buckelew trial portfolio relationship project kickoff · sample federal public benefits overview...
TRANSCRIPT
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SOCIAL ENTERPRISE & FINANCIAL WELLNESS
As social enterprises are both employers and workforce programs,
they can actively increase financial wellness for their employees
As employer
Direct deposit
Retention bonuses
Funds for employment expenses
As workforce program
Funds for barrier removal
Earning supplements
Tax preparation
Income/benefit planning
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AGENDA
Haidee Cabusora
@financialclinicPam Block Brier
@WomensBean
David Miller
@JumaVentures
Welcome: Ashley Cordero, Initiatives Manager, REDF
Nick Royston, Manager, Learning & Impact, REDF
Panel Discussion: Pam Block Brier, Director of Operations, Women’s Bean Project
Haidee Cabusora, Chief Program Officer, The Financial Clinic
David Miller, Savings Program Manager, Juma Ventures
Audience Q/A:
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FINANCIAL WELLNESS DIRECTLY TIED TO WORK
1/5Employees admit they
skipped work due to
financial problem
61%HR professionals say
financial stress is having
some impact on employee
work performance
only 6%Employees strongly agree
their organization does things
to help them manage their
finances more effectively
70%American workers say
financial wellness cause of
stress; stress causes
distraction at work
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FINANCIAL INSECURITY ACUTE FOR TARGET POPULATIONS
Rather than simply serving as a “safety net”, public benefits such as supports for housing, child care, and health care, as well as food subsidies and tax incentives
should serve to support low income people as they increase their incomes through attainment of more skills and higher paying work
People are eligible for certain programs but do not
receive benefits either because there is insufficient
funding or because of difficult accessing these programsCoverage gap
Hardship gap
Eligibility gap
People do receive assistance from public benefits for
which they qualify but still fall below basic standard
of living
People earn too much to qualify for certain programs
yet still do not earn enough to be self sufficient
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SAMPLE FEDERAL PUBLIC BENEFITS OVERVIEW
Benefit Provides
TANF (Temporary Assistance
for Needy Families)
Cash assistance
SNAP (Supplemental Nutrition
Assistance Program)
Food benefits & Supportive
Services
Child Care and Earned
Income Tax Credit
Designed to encourage and
reward work by providing tax
credit
Health Coverage Medicaid, State Health
Insurance, ACA
Housing Affordable or subsidized
housing
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IMPACT OF INCOME INCREASE ON TAKE HOME PAY
Source: Mathematica Jobs Study (2015)
Monetary value of benefits per social enterprise employee served
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BENEFITS CLIFF
Ideally we would see:
Income
Benefits
Take home
Instead we see:
Income
Benefits
Take home
Each incremental dollar earned increases amount
of take home pay
Each incremental dollar earned does not
necessarily increase take home pay – in fact, can decrease take home pay
Benefits cliff: Abrupt loss of benefits due to an increase in income that affects eligibility
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BENEFITS CLIFF
Example benefits
cliffs for a single adult
with one dependent
Source: NCCP Family Resource Center (nccp.org/tools/frs)
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POLICY CONSIDERATIONS
Source: Falling off the cliff? Increasing economic security for low income adults as the safety net shrinks
Policy Option Description Desired Outcome
Increase income eligibility limits Increase the amount of allowable
income earned before losing TANF
cash assistance benefit.
Encourages recipients to work
more hours without concern for
losing benefits as a result of
increased income.
Extend recertification period Extend the length of time between
recertifications (a review of income
eligibility).
Reduction in churn (disruptions in
recipient's income and housing due
to frequent changes in jobs,
unpredictable income from child
support, temporary work etc.)
Earned income disregard Earned income disregard allowed in
determining net income for
computation of amount of benefit
awarded. Increases allow asset
limits to encourage savings and
other resources that support
economic stability.
Increased rate of moving to self-
sufficiency as a result of rewarding
hard work.
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WOMEN’S BEAN PROJECT- ADDRESSING THE GAPS
100% Participants eligible and
receiving public benefits,
mostly Medicaid and SNAP
3 Months First 3 Months of program
addresses stabilization and
basic needs.
