1. Improving Family Financial Health
Presented by:
Lauren Leimbach
June 2010

2. CFR’s Mission
Research, develop, and promote low-cost consumer friendly financial product and services
Build the capacity of community-based organizations to provide asset-building strategies to their constituents.
Establish best practice standards for other financial services providers.
CFR is a non-profit organization.
Serve consumers, CBOs, and Partner with financial service providers. Particularly want to build the capacity of CDFIs.

3. Examples of CFR’s Work To-date
Low-cost high value prepaid debit card
Emergency loan program
Financial service kiosks
Behavior based financial education programs
Technical assistance to economic empowerment programs
VITA sites, SEIU, UNITE-HERE card programs.
Alternatives to payday lending.
Alternative ways to deliver banking services
Product based financial education
Bank on programs
Active member of Alameda-Contra Costa-Marin county asset-building coalitions.
Health organizations, e.g. CC and AlaCo Public Health started coming to the asset-building coalition meeting

4. The Health-Wealth Connection
Recognizing the relationship
Chronic stress of poverty and inequality creates health disparities
Family financial security : positive health outcomes
Requires a programmatic approach
Financial empowerment is a therapeutic paradigm
Health organizations had already made this connection—Lifecourse Perspective

5. Assets create opportunity.
Assets over Income
Assets Drive Positive Family Outcomes
Financial holdings: savings, real estate, investments, a business
Knowledge and skills: an education
Social bonds and community relations: the ability to influence decisions that affect their lives
Assets create opportunity.
CFR started doing the research

6. The Effects of Asset Accumulation
Economic Well-Being
Social Well-Being & Civic Engagement
Child Well-Being
Health & Psychological Well-Being
Asset
Accumulation
-Financial
-Tangible
-Social
Study by Lerman and McKernan published in 2008

7. Assets and Child Well-Being
Enhanced Family Stability
Parental Modeling of Asset Accumulation
Reduced Child Stress
Educational Savings
Improved Education Outcomes
Improved Health
Enhanced Residential Stability
Access to Jobs
Improvements across generations
Civic Engagement

8. What is Family Financial Health
Financial security, Financial stability, and Financial Capability
Meeting Basic Needs to live in safety and dignity
Withstanding an interruption of income
Knowledge to make informed choices
Capability to move up the economic continuum
Pass benefits to the next generation
Inter-generation wealth and opportunity
Black-White wealth gap has quadrupled in the last 23 years.

9. Health Programs as a Delivery Channel
An Important Touchpoint
Going out to the people
Scale
The Power of Trust
A Respected Source of Information
Discrete Goals
Identify client financial issues
Connect clients to appropriate resources
WIC in each county sees over 20,000 people a month

10. First Step: Staff Buy-in
Training on the Health-Wealth Connection
Improving family financial capabilities will improve health outcomes
Acknowledging personal financial issues
Providing tools
Collaboratively designing interventions

11. Our Societal Pathology: Money Myths
Myth: Acquiring things make you happy.
Reality: Personal happiness comes from connections to family and friends AND helping others.
Myth: It’s good to use credit and spend money you don’t have.
Reality: Credit/ Debt will make you poorer unless the money is invested in something that creates wealth, e.g. education, house, business, job tools.

12. Money Myths (cont.) Myth: Consumption is good.
Reality: Economic sustainability requires balanced resource management.
Myth: It is OK that some can accumulate vast amounts of wealth while others are poor.
Reality: Wealth disparity de-stabilizes societies and lowers everyone’s quality of life.
Can we focus on consuming without being concerned about producing or replenishing resources?
Poor=no legally mandated living wage, basic needs are not being met.

13. Assessment Tools Family Economic Security Interview
Financial Knowledge Checklist
Assessing Financial Fitness
Asking questions

14. Identifying Client Financial Issues
Clients may request specific help
--Is there something else that should be addressed?
Observing client’s life situation
Client disclosures
Starting the discussion
Asking clarifying questions
Active Listening

15. Basic Financial Interventions
What Improves Family Financial Stability?
Tracking Inflows and Outflows (Budgeting)
Being “Banked”—avoiding predatory financial schemes (Asset Preservation)
Safety-net Savings (Asset Development)
What are the Basic Financial Interventions—you might be able to offer.
Let’s start by looking at the Research that says that the 3 most important components of a financial stability strategy for low-income households are……

16. Goal: Connecting Clients to Resources
Income Supports
Financial Products & Services
Financial Education
Employment
Asset Building
Local Resources: AC CAN Resource Directory
BEST Resource Guide
2-1-1
FESP and AC CAN Members

17. Creating a Financial Action Plan
Acknowledge client’s financial strengths
Address the financial vulnerabilities
Establish concrete next steps
Use an effective referral protocol
Create a follow-up structure
Harnessing the learnings of Behavioral economics to help people make beneficial behavior change

18. Financial Action Step: CFR Card
Banking Services an issue for your client?
Use Talking Points hand-out and brochure to explore the card option
Facilitate card enrollment
Encourage immediate action
Follow-up

19. For More Information Lauren Leimbach Phone: 510-559-8638
Website: