Bank On Hampton Roads and Matched Savings Program.
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Transcript of Bank On Hampton Roads and Matched Savings Program.
Bank On Hampton Roadsand Matched Savings
Program
Testimonialhttp://www.bankonhamptonroads.com/p/testimonials.html
Coming Up Short
INCOME: Volatile income is an issue that affects 1/3 OF AMERICANS
EXPENSES: Unpredictable expenses make it harder for households to achieve a balanced budget.
Income Expenses
Over 100 Million Americans have difficulty managing monthly cash flow
Source: CFSI
Savings Crisis
• 45% Households had saved no portion of income in 2012
• 61% Households do not have a rainy day fund sufficient to sustain themselves at poverty for three months
45%
61%
Source: www.assetsandopportunity.org
Limited Credit Alternatives
• Lack of savings makes families dependent on unaffordable credit options
• >10 million Americans rely on high cost alternative lending options
Source: CFSI
Psychological Impact
• Paying with our health• Money stress leading
cause of stress for families
• Loss of stability• Loss of productivity and
even IQ!
Source: CFSI
Local Challenges
MEASURE Virginia Beach Portsmouth Norfolk
Population 439,528 95,786 245,428
Median Income $65,980 $46,166 $44,747
Poverty 7.0% 30,766 14.4% 13,793 19.2% 47,122
SNAP Eligible (food) 6.9% 30,327 16.3% 15,613 15.9% 39,023
EITC Return (tax) 18.35% 36,743 30.19% 12,736 29.78% 28,206
Liquid Asset Poverty 33.4% 146,802 43.9% 42,050 50.9% 124,923
EITC= Earned Income Tax Credit SNAP = Supplemental Nutrition Assistance Program
Measure of Financial Stress
Poverty SNAP Eligible EITC Recipients Liquid Asset Poverty
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
Virginia Beach Portsmouth Norfolk
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
Virginia Beach Portsmouth Norfolk
Percentages Citizens
EITC= Earned Income Tax Credit SNAP = Supplemental Nutrition Assistance Program
Bank On Hampton Roads• 10 Month Financial
Empowerment Program offers:– Financial Education
Classes– Personalized Financial
Coaching– Low Cost Banking Services
(partner providers)
• Classes begin 3 semesters each year:– January/April/September
Who is a Bank On Student?• Open Classes
– Anyone interested may attend
• Ideal for:– Young Adults– Single Parents– Military and Veterans– Sandwich Generation– Persons in Transition– Financially Stressed
Participant Achievements• Financial Assessment• Credit Report Review• Goal Establishment• Increase Income
Opportunity• Grow Savings• Debt Reduction
• Improve Credit Score• Build Assets• Consumer Protection
Results
ST Goal
Budget
Savings Firs
t
Emergency Fund
Debt Plan
Checking/Savings
Credit Rpt
Pay Bills O
n Time
Pay > Min
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
100.0%
PreMidPost
Faith Community• Extension of benevolence programs – offers a hand up
instead of a hand out• Churches host classes as local empowerment mission
outreach to their neighborhoods• Churches offer financial coaching• Welcomes people into the church without making them
feel uncomfortable
Matched Savings• Matched Savings Program:
– Established as anti-predatory lending outreach– Encourages participation through program– Matches $150 of savings if participant:
• Saves $150• Perfect Attendance (Attend 10 Classes)• Uses Coaching• Completes Financial Challenge• Match establishes emergency fund of $300
Volunteerism• Provide classroom instruction and/or coaching• Financial Professionals:
– Bankers– Accredited Financial Counselors– Credit Counselors– Financial Planners– Housing Counselors
• Interested Citizens and Bank On Graduates:– Master Financial Educator Volunteer Program 10 – weeks of training
• All volunteers participate in 2 Hour orientation to the Bank On Program
Program Needs• Volunteers – Financial Professionals and those
with a passion to help others • Matched Savings – Adopt families as they build
their financial security. Cost $150 per family. Sponsor forms available– Participation in Financial Empowerment Team that
oversees the matched savings
• Promotion – Congregation members and citizens in your neighborhood that can benefit. Marketing materials and talking points available.
QUESTIONS
Contact:LORI IRWIN
Financial Empowerment Coordinator
Phone: 757-943-9652
Email: [email protected]
