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Building Family Income and Wealth Coming Home: A Rural Seminar in Visalia June 13, 2012

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 Wealth Coming Home: A Rural Seminar in Visalia June 13, 2012

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  1. Building Family Income and WealthComing Home: A Rural Seminar in VisaliaJune 13, 2012

  2. 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

  3. Katrin Kärk (moderator) Program Officer, Family Income & Wealth Building kkark@lisc.org 202-739-9270

  4. 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

  5. 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

  6. 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

  7. Beatrice Shelby Boys, Girls, Adults Community Development Center, Inc. bshelby@suddenlinkmail.com 870-829-3274

  8. BGACDC18 - 39 YOUTH & FAMILIESEMPOWERMENT PROJECT

  9. 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.

  10. 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

  11. 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.

  12. Doug Rauthe Community Action Partnership of Northwest Montana drauthe@kalhrdc.mt.gov 406-752-6565

  13. AN INITIATIVE OF COMMUNITY ACTION PARTNERSHIP OF NORTHWEST MONTANA IN PARTNERSHIP WITH PARK SIDE FEDERAL CREDIT UNION Free To Choo$eFinancial Literacy Education

  14. 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

  15. 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.

  16. 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

  17. 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

  18. 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

  19. Measuring Outcomes Pre- and Post-tests Self and Mentor assessments Tri-merge credit report pulled on one year anniversary after graduation.

  20. What’s Next? • Sanders County • Lincoln County • Lake County

  21. 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

  22. Elena Kaye-Schiess VISTA Volunteer, NeighborWorks Rural Initiative ESchiess@nw.org 617-585-5046

  23. Gateways to Wealth Creation: Individual Development Accounts & Volunteer Income Tax Assistance Sites IDA VITA

  24. Gateways to Wealth Creation

  25. CFED’s 2008 survey of 27 IDA programs (1,212 savers) found:

  26. Local Models + National Support =Scalable Solutions

  27. Pathfinder Community Connections

  28. NeighborWorks Umpqua & Dream$avers

  29. Midwest Minnesota CDC

  30. Where do we go from here?

  31. CFED’s 2010 study of six IDA programs– that included 831 homeowners who purchased homes in 17 states from 1999-2007– found that:

  32. 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

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