Transcript Financial Literacy in Indian Country

1
Session Facilitators
Chrystel Cornelius, Executive Director
[email protected]
303-774-8838
Chris Hansen, Training Coordinator
[email protected]
303-774-8838
Overview of Training
Importance of Financial Education
Training Techniques
Introduction to Building Native Communities:
Financial Skills for Families Curriculum
Teach Backs and Evaluations
Overview of Training
Curriculum
BNC Participant Workbook (Brown Cover)
BNC Trainer Workbook (Black Cover)
BNC Youth Journal
Folder
First Nations Oweesta
Introduction
Who is Oweesta?
Native CDFI
National Intermediary
Mohawk word
for money
or item of exchange
What we do:
Training, Capacity Building, Consulting
Lending & Capitalization
Research, Policy, & Advocacy
Our Clients
Native CDFIs
Tribes
Tribal Departments
Native Nonprofits
Tribally Delegated Housing Entities
Tribal Colleges and Universities
Who are you?
1) Name
2) Organization
3) Number of years working with
Financial Education/ Clients
4) A Fear
BNC Training Model
Oweesta certifies local instructors
Financial instructors deliver curriculum in their
communities
BNC can be blended with other curricula
Links well with other asset building programs:
- Individual Development Accounts (IDA)
- Volunteer Income Tax Assistance (VITA)
Introduction to
Building Native Communities
Curriculum Sponsors
Financial Skills for Families:
Timeline
Developed by:
-First Nations Development Institute
-First Nations Oweesta Corporation
-Fannie Mae Foundation
Piloted in numerous Native communities
Continuing to revise and update
Purpose of Curriculum
“To enable community members to
realize their traditional values by
learning financial skills that will help
each person make informed financial
decisions for themselves, their family
and their community.”
Delivery of Curriculum
Training Outcome:
First Nations and other partners train regional
instructors
Regional instructors deliver “train-the-training”
courses to local trainers
Local trainers deliver course to tribal community
members
Program Successes
Program success includes:
“Train-the-trainer” sessions held nationwide
Delivered in tribal communities
Trained almost 500+ instructors
Has potential to reach over 10,000 tribal members
Distributed nearly 18,000+ curriculum workbooks
Traditional Practices to
Teach New Skills
Each session provides:
opportunity to discuss community’s traditional
practices
connection between Native resource
management and financial management
introduction to financial skills
interactive discussion questions
skill reinforcement exercises
contemporary Native humor as a teaching tool
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Financial skills taught in a
Native environment and context
Teaching in a Native context show the following:
Non-Native efforts fail
Learning builds on what you already know
-builds self confidence
-reinforces traditional values and practices
Economic Models
Curriculum Sessions
1)
2)
3)
4)
5)
6)
Building a Healthy Economy
Developing a Savings Plan
Working with Bank Accounts
Understanding Credit
Accessing Credit- part one
Accessing Credit- part two
Customizable
Instructor manual guides prepare local trainers
Can adapt curriculum:
-Two hours a week for six weeks
-Two full days
Targets young adults but can be used for all
A good step in developing a Native financial
education program
Free Training Materials
To order, contact
Oweesta at
(303) 774-8838
The first 10 BNC
Participant Workbooks
ordered are FREE!
Additional Resources
Youth Curriculum
Financial Skills for Teens
Created as a part of a school program
Can be used as stand alone workshop or class
Piloted on two South Dakota reservation in
four area high schools
Focuses on basic financial skills while looking
at building future assets
Importance of
Financial Education
POP QUIZ!
In 2012, how many home
foreclosures were filed in the US?
Less than 1 million
 Over 1 million
 Over 2 million
 Over 4 million

What percentage of Americans line in
asset poverty?
19%
 27%
 53%

What percentage of Americans have
a subprime credit score?
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 48
 56
 72

A recent survey indicates that money
and the state of the economy are top
sources of stress for 60% of
Americans?
True
 False

Statistically men are better investors
than women:
True
 False

How many people in the world
survive on less than a $1 a day?
1.5 million
 20 million
 90.8 million
 1.2 billion

