Family Financial Empowerment. March 25, 2015

Transcription

1 Family Financial Empowerment March 25, 2015

2 Welcome! The Resource Center Webinar: Family Financial Empowerment will begin at approximately 2:00pm EST Audio will be broadcast through the computer. Please make sure your volume is on and Adobe Speakers are on: Questions or audio concerns? Call

3 Webinar Instructions Remember to Turn on Your Computer Speakers to Hear the Presentation #MarriageResCtr

4 Webinar Instructions Browse To Relevant Sites And Information By Clicking On The Links Here To Download Resource Center Products Featured in this Webinar Select Files Here Use This Box To Chat With Participants Use this Box to Ask a Question #MarriageResCtr

5 Webinar Agenda Introductions How Healthy Relationships and Family Financial Stability Connect for Strong Families Healthy Relationship Skills and Family Financial Stability: Strategies and Examples from the Resource Center Your Money, Your Goals: Consumer Financial Protection Bureau Toolkit Overview Hawkeye Community Action Program: Family Financial Empowerment in Action Q&A #MarriageResCtr

6 Presenters Robyn Cenizal, Director, National Resource Center for Healthy Marriage and Families Patricia Avery, Program Specialist, Financial Empowerment, Consumer Education & Engagement, Consumer Financial Protection Bureau Benjamin Miller, Principal, ICF International Denise DeVaan, Senior Technical Specialist, ICF International David Hagen, Data and Outcome Analyst, Hawkeye Community Action Program #MarriageResCtr

7 Healthy Relationship Skills: Strategies and Examples from the Resource Center Robyn Cenizal, CFLE Director, National Resource Center for Healthy Marriage and Families #MarriageResCtr

8 National Resource Center for Healthy Marriage and Families Mission: Connecting healthy marriage education skills and safety-net services as an integrated approach to strengthening families. #MarriageResCtr

9 The Resource Center Offers: Outreach through conferences, Twitter and Monthly Newsletter Stakeholder Specific Products Training and Technical Assistance Robust Website o o o o Search feature with over 1,000 research-based resources in our library Virtual Training Center with six courses Media Gallery with videos and podcasts Archived webinars #MarriageResCtr

10 Important Skills Healthy marriage education skills are the core components of healthy relationship education and include: o Interpersonal skills such as communication and conflict resolution; o Along with critical skills like parenting and financial education. These skills can be successfully integrated individually or collectively to reduce stress and improve communication. #MarriageResCtr 10

11 Making the Case for Integration "Integrated services are good for clients with complex needs - they are more likely to get what they need, in a timely manner and with due regard for all the issues they are trying to handle." Repairing the U.S. Social Safety Net (Burt & Nightingale, 2010) Stakeholder Video #MarriageResCtr

12 Opportunities for Integration #MarriageResCtr

13 Financial Capability Integration Ben Miller, ICF International #MarriageResCtr

14 Integration Integration of financial empowerment means identifying where and how you can weave financial empowerment information and tools into the work you are already doing. o It builds on established relationships you may have with individuals you serve. o People are busy there is efficiency in addressing many issues in one stop. o Financial and economic issues cut across situations and challenges. Adding financial empowerment to the other areas your volunteer work focuses on may present a more holistic approach to working with the people you serve. It provides opportunities for reinforcement during natural discussions. It is potentially more likely to reach hard to reach populations with unbiased financial empowerment information and tools. #MarriageResCtr

15 The ASSET Initiative Partnership s Integration Planning Guide Developed by the Administration for Children and Families (ACF) ASSET Initiative Partnership under contract with CFED Can be used to start to integrate financial capability or to extend financial capability offerings Set of tools to help you determine how you can help your clients address their financial challenges Step-by-step guide for decision-makers and program managers at community-based organizations o Phase 1: Develop a Theory of Change o Phase 2: Select an Approach to Providing Financial Capability Strategies o Phase 3: Plan for Implementation #MarriageResCtr

16 Options for delivering integrated services Not mutually exclusive Which do you use to support financial capability? #MarriageResCtr