Flexibility Staff don’t directly enroll, but
women are not penalized for
taking time off work to access
support at partner organizations
ResourcesWomen gain self-sufficiency as they
earn wages and bonuses while
working at WPB. Resource Desk
available to women to identify
alternate sources of support as they
taper off public benefits
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WHAT IS A FINANCIAL WELLNESS PROGRAM
Assess and support an employee’s complete financial health,
both in short term and long term to build financial capability
Goals:
1. Address immediate financial crisis
2. Help employees build skills to prevent further crisis from
occurring and make progress towards financial goals
Financial
Knowledge
Financial
Inclusion
Financial
Capability
Financial Education:
to increase
knowledge & skills
Financial Products:
Access to financial
products that are safe
and reliable
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ASSESS INDIVIDUAL’S
FINANCIAL STATUS
• Assets
• Homeownership
• Credit Score
• Debt Burden
• Level of Emergency Savings
TOPICS
• Budgeting & Money Management
• Debt Reduction
• Credit Score Management
• Financial Goal Setting such as increased
savings
FINANCIAL EDUCATION PROGRAMS SHOULD INCLUDE
PAGE 13
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FINANCIAL EDUCATION STRUCTURE
1:1 Counseling
Crisis driven; resolving
problems and solving for
immediate needs
Group Format
Classroom presentation
Discussion on varying
topics
1:1 Coaching
Achieving long term
goals and developing
financial behavior
Counseling Workshops Coaching
Initial Assessment
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BEST PRACTICES
•Introduce at Orientation
•Peer to Peer Strategies: safe space without judgement,
creating supportive and collaborative work environment
•Gamification: Staples Case Study
•Partnerships
–Public Private Partnerships
–Employment Assistance Programs
–Financial Institutions
–Financial Securities Intermediaries
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CASE STUDY: GOODWILL CENTRAL TEXAS
1. Introduce 3 financial wellness options at orientation
•Workshop
•Counseling (offered through EAP)
•Coaching (offered through EAP)
2. Partnership with Credit Union
3. Advance program
–1 paycheck advance allowed, must enroll into EAP
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FINANCIAL INCLUSION
Financial inclusion is increasing access of financial products
Direct deposit
Prepaid debit cardMatched savings account
Checking account Savings account
Earned Income Tax Credit
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EMPLOYEE SUPPORTS TO BUILD FINANCIAL CAPABILITY
Quality job
placement
Assisted job search
Job matching
Employer
involvement in
curriculum dev’t
Business advisory
councils
Mock interviews by
employers
Mentorships
Retention case
management
Worksite trouble-
shooting
Relapse avoidance
planning
Work supports
Income/benefit
planning
Fall back SE jobs
Funds for barrier
removal
Clean slate
Case management
Soft skills training
GED
Contextualized
basic education
Funds for
employment
related expenses
Tax preparation
Benefit screening
Bank accounts
Direct deposit
Recognized
credential
Post-secondary
education
Associates degree
Vocational skills
training
Pre-apprenticeship
Retention bonuses
Matched savings
Earning
supplements
Get and keep
benefits and
earnings
Level the
playing field
Connect to
employment
Prevent
backtracking
Build towards
a better future
Incentivize
success
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JUMA YOUTH CONNECT FINANCIAL WELLNESS PROGRAM
Education
Program
Integration
Financial
Products
• Curriculum, provided by JumpStart, money management, saving
& spending, building credit, managing debt
• Structure, in partnership with Financial Institutions, one hour
workshops on each topic. Online modules by Everfi supplement
• Initial Assessment to establish goals
• Monthly check-ins with career coaches to track progress
against goal
• Matched Savings: $25 to open an account,
Match $50 after 6 months
• Offer Direct Deposit into an account or
prepaid debit cards
• Financial Institutions offer financial products
like bank accounts
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Messaging Considerations
• Individual’s past experience
with financial institutions
• Youth & Family interactions
• Pacing short term and long term
goals
Building Healthy
Skepticism
• Alternative VS. Traditional
Financial Institutions
• Banks Vs. Credit Unions
• Check Cashing VS. Direct
Deposit
COMMUNICATING WITH CLIENTS
PAGE 21
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DEFINING FINANCIAL SECUIRTY :
1) Identifying and moving towards financial goal
2) Savings Patterns
3) Reducing Transaction Costs
4) Improving Credit Score
5) Reducing Debt
6) Leverage Government Benefits and Tax refunds
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THE FINANCIAL CLINIC CHANGE MACHINE PLATFORM
PA
GE
Purpose
Products
Partners
• Scale Financial Coach Model Nationally
• Platform where practitioners can learn financial coaching best
practices
• Coaching Maps for Frontline Staff
• Tip Sheets for customers
• Data Collection Portal to manage financial wellness programs
• Coach Direct Messaging
• Customer Service Team
• Experienced Coaching Staff
• Continuous Improvement Team
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Financial Inclusion
• Understanding not all clients
ready for traditional bank
account right away
• Focus on reducing
transactional fees whether that
is a service, account, or
prepaid card
• Second Chance Accounts
Benefits Cliff
• Ultimately about building
blocks for long term financial
goals
• Focus on scenario planning
rather than benefits calculator
• Preparing for reductions and
avoiding financial emergencies
NAVIGATING TOUGH TOPICS
PAGE 25
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IMPACT OF FINANCIAL SECURITY PROGRAM
“Why Should Workforce Development programs consider financial security as part of their
services”
Increase in income for low wage workers whose career coaches
assisted them in automatic savings
31%Low wage workers whose career coaches incorporated financial coaching into their
service delivery worked 67% more hours
and increased earnings by 27%”
33%Increase in work hours for low
wage workers whose career coaches assisted them in opening a bank account
Financial Coaching Savings
Financial Inclusion
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CA Assembly Bill 415 Transitional Jobs Support Act (Chiu & Reyes)
• Codifies employment social enterprise definition
• Authorizes Department of Social Services or County Human Services Agencies
to contract directly with SE for CalFRESH (SNAP) Employment & TrainingM
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