Snapshots of Financial Coaching Bank of America & Annie E. Casey - PowerPoint PPT Presentation

Snapshots of Financial Coaching Bank of America & Annie E. Casey Foundation Meeting April 26, 2010

Context for Coaching Financial Capacity Building Information Advice Mechanism Models Models Models • Defaults • Disclosures • Technical expert • Automatic • Print/Web (credentialed) Deposit • Interactive Web • Product • Transactional • Workshops constraints guide (may have • One:One sales focus) • Reminders • Counseling (acute problem Therapy – solving) diagnosis / • Self Control: External Monitoring Treatment • Coaching • Executive Attention

Typical Features of Coaching • As used across fields • One-one relationship over time • Focus on self-actualization – Practice skills and strategies with support • Generally goal-focused • Typical client has potential to improve performance – Non-clinical; strengths based; non-crisis

Coaching Models Staffing: Setting: • Clients in • Pro bono Tax/IDA/other expert program • Paid staff • School/work- • Financial place based professional volunteer • Head Start • Lay volunteer • Other

Snapshot: Data Sources • Web Survey of CNM Students • Centers for Working Families Survey by Abt Associates • Mail Survey of Financial Clinic MoneyUP Tax Clients All very preliminary: Draft not for quotation

Central New Mexico Community College Student Survey April 2010

Survey of 178 Students • Sent to two groups of CNM Students – Offered Achievement Coaching (n=81) – “CLIENTS” – Other CNM students not explicitly offered Coaching as a comparison group (n=97) – “COMPARISON” • Note: – all are CNM Students – Coaching not just $$ matters

Comparison Group as ‘Controls’? In the past 12 months, how many times have you worked one- on-one with an achievement coach? 67% 70% 60% 50% 42% 40% 28% 29% Clients 30% Comparison 15% 20% 13% 3% 10% 1% 0% None One or two Three or Five or more four Source: CNM Coaching Survey

Comparison Not Exact Control Group But Close Have you ever received the following services? 82% 76% 81% 90% 67% 80% 66% 70% 60% 40% 50% 40% 18% 30% 12% 20% 10% Clients 0% Comparison Source: CNM Coaching Survey

Tendency Towards Women 77% 80% 70% 70% 60% 50% Clients 40% 30% Comparison 23% 30% 20% 10% 0% Male Female Source: CNM Coaching Survey

Tend to Be Older 35% 30% 30% 27% 27% 25% 23% 20% 16% 16% Clients 15% 13% 12% 12% Comparison 11% 10% 7% 5% 5% 0% 18-21 22-25 26-30 31-40 41-50 50+ Source: CNM Coaching Survey

More Likely on Their Own 35% 34% 35% 31% 30% 25% 22% 22% 20% 15% Clients 15% Comparison 8% 10% 4% 5% 0% Married Separated Divorced Single/Never Married Source: CNM Coaching Survey

All Students Hold Few Assets How much do you estimate you and your spouse/partner have in combined total savings? (excluding retirement) 42% 40% 45% 39% 40% 35% 30% 30% 25% 20% 12% 13% Clients 15% 8% Comparison 10% 5% 5% 3% 5% 0% Source: CNM Coaching Survey

Two-Thirds Have Debt; One-in-Five Debt > $5000 How much do you estimate you and your spouse/partner have in combined credit card debt and consumer loans? (excluding mortgage) 38% 40% 36% 35% 30% 25% 20% 19% 18% 17% 20% 16% 13% 15% Clients 11% 10% 10% Comparison 5% 0% Source: CNM Coaching Survey

About Half Working at Some Level 14% Employed Part-time 22% 23% Employed Full-time Comparison 19% Clients 60% Not Working 51% 0% 20% 40% 60% 80% Most Rent Comparison 32% Live with family or friend 19% Clients 45% Rent 66% 0% 20% 40% 60% 80% Source: CNM Coaching Survey

About Half Have Children in their Homes How many children or grandchildren under age 18 do you currently care for at home? 49% 47% 50% 45% 40% 35% 30% Clients 22% 22% 25% 19% Comparison 20% 15% 15% 11% 7% 10% 5% 3% 5% 0% None 1 2 3 4 or more Source: CNM Coaching Survey

Coaching More Likely to Be $$ Focused If you worked with an achievement coach in the past 12 months, what kinds of topics did you discuss with your coach (check all that apply)? Clients (125 responses) Comparison (54 responses) • Personal finance issues 55% • Personal finance issues 25% • Academic issues • Academic issues 84% 71% • Childcare issues 5% • Childcare issues 0% • Scholarships 51% • Scholarships 25% • Employment and career • Employment and career issues 29% issues 19% • Other issues 16% • Other issues 16% Source: CNM Coaching Survey

