1. Jobs Are Not Enough Financial Counseling and Income Supports Help Families Turn the Corner 1/19/2012

2. Increasing Family Income and Wealth Family Goals  Sufficient family income  Transferable job skills  Manageable expenses  Smart debt  Post-secondary education plan  Real opportunity for retirement @ 65

3. Many working families have negative net income Child support: $2,436 Check cashing: $380 Payday loans: $596 Expenses: $31,980 Finance charge: $1,809 Expenses exceed income by $13,321 $34,765 $21,442 Household scenario adapted from Aspen Institute report Income from job: $19,006

4. Financial Opportunity Center Overview  Employment Placement & Career Advancement  Soft-skills training  Job placement/advancement  Educational attainment  Financial counseling & coaching  Financial management workshops  One-on-one coaching & counseling  Better priced financial services  Income supports  Public benefits  Tax credits

5. Goal: Balanced budget – or better Tax credits: $3,478 Check cashing: $60 Payday loans: $85 Expenses: $26,463 Finance charges: $70 $26,678 $31,258 Income from job: $25,344 INCOME UP: Better pay and tax credits EXPENSES DOWN: Via utility assistance, child care subsidies, credit improvement Child support: $2,436

6. Outcomes  Net income  All income- all expenses (monthly)  Credit report/score improvement  Net worth- positive changes  Assets - Liabilities  Employment placement & retention  3, 6, 12 & 24 month  Career/wage advancement  Debt reduction  Budget implementation  Receipt/bundling of 3 core services

7. Abt Analysis  40% of clients improved their credit score  Over past two years- the debt accumulated for living expenses went down and debt accumulated for asset expenses went up  “Bundlers” are 3 to 4x’s more likely to achieve a major economic outcome than non-bundlers

8. LISC Chicago Preliminary Data  72% recorded gains in net income  43% show long-term job retention of at least six months  42% show increases in credit scores  43% increased net worth

9. Three services better than one Clients engaged on two or more services are: 4 times more likely to improve credit 14 times more likely to improve net income 11 times more likely to improve net worth Number of clients with improvements in past 12 months 366 161 283 Credit score Net worth Net income 330 177 70

10. Findings  Positive net income matters most to long term client engagement  Positive monthly cash flow leads to job retention and work on personal finances  Employment programs (short-term) cannot raise income enough make cash flow positive  Credit scores matter to daily living expenses & improvements indicate financial behavior  Composite outcomes are more complex to track, but lead to improvements in program service delivery and client outcomes

11. LISC Financial Opportunity Centers San Francisco Bay - 3 centers San Diego 5 centers Houston 6 centers Twin Cities 5 centers Duluth 1 center Milwaukee 1 center Chicago 11 centers Indianapolis 6 centers Detroit 7 centers Newark 1 center Cincinnati 4 centers Philadelphia Boston Michigan Statewide 4 centers Rhode Island 4 centers Toledo 2 centers