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Building Financial Capability Texas Panhandle Regional Community Asset Building Forum: A Call to Action Amarillo, TX April 19, 2012 Laura Rosen, OpportunityTexas Coordinator [email protected] 1 Financial Capability Snapshot 18% of Texas households reported that they spent more than they earned in 2009.1 One in two Texans (50.6%) lack adequate savings or other assets to cover expenses for three months if they lose source of income.2 12.4% of Potter County residents are unbanked and another 25.4% are underbanked. 1FINRA Financial Capability Survey, 2009. 2CFED 2012 Assets & Opportunity Scorecard. Financial Capability The capacity, based on knowledge, skills and access, to manage financial resources effectively Financial Capability Delivery Models Group-based Financial Education – instructor provides information generally on a range of topics Financial Counseling – counselor helps client meet basic financial needs and work through financial problems Financial Coaching – client driven, coach holds client accountable for making progress toward goals Important Elements of a Financial Capability Initiative Relevant: Covers material that addresses participants’ specific financial concerns and situations Timely: Information provided is immediately relevant for consumers, coinciding with important life events and decisions (teachable moments) Actionable: Allows consumers to take action on knowledge received and change their financial behavior (ex. tax-time savings) Ongoing: Program offers long-term ongoing support, instills a sense of accountability, and tracks progress Financial Opportunity Centers - LISC Houston Based on Center for Working Families Model Core Program Elements 1. 2. Employment Services Financial Education and Coaching Group-based financial education One-on-one financial counseling - focuses on solving specific problems or crises One-on-one financial coaching – works to change financial behavior over time 3. Public Benefits Access Community Financial Center Foundation Communities, Austin, Tx Programs offered at Community Financial Center Free tax preparation and tax-time savings Group-based financial education classes Financial coaching Cash for College The Financial Mainstream Reasons for Being Unbanked Perception of high costs Convenience Identification requirements Previous banking problems Perceptions of banking Benefits of Being Banked Cost savings Safety Supports asset building Bank On Programs Provide un- and underbanked individuals with free or low-cost starter or “second chance” bank accounts and access to financial education Typically coordinated by local government in partnership with financial institutions & key stakeholders Operating or in development in over 100 cities and states Evolving into broader asset building platform www.joinbankon.org Developing Local Financial Capability Initiatives Evaluate the local landscape Create a local council Focus the work Articulate clear goals and metrics Develop and launch programs that address goals Measure impact and adjust programs accordingly “Creating Financially Capable Communities: A Resource Guide, “ President’s Advisory Council on Financial Capability, March 2012. Use of This Presentation The Center for Public Policy Priorities encourages you to reproduce and distribute these slides, which were developed for use in making public presentations. If you reproduce these slides, please give appropriate credit to CPPP. The data presented here may become outdated. For the most recent information or to sign up for our free E-Mail Updates, visit www.cppp.org. © CPPP Center for Public Policy Priorities 900 Lydia Street Austin, TX 78702 P 512/320-0222 F 512/320-0227 Happy State Bank hosts Kids’ Banks in the following communities: • • • • • • • • Amarillo/Canyon (5) Pampa (2) Plainview (2) Canadian Silverton Sunray Cactus Panhandle Kids’ Bank process: • Students submit a job application • Candidates are interviewed and take a tour of the bank • Candidates are “hired” and then trained on how to complete a savings deposit and provide good customer service, as well as, the importance of customer confidentiality • Assist with savings deposits & mentor the students with soft skills while on the “job” Happy State Bank has a financial literacy teaching team trained to teach on various topics as requested by schools and other nonprofit organizations throughout the Texas Panhandle. A few examples are: • Career Days • After-school programs • Junior Achievement (Amarillo & Hereford) • Habitat for Humanity (Financial Stability courses)