x0000x0000Section 1 Envisioning Your Clients146 Financial Capability - PDF document

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��Section 1: Envisioning Your Clients’ Financial Capability Tools for Building Financial Capability: A Planning Guide forIntegrated Services(c) 2015 by CFED and the Administration for Children & Families under GSA Schedule Contract GS0177L/Order No HHSP233201200674G OOL3: Theory of Change(Section 1 Capstone Tool)TOOL 3, PartA: Financial Capability Services Program Clients’ Current Financial Capability (From T1, Part List the program into which you will integrate financial capability, and summarize program clients’ current financial capability Financial Capability Services List the services that you think will help clients achieve the target outcomes (From T2, Part List financial capability outcomes that would represent an improved result for these clients *Use an asteriskto denote any outcomes you already track in your work. SACRAMENTOParticipants wantto save and build assets (housing, transportation) to achieve independence and financial Financial educationFinancial counselingIncentivized paid workshop attendanceAccess to safe & affordable financial productsCoordinationwith financial partners to incentivize transportation vouchers for participants for travel to and from workplaceIndividual financial mentorship and coaching Establish financial goals linked to financial independence. Open a savings account & checking account andset up direct deposit for both.Make regular deposits to savings account. Increase their amount of savings. Increase their net worth. Understand their eligibility for public benefitsRegularly use a personal budget to manage finances. Progress Know how to access, read, and understand their credit reports. Access their credit reports. Improve their credit scores or establish credit for the first time. Open a transactional account. Use transactional account to manage ��Section 1: Envisioning Your Clients’ Financial Capability Tools for Building Financial Capability: A Planning Guide forIntegrated Services(c) 2015 by CFED and the Administration for Children & Families under GSA Schedule Contract GS0177L/Order No HHSP233201200674G about free tax filing options and available tax credits. Having enough money to meet basic

2 needs from monthmonth and during months
needs from monthmonth and during months when their expenses are a lot higher (summer, backschool, holidays) is a challenge. Aren’t sure how to compare credit products to select he best ones for them. Credit counseling Free tax preparation assistanceFAFSA Workshops& postsecondary education financial planning Upon employment placement, information regarding benefits and pay in addition to an optin post90 day dual support system with the Juma program manager and employer supervisor bill payments. Consistently us e a coolingoff period before taking on debt. Have fewer debts past due. Know about free tax preparation options. File their taxes for free. Have decreased costs of tax filing. Have increased income through tax credits and refunds. SEATTLEYouth lack specific knowledge surrounding financial products, credit, and debt. Combined with their relatively low and inconsistent incomes, achieving, or even making, financial goals is a challenge. Youth are motivated to learn more about money management, accounts,and credit, as well as to make financial goals and learn how they can work towards achieving those goals. Financiallyincentivized financial educationon financial products, saving, spending, credit and debt; consistent and personalized financial coaching and goalsetting. Peerlearning opportunities and discussions.Work with rideshare companies to provide participants a stipend for rideshare services to & from work and programeventsFAFSA Workshops & postsecondary education financial planning Upon employment placement, information regarding benefits and pay in addition to an opt in post - 90 day dual Juma tracks: Account ownershipSavings behaviorFinancial capability through a series of basic financial activities (pulling credit report, visiting the bank, checking their accounts, identifying and reporting fraud, drafting and using a financial plan) and comfort with financial capability topicsCredit score for those who have selected increasing their credit as their personal financial goalUse of alternative financial servicesMonthly Income/Expense RatiosPrimary spending categoriesIncome and benefits earned upon employment placement ��Section 1: Envisioning Your Clients’ Financi

