Sandra Leone Laurel Daman Good Ways to Support Financial Literacy Sandra Leone Laurel Daman

Vision SEED envisions a world where opportunities exist for all people and communities to realize their hopes. Mission To build strong communities and increase opportunities for people through financial empowerment programs and services.

Newcomers Financial Realities Objectives: Share experiences of newcomers financial realities. Outcomes: For you For us What financial related issued do you see in your daily work with newcomer To learn about SEED’s financial literacy tools and how our work is informed To get more insight of what is needed for 2 workshops we are currently designing

Brainstorming What financial barriers/issues are newcomers facing when they first arrive in Canada ? 10 minutes

Newcomers financial barriers at arrival Transportation Loan Unnecessary bank fees No understanding how to build credit or what credit is No understanding the consequences of not paying back a loan Low level of English No understanding how the Canadian banking system works Not used to record a budget Recognition Counts Consumer driven society encourages over usage of debt Over optimism about credential recognition timeline High expectation of career advance in minimum wage jobs Over buying cars/houses while on a precarious employment (low wage, 2-3 jobs, casual, part-time, etc) Not understanding concept of bankruptcy

Why are there people living in poverty in our community?

Why are there people living in poverty in our community? Systemic Issues vs. Personal Failings

A Behavioral Economics Lens A surprising and intriguing examination of how scarcity—and our flawed responses to it—shapes our lives, our society, and our culture Why do successful people get things done at the last minute? Why does poverty persist? Why do organizations get stuck firefighting? Why do the lonely find it hard to make friends? These questions seem unconnected, yet Sendhil Mullainathan and Eldar Shafir show that they are all examples of a mind-set produced by scarcity.

Implications of Scarcity Tunneling Bandwidth Brainpower that would otherwise go to less pressing concerns, planning ahead and problem- solving Extreme or detailed focus managing scarcity while forgetting other aspects of life

Implications of Scarcity Temptations & Indulgencies Borrowing Always borrowing time or money while on a limited schedule or budget Constantly resisting temptations – hard to resist small indulgencies Juggling Only able to deal with the symptoms of the same reoccurring problems

Implications for Program Design Be Skeptical of Simple Solutions x Are program impact claims “too good to be true”?

Scarcity informed program development Advice (failed to reach priority groups, credit building component) Is the wisdom of community members with lived experience shaping program design and development? Are staff members representative of the community they serve? Do they have lived experience? Building on Strength (knowledge of resources, communities of support) Does the program build on the strengths and assets of program participants? Is the organizational culture non-judgmental and respectful

Scarcity informed program development Program Supports (snacks, bus tickets) Does the program provide supports to enhance accessibility for individuals with barriers to social and economic inclusion ? Partnerships Does the organization “play well” with others? Is the program being adapted for different demographic groups?

Scarcity informed program development Success: partial picture Is the program committed to continuous improvement? Is the organization committed to working with community members who are facing barriers? Does the organization measure qualitative and quantities outcomes? Does the organization strive to redirect resources to areas of greatest impact?

Continuum of Complimentary Programs Tax Filing & Access to Benefits Saving Circle Recognition Counts ID Fund BEST IDA RESPs/CLB HBIDA

RESP – Research and Education Project Developed public legal education materials to support low-income RESP subscribers in understanding and making informed decisions about their RESP investments Studied the regulation of group plan RESPs and the experiences of low-income subscribers. http://seedwinnipeg.ca/resources/group-resp-research

Manage your Money Workshops SEED offers money management workshops where participants share what they know, gain new knowledge and take home practical tools to manage their money.

Thank you!