1. Financial Education and Financial Coaching Moving families ahead sustainably over time What we know about making it effective. Quilting it with other RuFES opportunities. Tying it to your Horizon/s work.

2. Get to the Bottom Line: Build a Family Financial Plan Wealthy families have financial planners Middle-income families go to financial planners Lower income families really need the help of financial planners, too!

3. Get to the Bottom Line: Build a Family Financial Plan So… How can your community help provide coaches for low-income families so that they can create and follow a Family Financial Plan?

4. Why financial education? Financial education quilts and leverages everything else you are doing: –It can help families find ways to bring in more funds and acquire assets (Earn It/Grow It) –It can help families find ways within their budget to save more (Keep It) –It can help families find ways to prepare for and deal with crises as they appear (Keep It) –It can help families dodge common money traps (Keep It)

5. Financial education effectiveness TIPs Time It Right Inspire Trust Personalize It

6. Time It Right Responsible money management isn’t fun –It involves tough choices –Peer pressure and social status work against it –It can be tough to learn & nobody likes feeling dumb! Motivation is the key – financial coaching works best: –When there is an opportunity –When there is a crisis Financial education works best in “context” –Coaching in the context of the crisis or opportunity

7. When are the best times? While in High School (or better yet – earlier still!) –Students learn best when they see an application for the knowledge being taught –Studies show high-school students are very receptive it’s a “grown-up” skill they know they need When acquiring a major asset –Buying a home– Starting a business –Enrolling a retirement plan – Financing an education When in crisis –e.g., when foreclosure, bankruptcy, repossession hit

8. Inspire Trust People are ashamed to talk about money –7 in 10 parents would rather talk to their kids about sex or drugs than money 1 –It’s no wonder – most struggle with these issues too Nearly one in five families raids their kids savings to pay bills! 1 If the language or setting suggests they have a “problem,” they won’t come! –Financial “literacy” vs. education vs. coaching –Two counties away vs. my home town The teacher or coach must have credibility –Must walk the walk – Must be “like me” 1 ING Financial Survey, June 2008

9. Personalize It Effective financial education is intensely personal Large group settings are ineffectual for adults Small group settings work best when participants share a common situation and motivation –(e.g., first-time homebuyer classes) Ongoing one-on-one coaching works best –Building a financial plan – focused on reaching milestones –Helping them implement their plan –Addressing specific issues when needed –In the privacy of a trusted relationship

10. Quilting Financial Education with RuFES and Horizons Opportunities

11. Take advantage of tax time Tax prep time offers a teachable moment – and a captive audience! Fill waiting time with useful information –Provide brochures, flyers, fact sheets –Run “Avoiding the Money Trap” or other videos –Offer credit reports and interpretation Refer customers to education/coaching opportunities Promote refund-linked savings opportunities –Bond purchase – IDAs – Split refunds

12. Catch people where they are at Run Avoiding the Money Traps, other videos or offer programs where people are likely to wait or congregate. –Lunchrooms –Church adult and teen Sunday School programs –Waiting rooms or places (clinics, jury duty, car registration, bus stops, whatever!) –Be creative!

13. Engage Entrepreneurs Small business owners and the self employed are prime candidates! Entrepreneurship education has a large financial education component –Business coaches can be financial coaches too! Connect what people are learning about their business with the rest of their lives

14. Tie in with others Partner with banks and credit unions –A loan application provides a teachable moment Car purchase programs work best with financial education component Link with IDA programs Most homeownership programs require financial education Stuff flyers in utility bills and paychecks

15. Relevant Resources Center for Responsible Lending – www.responsiblelending.org www.responsiblelending.org National Endowment for Financial Education – www.nefe.org www.nefe.org Consumer Credit Counseling Services – www.moneymanagement.org www.moneymanagement.org Federal Reserve Bank of San Francisco – www.frbsf.org/education/ www.frbsf.org/education/ Pennsylvania Office of Financial Education – www.moneysbestfriend.com www.moneysbestfriend.com Beehive – www.beehive.org