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Building Family Income and Wealth Coming Home: A Rural Seminar in Visalia June 13, 2012. Katrin Kärk (moderator) Program Officer, Family Income & Wealth Building kkark@lisc.org 202-739-9270 Beatrice Shelby Boys, Girls, Adults Community Development Center, Inc. bshelby@suddenlinkmail.com
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Building Family Income and WealthComing Home: A Rural Seminar in VisaliaJune 13, 2012
Katrin Kärk (moderator) Program Officer, Family Income & Wealth Building kkark@lisc.org 202-739-9270 Beatrice Shelby Boys, Girls, Adults Community Development Center, Inc. bshelby@suddenlinkmail.com 870-829-3274 Doug Rauthe Community Action Partnership of Northwest Montana drauthe@kalhrdc.mt.gov 406-752-6565 Elena Kaye-Schiess VISTA Volunteer, NeighborWorks Rural Initiative ESchiess@nw.org 617-585-5046
Katrin Kärk (moderator) Program Officer, Family Income & Wealth Building kkark@lisc.org 202-739-9270
Increasing Family Income and WealthFamily Goals • Sufficient family income • Transferable job skills • Manageable expenses • Smart debt • Post-secondary education plan • Real opportunity for retirement @ 65
Accessing Affordable Financial Services Workforce Development Access to Jones Family in Baltimore, MD Before Benefits Income Wage $ 19,008 $ 25,344 $ 25,344 $ 25,344 Child Support $ 2,436 $ 2,436 $ 2,436 $ 2,436 Interest Income from Savings (avg. $1500 at 1.5%) - - - 23 Total Income $ 21,444 $ 27,780 $ 27,780 $ 27,803 Expenses Housing/Utilities $ 8,808 $ 8,808 $ 7,603 $ 7,603 Child Care $ 8,988 $ 8,988 $ 5,842 $ 5,842 Food $ 4,752 $ 4,752 $ 4,752 $ 4,752 Transportation $ 3,444 $ 3,444 $ 3,444 $ 3,444 Health Care $ 3,108 $ 3,108 $ 1,942 $ 1,942 Miscellaneous $ 2,880 $ 2,880 $ 2,880 $ 2,880 Total Household Expenses $ 31,980 $ 31,980 $ 26,463 $ 26,463 Check-cashing $ 380 $ 507 507 $ 507 60 Furniture Finance Charges (valued at $2000) $ 1,809 $ 1,809 $ 1,809 $ 70 Emergency Loans (or pay-day) $ 596 $ 596 $ 596 $ 85 Total Finance Charges $ 2,785 $ 2,912 $ 2,912 $ 215 Earned Income Tax Credit (federal) $ (518) $ (518) Child Care Tax Credit $ (960) $ (960) Child Tax Credit $ (2,000) $ (2,000) Total Expenses $ 34,765 $ 34,892 $ 25,897 $ 23,200 Net Income $ (13,321) $ (7,112) $ 1,883 $ 4,602
Outcomes Net income All income- all expenses (monthly) Positive changes in monthly cash flow Credit report & credit score improvement Employment placement & retention 3, 6, 12 & 24 month Career/wage advancement Net worth Assets – Liabilities Annual Measures
Beatrice Shelby Boys, Girls, Adults Community Development Center, Inc. bshelby@suddenlinkmail.com 870-829-3274
PARENTAL INVOLVEMENT Parent training entails giving young parents and would be parents skills to be good parents by presenting them with a collection of discussions and exercises, which evoke thoughts, opinions and actions, based upon defining what is the role and responsibility of a parent in relationship to the expectations of the community.
CIVIC ENGAGEMENT • Civic engagement requires individuals to become leaders by becoming involved in the community issues that affect their local community. • Civic engagement requires that we educate and inform parents of the processes and procedures needed to participate in; • Concerned Citizen Meetings • City Council and Quorum Court Meetings • School Board Meetings • School Parenting Meetings and Seminars
LIFELONG LEARNING Learning and career preparation never stops; therefore, lifelong learningis a process of meeting individuals where they are in the educational and career continuum by placing men and women, ages eighteen to thirty-nine in volunteer, service learning or, part-time paid positions at BGACDC and providing educational and career preparation training to them.
Doug Rauthe Community Action Partnership of Northwest Montana drauthe@kalhrdc.mt.gov 406-752-6565
AN INITIATIVE OF COMMUNITY ACTION PARTNERSHIP OF NORTHWEST MONTANA IN PARTNERSHIP WITH PARK SIDE FEDERAL CREDIT UNION Free To Choo$eFinancial Literacy Education
Program Overview • 12-weeks of financial literacy focused on education of the familyusing a 3-pronged approach: • Education • Support • Access to credit • After completion the participant has the opportunity to: • Work with a financial mentor for a year • Open checking and savings accounts with Park Side Federal Credit Union • Open a $300 line of credit with Park Side Federal Credit Union
Education • Youth Education: NCUF’s Biz Kids Curriculum • Play money reinforces good behavior • Opportunities to “shop” are provided • Park Side Federal Credit Union helps them open a savings account.
Adult Class: FDIC’s Money Smart Curriculum Education • Bank On It • Borrowing Basics • Check It Out • Money Matters • Pay Yourself First • Keep It Safe To Your Credit Charge It Right Loan To Own Budgeting Night Insurance Night Your Own Home
Education: Logistics • Weekly co-pay provides participants with a stake in the class • Sessions are low-barrier for participants to easily attend: • Child care is provided • Dinner is provided • Youth class is offered (no extra charge for youth participants) • Make-up sessions are offered
Mentor Program Line Of Credit Tools beyond Education A Year of Support Develops and builds banking relationships Helps participants who might otherwise not be able to get a loan begin to rebuild credit. Develops and builds banking relationships
Measuring Outcomes Pre- and Post-tests Self and Mentor assessments Tri-merge credit report pulled on one year anniversary after graduation.
What’s Next? • Sanders County • Lincoln County • Lake County
Partnerships • Park Side Federal Credit Union • Offers lines of credit at market rates with normal payment plans • Secures 2/3 of the risk on the lines of credit and accounts to Free To Choo$e graduating participants • Provides staff and support through out the 12-week class • Provides many of our mentors • Faith Free Lutheran Church • Provides access to its beautiful facility for Free To Choo$e to hold classes
Elena Kaye-Schiess VISTA Volunteer, NeighborWorks Rural Initiative ESchiess@nw.org 617-585-5046
Gateways to Wealth Creation: Individual Development Accounts & Volunteer Income Tax Assistance Sites IDA VITA
CFED’s 2010 study of six IDA programs– that included 831 homeowners who purchased homes in 17 states from 1999-2007– found that:
Katrin Kärk (moderator) Program Officer, Family Income & Wealth Building kkark@lisc.org 202-739-9270 Beatrice Shelby Boys, Girls, Adults Community Development Center, Inc. bshelby@suddenlinkmail.com 870-829-3274 Doug Rauthe Community Action Partnership of Northwest Montana drauthe@kalhrdc.mt.gov 406-752-6565 Elena Kaye-Schiess VISTA Volunteer, NeighborWorks Rural Initiative ESchiess@nw.org 617-585-5046