Building Assets and Opportunities:
Proven Approaches for Families to Achieve Financial Stability
Sarah Dieleman Perry, Neighborhood AlliesMargie Howard, NeighborWorks Western PA
Yesenia Cervantes, Instituto Del Progreso LatinoTed Melnyk, East Liberty Development, Inc.
Is getting a job enough to get ahead?
• For those with limited skills and experience, employment isn’t enough to cover expenses
• High levels of debt and high expenses undermine the value of work
• Without financial stability, it’s harder to keep a job
• Need to consider debt, credit, budgeting, banking
Goal: Financial Stability
• Sufficient family income• Transferable job skills• Manageable expenses• Strong credit• Post-secondary education plan• Retirement at age 65
Creating greater neighborhood wealth through accessible financial education, coaching, and community leadership development
Dorothy Mae Richardson
“I believe people get their roots down when they own their houses... take pride in them. That in turn, is good for the whole city. Why should a neighborhood be a slum when it can be a place of good livable homes?”
Financial Capabilities
Financial Education
Credit & Budget Counseling
Financial Coaching
Homebuyer Education
Goal Achieved
Garfield - East Neighborhood Employment
Center
Hazelwood - Second Avenue
Hill District - Hill House Association
Homestead - Mon Valley Initiative
Homewood - Operation Better Block
Larimer - Kingsley Association
New Castle - Lawrence County Community
Action Partnership
North Hills - North Hills Community Outreach
North Side - Northside Leadership
Conference
Oakland - Community Human Services
Sharpsburg - Veteran’s Administration
Sheraden - West End Neighborhood
Employment Center
South Hills - South Hills Interfaith Ministries
Turtle Creek - Human Services Corp.
Uptown - NWWPA Main Office
Wilkinsburg - Hosanna House
Neighborhood Connections
710 Fifth Avenue, Suite 1000Pittsburgh, Pennsylvania 15219
Phone: 412-281-9773
Web: www.nwwpa.org
E-mail: [email protected]
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For More Information
Institute for Latino Progress Located in Chicago. Founded in 1977
We contribute to the fullest development of Latino immigrants and their families through education, training and employment
that fosters full participation in the changing United States society while preserving cultural dignity and identity
Adult EducationCarreras en Salud
Center for Working FamiliesCitizenship
Computer Information TechnologyManufacturing Works and Manufacturing Training
Youth Development Instituto Health Sciences Career Academy
Rudy Lozano Leadership Academy
Instituto Educational ModelFrom Learning to Knowledge
Social
Emotional
EvaluationPlacement
Academic Leveling Deep Learning
ContextualizationRelevance
Peripheral learningInternships
Understanding
KNOWLEDGE
Dr. Ricardo A EstradaInstituto Del Progreso Latino2008
Non-traditional testing
Tutoring
Tutoring
Conventional Testing
Readiness to Learn
Recreational
New Concepts
Prax
isEpist
emol
ogyEconomic
CWF
School of Psychology
AcademicLearning Center
‘Jobs are not enough’ Resident input during Quality-of-Life
Physical Planning sessions in Chicago, 2002-2004
Subsequent planning sessions led by Lead Agencies in LISC Chicago’s New Communities Program
• Workforce services alone - not enough to tip the scale • Net income (NI) is negative for 20% of all working FOC participants • Most workforce programs don’t ask about expense
What is “enough?”Minimally, being able to cover BASIC monthly expenses…
Child support
Check cashing feesPayday loan interest
Household ExpensesFurniture rental
EXPENSE
INCOME
Income from job
Household scenario adapted from Aspen Institute report
Expense exceeds Income
Consequences of not having “enough”… (expenses exceed income)
Unsustainable Situation: Which bills to pay each month? Utility Shut-offs Eviction / Foreclosure
Borrowing every month Informal borrowing from friends / family
Time associated with bill paying Bill-paying in person / cabs to pay bills Poor attendance at work Poor attendance at school / college
Social / Emotional (Stress) Distracted at work Distracted at school /college
Poor job retention?Poor school / college completion?
Tax credits Low-cost
checkingAlternative pay day
loan
Household
expenses
Income from job
Child support
CWF Priority… Balance Budget
Income Expense
Household scenario adapted from Aspen Institute report
Income exceeds Expense
CWF Model: 3 Core Services Based on Annie E. Casey Foundation’s Center for Working Families model
1) Employment Services Employment counseling Job readiness / job placementAccess to education / training (College) 2) Income Support ServicesFood stamps (LINK card); ACA Housing and energy subsidies Earned Income Tax Credit (EITC)…
3) Financial ServicesPull / review credit report Establish household budget & balance sheetConnect to mainstream financial products…
All 3 Core Services… Delivered through one-on-one counseling Dedicated counselors for each service Bundled for 74% of population served in 2012 Each service affects the budget / bottom line
How LISC supports the FOC network
Operating grants Common data-tracking platform
Built on ETO software platform; leverages Project Match tracking methodology
Credit reports (TransUnion) Learning networks Access to financial products Training in coaching Training / assessment re: credit
building Best practices (extract / share /
implement)
LISC supports 13 sites in Chicago, 71 nationwide
The Center for Working Familieswww.idpl.org19
Our Goal:To assist participants become self-sufficient
through 5 main core services!
