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