Financial Literacy The Key to Asset Building September 10, 2013 - - PowerPoint PPT Presentation

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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

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September 10, 2013

Financial Literacy

The Key to Asset Building

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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

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Industry Trends in Credit

Then

 No Credit, No

Problem

 Predatory Lending  Equity Borrowing

Now

 Credit Score>650 for low

interest

 Consumers reluctant to use

credit

 Consumers focused on

good credit history

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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

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My Money Five

 Building Blocks for Managing and Growing Your

Money

Earn Save and Invest Protect Spend Borrow

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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

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The Agonizer

 Consumer with fear, obsesses over

decisions

 Confront your fears  Seek out a financial professional

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The Avoider

 Financially indifferent, lack of

knowledge

 Ill-prepared for financial future  Automate money management routine

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The Saver/Hoarder

 Fear of losing everything, saving is a

sport

 Not living for today  Well-prepared for a financial emergency

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The Giver

 Having money is uncomfortable, likes

to give to those in need

 Feels undeserving  Invest for long-term support of others

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Shop ‘til You Drop

 Equate spending with self-worth  Shop for the thrill of the experience  Give yourself an allowance to have fun

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The Savvy Planner

 Organized with planning  Carefully budgets money  Take care of the future while being

happy today

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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

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Asset Building

Families Moved from Poverty to Self- Sufficiency

Human Assets

Assets to attain knowledge, skills and abilities to earn adequate income

Financial Assets

Assets to effectively manage money and build wealth

Social Assets

Assets required for taking care of children and having relationships with

thers

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The Field

 National Foundations for Credit

Counseling (NFCC)

 NeighborWorks America  National Community Tax

Coalition (NTC)

 Corporation for Enterprise

Development (cfed)

 Opportunity Finance Network

(OFN/CDFI)

 Junior Achievement  Alliance for Children and Families

/ Ways to Work

 Association for Financial

Counseling and Planning Education (AFCPE)

 Certified Financial Planners

Association

 American Institute of Certified

Public Accountants (AICPA)

 War on Poverty

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Resources

 Federal Trade Commission  Department of Treasury  Council on Economic

Education

 American Bankers

Association

 Consumer Finance

Protection Bureau

 Housing and Urban

Development

 JumpStart Coalition  MyMoney.gov  Federal Reserve Bank  Florida Prosperity

Partnership

 Office of the Comptroller of

the Currency (OCC)

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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

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Sharpen Your Financial Focus

 MyMoneyCheckUp.org

– Online Financial Assessment

 Professional Financial Review  Regular Financial Coaching

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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

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MoneyWi$e Week

2011

 65 Partners  4,942 Class

Participants

 14,026 Hours of

Financial Literacy

2012

 92 Partners  5,651 Class Participants  22,218 Hours of

Financial Literacy

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Your Community

 Brand the Cause  Set a Bold Goal  Build the Network

Contact Information: Dawn Lockhart Family Foundations www.familyfoundations.org (904) 396-4846