Financial Wellness for Nonprofit Employees

Transcription

1 Financial Wellness for Nonprofit Employees Ron Elwood, Supervising Attorney, Legal Services Advocacy Project Cate Rysavy, Senior Director of Financial Service, LSS of Minnesota Terri Banaszewski, Vice President, Sunrise Banks MN Council of Nonprofits Conference, October 2017

2 Legal Services Advocacy Project Ron Elwood, Supervising Attorney

3 Obstacles to Financial Security

4 Health Care Costs

5 Housing Costs

6 New report: Nearly $19/hour needed to afford a 2-bedroom apartment in MN June 29, 2017

7 General Increase in Cost of Living

8 Wages Aren t Keeping Up

9 Public Benefits Aren t Keeping Up

10 Public Benefits Aren t Keeping Up

11 Consumer Debt

12 Medical Debt

13 Student Loan Debt Minnesota: 5th largest average student loan debt in the country Source: First Evaluation Report of Student Loan Repayment Counseling Pilot Program December 15, 2016

14 It Costs More to Be Poor

15 Predatory Practices

16 Scams

17 Handling Financial Emergencies May 25, 2016 The shocking number of Americans who can t cover a $400 expense 46% of Americans: Not enough money to cover a $400 emergency

18 Handling Financial Emergencies June 1, 2011 Half of Americans Can t Raise $2K in 30 Days A quarter wouldn't be able to come up with $2,000 at all Time Magazine reporting of National Bureau of Economic Research: Financially Fragile Households

19 Financial Security and Nonprofit Employees

20 LSS Financial Counseling Cate Rysavy, Senior Director of Financial Services, Lutheran Social Service of Minnesota October 2017

21 LSS Financial Counseling Our mission is to achieve economic stability for all Minnesotans. We believe people can conquer their debt, gain control of their finances, and achieve financial wellness. Our Impact 91% of clients improve their credit score 85% successfully complete debt repayment 64% of homeowners at risk of foreclosure save their homes 59% of student loan borrowers served report payments more affordable

22 Services Provided Credit & Budget Counseling Debt Management Plans Foreclosure Prevention Student Loan Repayment Counseling Financial Education Financial Wellness Plans for Organizations Reverse Mortgage Counseling Homeownership Counseling 11 locations + 2 campuses in MN, 1 in WI for in-person counseling Nationwide online and phone counseling Low Income Heating & Energy Assistance Program in Crow Wing Co. Multi-lingual services: English, Spanish, and Hmong

23 Financial Wellness Plans for Organizations Value Proposition Credit Unions/Banks Customer attraction and retention Loss mitigation, bankruptcy prevention Increase deposits and investment opportunities with reduced debt and increased credit scores Employers Research shows that financial stress impacts health and wellness, job performance and productivity, job satisfaction, retention, and participation in retirement plans Differentiator in employee benefits/wellness plan First Nation Communities Addresses issues of heavy debt load and poor credit undermining financial health Strengthen economic development in tribal communities

24 Financial wellness - wealth journey We re all in this wealth surplus struggling stable survival

25 What is Financial Wellness? Assets Homeownership Credit score Debt burden Level of emergency savings Self-reported stress levels Knowledge of financial concepts, resources, and tools Source: CFPB Financial Wellness at Work, Aug. 2014

26 Business Case for Employers ROI Saved $1 - $3 per dollar spent Increased productivity Reduced sick leave, disability, workers comp Advances on 401(k), 403(b) for short-term emergencies undermine a high-cost employee benefit Attract and retain talent Employee engagement Source: Stephen Miller Study: SHRM; Sept 2012

27 Workplace financial wellness learnings Care for others AND care for ourselves Shame and stigma of debt and financial stress work to normalize it, listen to employees and establish trust Integrate activities into other benefits and wellness plans Connect to just in time or life events Focus on goal-setting, go beyond only measuring retirement plan contributions participation as financial health indicator Alternatives to advances on paychecks, payday loans

28 Our Mission at Sunrise Banks is to be: The most innovative bank empowering the underserved to achieve!

29 Everyone needs help with Financial Wellness Even Bankers!

30 Sunrise Bank s Partnership with LSS Sunrise Banks offers Financial Choice Counseling services to it s own employees and to all of it s bank customers. LSS offers TrueConnect, a Sunrise Bank small dollar loan program, to it s employees to assist with Financial Emergencies

31 Ways Sunrise Banks Partners with Non-Profits to assist with Financial Wellness: TrueConnect- Small Dollar Loan Program Offered W/O a Credit Score Mortgage Discounts Credit Builder Program- Help people improve or begin to build credit Financial Training- Offer workplace financial training for employees of Non-Profits Prepaid Cards- To assist those with a Check Systems Record access the banking system Sponsorships and Donations Related to Financial Wellness

32 Most employee benefits are geared towards middle to upper income employees. What are some employee benefits designed for low to moderate income employees to assist with Financial Wellness? TrueConnect- Small Dollar Loan Program Offered W/O a Credit Score Student Loan Assistance Programs Financial Wellness Programs Designed for Low to Moderate Income Employees Offering English and Literacy Classes Parental Leave PTO and Sick Time Tuition Reimbursement