BridgingTheGap Archives - AFCPE

Financial Literacy Month Spotlight: Get to Know Some of Your AFCPE® Board Members

Rachael Deleon — Mon, 16 Apr 2018 15:57:31 +0000

Meredith M. Lozar, AFC^®, AFCPE^® Member

Director of Community Solutions, Blue Star Families

My Work: Non-Profit Military affairs, informing policy, supporting military families

My Roots: My professional roots are in Non-Profit Management and leadership

My Passion: Supporting military families in their quest for financial fitness and readiness so that we maintain the strong all-volunteer military force that keeps us safe and protects our freedom

My Hero: My Father-he overcame a severe learning disability to bravely serve his country as a B-52 pilot and went on to serve as the Chief Pilot for Procter and Gamble.

My Favorite Quote: You don’t have a right to the cards you believe you should have been dealt. You have an obligation to play the hell out of the ones you’re holding. -Cheryl Strayed

My Favorite Personal Finance Tool/Resource: I love lots of finance tools and resources! I pick a new favorite often, but my tried and true is probably Mint. I also love the nonprofit WIFE.

My Advice To Someone Going Through the AFC Program: Don’t give up! Completing your certification and the practicum hours will open incredible new doors for your career and can change your life. For our military spouse fellows it can be the difference between a wonderfully successful, portable career and what sometimes feels like professional despair.

My Advice To Someone Beginning the Journey of Financial Education/Wellness: Remember that it truly is a journey. There will be ups and downs and we all make “money mistakes” along the way. Learn from your mistakes and press on-it’ll all be worth it in the end.

My way of “Meeting People Where They Are”: I get to know my clients and establish a baseline. Everyone starts from a different point and that’s ok! Having an honest and open dialogue helps us all meet at our own beginning and go from there.

Ryan H. Law, AFC^®, AFCPE^® Member

Director, Utah Valley University Money Management Resource Center

My Roots: B.S. Family Finance Utah State University; M.S. Personal Financial Planning Texas Tech University.

My Passion: My family

My Hero: Carl Richards

My Favorite Quote: Albert Einstein: I never teach my pupils. I only attempt to provide the conditions in which they can learn.

My Favorite Personal Finance Tool/Resource: You Need a Budget (YNAB) and PowerPay

My Advice to Someone Considering Becoming a Financial Counselor/Coach: This amazing industry will change you in ways you can’t even imagine right now. You will be helping people take steps towards financial well-being, and you will see hope enter their eyes, sometimes for the first time. My initial piece of advice is to get involved in the profession – start attending the AFCPE annual symposium and prepare to become an Accredited Financial Counselor.

My Way of “Meeting People Where They Are”: I believe that the first two traits a financial counselor needs to develop and practice are empathy and being non-judgmental. People need to know that they can come to you for help and that you understand what they are going through and that you are not judging them.

Follow me at: www.ryanhlaw.com

Lacey Langford, AFC^®, AFCPE member

My Work: Helping Service member, veterans, and their families to stop being fearful of money and instead have control and confidence with it.

My Roots: Military

My Passion: Helping the military community take charge of their financial future

My Hero: My Parents

My Favorite Quote: “Begin with the end in mind.” Dr. Stephen R. Covey

My Favorite Personal Finance Tool/Resource: Digit- It helps people who think they can’t save money, save money.

My Advice To Someone Considering Becoming a Financial Counselor/Coach: Follow your passion. If you want to help people change their financial life, then do it! Do your research. Think about an area within financial counseling/coaching where you want to practice. Find out what education and training you need, then make your decision.

My Way of “Meeting People Where They Are”: Ask and listen. Listening helps me understand their current situation and needs before I give advice.

Follow me at:
https://laceylangford.com
Twitter: @FinanceLacey Instagram: laceylangford
Facebook: @TheMilitaryMoneyExpert

My Question For Colleagues/Peers: If you could start your career over, what would you do differently?

