Improving Family Financial Health
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Transcript of Improving Family Financial Health
Improving Family Financial Health
Presented by: Lauren LeimbachJune 2010
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.
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
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
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.
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
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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
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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
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
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
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.
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.
Assessment Tools
Family Economic Security Interview
Financial Knowledge Checklist
Assessing Financial Fitness
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
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)
Goal: Connecting Clients to Resources
– Income Supports– Financial Products & Services – Financial Education– Employment– Asset Building
Local Resources: AC CAN Resource DirectoryBEST Resource Guide2-1-1FESP and AC CAN Members
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
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
For More Information
Lauren Leimbach
Phone: 510-559-8638
Email: [email protected]
Website: www.CommunityFinancialResources.net