2010 fs volunteer training final 12-21-09

8/14/2019 2010 FS Volunteer Training Final 12-21-09

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Promoting Asset Building withyour ClientsFinancial Services Offerings at the Tax Sites

JANUARY, 2010


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Learning Objectives Recognize opportunities to positively impact

financial behaviors of clients

Obtain knowledge on direct deposit and savingsoptions at tax sites

Gain familiarity with savings default language forencouraging clients to save 10%

Be ready to refer clients who would benefit fromassistance completing a FAFSA to on-siteFinancial Aid U trained volunteers or theFinancial Services appointment line


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What Youll Need 45 minutes to review the material and take notes

Access to the internet to view a complementary

video, take the pre-test and complete the post-test and course evaluation (and complete theAdvent Get It card system training, dependingon your site)

Good lighting (lots of reading involved!) Something to take notes

Volunteer Training Manual is recommended!


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HTTP://WWW.SURVEYMONKEY.COM/S/7FNQWQ

CLICK ON THE LINK IF YOU ARE IN SLIDE SHOWMODE, OR CUT AND PASTE THE WEB ADDRESSINTO YOUR INTERNET BROWSER WINDOW

How comfortable and familiar are you with theCenters financial services offerings? Pleasetake our short survey located at:
http://www.surveymonkey.com/s/7FNQWQBhttp://www.surveymonkey.com/s/7FNQWQB


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Dont let them get our clients!

If we dont impress

upon our clients theimportance ofprogressivefinancial behaviors,

others will reinforcedestructive financialhabits!


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A Window of Opportunity

Americans are once again embracing more traditionalvalues of thrift and saving


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Why Think Beyond Free Tax Preparation? Its not money in the bank if its cash

under the mattress Direct deposit is faster and safer than a

check (which turns into a wad of cash) Referrals to FAFSA services or year-

round financial coaching can help aclient clarify life goals, structure afinancial plan to achieve those goals,and move beyond low-wage work

Tax refunds can be up to 40% of yearlyincome for a low-income family

Financial windfall = impressionable

client!


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What Services Will the SitesHave?

qOn-site financial partner (bank or credit union

representative, able to open accounts)qAdvent Get It prepaid debit cards (select sites

only see slides at end of presentation)

q

FAFSA assistance by appointmentqReferrals to year-round financial coaching or

follow-up FAFSA/student financial aidassistance


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Offering the Products andServices at the Site

When should products and servicesbe offered?

qStep One: Intake

qStep Two: Tax Preparation

qStep Three: Quality Review


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The Savings Default ProgramHave you ever wound up donating to a charity or openedup a department store credit card to save 10% simplybecause the sales clerk asked you about it very matter-of-factly while you were checking out? Imagine if the samedefault language pattern could result in our clients putting10% of their refund into a savings account or savings bond!

The Center for Economic Progress is embarking on a newprogram to do just that for our clients, and we need YOURhelp!

q


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The Savings Default ProgramIve finished entering your tax data, and it looks like youllbe getting a $5000 refund congratulations! Werecommend that our clients set aside 10% - which would be$500 into savings for an important purchase orunexpected expense. Would you like me to put 500 dollarsinto

The savings vehicle you suggest putting the 10% into willvary based on client account usage and receptiveness toopening account(s).

q


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Ways the Client Can SaveIf the client has Options for savingSavings Direct deposit entire refund into

savingsSplit a portion of the refund (10%?)into savings account

Checking only Suggest client open savings account

with on-site partner and split portion ofrefund (10%?) into newly openedaccountPut portion of refund (increments of$50) into savings bond, splitremainder into checking

No checking orsavings, some interestin opening savingsaccount

Refer to on-site financial partner toopen savings account, direct depositall or portion (10%?) into newlyopened account

No checking orsavings, no interest inopening savingsaccount

Suggest purchasing savings bond(s)in $50 increments, direct depositremainder of refund onto Adventprepaid debit card


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Tracking the Savings Default Resultq Track client response via TaxWise main info sheet

preparer use question:q How much of the refund did the client save?

