Cooperative ExtensionState ConferenceOctober 19, 2010

Madison, WI

ExploringFinancial Education

& Outreachwith Head Start Families

Presenters:

J. Michael CollinsUniversity of Wisconsin-Madisonjmcollins@wisc.edu608.262.0369

Peggy OliveUW Extension Richland CountyPeggy.olive@ces.uwex.edu608.647.6148

Ruth SchrieferUW Extension Iowa CountyRuth.schriefer@ces.uwex.edu608.935.0391

Today’s Agenda

Financial Literacy: What is it? Modes & Methods

Head Start Financial Education Pilot

Surveys Newsletters Workshops Financial Coaching

Financial Literacy

What is it? Not like reading literacy?

“Capability” or “Capacity”… More than knowledge Applied knowledge and decisions Result: Financial Security

Not focused on income level or wealth

Core Competencies

Budgeting Finding financial information Use of credit Using financial services Saving for special purposes Filing taxes Using benefits

How do we learn?

School Family – Parents & siblings

Positive & negative Social groups / peers Financial Providers Community-based programs Other?

Tapping into existing systems

Tax preparation Home ownership New employees School-work transitions Pre-school?

Working parents Focused on children’s future Goal setting

Modes of education Passive: media & social networks Technology: web, mobile phones Print: targeted publications &

newsletters Workshops: group education One-on-One

Counseling – problem solving Coaching – goal achievement

Information Matters

Financial Literacy Education Classes Can provide consumers with tools and knowledge

Context and details matter (a lot)

Counseling one-to-one Knowledge transfer versus behavior change

Problem that needs to be solved

Coaching Ongoing over time Non-directive (do not need to be an expert)

One-to-one - sometimes mixed with group work

Money Smart in Head Start

UW-Extension Financial Education Project

7 Counties: Crawford Grant Iowa Jackson Lafayette Richland Trempealeau

3 CAP agencies

191 families participating

Project Overview

Baseline survey Educational outreach:

Newsletters Workshops Financial Coaching

Follow-up survey Purpose: measure changes in goal setting and

self-reported financial status

Support from Annie E. Casey Foundation

Baseline Survey (Sept 2009)

• 434 families enrolled in Head Start/Early Head Start programs in 7 counties invited to participate

• Survey Dissemination

• Baseline survey 191 (44%) responded.– 60% high school education or less– 31% own their homes– 50% married– 23% have 1 child, 33% two, and 44% 3 or more

Source: UW Cooperative Extension SW Wisconsin Head Start Family Surveys

Baseline Survey (Sept 2009)

Financial behavior:

• 70% have checking accounts • 62% have savings accounts • 42% have a credit card • 23% have a retirement account• 15% have money automatically deposited

into savings/investment account

Source: UW Cooperative Extension, Head Start Family Surveys

Baseline Survey (Sept 2009)

Financial Planning:

• 67% do not have a budget or spending plan • 78% do not have a written plan to save for

themselves, their children, or their family’s future.

• 18% had gotten a copy of their credit report in the last 3 months.

Source: UW Cooperative Extension, Head Start Family Surveys

Baseline Survey (Sept 2009)Financial Distress:• Financial stress scale (0= no stress; 10 =

overwhelming stress) = 6.6– 14% feeling of overwhelming stress

• 87% of respondents say they worry about meeting normal monthly living expenses.

• 67% have little to no confidence that they could find the money for a financial emergency which costs $1000.

• 58% responded that they had paid a late fee on a bill in the last 6 weeks.

Source: UW Cooperative Extension, Head Start Family Surveys

Educational outreach:

• Newsletters» 5 and ½ counties

• Workshops» 4 counties (kind of)

• Financial Coaching» 2 counties (sort of)

Newsletters

One method to reach and teach Raise awareness Provide basic information Reinforce educational messages

Newsletters Have Limitations… People tend to scan rather

than read Not the best resource for

detailed info Timelines & production

schedules

Newsletters

Written by UW-Extension Family Living staff

8 Topics based on the goals for the Head Start Financial

Education project Distributed monthly

Newsletters

Limitations

Findings

Next Steps

Newsletters

Workshops

Presented by UW-Extension Family Living staff

Topics based on the goals for the Head Start Financial Education project

Saving Money Credit & Debt

Workshops

Format – Evening vs. Daytime Limitations Findings Next Steps

Financial Coaching

UW-Extension Family Living Educators in Trempealeau & Richland

What is Coaching?

Working Definition of Coaching“a collaborative solution-focused, result-oriented and systematic process in which the coach facilitates the enhancement of life experience and goal attainment of normal, non-clinical clients” (Grant, 2003).

Key Elements of Coaching a focus on long-term outcomes collaborative process to

change behavior practice new skills based on the client’s unique

needs and goals

Steps:

1. Goal setting

2. Action planning

3.Monitoring

Financial Coaching

Goal setting & monitoring

Examples of goals: Open bank account Make budget and stick to it for 2 pay periods Sign-up for benefits Fund savings accounts

Not an ‘expert’ –goal setting and monitoring Accountability

Financial Coaching

Format: 2+ home visits October – May Monthly follow-up

Limitations Findings Next Steps

• Coded surveys mailed to 191 households

• 92 surveys returned (48%)

• Incentive drawing

Follow-up Survey (May 2010)

Surveys• 190 Wave 1

• 91 Wave 2

• 60 questions

• 2 waves – lessons…– Attrition

– Questions changed

Generally Improving…

Many Unbanked

Younger Parents

Have Goals

Education

Financial Issues

Use of Services

Financial Literacy

Newsletters

2010-2011

18 Counties11 Head Start

Agencies1600+ Families

invited

(399 surveysreturned so far!)

Next Steps

Center for Financial SecurityResearch on consumer financial behavior Improving financial education and adviceFinancial Literacy Research Consortium of Social Security Administration Financial Coaching Training December 2, 2010 - Madison

http://www.familyfinancialsecurity.org/

Contact:

J. Michael Collins, Faculty Directorjmcollins@wisc.edu608.262.0369