Satisfaction: Most Coached Clients Are Happy with Services How satisfied are you with how well you and your coach work together to solve your problems? Neither satisfied Dissatisfied nor dissatisfied 2% 11% Clients (n=55) Satisfied Very satisfied 31% 56% Source: CNM Coaching Survey

What is the main reason you have never worked with an achievement coach in the past year? Clients (n=23) I prefer to get No problems to help from my discuss family and friends Other 13% 4% 31% Too busy 13% Didn't know that I could work with a coach 39% Source: CNM Coaching Survey

Coaching Clients Show Signs of Less Financial Interaction; More Supports Do you have a… 76% 77% 80% 73% 70% 70% 60% 50% 40% Clients 30% Comparison 17% 15% 20% 13% 3% 10% 0% Checking Savings Retirement Matched account account account Savings Account Source: CNM Coaching Survey

How do you rate yourself in the following areas during the last 3 months? (1=poor, 5=excellent) 3.5 3.2 3.2 3.2 3.3 3.1 3.1 3.0 2.8 2.9 2.8 2.6 2.6 2.7 2.5 2.2 Clients 2.3 2.1 Comparison 2.1 1.8 1.9 1.7 1.5 Controlling Planning Saving Following a Investing Providing my for my money budget money financial spending financial advice to future others Source: CNM Coaching Survey

Most have Consumer Credit to Manage How many credit cards do you have? Clients (n=78) Comparison (n=95) 14% 19% 0 19% 1 22% 59% 67% 2 or more Source: CNM Coaching Survey

Negative Financial Management Events Common In the past 6 months have you… Clients Comparison 49% 47% 44% 40% 14% 14% 10% 9% 5% 4% Paid a late fee Received a Taken out a Bounced a Been evicted on a bill phone call cash advance, check or had a from a lender title, or mortgage or creditor payday loan foreclosed Source: CNM Coaching Survey

Focus on Credit Have you checked your credit report in the past year ? 49% 50% 45% Clients 32% 40% Comparison 35% 30% 25% % who checked their credit score Source: CNM Coaching Survey

What is the level of your financial stress today? (1=no stress, 10=overwhelming stress) 6.78 Mean stress level Comparison 6.87 Clients 6.7 6.75 6.8 6.85 6.9 If you had a question about a financial problem how confident are you that you could identify a solution? (1=not at all confident, 10=very confident) 5.66 Mean confidence level Comparison 5.88 Clients 5.5 5.6 5.7 5.8 5.9 If you had a financial problem how confident are you that you could find someone who you trust to help you? (1=not at all confident, 10=very confident) 5.58 Mean confidence level Comparison 5.89 Clients 5.4 5.5 5.6 5.7 5.8 5.9 6 Source: CNM Coaching Survey

Have you ever received any of the following services? 69% 70% 54% 60% 50% 43% 37% 40% 32% 31% 29% 30% 23% 18% 17% 14% 13% 20% 10% 11% 10% Clients 0% Comparison Source: CNM Coaching Survey

CNM Findings: Overall • Clients offered coaching had more needs – Slightly less access/ use of financial services – And connected to more services • Some signals they may be in more financial distress – But also ability to address issues • CNM Coaching model not exclusively about finances but some indications that given hardships of targeted clients, positive effects relative to comparison group – Can try more analysis, but challenges remain…

CWF Data from 3 Sites Collected by Abt Associates 1 2008 • n=168 • Bon Secours of Maryland Foundation 55 • Central New Mexico Community College 59 • St. Louis MET Center 54 • 83 self-report that they met with a coach at least once in the past year • 85 self-report never met with a coach

More Likely to Save Thinking about the last year, which statement best describes your typical savings behavior? 40% 40% 35% 40% 29% 30% 24% 20% 14% 11% 7% Coaching 10% Clients 0% Comparison I save money I save when I try to save a I don't save when I can but there is set amount on any money, I this doesn't something a regular basis spend all of happen often specific that I my income as want to buy it comes in Source: Abt Associates CWF Survey

Thinking about the past year, rate your Financial Behavior on a scale of 1 to 5 (1=Never, 5=Always) Coaching Clients Comparison 4.0 4.1 3.8 4 3.8 3.8 3.8 3.6 3.2 3.4 3.2 3.0 3.1 3.2 2.8 3 2.8 2.6 2.4 2.2 2 I put money aside I comparison-shop I pay at least the I pay my bills on I pay the total for future or buy things on minimum balance time balance due on my purchases or sale due on my credit credit cards, loans, emergencies cards or other bills or other monthly bills Source: Abt Associates CWF Survey