When using an email template, the field name (i.e. ${Contacts.First Name}) is being inserted into the email and not the data associated with the field.

As an example, I have created a test contact record with first name Test and last name Contact.

I then created an email template called Test Email Template using Contact records.

From my test contact record, I choose 'Send email' and then 'Test Email Template' from the drop down box.  Instead of Hi Test, the email says Hi ${Contacts.First Name}.

Am I doing something wrong?  Is there a setting I am supposed to configure somewhere?  This is happening with all my templates.  I would like to send mass emails but can't do it until the template is inserting data properly. Thanks.