exploring financial education and ourtreach with head start families
TRANSCRIPT
Cooperative ExtensionState ConferenceOctober 19, 2010
Madison, WI
ExploringFinancial Education
& Outreachwith Head Start Families
Presenters:
J. Michael CollinsUniversity of [email protected]
Peggy OliveUW Extension Richland [email protected]
Ruth SchrieferUW Extension Iowa [email protected]
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 [email protected]