Financial Capability Builds Communities October 4, 2016

Outcomes for today are to increase knowledge about: Households: How financial capability impacts households Communities: How household income/community economic development/employment programs benefit by integrating financial capability Organizations: How Community Action Agencies can meet the needs of their clients and communities

About us: The Collaborative Promote programs and policies that build economic security and economic mobility The link between research, innovations in practice, and the people of NC North Carolina Saves National Assets & Opportunity Network North Carolina Assets Alliance Growing Household Income Statewide projects for asset-development among people with disabilities Points of Light-Financial Opportunity Corp Collaborative efforts for applications for low- and-moderate income residents

What does research say about financial capability? It is not financial education or literacy—there is a behavioral and experiential element. Taking the next small step is critical. The behavioral element leads to changes in households, and the ability to be future focused, which leads to savings. Financial capability leads to better employment outcomes. (LISC, Elements of Successful Financial Opportunity Centers)

Low-income workers enter the workforce with financial challenges Financial Capability can mitigate some of those challenges by offering these supports: Financial coaching and counseling Ways to manage credit and debt Connections to safe and affordable financial services Free tax preparation Savings vehicles and matched savings Affordable housing Access to public benefits

Low-income workers enter the workforce with other challenges Transportation Un- and underbanked Childcare issues Low credit scores

And.. 1 in 5 workers reported that they had skipped work in the past year to deal with a financial problem. (Consumer Financial Protection Bureau) According to GoBankingRates, 79% of North Carolina residents have less than $1,000 in savings The American Psychological Association reports that over 60% of Americans experience physical stress symptoms regularly, as a result of their finances.

Household outcomes Reducing toxic stress, and the stress on children Sense of accomplishment and empowerment from handling finances. Examples: How to respond to debt collectors and decrease debt Increased credit score Housing stability Ability to set a goal for the future Dedication to savings and less fragility

Stable Residents contribute to the Community Tangible financial ways: income taxes, property taxes, sales taxes Intangible ways: civic engagement and dialogue, volunteering, voting, building their own and other’s “human capital”

The foundation of economic mobility and an expanded middle class-Brian Dabson, UNC School of Government Building individual skills and encouraging creativity – the importance of education, skills development, willingness to be entrepreneurial, becoming and staying healthy Increasing financial literacy – helping people save, imagine a better financial future Creating and supporting new leaders - vibrant community engagement – building social capital Recognizing and celebrating the value and positive identities of community members

The foundation of economic mobility and an expanded middle class-Brian Dabson, UNC School of Government Building capacity in the community to plan and get things done – the very essence of resilience Building political connections, forging links beyond the community to people and organizations with knowledge, experience, resources – avoid isolation Protecting natural assets – taking care of nature, water, air, environment, trees Improving infrastructure and building stock – roads, water and sewers, housing stock, ability to withstand natural hazards

Update on the Financial Empowerment Training Series 12 organizations, 26 people, over 5 sessions February – May, 2016 Agency plan development for integrating financial capability Goals for the financial capability integration Community profile Partnerships—both existing and desired Staff Capacity and leadership Organizational Capacity Profile of customers’ needs Next steps: Implementing the plan

Update on the Financial Empowerment Training Series Meeting the needs of clients and communities Clients—what do we need? Community—How can we build together? Organizations—How can I change and pivot to meet these needs? What strategies can we pursue?

Neighborworks Success Measures http://www.successmeasures.org/sites/all/files/FinancialCapabilityOnlineFinalOct2011.pdf

Questions?

Stay in touch Like us on Facebook: TheCollaborativeNC North Carolina Assets Alliance North Carolina Saves Follow us on Twitter: #cultureofsavngs Websites: www.cultureofsavings.org www.northcarolinasaves.org www.ncassets.org

THANK YOU! Donna Gallagher Executive Director, IDA and Asset Building Collaborative of NC Donna@cultureofsavings.org 919-212-4267