17 Your Money, Your Goals A FINANCIAL EMPOWERMENT TOOLKIT FOR SOCIAL SERVICE PROGRAMS Training for National Resource Center Healthy Marriages Patty Avery, Program Specialist, Financial Empowerment, CFPB and Webinar Presenter Denise DeVaan, Financial Capability Specialist, ICF International Team

18 Your Money, Your Goals at consumerfinance.gov

19 Your Money, Your Goals Milestones Field Test (Fall 2013) 1,400 case managers trained in 21 states Six months later, case manager respondents were discussing finances with clients (84 percent), using YMYG with clients (72 percent), and referring clients (69 percent) Feedback informed toolkit revision National Publication of Revised YMYG (Summer 2014) 19

20 Your Money, Your Goals Milestones National Rollout Partners YMYG Social Services The Community Action Partnership USDA Cooperative Extension Catholic Charities USA Los Angeles County National Association Community Health Centers-Health Corps (AmeriCorps Volunteers) Office of Regional Operations (ORO) Sault Saint Marie Tribe of Chippewa Indians Financial Literacy Workgroup, State of Minnesota United Way Worldwide District of Columbia 20

21 Your Money, Your Goals Module 1: Introduction to the CFPB and financial empowerment 21

22 Introduction to the CFPB Consumer Financial Protection Bureau The CFPB s mission is to make markets for consumer financial products and services work for Americans. 22

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25 Financial empowerment What is financial empowerment? How is it different than financial education, financial literacy, financial capacity, or other commonly used terms? Financial literacy Ability Financial empowerment 25

26 Financial empowerment, and case managers Access Trust Opportunities for providing financial empowerment 26

27 Organization of Your Money, Your Goals Introductory modules Module 1: Introduction to the toolkit Module 2: Assessing the situation Module 3: Starting the conversation Module 4: Emotional & cultural influences on financial decisions Module 5: Using the toolkit 27

28 Organization of Your Money, Your Goals Content modules Module 6: Setting goals Module 7: Saving for the unexpected, emergencies, & goals Module 8: Managing income & benefits Module 9: Paying bills & other expenses Module 10: Managing cash flow Module 11: Dealing with debt Module 12: Improving credit reports & scores Module 13 Evaluating financial service providers, products, & services Module 14: Protecting consumers rights 28

29 Organization of Your Money, Your Goals Do not treat like a curriculum. Provide the right content and tools at the right time. Use discussions with clients or assessments to figure out where to start. Open source document. Take the tools and adjust to meet your program needs. 29

30 Poll Questions #1 & #2

31 Your Money, Your Goals Modules 2: Assessing the situation 31

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33 Client assessment answer key Question 1. Do you have financial goals and know how much money you need to reach them? 2. Are you in danger of losing your housing or car because you cannot make payments? 3. Are you in danger of having any of your utilities shut off because of nonpayment? 4. Do you have a regular and reliable source of income? 5. Do you have money set aside to cover emergencies or unexpected expenses? Response If no or I don t know, see Module 6. If yes, call 211 or local emergency assistance center. For homeowners, call HOPE. If yes, call 211 or local emergency assistance center. If no, call 211, workforce opportunity center, or local emergency assistance center and see Module 8. If no or I don t know, see Modules 7 and

34 Your Money, Your Goals Model 6: Setting goals 34

35 Hopes, wants, and dreams vs. strong goal Hopes, wants, and dreams I d like to buy a new television. Strong goal I will save $400 and purchase a new television in six months. I want to get out of credit card debt. I will pay down $1,000 of my debt in the next year. 35

36 Calculating amount to set aside each week Total amount needed Number of weeks to reach goal Amount to set aside each week 36

37 Module 6: Action plan Goal: Steps Resources Date to complete step When complete 37

38 Your Money, Your Goals Module 7: Saving for the unexpected, emergencies, and goals 38

39 Module 7: Saving What is savings? Savings is money you set aside today from your income for use in the future What are examples of unexpected expenses or emergencies? 39

40 Emergency fund Emergency fund or a rainy day fund = an important part of your savings plan. Having your own money set aside to cover unexpected expenses can save you money, because you won t pay interest, fees, or other costs that come from borrowing the money you need. 40