Asset Building Educate and coach participants on various financial needs and setting up short and long term financial goals.
Career Advancement
Assist and coach participants in career development. Set short term and long term career advancement.
Income SupportsAssist participants to identify and apply for public benefits as well as advocate for them to obtain benefits in a timely manner.
Self-SufficiencyAchievement
Highest academic Financial potential! Asset Building! Wealth Creation!
Efforts to Outcomes (ETO) Database
Assist and coach participants to find employment and long term careers in growing industries!
Job PlacementAssist and facilitate classes for participants to become digitally competent
Digital Literacy
Student Support TEAM Intake Specialist (CBO)
Career Coach (CBO)
Academic Advisor (College and CBO)
College Navigator (College)
Case Manager (CBO)
Employment Specialist (CBO)
Financial Coach (CBO)
Public Benefits Coach – Income Support (CBO)
Information Technology Coach (College and CBO)
Pre-college Basic Skill contextualized Tutor (CBO)
College Tutor ( College and CBO)
College Non-Traditional Tutoring (College and CBO)
Social and Emotional Resources ( Psychological Counseling – out-sourced)
Family Intervention Specialist (CBO)
Assessment Specialist (Data, Evaluation and Research)
Job Placement
Appt.. Financial
Coach
Appt.. Income Support Coach
CWF Orientation
Job Readiness Training
Appt.:Employment
Specialist
Community Residents
Instituto:Existing Students
Appt.. Resume
Development
Appt.:CareerCoach
Appt.: Enrollment in
WIA, CDBG, DFI
Computer knowledge
Food Stamps,Medical, Circuit
Breaker…
Financial Counseling
Career Advancement
Appt.. ACA Enrollment Digital Literacy
Classes
Healthcare Insurance
enrollment
New services!
Service Delivery Model
Career Coaching
Income Support
s
Financial Coaching
ResumeDevelopmen
t
Employability Assessment
Orientation
TABE Test
Screen
Assess
Plan
Follow-up
Achieve!
Become Self-
Sufficient
Minimum 1 year
commitment
COMPOSITE financial indicators:
Can show progress … large and small
Can mark milestones … income > expense; credit score > 650
Can use 3rd party credit report data to track behavior over time
Puts single events in context (i.e., purchase home, open checking account)
Data Sources:• Budget (baseline, subsequent)• Balance Sheet (baseline, subsequent)• Credit Report (baseline, subsequent)
LISC Key Indicators:• Increase in Net Income• Increase in Net Worth• Increase in Credit Score
How do you measure financial stability?
Center for Working FamiliesOutcomes PY2014
Employment Services # Registered T 625 N 304 # Job Placements 154 Average Wage $11.68 Over 90 days retention 119 (77%)
Financial Services # registered T 629 N 303 # of completed CFAs 335 # improved credit score 144 # improved Net income 228 # improved Net Worth71
Income Supports Services # screened for benefits T 625 N 303 # applied for benefits150 # received benefits 103
Barriers we overcome in making the model work
Cultural Shift• Services Colocation• Department Isolation• Staff Skepticisms• From gurus know it all to empowering of our
clients• Broken clients- they need to be fixed
approach• Funder driven mentality to community
service• Change of job description from case
mangers to career advancement coachesService Delivery Improvements
• Case management versus coaching• Service capacity limited to funders request
vs. optimization of staff talent • from an I to a team approach• From finding jobs to building / coaching on
careersOutcomes Modification
• From placements and retention to that plus net income, net worth, increase in credit scores
• From pay to pay check to asset building and wealth creation
Operations that facilitate the bundling of services
1. Orientation
2. Intake serves as the appointment coordinator for all coaches
3 .Career Development Program incorporates all services in one setting:• Digital literacy 30 hours• Job Readiness 15 hours• Career Exploration 6 hours• Personal Financing 15 hours• Income Supports over the internet 3 hours• OSHA training 3 hours
4. Efforts to Outcomes Tracking System
Introduction to Circles USA
10 up-and-coming neighborhoods around
the USA
May 8th, 2014
Pittsburgh: Pittsburgh's East Liberty suffered a dramatic failed
urban renewal plan in the 1960s after its "golden era" in the 1940s
and 1950s. Today, this culturally diverse
neighborhood is undergoing a monumental
"metropolitan chic" redevelopment effort,
including boutique hotels opening in
rehabbed historic buildings, new restaurants
popping up and Google establishing offices
here. The neighborhood's greatest landmark, the East Liberty
Presbyterian Church, has survived, embracing a diverse and socially
active congregation who have dubbed it "the Cathedral of Hope.“
The Circle Leader
• 12-week Training/Graduation
• Weekly Circles Group
• Matched Circle
• Min. 18 months with Circles Group
• SMART Goals
The Circle Allies
• Poverty Simulation
• Matched Circle
• 4-10 hours month
• 5-week Training
• Min. 18 months w/ Circles Leader
The Circle Meetings
• Weekly w/ Dinner & Childcare
Week 1 – Individual CirclesWeek 2 – Community Info
Week 3 – Guiding Coalition
• New & Good
Week 4 – Big ViewWeek 5 – Family Fun Night
The Guiding Coalition
• Resource Team
• Community Team
• Economic Stability Team
• Big View Team
• Recruitment Team