building family income and wealth coming home: a rural seminar in visalia june 13, 2012

Building Family Income

and Wealth

Coming Home: A Rural Seminar in Visalia

June 13, 2012

Katrin Kärk (moderator)Program Officer, Family Income & Wealth Building

kkark@lisc.org 202-739-9270

Beatrice ShelbyBoys, Girls, Adults Community Development Center, Inc.

bshelby@suddenlinkmail.com870-829-3274

Doug RautheCommunity Action Partnership of Northwest Montana

drauthe@kalhrdc.mt.gov406-752-6565

Elena Kaye-SchiessVISTA Volunteer, NeighborWorks Rural Initiative

ESchiess@nw.org617-585-5046

Katrin Kärk (moderator)Program Officer, Family Income

& Wealth Buildingkkark@lisc.org 202-739-9270

Increasing Family Income and Wealth

Family Goals

Sufficient family incomeTransferable job skillsManageable expensesSmart debtPost-secondary

education plan Real opportunity for

retirement @ 65

Jones Family in Baltimore, MDIncome Wag

eChild SupportInterest Income from Savings (avg. $1500 at 1.5%)

Total IncomeExpensesHousing/Utilities

Child Care Foo

dTransportationHealth Care

MiscellaneousTotal Household ExpensesCheck-cashingFurniture Finance Charges (valued at $2000)Emergency Loans (or pay-day)Total Finance ChargesEarned Income Tax Credit (federal)Child Care Tax CreditChild Tax Credit

Total ExpensesNet Income (13,321)

Before

19,008$ 2,436$

- 21,444$

8,808$ 8,988$ 4,752$ 3,444$ 3,108$ 2,880$

31,980$ 380$

1,809$ 596$

2,785$

34,765$ $ (7,112)

Workforce Development

25,344$ 2,436$

- 27,780$

8,808$ 8,988$ 4,752$ 3,444$ 3,108$ 2,880$

31,980$ 507$ 507

1,809$ 596$

2,912$

34,892$ $

(518)(960)

(2,000)

Access to Benefits

25,344$ 2,436$

- 27,780$

7,603$ 5,842$ 4,752$ 3,444$ 1,942$ 2,880$

26,463$ 507$

1,809$ 596$

2,912$ $ $ $

25,897$ 1,883$

(2,000)

25,344$ 2,436$

23 27,803$

7,603$ 5,842$ 4,752$ 3,444$ 1,942$ 2,880$

26,463$ 6070$ 85$

215$ (518)$ (960)$

$ 23,200$

4,602$

Accessing Affordable Financial Services

Outcomes Net income

All income- all expenses (monthly) Positive changes in monthly cash flow

Credit report & credit score improvement

Employment placement & retention 3, 6, 12 & 24 month

Career/wage advancement

Net worth Assets – Liabilities Annual Measures

Beatrice ShelbyBoys, Girls, Adults Community

Development Center, Inc.bshelby@suddenlinkmail.com

870-829-3274

BGACDC18 - 39

YOUTH & FAMILIESEMPOWERMENT

PROJECT

PARENTAL INVOLVEMENT

• Parent training entails giving young parents and would be parents skills to be good parents by presenting them with a collection of discussions and exercises, which evoke thoughts, opinions and actions, based upon defining what is the role and responsibility of a parent in relationship to the expectations of the community.

CIVIC ENGAGEMENT• Civic engagement requires individuals to

become leaders by becoming involved in the community issues that affect their local community.

• Civic engagement requires that we educate and inform parents of the processes and procedures needed to participate in;

– Concerned Citizen Meetings

– City Council and Quorum Court Meetings

– School Board Meetings

– School Parenting Meetings and Seminars

LIFELONG LEARNING

• Learning and career preparation never stops; therefore, lifelong learning is a process of meeting individuals where they are in the educational and career continuum by placing men and women, ages eighteen to thirty-nine in volunteer, service learning or, part-time paid positions at BGACDC and providing educational and career preparation training to them.

Doug RautheCommunity Action Partnership

of Northwest Montanadrauthe@kalhrdc.mt.gov

406-752-6565

AN INITIATIVE OF COMMUNITY ACTION PARTNERSHIP OF NORTHWEST MONTANA

IN PARTNERSHIP WITH PARK SIDE FEDERAL CREDIT UNION

Free To Choo$eFinancial Literacy Education

Program Overview• 12-weeks of financial literacy focused on education of

the family using a 3-pronged approach:– Education– Support– Access to credit

• After completion the participant has the opportunity to:– Work with a financial mentor for a year– Open checking and savings accounts with Park

Side Federal Credit Union– Open a $300 line of credit with Park Side Federal

Credit Union

Education• Youth Education: NCUF’s Biz Kids

Curriculum– Play money reinforces good behavior

– Opportunities to “shop” are provided

– Park Side Federal Credit Union helps them open a savings account.

Adult Class: FDIC’s Money Smart CurriculumAdult Class: FDIC’s Money Smart Curriculum

• Bank On It

• Borrowing Basics

• Check It Out

• Money Matters

• Pay Yourself First

• Keep It Safe

• To Your Credit

• Charge It Right

• Loan To Own

• Budgeting Night

• Insurance Night

• Your Own Home

Education

Education: Logistics• Weekly co-pay provides participants with a

stake in the class

• Sessions are low-barrier for participants to easily attend:– Child care is provided

– Dinner is provided

– Youth class is offered (no extra charge for youth participants)

– Make-up sessions are offered

Mentor ProgramMentor Program Line Of CreditLine Of Credit

• A Year of Support

• Develops and builds banking relationships

• Helps participants who might otherwise not be able to get a loan begin to rebuild credit.

• Develops and builds banking relationships

Tools beyond Education

Measuring Outcomes

• Pre- and Post-tests

• Self and Mentor assessments

• Tri-merge credit report pulled on one year anniversary after graduation.

What’s Next?

• Sanders County

• Lincoln County

• Lake County

Partnerships

• Park Side Federal Credit Union – Offers lines of credit at market rates with normal

payment plans– Secures 2/3 of the risk on the lines of credit and

accounts to Free To Choo$e graduating participants– Provides staff and support through out the 12-week

class– Provides many of our mentors

• Faith Free Lutheran Church– Provides access to its beautiful facility for Free To

Choo$e to hold classes

Elena Kaye-SchiessVISTA Volunteer,

NeighborWorks Rural InitiativeESchiess@nw.org617-585-5046

Gateways to Wealth Creation: Individual Development Accounts &

Volunteer Income Tax Assistance Sites

IDA VITA

Gateways to Wealth Creation

CFED’s 2008 survey of 27 IDA programs (1,212 savers) found:

Local Models + National Support =Scalable Solutions

Pathfinder Community Connections

NeighborWorks Umpqua & Dream$avers

Midwest Minnesota CDC

Where do we go from here?

CFED’s 2010 study of six IDA programs– that included 831 homeowners who purchased homes in 17 states from 1999-2007– found that:

Katrin Kärk (moderator)Program Officer, Family Income & Wealth Building

kkark@lisc.org 202-739-9270

Beatrice ShelbyBoys, Girls, Adults Community Development Center, Inc.

bshelby@suddenlinkmail.com870-829-3274

Doug RautheCommunity Action Partnership of Northwest Montana

drauthe@kalhrdc.mt.gov406-752-6565

Elena Kaye-SchiessVISTA Volunteer, NeighborWorks Rural Initiative

ESchiess@nw.org617-585-5046