41 Cost to replace spark plugs on your car = $350 Emergency savings Credit card Payday loan Amount to cover expense $350 $350 $350 APR 21.99% annual percentage rate (APR) $15 for every $100 borrowed for 14 days. This means a 391% annual percentage rate (APR). Payment Must pay at least a certain amount each month. (For the purposes of the example, the individual is choosing a fixed monthly payment of $50.) Must pay back loan amount ($350) plus fee ($52.50) within 14 days. If entire loan cannot be paid within 14 days, it can be rolled over (or extended) for another 14 days for an additional fee of ($52.50). Total cost and time to repay $0 You would pay $28.11 in interest in addition to the principal borrowed. It will take just over eight months to pay back the full amount. The total cost depends on how long it takes you to save up to pay back the entire loan. If you renew or roll over this loan seven times, you would be in debt for 14 additional weeks and could pay up to $ in fees. 41

42 Finding money to save Decrease spending on one item or many things Major costs versus little cuts in spending Increase your income Turning money saved additional income or savings from decreased spending into actual money in savings 42

43 Earned Income Tax Credit Maximum tax credit (for 2013) $6,044 with three or more qualifying children $5,372 with two qualifying children $3,250 with one qualifying child $487 with no qualifying children All information regarding tax credits from the Internal Revenue Service at 43

44 Tool 3: Finding a safe place for savings Where can you keep money you save? What are the benefits? A benefit is something that provides you with an advantage. A benefit is something that is good for you. What are the risks? A risk is any chance for loss. Where there is risk, there is uncertainty in the outcome or result. 44

45 Your Money, Your Goals Module 8: Managing income and benefits 45

46 Income, benefits and wage garnishments Income Regular income Irregular income Seasonal One-time occurrence Benefits Wage garnishments 46

47 Tool 1: Income tracker Week 1 Week 2 Week 3 Week 4 Total Regular Irregular Seasonal One-time Job Second job Self- employment income SNAP TANF SSI Child support Gift Tax refund Weekly total 47

48 Your Money, Your Goals Module 9: Paying bills and other expenses 48

49 Module 9: Paying bills and other expenses Spending Money you use to pay for a wide range of basic needs, your financial obligations, and other things you may want. Needs, wants, and obligations Needs are things you must have to live. Wants are things you can survive without. Obligations are things you must pay because you owe someone money (a car loan) or have been ordered to pay someone (child support). 49

50 Tool 1: Spending tracker Savings Debt payment Housing Saving for goals, saving for emergencies, saving for children s education, saving for retirement, saving for holiday purchases, saving for back to school shopping Credit card payments, payday loan payments, pawn loan payments, car title loan payments, and other loan payments Rent, mortgage, insurance, property taxes Utilities Household supplies and expenses Groceries Eating out (meals and beverages) Savings Debt payment Electricity, gas, water, sewage, phone, television, Internet service, cell phone Things for your home like cleaning supplies, kitchen appliances, furniture, other equipment Food and beverages to be brought into the home, including baby formula and food Any meals or beverages purchased outside of the home Saving for goals, saving for emergencies, saving for children s education, saving for retirement, saving for holiday purchases, saving for back to school shopping Credit card payments, payday loan payments, pawn loan payments, car title loan payments, and other loan payments 50

51 Tool 2: Bill calendar

52 Tool 3: Strategies for cutting expenses

53 Tool 5: Prioritizing bills 53

54 Your Money, Your Goals Module 10: Managing cash flow 54

55 Module 10: Managing cash flow What is a cash flow budget? How is it different from a regular budget? What do you think may be the benefit of this approach for your clients? 55

56 Module 10: Managing cash flow Keeping track of everything you earn and spend money on for a week, two weeks, or one month. Tool 1: Income Tracker from Module 8: Managing Income and Benefits and Tool 1: Spending Tracker from Module 9: Paying Bills and Other Expenses. Analyzing your spending. Tool 1: Spending Tracker from Module 9: Paying Bills and Other Expenses to do this. Using this information to create a cash flow budget. Tool 1: Cash Flow Budget to complete this step or Tool 2: Cash Flow Calendar. Your cash flow budget is about setting targets for how you will use your income going forward. 56