1. 02. Less than 10%

3. 10%

4. Greater than 10%

5. Client did not get a refund

q Also indicate response on the supplemental intake sheet

q


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The Savings Default in Action!q Ready to watch the mandatory video?

q Reminder: two questions on the certification exam come fromthe material in the video

q Please access the Financial Services training video onlineat:http://www.economicprogress.org/index.php/c/Savings_at_Tax_Time

to observe a variety of ways to incorporate the scriptinto your conversations with the client

q Start with the default language, but freely embellish basedon the clients situation and your rapport with the client!

q

q
http://www.economicprogress.org/index.php/c/Savings_at_Tax_Timehttp://www.economicprogress.org/index.php/c/Savings_at_Tax_Time


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On-site Financial Partnersq Vetted by Financial Services

q Selected based on:q

Location in neighborhoodq Ability to meet important criteria

q Comfort and familiarity with needs of client base

q Willing to overlook ChexSystems history (except forfraud)q ChexSystems provides banks with information on

mishandled checking and savings accounts through acentral reporting database (similar to the creditreporting system)

q Not used by credit unions


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On-site Partner AccountsqChecking accounts

qFree, no balance requirements

q

Requires clean ChexSystems recordqSavings

qRequires low minimum deposit

qWill overlook ChexSystems history so long as

report does not reveal fraudulent usage of prioraccount

qShare accountsqOffered by Credit Unions

qOften requires credit report review


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Benefits to Traditional Accounts

qPositive usage can build credit and

history with local financial institutionqHistory and relationship with localfinancial institution offers access toCDs, low-interest auto and mortgage

loans, etc.qGreatest opportunity to avoid ATM fees

due to proximity of financial institution to

home and/or work


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Advent Get It Prepaid Debit Cardq Tax refund is loaded onto card (card given to clients at sites)

q Appropriate for clients unwilling or unable to open account with on-site financial partner

qCard can be used to pay for purchases anywhere MasterCard isaccepted

q Client can direct deposit and load cash or checks onto card

q Cash withdrawal available at ATMs accepting MasterCard andsurcharge free at All Point ATMs

qCannot be overdrawn

q No ChexSystems review

q No connection to local financial institution (no brick and mortar)

Ultimately, traditional accounts with on-site partners provide

more advantages than a prepaid debit card!


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More Client Action TrackingqTrack client action taken via TaxWise main info

sheet preparer use questions: Did the client open an account at the site?

1. No 2. Yes, savings

3.Yes, checking

4.Yes, both checking and savings

5. Yes, Advent prepaid debit cardqAlso indicate the appropriate response on the

clients supplemental intake sheet!


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Series I U.S. Savings BondsqObtained via the 8888 split refund form

qRequires direct deposit of refund for remainder ofrefund

qPurchased in increments of $50

qPaper bond will be mailed to taxpayer address

qCannot be redeemed for 1 year

qBond rate from Nov 1, 2009 May 1, 2010 is3.36% (fixed rate of .30%)

qInterest rate changes twice a yearqOn May 1st and November 1st


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Series I U.S. Savings BondsqTwo components to interest rate

qFixed rate

q

Variable semi-annual inflation rateqInterest compounded semiannually based on

the issue date

qBonds redeemed within the (first) 5 years carry

a penalty of the preceding 3 months interestqTax is paid on the earned interest when the

bond is redeemedqExempt from local and state income taxes


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Form 8888


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qMany sites will have tax preparation volunteersdual trained to also provide FAFSA assistance

qIllinois Student Assistance Commission staff willalso provide FAFSA services at some sites

qRefer students, clients interested in going backto school, or clients with graduating high

school seniors to FAFSA advisors on-site or tothe Centers appointment number 312-630-0248

Financial Aid U Referrals


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Volunteering at an Advent site listed below? Please review the

system training to enroll clients in the Advent Get It card:http://www.economicprogress.org/index.php/c/Savings_at_Tax_Time

The client can only direct deposit onto an Advent Get It card if YOU knowhow to use the card enrollment system!

Usernames and passwords for the card enrollment system will be availableat your tax site

Loop/Harold Washington College Aurora

Bronzeville Crystal Lake

Chicago Lawn Joliet

Pilsen Elgin

Rogers Park HarveyAuburn Gresham Waukegan

Lawndale Decatur

West Garfield Park Bloomington MCCA

Uptown/Truman East St. Louis
http://www.economicprogress.org/index.php/c/Savings_at_Tax_Timehttp://www.economicprogress.org/index.php/c/Savings_at_Tax_Time


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THANK YOU for reviewing this material, andvolunteering for the Center!!

Please take a short evaluation survey of this course,

located at :http://www.surveymonkey.com/s/GNHVCKB

Questions, feel free to contact:

Erika Schafer

Director of Financial Services

[email protected]

312-630-0286
http://www.surveymonkey.com/s/GNHVCKBmailto:[email protected]:[email protected]://www.surveymonkey.com/s/GNHVCKB

2010 fs volunteer training final 12-21-09

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