Financial Literacy The Key to Asset Building September 10, 2013
About Family Foundations Our Mission is Building Strong, Money-Wise Families Founded in 1956 HUD-certified Housing Counseling Agency Member of the National Foundation for Credit Counseling and the Alliance for Children and Families Accredited by the Council on Accreditation 2
Industry Trends in Credit Then Now No Credit, No Credit Score>650 for low Problem interest Predatory Lending Consumers reluctant to use credit Equity Borrowing Consumers focused on good credit history 3
Economic Silver Lining Consumer Behavior has Changed With No Education – Delinquent in 90 days With Education – 98% New Homeowners current after 6 months – 96.4% New Homeowners current after 12 months 4
My Money Five Building Blocks for Managing and Growing Your Money Save Earn and Protect Spend Borrow Invest 5
Psychology of Money Behavioral Economics – Intersection of Economics and Psychology Money Styles – Part of who we are – We all have multiple styles – Benefits and disadvantages to each – Strategies and techniques for each 6
The Agonizer Consumer with fear, obsesses over decisions Confront your fears Seek out a financial professional 7
The Avoider Financially indifferent, lack of knowledge Ill-prepared for financial future Automate money management routine 8
The Saver/Hoarder Fear of losing everything, saving is a sport Not living for today Well-prepared for a financial emergency 9
The Giver Having money is uncomfortable, likes to give to those in need Feels undeserving Invest for long-term support of others 10
Shop ‘til You Drop Equate spending with self-worth Shop for the thrill of the experience Give yourself an allowance to have fun 11
The Savvy Planner Organized with planning Carefully budgets money Take care of the future while being happy today 12
Coaching and Counseling Financial Coaching – Regular one-on-one sessions to change behavior – Focused on setting goals and monitoring progress Financial Counseling – Trained field experts – Expertise to manage a crisis 13
Asset Building Human Assets Assets to attain knowledge, skills and abilities to earn adequate income Social Assets Assets required for Financial Assets taking care of children Assets to effectively and having manage money and relationships with build wealth others Families Moved from Poverty to Self- Sufficiency 14
The Field National Foundations for Credit Alliance for Children and Families Counseling (NFCC) / Ways to Work NeighborWorks America Association for Financial Counseling and Planning National Community Tax Education (AFCPE) Coalition (NTC) Certified Financial Planners Corporation for Enterprise Association Development (cfed) American Institute of Certified Opportunity Finance Network Public Accountants (AICPA) (OFN/CDFI) War on Poverty Junior Achievement 15
Resources Federal Trade Commission Housing and Urban Development Department of Treasury JumpStart Coalition Council on Economic Education MyMoney.gov American Bankers Federal Reserve Bank Association Florida Prosperity Consumer Finance Partnership Protection Bureau Office of the Comptroller of the Currency (OCC) 16
Creating Community Impact in Northeast Florida Sharpen Your Financial Focus 1,000 in 1,000 – Family Asset-Building Framework MoneyWi$e Week – Community-wide financial literacy strategy to build the desire to learn 17
Sharpen Your Financial Focus MyMoneyCheckUp.org – Online Financial Assessment Professional Financial Review Regular Financial Coaching 18
1,000 in 1,000 Move 1,000 people out of poverty in 1,000 days Goal Increase Income to Self-Sufficiency Impact End Intergenerational Poverty 19
MoneyWi$e Week 2011 2012 65 Partners 92 Partners 4,942 Class 5,651 Class Participants Participants 22,218 Hours of 14,026 Hours of Financial Literacy Financial Literacy 20
Your Community Brand the Cause Set a Bold Goal Build the Network Contact Information: Dawn Lockhart Family Foundations www.familyfoundations.org (904) 396-4846 21
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