3 al Capability Tools for Building Financi
al Capability Tools for Building Financial Capability: A Planning Guide forIntegrated Services(c) 2015 by CFED and the Administration for Children & Families under GSA Schedule Contract GS0177L/Order No HHSP233201200674G support system with the Juma program manager and employer supervisor San Francisco Bay AreaWith weak familial support and knowledge networks, youth show a high distrust of financial institutions and lack of knowledge of them as well as other financial capability topics. Though they can easily name financial goals when given thopportunity, their financial circumstances are often stretched by highcosts and obligations which keep them from effectively making longterm goals and setting up systems and habits to help achieve those goals. Lack of knowledge around financial products leaves them exposed to highercost alternative financial services which explain fees more clearly than traditional financial products. Varied and nonpermanent income streams make careful financial planning and management more difficult and more necessary. Additionally, in this particular regionwe are serving, a nationally middleincomeperson would fall drastically under lowincome given the extreme high costs of living within the area. Participants are struggling to navigate the barriers of the high cost of living with regard to working only part time while in school full time. This barrier brings challenges around housing, funding for higher person financial workshops around aving, spending, credit and debt; consistent and personalized financial coaching and goalsetting;Peerlearning opportunities and discussions.Travel vouchers to assist with cost of transportation for participants over 18 years old.Optin postsecondary financial planning support (upon program completion) Juma tracks: Account ownershipSavings behaviorFinancial capability through a series of basic financial activities (pulling credit report, visiting the bank, checking their accounts, identifying and reporting fraud, drafting and using a financial plan) and comfort with financial capability topicsCredit score for those who have selected increasing their credit as their personal financial goalUse of alternative financial servicesMonthly Income/Expens

4 e RatiosPrimary spending categoriesPosts
e RatiosPrimary spending categoriesPostsecondary education enrollment and aid received ��Section 1: Envisioning Your Clients’ Financial Capability Tools for Building Financial Capability: A Planning Guide forIntegrated Services(c) 2015 by CFED and the Administration for Children & Families under GSA Schedule Contract GS0177L/Order No HHSP233201200674G education, and setting/reaching financial goals. TOOL 3, PartB: Narrative Theory of ChangeDevelop a brief narrative of your completed Theory of Change for each target program. Note your program clients’ current financial capability, what outcomes you are targeting, and the services you plan to provide to achieve those outcomes. Narrative Theory of Change SACRAMENTO Juma YouthConnect: Many of our participants have faced numerous amounts of financial barriers, which in turn have affected tnavigation of economic upward mobility. As many of our young people are reentering the work force, there is a need for participants to have more working hours, higher wagers, and the means, such as access to housing and transportation, in order to maintain a stable and independent financial future. Our participants seek to develop vocabulary and understanding around financial and credit products, while also putting thisnewfoundknowledge into action. In connecting our participants to safe, reliable and affordable financial products, we are hoping to prevent youth from facing unnecessary barriers or falling prey to costly alternative services. Juma will provide financial education, financial coaching, in addition to individualized financial mentorship to help participants learn to manage their funds, save for their financial endeavors, and obtain and sustain resources to promote upward economic mobility. SEATTLE Juma YouthConnect: Seattle young adults are beginning a track to a healthy financial future through connection with stable and permanent employment or further education. Though they lack access or knowledge of a variety of vital financial topics, they express strong interest in learning the skills which will help them achieve their financial goals, including investing in an independent and successful life through transportation, housing

5 , education, and building emergency savi
, education, and building emergency savings. Through financial literacy classes, young adults will learn the basics about money management, saving,spending, credit and debt, and other topics which will put them on a level footing with their peers. Financial coaching and goalsetting will help them focus on specific and achievable outcomes which will aid them in their pursuit of a stable and successful career. Financial incentives will encourage them towards beneficial financial behaviors and products to approach stability and control of their financial lives ��Section 1: Envisioning Your Clients’ Financial Capability Tools for Building Financial Capability: A Planning Guide forIntegrated Services(c) 2015 by CFED and the Administration for Children & Families under GSA Schedule Contract GS0177L/Order No HHSP233201200674G Bay AreaJuma YouthConnect: In the Bay AreaJuma’s young people face significant barriers and obstacles with regard to their financial health and stability. This includes the lack of familial support in addition to little exposure to healthy financial behaviors. The most prominent obstacle to their financial wellbeing, however, is low and unstable income. They aspire to permanent, wellpaying careers and to be able to build out their financial lives such that they can access the lifestyles they desire. Financial literacy classes will provide them with the baselevel understanding of the financiasystem and financial behaviors which they need in order to manage the uncertainty the currently face, including inconsistent income. These classes will cover topics important to them, including how to save and spend money well, where to locate good financial information, the benefits and risks of various financial products and how to evaluate them, credit and debt, and how to identify and correct fraudulent activity in their names. Financial coaching will provide them with a supportive and careful opportunity to name a financial goal and work towards it, as well as receive supporting activities towards that goal. Juma’s financial incentives for bankaccount ownership, direct deposit, and saving will help them begin to make selective decisions towards a more robust financial lif