57 Tool 1: Cash flow budget Week 1 Week 2 Beginning balance for the week $37.00 $ Sources of cash and other financial resources Income from job $ $ SNAP $ Public housing voucher $ Total sources of cash and other financial resources $1, $ Uses of cash and other financial resources Housing $ Utilities $59.97 $95.50 Groceries $ $80.00 Eating out (meals and beverages) Transportation $ $60.00 Total uses of cash and other financial resources $1, $ Ending balance from previous week. To get a starting balance, total your cash, debit card, and account balances Ending balance for the week $ $

58 Tool 1: Cash flow budget Week 1 Week 2 Beginning balance for the week $37.00 $ Sources of cash and other financial resources Income from job $ $ SNAP $ Public housing voucher $ Total sources of cash and other financial resources $1, $ Uses of cash and other financial resources Housing $ Utilities $59.97 $95.50 Groceries $ $80.00 Eating out (meals and beverages) Transportation $ $60.00 Total sources minus total uses. This becomes your beginning balance for next week. Total uses of cash and other financial resources $1, $ Ending balance for the week $ $

59 Julio Ortega Family of Four Cash Budget Week 1 Beginning Balance for Week $79 Sources of Cash & Other Financial Resources Net income from hotel job (cash) Income from Sewing (cash) $35 Loan from friend $100 SNAP food benefit $650 Total Sources of Cash, Financial Resources $864 Uses of Cash & Other Financial Resources Debt payment loan to friend Savings $25 Rent, including utilities $615 Household and personal supplies Food $140 Monthly medical insurance premium Out-of-pocket medication Co-pay for doctor's appointment Out-of-pocket dental Transportation bus $32 Cellular Phone $50 Entertainment $10 Total Uses of Cash & Other Financial Resources $872 Ending Balance for the Week (Sources Used) ($8) 59

60 Julio Ortega Family of Four Cash Budget Week 1 Week 2 Beginning Balance for Week $79 ($8) Sources of Cash & Other Financial Resources Net income from hotel job (cash) $648 Income from Sewing (cash) $35 $35 Loan from friend $100 SNAP food benefit $650 Total Sources of Cash, Financial Resources $864 $675 Uses of Cash & Other Financial Resources Debt payment loan to friend Savings $25 $25 Rent, including utilities $615 Household and personal supplies $40 Food $140 $130 Monthly medical insurance premium $125 Out-of-pocket medication $40 Co-pay for doctor's appointment Out-of-pocket dental Transportation bus $32 $32 Cellular Phone $50 Entertainment $10 $10 Total Uses of Cash & Other Financial Resources $872 $402 Ending Balance for the Week (Sources Used) ($8) $273 60

61 Julio Ortega Family of Four Cash Budget Week 1 Week 2 Week 3 Beginning Balance for Week $79 ($8) $273 Sources of Cash & Other Financial Resources Net income from hotel job (cash) $648 Income from Sewing (cash) $35 $35 $25 Loan from friend $100 SNAP food benefit $650 Total Sources of Cash, Financial Resources $864 $675 $298 Uses of Cash & Other Financial Resources Debt payment loan to friend Savings $25 $25 $25 Rent, including utilities $615 Household and personal supplies $40 Food $140 $130 $180 Monthly medical insurance premium $125 Out-of-pocket medication $40 Co-pay for doctor's appointment $25 Out-of-pocket dental $100 Transportation bus $32 $32 $32 Cellular Phone $50 Entertainment $10 $10 $10 Total Uses of Cash & Other Financial Resources $872 $402 $372 Ending Balance for the Week (Sources Used) ($8) $273 ($74) 61

