buckelew trial portfolio relationship project kickoff · sample federal public benefits overview...

© REDF 2016 REDF

REDFBuilding

Financial

Capabilities for

Social

Enterprise

Employees

March 23, 2017

REDFJoin the conversation! @REDFworks #se4jobs

SOCIAL ENTERPRISE & FINANCIAL WELLNESS

As social enterprises are both employers and workforce programs,

they can actively increase financial wellness for their employees

As employer

Direct deposit

Retention bonuses

Funds for employment expenses

As workforce program

Funds for barrier removal

Earning supplements

Tax preparation

Income/benefit planning


AGENDA

Haidee Cabusora

@financialclinicPam Block Brier

@WomensBean

David Miller

@JumaVentures

Welcome: Ashley Cordero, Initiatives Manager, REDF

Nick Royston, Manager, Learning & Impact, REDF

Panel Discussion: Pam Block Brier, Director of Operations, Women’s Bean Project

Haidee Cabusora, Chief Program Officer, The Financial Clinic

David Miller, Savings Program Manager, Juma Ventures

Audience Q/A:


FINANCIAL WELLNESS DIRECTLY TIED TO WORK

1/5Employees admit they

skipped work due to

financial problem

61%HR professionals say

financial stress is having

some impact on employee

work performance

only 6%Employees strongly agree

their organization does things

to help them manage their

finances more effectively

70%American workers say

financial wellness cause of

stress; stress causes

distraction at work


FINANCIAL INSECURITY ACUTE FOR TARGET POPULATIONS

Rather than simply serving as a “safety net”, public benefits such as supports for housing, child care, and health care, as well as food subsidies and tax incentives

should serve to support low income people as they increase their incomes through attainment of more skills and higher paying work

People are eligible for certain programs but do not

receive benefits either because there is insufficient

funding or because of difficult accessing these programsCoverage gap

Hardship gap

Eligibility gap

People do receive assistance from public benefits for

which they qualify but still fall below basic standard

of living

People earn too much to qualify for certain programs

yet still do not earn enough to be self sufficient


SAMPLE FEDERAL PUBLIC BENEFITS OVERVIEW

Benefit Provides

TANF (Temporary Assistance

for Needy Families)

Cash assistance

SNAP (Supplemental Nutrition

Assistance Program)

Food benefits & Supportive

Services

Child Care and Earned

Income Tax Credit

Designed to encourage and

reward work by providing tax

credit

Health Coverage Medicaid, State Health

Insurance, ACA

Housing Affordable or subsidized

housing


IMPACT OF INCOME INCREASE ON TAKE HOME PAY

Source: Mathematica Jobs Study (2015)

Monetary value of benefits per social enterprise employee served


BENEFITS CLIFF

Ideally we would see:

Income

Benefits

Take home

Instead we see:

Income

Benefits

Take home

Each incremental dollar earned increases amount

of take home pay

Each incremental dollar earned does not

necessarily increase take home pay – in fact, can decrease take home pay

Benefits cliff: Abrupt loss of benefits due to an increase in income that affects eligibility


BENEFITS CLIFF

Example benefits

cliffs for a single adult

with one dependent

Source: NCCP Family Resource Center (nccp.org/tools/frs)


POLICY CONSIDERATIONS

Source: Falling off the cliff? Increasing economic security for low income adults as the safety net shrinks

Policy Option Description Desired Outcome

Increase income eligibility limits Increase the amount of allowable

income earned before losing TANF

cash assistance benefit.

Encourages recipients to work

more hours without concern for

losing benefits as a result of

increased income.

Extend recertification period Extend the length of time between

recertifications (a review of income

eligibility).

Reduction in churn (disruptions in

recipient's income and housing due

to frequent changes in jobs,

unpredictable income from child

support, temporary work etc.)

Earned income disregard Earned income disregard allowed in

determining net income for

computation of amount of benefit

awarded. Increases allow asset

limits to encourage savings and

other resources that support

economic stability.

Increased rate of moving to self-

sufficiency as a result of rewarding

hard work.

REDF

Pam Block Brier

Director of Operations

Women’s Bean Project

@WomensBean


WOMEN’S BEAN PROJECT- ADDRESSING THE GAPS

100% Participants eligible and

receiving public benefits,

mostly Medicaid and SNAP

3 Months First 3 Months of program

addresses stabilization and

basic needs.

Flexibility Staff don’t directly enroll, but

women are not penalized for

taking time off work to access

support at partner organizations

ResourcesWomen gain self-sufficiency as they

earn wages and bonuses while

working at WPB. Resource Desk

available to women to identify

alternate sources of support as they

taper off public benefits


WHAT IS A FINANCIAL WELLNESS PROGRAM

Assess and support an employee’s complete financial health,

both in short term and long term to build financial capability

Goals:

1. Address immediate financial crisis

2. Help employees build skills to prevent further crisis from

occurring and make progress towards financial goals

Financial

Knowledge

Financial

Inclusion

Financial

Capability

Financial Education:

to increase

knowledge & skills

Financial Products:

