be used for positive changes or for fraud. Reciprocity is where you get something (e.g., a free meal) and feel pressure to return the favor. Social proof is when you are told about others who have done something that you are being asked to do. In addition, people who agree to small things are often asked to agree to something bigger. Fraudsters keep getting better at developing strategies that nudge consumers to part with their money.

 

Student Loans- The Saving on Valuable Education (SAVE) program that replaced a program called REPAYE is frozen with no new enrollments as a result of a court injunction. Borrowers were placed in an interest-free forbearance. Lawsuits were brought against SAVE because it costs a lot of money to forgive debt and this was not approved by Congress. Public Service Loan Forgiveness (PSLF) was approved by Congress but could always be undone in the future.

 

Fraud and Scams- Classic strategies (e.g., “pump and dump”) are being used with modern technologies to reach victims with pitches that prey on emotions (e.g., greed, fear, and fear of missing out or FOMO). Scarcity (“this product is only open to the first 100 investors”) is another common ploy. Everyone, regardless of education, can be a fraud victim during a moment of vulnerability.

 

High-Income Households- AFCPE members were advised not to ignore this demographic as more than half of Americans earning $100,000+ a year live paycheck-to-paycheck. Financial challenges of high-income households include lifestyle inflation, social pressure, family and community obligations, over-leveraging debt, and complex financial planning needs.

 

Gig Workers- This term includes freelancers and self-employed individuals. There are about 63 million U.S. gig workers in 2024 or 38% of the total workforce. One in five makes six figures. Gig workers should avoid comingling personal and business expenses, set aside money for taxes, and track jobs that provide 1099 forms for income reporting so they know if they are missing any 1099s at tax time. Hallmarks of a maturing business include registration with a state Secretary of State, a business bank account, good credit, 3-6 months of bank statements, and a business plan.

 

Financial Abuse- Abusive relationships often develop gradually and the key driver is control.  Indicators of economic abuse include: threatening harm, controlling or sabotaging a victim’s work, and limiting a victim’s future career growth (e.g., taking classes). The reason that people stay in abusive relationships is often similar to those who don’t heed warnings to evacuate during storms: they don’t know where to go and/or lack the ability to move pets and possessions.

Artificial Intelligence (AI)- The better an AI prompt, the more useful the output. Positive uses of AI in financial education include automated financial advisors, fraud detection, personalized financial products, and the creation of quizzes, discussion questions, rubrics, and templates. Negative aspects of AI include privacy invasion, biased decision-making, authoritative erroneous output called hallucinations, over-reliance on automation, and erosion of skills.

 

Veterans Benefits- VA benefits are all about Veterans- not their spouse or children. Debunked myths included “My VA disability benefit will continue for my spouse after my death,” “I will be able to go to a VA long-term facility,” and “I get free life insurance from the VA.” The VA will pay up to $2,000 toward burial expenses for a service-connected death and up to $978 for a non-service connected death. This is not automatic, however, and government paperwork is required.

 

Financial Well-Being- Becoming financially secure is hard and many people feel like they should be doing better. Shame is common as evidenced by a majority of engaged couples who do not disclose debt to each other. Achieving financial well-being is a behavioral problem, not a knowledge problem. Symposium attendees were advised to consider taking a periodic "financial health day” to focus on finances and to encourage their clients to do the same. 

 

Powerful Presentations- Presentations about personal finance (or any other topic) should have a strong opening with a statistic, quote, story, demonstration, or question. Likewise, the end of a presentation should be equally strong with a call to action. In other words, So What? Now What? How can audience members apply the presentation content to their life or work?

 

I close with a personal Barbservation.

 

In informal conversations with dozens of attendees and in some questions asked of speakers, there was a strong undercurrent of worry, anxiety, concern, and/or dread about the incoming administration and potential federal agency leadership appointees. The Symposium attracts a number of government employees (e.g., Securities and Exchange Commission (SEC), Consumer Financial Protection Bureau (CFPB), U.S. Department of Defense, U.S. Department of Agriculture, and U.S. Department of Veterans Affairs) as well as financial education entrepreneurs like me (full disclosure) who work on federally-funded projects.

 

Yes, people are worried about the potential loss of their government-funded jobs but equally as important, the loss of the valuable services that their agencies provide to ordinary Americans. Below are some examples.

 

Will billionaire cost cutters understand, or care about, the financial education and counseling services that Personal Financial Managers (PFMs) provide to service members on military installations worldwide? 

Or the valuable professional development training that OneOp provides for military service providers? 

Or the financial education delivered by Cooperative Extension educators who help individuals and families across the U.S. improve their financial well-being? 

Or the preventive financial education and regulatory enforcement programs provided by the SEC and CFPB that help combat fraud?  

I certainly do hope so, but recent news headlines have me feeling uneasy and apprehensive too.

This post provides general personal finance or consumer decision-making information and does not address all the variables that apply to an individual’s unique situation. It does not endorse specific products or services and should not be construed as legal or financial advice. If professional assistance is required, the services of a competent professional should be sought.