62 Julio Ortega Family of Four Cash Budget Week 1 Week 2 Week 3 Week 4 Week 1 Beginning Balance for Week $79 ($8) $273 ($74) $142 Sources of Cash & Other Financial Resources Net income from hotel job (cash) $648 $648 Income from Sewing (cash) $35 $35 $25 $20 Loan from friend $100 SNAP food benefit $650 Total Sources of Cash, Financial Resources $864 $675 $298 $594 Uses of Cash & Other Financial Resources Debt payment loan to friend $100 Savings $25 $25 $25 $25 Rent, including utilities $615 Household and personal supplies $40 Food $140 $130 $180 $220 Monthly medical insurance premium $125 Out-of-pocket medication $40 $40 Co-pay for doctor's appointment $25 $25 Out-of-pocket dental $100 Transportation bus $32 $32 $32 $32 Cellular Phone $50 Entertainment $10 $10 $10 $10 Total Uses of Cash & Other Financial Resources $872 $402 $372 $452 Ending Balance for the Week (Sources Used) ($8) $273 ($74) $142 62

63 Module 10: Managing cash flow Increase sources of cash, income, or other financial resources, including accessing public benefits and applying for tax credits for which you qualify. Decrease your spending or uses of cash and other financial resources. Match timing of sources and uses of income where possible. 63

64 Tool 3: Improving cash flow checklist

65 Key facts for Module 10 Plan to match the amount and timing of income/benefits with amount and timing of spending and bills Timing matters 65

66 Your Money, Your Goals Next Steps 1. Download Your Money, Your Goals at consumerfinance.gov/your-money-your-goals. 2. Explore modules and tools that are relevant in your work with clients. 3. Take the financial empowerment self-assessment, Module 2, Assessing the situation, Tool 1, p.11. Ask your colleagues to do the same. 4. Institute a peer to peer learning and study 3. Consider getting trained to facilitate trainings. Use the training videos and the Your Money, Your Goals Power Point slides, which are located on the website. 66

67 Additional resources For additional resources, visit the Consumer Financial Protection Bureau website: If you have a consumer complaint, visit: 67

68 Your Money, Your Goals Closing 68

69 Financial Empowerment: Responding to Community Needs Building Agency Capacity David Hagen

70 Conversation Topics Who is HACAP Service Bundling in Light Touch Programs Financial Empowerment Integration Preparing the Field Staff Two Examples Crisis Utility Assistance Weekend Food Supports 4/10/2015 Hawkeye Area Community Action Program 70

71 Poll Question #3 4/10/2015 Hawkeye Area Community Action Program 71

72 The Promise of Community Action Community Action changes people s lives, embodies the spirit of hope, improves communities, and makes America a better place to live. We care about the entire community, and we are dedicated to helping people help themselves and each other. 4/10/2015 Hawkeye Area Community Action Program 72

73 Economic Opportunity Act of 1964 Community Action Program means a program which mobilizes and utilizes resources, public or private, which provides services, assistance, or other activities to give promise of progress toward elimination of poverty or causes of poverty through developing employment opportunities, human performance or bettering the conditions under which people live, learn, and work through maximum feasible participation. 4/10/2015 Hawkeye Area Community Action Program 73

74 The War on Poverty Pres. Johnson (March 1964): The War on Poverty is not a struggle to simply support people, to make them dependent on the generosity of others It is an effort to allow them to develop and use their capacities, as we have been allowed to develop and use ours, so that they can share as others share in the promise of the nation. 4/10/2015 Hawkeye Area Community Action Program 74

75 Bring it Together Inadequate financial literacy is A cause of poverty: Economic poverty (FPL or AMI) Relationship poverty Asset poverty Financial empowerment allows people to develop and use their capacities. 4/10/2015 Hawkeye Area Community Action Program 75

76 Why YMYG? People-Centered Tailor to individual client Tailor to specific programs. Fosters Competency in Line-staff Fosters Confidence in Clients. 4/10/2015 Hawkeye Area Community Action Program 76

77 The Poverty Line (100% FPG) Benchmark created in mid-60s; annually adjusted. Based on 60s economy that food represented 30% of a household s budget. Does not include factors for child care, health costs, transportation to work or Asset Poverty. Used to define program eligibility. Head Start (100%), LiHEAP (150%), WIC (185%) Free lunch (130%), Reduced lunch (185%) 4/10/2015 Hawkeye Area Community Action Program 77

