What is EARN ?

1. What is EARN? EARN breaks the cycle of poverty and creates new cycles of prosperity by helping low-wage families build assets. We accomplish this by: • 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.

2. 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 Who EARN ServesHow They’re Doing

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.