Who We Are Our mission at CFED is to make it possible - - PowerPoint PPT Presentation

Our mission at CFED is to make it possible for millions of people to achieve financial security and contribute to an

• pportunity

economy.

Who We Are

How do we do it

We push to expand innovative practical solutions that empower low- and moderate-income people to build wealth. We drive policy change at all levels of government. We support the efforts of community leaders across the country to advance economic opportunity for all.

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Participant IDA Account

AFI IDA Participant Accounts are special withdrawal-restricted savings accounts

Participant Deposits

Participants can only make deposits, not withdrawals, from these accounts except under specific circumstances with the grantee’s signature

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First Home Post-Secondary Education or Training Business Capitalization ** Or a transfer to a dependent or spouse for one of these purposes.

Urban Institute

1 To open minds, shape decisions, and offer solutions through economic and social policy research.

Building Savings for Success:

Early Impacts from the Assets for Independence Program Randomized Evaluation Gregory Mills, Signe-Mary McKernan, Caroline Ratcliffe, Sara Edelstein, Mike Pergamit, Breno Braga, Heather Hahn, and Sam Elkin

Funding

• US Department of Health and Human Services, Administration for Children and

Families

• Assets for Independence (AFI) Program on Savings, Savings Patterns and Assets

Purchase for Low Income Individuals and Families

• Contract #: HHSP23320095654WC

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Participating sites

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Albuquerque Los Angeles Prosperity Works & Central New Mexico Community College RISE Financial Pathways Match rate: 4-to-1 Match rate: 2.5-to-1 Max savings period: varied Max savings period: 24 months Coaching model Participants reach out for support and lead the decision-making Case management model Staff reach out regularly; more “hand-holding” College setting with complementary services Stand alone organization

Study participant characteristics at enrollment

• Under age 40, female, nonwhite, unmarried, and had

some college education.

• About half with annual household income below

$15,000, and nearly all employed.

• Generally reflect FY 2014 AFI participants nationwide

except

• More Hispanic (45% study vs 23% nationwide)
• Less white (15% study vs 32% nationwide)
• Fewer HS/GED only (18% study vs 37% nationwide)

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Project services

• 78% of participants opened an IDA
• 85% participated in financial education
• 3% made unmatched withdrawals
• Savings in IDA (Albuquerque only)
• Mean $691, median $762

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AFI increases liquid assets

Share of participants Median liquid asset amount with liquid assets

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82% 89%

Combined

7pp*** $224 Non-participant (control) AFI participant (treatment) $657*** $881

AFI reduces material hardship

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2.8 1.8

• 1.0**

1.1 0.7 Non-participant (control) AFI participant (treatment)

• 0.4***

Average number of hardships Average number of utility hardships

AFI reduces non-bank check cashing use

Share that use non-bank check cashing

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9% 6%

Combined

Non-participant (control) AFI participant (treatment)

• 4pp*

AFI improves perceived financial security

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Share who report financial situation improved

4.9 5.4 37% 44% +7pp* +0.5**

Confidence about meeting one’s expenses (1-10 scale) Share who report financial situation worsened

25% 15% Non-participant (control) AFI participant (treatment)

• 10pp***

The AFI Program after one year

• Increases savings (primary goal)
• Keeps participants connected with benefits
• Reduces material hardship
• Reduces financial worry

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Emerging insights and potential implications

• AFI program rules allowing low-income households to

save without reducing other federal program benefits may be instrumental in averting material hardship

• Integrate saving and financial education into existing

programs

• AFI program is one of few federal efforts that actively

encourages saving among low-income families

• Federal asset-building subsidies benefit high-income

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Opportunity and Ownership Initiative Research

Building Savings for Success: Early Impacts from the Assets for Independence Randomized Program Evaluation Asset limits Financial coaching evaluation Why family financial security matters for cities

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At CFED, we envision an

• pportunity

economy where we are all empowered to build more prosperous futures for ourselves, our families and our country.

Our Vision