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Improving Family Financial Health

Improving Family Financial Health. Presented by: Lauren Leimbach June 2010. CFR’s Mission. Research, develop, and promote low-cost consumer friendly financial product and services

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Improving Family Financial Health

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  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.

  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

  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

  5. 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.

  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

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

  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

  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

  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.

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

  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

  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)

  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

  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 Email: Lauren@CommunityFinancialResources.net Website: www.CommunityFinancialResources.net

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