Mayor's Leadership Academy Panel: Putting All of the Asset Building Strategies Together

1. Mayor's Leadership Academy Panel: Putting All of the Asset Building Strategies Together Peter Stahl, Director of Fiscal and Financial Services Collaborative Support Programs of New Jersey (CSPNJ) Community Enterprises Corporation (CEC)

2. ECONOMIC DEVELOPMENTMISSION Our economic development mission is to promote: • self-determination, • self-sufficiency, • community integration and • personal responsibility We do this by developing products and services that increase a person’s financial stability and security through financial education, personal assets and employment.

3. STATE OF THE NATION • Supportive housing must include individualized financial planning to maintain a person in their home • Poverty is a barrier to a person’s wellness and recovery journey and to community integration • To overcome poverty we employ asset building strategies that include financial education, employment, tax credits and return submission , debt reduction and credit repair, savings and investment It is assets, not income, that allow people to move out of poverty and achieve economic independence. Source: CFED (Corporation for Enterprise Development)

4. ENGAGEMENT CHALLENGES • Overcoming misinformation • I will lose my benefits, asset limits don’t allow me • I can’t afford to save • I don’t make enough to file a tax return • Overcoming fear • The economy is bad, I can’t afford to own a home • I never filed a tax return or haven’t in years • Overcoming barriers • I owe money and can’t afford to pay • My credit is bad and I don’t have access to affordable financial services

5. KEY ELEMENTS OF AN ASSET BUILDING STRATEGY • Today’s strategy includes: • Financial Education and Training including help with budgeting, money management, debt and credit • Matched Savings and/or Individual Development Accounts • Volunteer Income Tax Assistance • Partnerships and coalitions • An Outreach and Marketing Plan

6. LESSONS LEARNED Address all aspects of the persons finances to increase net worth. Teach responsibility and stewardship for money, encourage a savings component to every budget Start with small saver accounts for things people want to save toward and build savings skills toward an investment in an Individual Development Account Limit goals to assets and improvement of quality of life, not debt repayment Use micro loans instead of benevolence, transition payments to a savings account Address good citizenship and asset opportunities by filing taxes Incorporate financial literacy education and training into wellness and recovery curriculum

7. ACCESS AND OPPORTUNITY • Resources for asset building programs and strategies: • Assets for Independence Resource Center (AFI) http://www.idaresources.org • National Disability Institute Real Economic Impact Tour http://www.realeconomicimpact.org/ • Collaborative Support Programs of NJ www.cspnj.org • Resources for financial education: • Federal Deposit Insurance Corporation (FDIC) www.fdic.gov/consumers/consumer/moneysmart • National Disability Institute Real Economic Impact Tour http://reitour.financialsoccer.com/

8. EXTENDING ORGANIZATIONAL INNOVATIONS • Statewide movement to include a coalition of mental health organizations in the creation of: • The “Access Financial Literacy Education Association”www.supportivebanking.org • A Proposed Low Income Community Development Credit Union • Resources • National Federation of Community Development Credit Unions www.cdcu.coop • National Credit Union Administration http://www.ncua.gov

9. Contact Information Peter Stahl Collaborative Support Programs of New Jersey, Inc. 11 Spring Street Freehold, NJ Telephone: 732-780-1175 ext 27 Email: pstahl@cspnj.org