Access to financial

products that are safe

and reliable


ASSESS INDIVIDUAL’S

FINANCIAL STATUS

• Assets

• Homeownership

• Credit Score

• Debt Burden

• Level of Emergency Savings

TOPICS

• Budgeting & Money Management

• Debt Reduction

• Credit Score Management

• Financial Goal Setting such as increased

savings

FINANCIAL EDUCATION PROGRAMS SHOULD INCLUDE

PAGE 13


FINANCIAL EDUCATION STRUCTURE

1:1 Counseling

Crisis driven; resolving

problems and solving for

immediate needs

Group Format

Classroom presentation

Discussion on varying

topics

1:1 Coaching

Achieving long term

goals and developing

financial behavior

Counseling Workshops Coaching

Initial Assessment


BEST PRACTICES

•Introduce at Orientation

•Peer to Peer Strategies: safe space without judgement,

creating supportive and collaborative work environment

•Gamification: Staples Case Study

•Partnerships

–Public Private Partnerships

–Employment Assistance Programs

–Financial Institutions

–Financial Securities Intermediaries


CASE STUDY: GOODWILL CENTRAL TEXAS

1. Introduce 3 financial wellness options at orientation

•Workshop

•Counseling (offered through EAP)

•Coaching (offered through EAP)

2. Partnership with Credit Union

3. Advance program

–1 paycheck advance allowed, must enroll into EAP


FINANCIAL INCLUSION

Financial inclusion is increasing access of financial products

Direct deposit

Prepaid debit cardMatched savings account

Checking account Savings account

Earned Income Tax Credit


EMPLOYEE SUPPORTS TO BUILD FINANCIAL CAPABILITY

Quality job

placement

Assisted job search

Job matching

Employer

involvement in

curriculum dev’t

Business advisory

councils

Mock interviews by

employers

Mentorships

Retention case

management

Worksite trouble-

shooting

Relapse avoidance

planning

Work supports

Income/benefit

planning

Fall back SE jobs

Funds for barrier

removal

Clean slate

Case management

Soft skills training

GED

Contextualized

basic education

Funds for

employment

related expenses

Tax preparation

Benefit screening

Bank accounts

Direct deposit

Recognized

credential

Post-secondary

education

Associates degree

Vocational skills

training

Pre-apprenticeship

Retention bonuses

Matched savings

Earning

supplements

Get and keep

benefits and

earnings

Level the

playing field

Connect to

employment

Prevent

backtracking

Build towards

a better future

Incentivize

success

REDF

David Miller

Savings Program Manager

Juma Ventures

@JumaVentures


JUMA YOUTH CONNECT FINANCIAL WELLNESS PROGRAM

Education

Program

Integration

Financial

Products

• Curriculum, provided by JumpStart, money management, saving

& spending, building credit, managing debt

• Structure, in partnership with Financial Institutions, one hour

workshops on each topic. Online modules by Everfi supplement

• Initial Assessment to establish goals

• Monthly check-ins with career coaches to track progress

against goal

• Matched Savings: $25 to open an account,

Match $50 after 6 months

• Offer Direct Deposit into an account or

prepaid debit cards

• Financial Institutions offer financial products

like bank accounts


Messaging Considerations

• Individual’s past experience

with financial institutions

• Youth & Family interactions

• Pacing short term and long term

goals

Building Healthy

Skepticism

• Alternative VS. Traditional

Financial Institutions

• Banks Vs. Credit Unions

• Check Cashing VS. Direct

Deposit

COMMUNICATING WITH CLIENTS

PAGE 21

REDF

Haidee Cabusora

Chief Program Officer

The Financial Clinic

@financialclinic


DEFINING FINANCIAL SECUIRTY :

1) Identifying and moving towards financial goal

2) Savings Patterns

3) Reducing Transaction Costs

4) Improving Credit Score

5) Reducing Debt

6) Leverage Government Benefits and Tax refunds


THE FINANCIAL CLINIC CHANGE MACHINE PLATFORM

PA

GE

Purpose

Products

Partners

• Scale Financial Coach Model Nationally

• Platform where practitioners can learn financial coaching best

practices

• Coaching Maps for Frontline Staff

• Tip Sheets for customers

• Data Collection Portal to manage financial wellness programs

• Coach Direct Messaging

• Customer Service Team

• Experienced Coaching Staff

• Continuous Improvement Team


Financial Inclusion

• Understanding not all clients

ready for traditional bank

account right away

• Focus on reducing

transactional fees whether that

is a service, account, or

prepaid card

• Second Chance Accounts

Benefits Cliff

• Ultimately about building

blocks for long term financial

goals

• Focus on scenario planning

rather than benefits calculator

• Preparing for reductions and

avoiding financial emergencies

NAVIGATING TOUGH TOPICS

PAGE 25


IMPACT OF FINANCIAL SECURITY PROGRAM


IMPACT OF FINANCIAL SECURITY PROGRAM

“Why Should Workforce Development programs consider financial security as part of their

services”

Increase in income for low wage workers whose career coaches

assisted them in automatic savings

31%Low wage workers whose career coaches incorporated financial coaching into their

service delivery worked 67% more hours

and increased earnings by 27%”

33%Increase in work hours for low

wage workers whose career coaches assisted them in opening a bank account

Financial Coaching Savings

Financial Inclusion


CA Assembly Bill 415 Transitional Jobs Support Act (Chiu & Reyes)

• Codifies employment social enterprise definition

• Authorizes Department of Social Services or County Human Services Agencies

to contract directly with SE for CalFRESH (SNAP) Employment & TrainingM

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