building family income and wealth coming home: a rural seminar in visalia june 13, 2012
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Building Family Income and Wealth Coming Home: A Rural Seminar in Visalia June 13, 2012. Katrin Kärk (moderator) Program Officer, Family Income & Wealth Building [email protected] 202-739-9270 Beatrice Shelby Boys, Girls, Adults Community Development Center, Inc. [email protected] - PowerPoint PPT PresentationTRANSCRIPT
Building Family Income
and Wealth
Coming Home: A Rural Seminar in Visalia
June 13, 2012
Katrin Kärk (moderator)Program Officer, Family Income & Wealth Building
[email protected] 202-739-9270
Beatrice ShelbyBoys, Girls, Adults Community Development Center, Inc.
Doug RautheCommunity Action Partnership of Northwest Montana
Elena Kaye-SchiessVISTA Volunteer, NeighborWorks Rural Initiative
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
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.
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$e to hold classes
Gateways to Wealth Creation: Individual Development Accounts &
Volunteer Income Tax Assistance Sites
IDA VITA
Gateways to Wealth Creation
CFED’s 2008 survey of 27 IDA programs (1,212 savers) found:
Local Models + National Support =Scalable Solutions
Pathfinder Community Connections
NeighborWorks Umpqua & Dream$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
[email protected] 202-739-9270
Beatrice ShelbyBoys, Girls, Adults Community Development Center, Inc.
Doug RautheCommunity Action Partnership of Northwest Montana
Elena Kaye-SchiessVISTA Volunteer, NeighborWorks Rural Initiative