Financial empowerment as a supervitamin for public programs. Megan Kursik, CEDAM

“In the social service field, underlying financial instability is often the primary backdrop, if not the actual presenting cause, for those receiving services.” - New York City Department of Consumer Affairs Office of Financial Empowerment

Financial Empowerment = The Path to Financial Stability

Financial Empowerment Goals Access to quality, free financial education and counseling Access to affordable and safe financial products and services Opportunities to save and build assets Consumer protections

In times of increasing need and decreasing resources, how can local governments do more with less?

The “Supervitamin” Approach Theory: by coupling financial empowerment strategies with other supportive programs and services (e.g. workforce development, homeless services, public assistance, etc.), financial empowerment is effectively integrated with a community’s anti-poverty strategy, yielding better results across all programs and services.

The “Supervitamin” Approach Practice: financial empowerment strategies are coupled with supportive programs through referral networks and channels, financial counseling training for caseworkers of supportive programs, one-stop centers, unified branding and outreach, and shared community outcome goals, all championed by local government.

The “Supervitamin” Approach Example: Integrating professional financial counseling. – Training for all caseworkers to serve as the first financial counseling touch-point – Financial Empowerment Centers – City-wide referral networks – Unified branding/outreach/marketing – Championed by mayor and other local officials

The “Supervitamin” Approach Local Government Local Financial Empowerment Initiative (Nonprofits/service agencies/financial institutions/employers/higher ed) Foreclosure Prevention Faith Community Homeless Services Workforce Development Prisoner Re-entry Public Housing DHS Financial Education/ Counseling VITA Access to Financial Products/ Services Benefits Access Food Assistance Micro- enterprise Saving and Asset Building Platforms

Cities for Financial Empowerment (CFE) Coalition – Best Practices Integration of financial empowerment with anti-poverty strategy Institutionalization of financial empowerment within local government Stakeholder engagement Fund development Local policy

Potential City-led Strategies Bank On Campaign College Savings Account (CSA) Platform Financial Empowerment Centers Financial Education Providers Network Mayor’s Financial Fitness Challenge Matched Savings Accounts Safe Pay Initiative Affordable Small Dollar Loan Program

Financial Empowerment Center Model Professionally trained financial counselors provide free, one-on-one financial counseling to any city/county resident Counseling seamlessly integrates with traditional social services to simultaneously increase the effectiveness of these services Unique: personalized, evidence-based, replicable

Counseling Financial health assessment Service plans – Debt – Credit – Saving – Banking

Partnerships Local Government Nonprofit Host + Counseling Service Provider Integration and Referral Partners Outreach Partners

Integration and Referral Points Emergency services: utility, rent, food Housing services: homeless services, foreclosure counseling, property tax delinquency Workforce development Asset building: free tax assistance, Bank On Head Start Prisoner re-entry

Community Impact Increase financial knowledge and use of affordable, quality financial products by low to moderate income residents Integrate financial counseling with traditional supportive programs and services to increase effectiveness

Early Evidence NYC ( ) – 19,000 consumers – Decreased debt by over $9 million – Increases savings by over $1 million Lansing (March 2013 – December 2015) – 2,700 consumers – Decreased debt by $4.79 million – Increased savings by $328,000

Contact Megan Kursik Coordinator, Michigan Communities for Financial Empowerment (MCFE) x1942