FATHERHOOD AS AN ASSET Building Strong Families and Communities Robert D. Johnson

DEFINITIONS Asset- a property to which a value can be assigned Liability-someone who prevents a social outcome or causes a social embarrassment

Economic security throughout the life course is intrinsically linked to both income and asset ownership.

Where Does It Begin Currently millions of children live absent their biological father. The long term tax payer investments required to support these fragile families is estimated in the billions of dollars Today half of all children and eighty percent of African American children can expect to spend at least part of their childhood living apart from their fathers.

Despite Significant Investment Far Too Many Fathers Remain A Liability Despite the good intentions, significant investment and the array of services directed towards these fathers and their families, Far too many fathers remain a liability in their families economic success, playing no significant role in accumulating the assets required to secure their children and families future.

What Is The Impact Female single headed households under age 35 without a high school diploma are more likely than all other family types to be in asset poverty.

Today Many Fathers and Their Families are Experiencing Asset Poverty Having only enough liquid assets to last three months at the federal income poverty level

Why Are Assets Important Distinguishing income from Assets: Incomes are flows of resources. They are what people receive as a return on their labor or use of their capital, or as a public program transfer Most income is spent on current consumption. Assets are Stocks of Resources. They are what people accumulate and hold over time. Assets provide for future consumption and are a source of security against contingencies. As investments, they also generate returns that generally increase aggregate lifetime consumption And improve a household’s well-being over an extended time horizon.

Many of These Families Are Just Surviving Day To Day The households of many of these fathers have little financial cushion to sustain them in the event of a job loss, illness, or other income shortfall. Social and economic development of these households may be limited by a lack of investment in education, homes, businesses, or other assets. To the extent that low resource holdings limit the potential for social and economic development, understanding how those with limited assets can build up families assets is critical

FOR MANY OF THESE FAMILIES THE FUTURE HOLDS NO HOPE Imagine your or your family’s life without assets – savings, a home, an education, a small business, investments, and a nest-egg for retirement. Lack of income means you don’t get by. Lack of assets means you don’t get ahead.

Fatherhood Has A Role In Building Assets Studies suggest that a large percentage of single parents would no longer be living in poverty if the fathers were present and contributing his income to the household budget

FATHER ABSENCE THE FIRST STEP IN ASSET POVERTY Currently 34% of children live absent their biological father In % of single mother families live in poverty Divorce, out of wedlock births and incarceration most common reason for father absence Although single parent families are most likely to be asset poor- many married families also fit into category

TOTAL COST OF POVERTY In FY2008, federal, state and local governments will spend $679 billion on means-tested welfare programs cash, food, housing, free or subsidized medical care, and targeted social services to poor and low income Americans. This high level of spending is not the result of a temporary, short-term surge in expenditures, but, rather, is the product of a steady incremental growth in spending over the last two decades

Potential Cost of Father Absence It is estimated that the Federal Government spent at least $99.8 billion providing assistance to father absent families in2006 Studies suggest that a large percentage of single parents would no longer be living in poverty if the fathers were present and contributing his income to the household budget

Building Fatherhood as An Assets A Strategic Approach Outside of education, traditional social programs that assist low-income populations have: focused mainly on income and social services that fulfill basic consumption needs. An asset-based approach could: complement this traditional approach and could shift the focus to the long-term development of individuals, families, and communities. This focus could provide the fatherhood field a broader picture of the dynamics of poverty among – low- income families.

Asset Based Strategies Help to Reframe our Approach to Family Formation Asset-based policy has many potential meanings. These include policies to promote the accumulation and preservation of financial wealth, tangible property, human capital, social capital, political participation and influence, cultural capital, and natural resources. While all of these meanings have value, building financial wealth and tangible nonfinancial assets for the purpose of household social and economic development should be the focus Fatherhood Practice.

Those Most Likely to Be Asset Poor Young Less educated Unmarried (male/female) renters

Moving Fathers From A Liability To An Asset ( we have to start at the beginning) Liability Poor communications with child’s mother Lack of financial support to children Poor employment prospect Inadequate educational attainment Lack of legal relationship with child Poor parenting skills No health insurance Poor family structure Poor housing status Lack of transportation Repeat pregnancies outside of family formation Inadequate housing Asset Improved communications w/custodial parent Improved financial support of children Improved educational outcome Improved employment potential Improved medical support Improved parental earnings Improved child well-being Improved potential for family formation Improved housing status Adequate transportation No children outside of formal relationship

Asset Building Strategies for Low-Income Households Build strategies for fathers as part of a broader goal of family strengthen and reducing child and family poverty Focus on a multi agency strategy directed towards increasing fathers potential as a provider and linking to long term pathway to family economic security Create set of goals that extends beyond improved outcomes for fathers and place asset building, child well-being and stronger family formation as an objective.