78 Poll Question #4 4/10/2015 Hawkeye Area Community Action Program 78

79 FPG & Living Wage 2015 FPG (Federal Register ~Jan. 22, 2015) Gross Income & household size $11,770 (HH 1) + $4,160 for each additional person. $20,090 (HH 3) or $9.66/h. 1 FTE Living Wage (Income to cover basics) 200 to 250% FPG ($40,180 to $50,225) HH3: 200% ($19.32/h 1 FTE) HH3: 225% ($21.74/h 1 FTE) 4/10/2015 Hawkeye Area Community Action Program 79

80 Hawkeye Area Community Action Program (HACAP) Six County Service Area ~400,000 residence (2010 Census) 9% to 15% population in poverty. FY ,845 people in 19,355 HHs +22% over 2008 Flood Year Services. 56% employed; 66% with children. Focused on skills & community building. 4/10/2015 Hawkeye Area Community Action Program 80

81 HACAP Programs Housing Stabilization Energy, WAP, Crisis Intervention, Rural Rehab Head Start & Early Head Start Homeless Services TH for families; RRH for Veterans Maternal & Child Health Feeding America Food Bank Rural Senior Services 4/10/2015 Hawkeye Area Community Action Program 81

82 Iowa Policy Project Data for Household of 3 Single parent with 2 children, 1 preschool-aged & 1 school-age. 4/10/2015 Hawkeye Area Community Action Program 82

83 Community Needs and Resources identified

84 Initial Financial Work FY2014 Budget Counseling & Budget Review: 651 people in 239 Households 140 HHs from 2014 flood affected low-income families. Balance of families served from Head Start or Housing Services. Demographics 66% (157 of 239) at or below FPL 51% HHs with children (28% all HHs single parent) 57% have employment income. Credit Repair referrals to local partner. 4/10/2015 Hawkeye Area Community Action Program 84

85 Ex. #1 Utility Assistance Low-income Heat Assistance Program (LiHEAP) DoE funded-program: HHs <= 150% FPL ~ 7000 Households (HH) receive utility payment. ~ 1200 HHs return for Crisis Intervention. Iowa Energy Moratorium protects consumers from utility disconnects. Too Much Month at the End of the Money Insufficient $ to cover all needs and obligations. Poor bill paying strategies/ poor money usage. 4/10/2015 Hawkeye Area Community Action Program 85

86 Intervention Strategy Train Energy counselor s with Your Money, your Goals. See value, but some staff resistance 30 minute 1-on-1 sessions. Utilize 211 for appointment scheduling. Follow-up Sessions Measure Successes Introduce new financial empowerment tools. Core Tools: Budgeting, cash flows, bill paying & emergency fund. Others as clients share needs. 4/10/2015 Hawkeye Area Community Action Program 86

87 Ex #2: Operation BackPack schools» schools Supplemental weekend food assistance Free or Reduce lunch students. Free lunch (130%), Reduced lunch (185%) School and community partners 4/10/2015 Hawkeye Area Community Action Program 87

88 Intervention Strategy Move toward Household Stabilization Project Bundle available services around families: LiHEAP, Fin. Empowerment, Buying more for Less Required school counselors buy-in Utilize trained counselors using Your Money, your Goals. > Community Stakeholders like this approach. 4/10/2015 Hawkeye Area Community Action Program 88

89 Building Capacity in Review Buy-in from Program Directors & staff Getting People to see the Big Picture Redefining Success. Buy-in from Community Partners School Admin & Staff Community Volunteers 4/10/2015 Hawkeye Area Community Action Program 89

90 To Ask a Question Browse To Relevant Sites And Information By Clicking On The Links Here To Download Resource Center Products Featured in this Webinar Select Files Here Use This Box To Chat With Participants Use this Box to Ask a Question #MarriageResCtr

91 Thank You! Please remember to provide your feedback using the survey that will that will pop-up on your screen in a separate window as the webinar concludes. #MarriageResCtr

92 Contact Us National Resource Center for Healthy Marriage and Families Phone: #MarriageResCtr