What percentage of credit reports
have mistakes?
25%
 40%
 80%
 90%

Financial education is vital in
Indian country today because:
Some tribes face unique challenges from large
per cap and lump sum distributions
Predatory lenders are increasingly targeting our
reservations and communities
Money management is a foreign concept to
many native people
All of the above
Significance of Financial
Education
Builds skills to save, invest and grow resources
Improves access to affordable financial products
and services
Promotes understanding and value of credit
Helps consumers avoid predatory lending
Grows community assets and stimulates local
Native economies
Strengthens sovereignty
Tangible Benefits of
Financial Education
Self-sufficiency
Ability to maximize income, savings and
assets
Small business start-up financing
Homeownership
Access to affordable loans
Wealth accumulation
manage family budgets
Grow community assets
Training Tips & Techniques
Assess Your Learning Style
Answer each question by marking
Often
Sometimes
Seldom
Answer based on TODAY and how you feel about
the questions
Don’t over think the questions
How to Score Your Results
Types of Learning Styles
Magic
CircleWall
of Life
Session 1:
Building a Healthy Economy
Building a Healthy Economy
This session provides an opportunity for
participants to:
discuss the traditional resource management
practices in their community
evaluate the economic dynamics of their
community
identify actions to build a healthier local economy
(e.g. strengthening their personal financial skills)
TheCircle
Circle of
of Life
Life
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The Local Economy
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Local Economy
Facilitation Technique
Attending
- Paying attention to participants
Observing
- How participants are receiving training
Listening
- Paraphrase
Questioning
- Ensures you are gaining group participation
Behind the scenes – ensuring
everything is covered!
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Ensuring everything is covered
Be prepared!
Review curriculum
Have visual aids ready
Handouts printed
Pre/post test and evaluation
Put yourself at ease before the presentation
Have the room set-up to your liking – before people
arrive
Session 2:
Developing a Spending Plan
Developing a spending plan
This session provides an opportunity for
participants to:
connect Native resource management skills with
financial budgeting skills
identify savings goals
be aware of the flow of money through their
household
take control of the flow of money through their
household
Spending Plan
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Annual Expenses
Debt Tracker
Expenses
Worksheet
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Monthly Income Tracker
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Types of Expenses
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Types of Savings
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Teach Backs
• Each Group receives a
topic
• MAY NOT repeat an
activity staff used
• Create a 5 - 7 min
presentation
– Must be in “teaching”
format
• Free to use any materials
in room
• Use lesson plan
• Evaluate each other
• Everyone speaks
Day One Wrap Up
Teach back group assignment
Stick it to the man
Pluses and wishes
Homework
Logistics
Session 3:
Working with Checking and
Savings Accounts
Working with checking
and savings accounts
This session provides an opportunity for
participants to:
connect the results of good resource and
financial management with providing for the
community
be aware of their money management practices
learn about checking and savings accounts
Bank Account Features
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Check Register
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Reading Your Account
Statement
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Forgery
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Session 4:
Understanding Credit and
Your Credit Report
Understanding credit
and your credit report
This session provides an opportunity for
participants to:
discuss the transition from a subsistence
economy to a market economy
understand the concept of credit
learn how to read a credit report
Importance of Credit
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Using
Credit
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Types of Credit
Revolving Credit
– Remains open as long as you pay the balance
Installment Credit
– Fixed amount for a particular item
Non-Installment (Service) Credit
– An item that you use and pay for after
obtaining item
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Types of Credit
Secured vs. Unsecured
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Credit Report
www.annualcreditreport.com
Creditkarma.com
 Equifax
 Trans Union
 Experian
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Reading
Your
Credit
Report
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Letter of
Dispute
BNC Update
Online dispute option
now available through
annualcreditreport.com
Check it out!
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Statement
of
Explanation
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Session 5:
Accessing Credit, Part I
Accessing credit, part I
This session provides an opportunity for
participants to:
Learn about the lending process
Understand the 5 C’s of Credit
Completing a loan application
FICO score
Credit Systems
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Loan
Application
81
Assessing the 5 C’s of Credit
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Debt-to-Income Ratio
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FICO Score
84
Wrapping Up
Stick it to the Man
Pluses and Wishes
Homework
Networking Reminder
Day 3
Welcome Back!
Session 6:
Accessing Credit, Part II
Accessing credit, part II
This session provides an opportunity for
participants to:
Discuss types of financial institutions
Learn to evaluate loan rates, terms and fees
Understand how to avoid predatory lenders
Recognize the importance of insurance
Types of Financial Institutions
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Cost of Credit
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Cost of Credit
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Payment Factor Table
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Sample Payment Factor Problem
Mike needs to borrow $7000.00 to purchase a
new vehicle for his daughter. If he pays 8% on
a three year loan. Using the payment factor
table, calculate the cost of credit.
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Mike’s Auto Loan
$7,000
8%
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0.03134
$219.38
$7,897.68
$897.68
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Payday Lending
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Identity Theft
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Insurance
Most people do not realize how important insurance is
until they experience an emergency. What
are some reasons that people might delay getting
insurance?
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Questions?
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How Tribal Communities
Can Initiate a
Financial Education Program
Getting Started
These steps include:
-Identify someone to take the lead
-Send local instructor to train-the-trainer
workshop
-Find an appropriate venue
-Convene partners and sponsors
Lead Entities
Tribal College
Tribally Designated Housing Entity
Community Development Financial Institution
Division of Tribe
Housing or Economic Development Nonprofit
Partners
Tribal Enterprises
Tribal College
State Banking Department
Federal Financial Regulators
Fed, OCC, FDIC, OTS
Regional Intertribal Organization
State Housing Agency
Venues
Tribal College
Churches
Local Bank
Large employers
Tribal Museum
Library
Community Center
Youth Center
Sponsors
Local Banks
Foundations
AMERIND Risk Management
Federal funding from HUD, USDA Rural
Development
Major Employers
Tribal Casino
Evaluation
 What are some of the benefits of a good
evaluation system?
 What could go wrong with assessment &
evaluation efforts?
Key Bank Evaluation
 4 year partnership with Oweesta and KeyBank
 Determine the impact that financial education is
having in Native communities
 On-line survey done by participants
 TA Request form if interested in being a test site
First Nations OWEESTA Corporation
(303) 774-8838
www.oweesta.org