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What is EARN?  Helping low-wage families save to invest in homes, education, small business  Providing money management training and coaching to help.

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Presentation on theme: "What is EARN?  Helping low-wage families save to invest in homes, education, small business  Providing money management training and coaching to help."— Presentation transcript:

1 What is EARN?  Helping low-wage families save to invest in homes, education, small business  Providing money management training and coaching to help families achieve their dreams.  Working to effect policies that increase asset-building opportunities for workers. EARN breaks the cycle of poverty and creates new cycles of prosperity by helping low-wage families build assets. We accomplish this by:

2 Who EARN Serves How They’re Doing  2000+ Savers are Bay Area residents who dream of achieving financial security using IDAs;  Average income is under $20k/year per household when they start  83% people of color, 65% women  25% Latino  64% are from households with children  17,000 newly banked San Franciscans through Bank on SF  300+ Alums with access to financial coaching and planning  EARN Savers put aside 5% of their gross income  EARN Savers have put aside over $2.2 million of their own hard earned dollars.  300+ Alums have invested over $2 million  67 Savers have purchased homes!  Nearly all EARN homeowners have 30 year fixed rate mortgages  EARN disallows predatory mortgage products

3 EARN Alumni Association  Additional Suite of Products and Services  Financial Coaching and Planning  Pilot in San Francisco  Micro-lending for credit card and medical debt  SAFE Accounts  3:1 match for education  Very popular among Latino families  Networking + Additional Learning  Governed by Alumni Leadership Council  Determine annual focus  Produce annual event

4 Bank on San Francisco Learnings  This is working!  Over 17,000 newly banked San Franciscans  Keys to Success  Understanding Demand vs. Need  Getting granular and focusing on branches in key parts of San Francisco  Aligns incentives for branch managers  Circumvents community affairs staff  Remaining focused on a simple goal: get people banked  Linking to Financial Literacy has been very challenging  Banks not built to deliver training  Incentives and structure finally worked with CBOs

5 Lessons Learned - General Meet Latino Families where they really are  Distinguish between need and demand  Ex. Bank on SF focus group finding  Ex. Need for incentives for training  Segment the market  Ex. Don’t assume IDAs will work for all poor folks  Be thoughtful about how people actually obtain information to make key decisions  Word of mouth  Ethnic Media

6 Lessons Learned – SAFE Accounts  Important to Involve Entire Family in Orientation and Training  Children are often the lead translator for parents on educational, employment, legal, banking issues  Introduces children to importance of budgeting, saving, etc and creates dialogue between children and parents around saving and investing

7 Lessons Learned – IDAs/Homeownership  Identifying institutions that accept ITIN for mortgage loans  developing good referral relationships with loan officers is also important  Understanding how to improve, build or begin a good credit history.  Being clear about obstacles that Latino immigrants may face around homeownership (ITIN, stated income, credit history, HOA dues, etc.) Allows people time to identify resources to address issues.

8 Lessons Learned – IDAs/Homeownership – cont’d  Partnership with agencies like MEDA, Consumer Credit Counseling Services, and financial institutions is important.  Internal policies that protect low-income clients around risky mortgages  We believe this paternalism is justified  EARN’s Alumni Association is an important channel for staying in touch with Savers.  Continuing education and networking provides information on potential hazards around refinancing, changes in income of household, etc.


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