Using Financial Education and Asset Building Strategies to Build New Models for Anti-Poverty Advocacy

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Using Financial Education and Asset Building
Strategies to Build New Models for Anti-Poverty
Advocacy

• Presented by
• Steve Wrone
• Staff Attorney/Policy Training Specialist
• Community Investment Unit
• National Center on Poverty Law

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Financial Links for Low-Income People

• FLLIP
• Helping low- and moderate-income families become
  financially stable through financial education
  and asset building

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FLLIP Coalition

• A state-wide coalition of banks, credit unions,
  advocates, government agencies, bank regulators,
  adult educators, private industry, and sponsors
  of Individual Development Account (IDA) Programs
• FLLIP grew out of NCPLs suggestion to the
  Welfare to Work Committee of the Governors
  Commission on the Status of Women in Illinois.

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FLLIPs Mission

• Expand financial education and asset-building
  opportunities for low- and moderate-income people
  in Illinois.
• Promote partnerships among FLLIP members and
  others.
• Support policies that promote financial education
  and asset building.

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FLLIP Coalition Partners

• National Center on Poverty Law
• Illinois Department of Human Services
• University of Illinois Extension centers
• University of Illinois School of Social Work
• Advocacy Groups
• Financial Education Program Partners
• Financial Institutions
• Regulators

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How the FLLIP Coalition Works

• National Center on Poverty Law
• Coordinates FLLIP coalition
• Conducts train-the-trainer sessions
• Curriculum development
• Hub for information sharing among partners
• Policy advocacy

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How the FLLIP Coalition Works (cont.)

• Illinois Department of Human Services
• Evaluation funding
• Recruitment
• Advisors to FLLIP steering committee

• University of Illinois School of Social Work
• Evaluation
• Information sharing
• Curriculum refinement

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How the FLLIP Coalition Works (cont.)

• University of Illinois Extension Services
• Curriculum development
• Train-the-trainer sessions

• Fin. Ed. Program Partners
• Curriculum delivery
• Evaluation
• Localized links to policymakers media

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How the FLLIP Coalition Works (cont.)

• Advocacy Groups
• Policy expertise
• Steering committee
• Leveraging resources

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How the FLLIP Coalition Works (cont.)

• Financial Institutions
• Funding
• Products
• Curriculum delivery

• Bank Regulators
• Advisors
• Facilitators
• Convenors

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Emerging Ideas How Asset Lens is Useful in
State Public Benefits Policymaking and Advocacy

• Creates new ideas for addressing poverty.
• Creates new sets of arguments in support of
  existing policy ideas that have been difficult to
  win.

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Asset Building A Long
Term Tool to Fight Poverty

• Taking control and planning for the future - a
  focus on not just todays subsistence needs and
  emergencies, but on long term transition out of
  poverty.
• Coming to terms with the links between
  trans-generational poverty or inequality and
  racism - a key to stopping the ongoing
  reverberations of slavery and racism.
• Understanding what it takes to stay on track
  assets provide a financial safety net to address
  lifes unexpected emergencies such as car
  accidents, loss of child care, health
  complications, etc.

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Asset Building
Complementing Welfare Advocacy

• Generating respect and support for welfare
  initiatives - a link of mutual concerns and
  interests for low - and middle-income individuals
  and families.
• Improving the justification for short-term
  community development investments - a potential
  to demonstrate long term payback.

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Examples of Asset Policies inIllinois Public
Benefits Programs

• TANF Implementation
• Increased asset limit from AFDC days and exempted
  cars -- Use of rainy day and assets needed for
  success in the workplace arguments (applicable
  to both the cash and the vehicle). Homestead
  always exempt.
• Inclusion of subsidies for transportation
  including amounts for car repair --consideration
  of transportation as asset needed for success in
  the workplace.
• Stop the clock for work with high disregard
  TANF time as an asset.
• Stop the clock for caregivers of disabled family
  members family care an asset.
• Repeal of the lump sum rule and referral for
  financial education.

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Illinois Examples (continued)

• Other Program Implementation
• Huge ramp-up of child care subsidy program in
  welfare reform asset needed for success in the
  workplace
• Huge ramp-up of health insurance through KidCare
  and FamilyCare asset needed for success in the
  workplace
• Financial Education
• Financial education is a countable TANF work
  activity
• State investment in IDA program through FLLIP and
  linked to financial literacy
• State Earned Income Tax Credit
• Expansion and refundability of state EITC.
  Progressive tax structure is key to make work pay
  and facilitate move up the economic ladder.

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Assets for Success in the Workplace

• Transportation
• Post-secondary education training
• Make Work Pay (EITC income disregards)
• Understanding of employee benefits
• Emergency savings funds