United Way for Southeastern Michigan Financial Stability

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United Way for Southeastern MichiganFinancial
Stability

• Great Rivers conference, Indianapolis, February
  2008

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Community Engagement

• We listened to over 7,000 residents and community
  leaders, and the following matters most to them
• Individuals and families meet their basic needs
• Youth complete school prepared to succeed
• Young children enter school ready to succeed
• People are safe from violence and crime
• People have the skills to maintain living wage
  employment

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Financial Stability Overview

• Research shows that having a job is not always
  enough
• Many families live paycheck to paycheck
• Lifes obstacles (job loss, illness) can be
  financially devastating
• If individuals and families do not have assets,
  including emergency savings, a home, a business
  and/or education/skills, they are
• Less likely to earn a living wage
• Less likely to sustain self-sufficiency
• Less likely to feel secure and have children that
  succeed in school

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Financial Stability In Our Region

• In SE Michigan
• Nearly 40 of households live on incomes below
  the subsistence level (2x poverty rate or 40,000
  for a family of 4)
• Less than 1/3 of residents have a college degree
• Less than half of African-American and Latino
  families are home owners
• Nearly 1/3 of low-to-moderate income residents do
  not have a checking or savings account
• Foreclosure rates have increased by 64 to 234
  throughout the tri-county area

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Financial Stability
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Financial Stability StrategiesOur Community Plan

• In particular, we plan to accomplish this with
  other partners by.
• Center for Working Families neighborhood
  center that provides integrated services
  workforce development, income supports, and
  financial coaching to low to moderate income
  population
• Regional Asset Building Coalition coordinating
  asset building opportunities across region,
  including free tax preparation (EITC) efforts
• Alliance for Economic Inclusion connecting
  underserved populations to financial literacy and
  mainstream banks/credit unions
• National Fund for Workforce Solutions regional
  workforce funding collaborative that supports
  dual-customer strategies
• Supportive Services investing in evidence-based
  programs/services and initiatives for individuals
  and families

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Financial Stability StrategiesCenter for
Working Families

• A new way of combining key services to help
  families become financially secure and successful
• Three Component Services
• employment and career development
• income supports and tax credits
• financial and asset building strategies

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Financial Stability StrategiesCenter for
Working Families

• Three Component Services

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Financial Stability StrategiesCenter for
Working Families

• Need to Address Both Sides of Income Statement
  Bundling of Services

Control Expenses/Manage Debt
Increase Income
Household Greater Control over Financial Life
Community Greater Access to Financial Mgt
Asset Bldg Opportunities
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Financial Stability StrategiesCenter for
Working Families

• CWF is not just a One-Stop Shop

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Financial Stability StrategiesAlliance for
Economic Inclusion

• FDIC national initiative (9 markets)
• Establishes broad-based local coalitions of
  financial institutions, CBOs, others to bring
  underserved populations into financial mainstream
  through financial literacy and marketing of
  tailored products
• Outcomes for individuals/families
• Use of alternatives to high-cost and predatory
  financial products
• Build savings
• Improve credit-risk profiles to lower costs
• Gain access to financial services that promote
  asset accumulation

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Financial Stability StrategiesAlliance for
Economic Inclusion

• Alliance for Economic Inclusion Southeastern
  Michigan
• Pilot targets Hispanic/Latino communities
  throughout region
• Steering committee includes FDIC, Federal Reserve
  Bank of Chicago, National Credit Union
  Administration, and UWSEM. Larger partnership
  with Mexican Consulate, the MI Hispanic Chamber
  of Commerce, over 10 local financial institutions
  and 2 CBOs
• Project launches in February 2008 with 9 CBOs
  offering financial education courses and
  opportunities to get banked
• Summer of 2008- pilot will expand to include
  African-American, Arab-Chaldean, and Eastern
  European communities
• Alliance will also be working with financial
  institutions to ensure that they offer products
  that are tailored to meet the needs of low to
  moderate income and/or underserved populations

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• Questions?
• Michelle Rafferty
• michelle.raffety_at_uwsem.org
• 313.226.9485