Respond to Lacey’s question in the comments section below and follow AFCPE on social media to engage with our #FinLitMonth spotlight questions, tips and fun facts throughout the month of April.

April 16, 2018

The post Financial Literacy Month Spotlight: Get to Know Some of Your AFCPE® Board Members appeared first on AFCPE.

America Saves Week: Bridging the Savings Gap

Rachael Deleon — Wed, 28 Feb 2018 16:34:08 +0000

With so many obstacles to saving, how do we help bridge the savings gap for individuals and families, helping to turn savings goals into successful realities and small steps into lasting financial well-being?

On Tuesday February 27, @AFCPE hosted a Twitter Chat to discuss ways to overcome obstacles to successful savings and offer suggestions and tips on #bridgingthegap. We had a great turnout with lots of information shared!

Check out some of the tweets below. Unfortunately, there was too much incredible information shared to capture it all below, so if you missed the chat or we missed your tweet, be sure to share your advice in the comments section. Let the discussion continue!

Q1. What are some of the barriers or gaps that stop people from meeting their savings goals?

A1: Life has a tendency to throw curve balls at us. Unpredictability is always a huge barrier that stands in the way of healthy savings. #bridgingthegap #ASW18 #MSW18
@PenFed

A1. One of the biggest barriers to saving successfully is getting started. Open a savings account. Establish a habit of putting money in that account regularly – whether you do that manually or automate it. Start small to save big. #bridgingthegap
@AmericaSaves

A1: Current expenses and spending habits often cloud savings goals. It’s a good idea to allocate savings first, then manage expenses #bridgingthegap #ASW18
@InviteEducation

A1: Not having secure, affordable housing gets in the way of #savings! #bridgingthegap
@KateMielitz

A1. Irregular work hours or freelance income that precludes the ability to easily automate regular savings deposits. #bridgingthegap
@moneytalk1

A1: Another barrier: cultural issues such as pressure to turn savings over to family members when they have emergencies. #bridgingthegap
@moneytalk1

A1: According to recent #JFCP research, lack of comfort w/ financial institutions & unemployment were key barriers to #saving: https://my.afcpe.org/system/journals/Vol27Issue2Art7.pdf #research #bridgingthegap
@AFCPE

A1. Savings is a key differentiator in financial wellbeing. People can face barriers in potentially multiple areas: in social & economic environment, knowledge & skills, personality & attitudes, decision making, available opportunities & behavior. #bridgingthegap #asw18 #msw18
@jerrybuchko

Q2. How can someone who is living paycheck-to-paycheck begin to accumulate savings?

A2. Get rid of debt and set aside the money that was going toward credit cards and loans. #ASW18 #bridgingthegap
@CreditDotOrg

A2: Track spending & develop and monthly spend plan, having a plan is key it allows us to be proactive as oppose to reactive #bridgingthegap, #ASW18 #MSW18
@financialfavor

A2. Start small! Even $1/day can make a difference. Starting the behavior of saving is often more important than a high $ amount of savings. #ASW18 #bridgingthegap
@Claudus19

A2. They can begin by assessing their situation to see what bills or services such as cable can be eliminated. Then take that money and deposit into a savings account. #bridgingthegap
@TThreadford

A2. Start with a budget. Be clear and honest about your income, but especially about your spending. Once you have a realistic budget, you can find ways to adjust your habits to put your savings goals first. #bridgingthegap
@MilitarySaves

A2: Commit to small dollar amounts for savings now. Long term, need to skill up for new career opportunities to increase income while staying budget disciplined. #bridgingthegap #ASW18
@InviteEducation

A2. Tracking spending can help identify areas of an budget that can be tightened to find money to save, even if it’s very small amounts. #bridgingthegap #MSW18 #MFLN
@MFLNPF

A2: For those truly living paycheck to paycheck looking at their expenses and cash flow is a vital first step, also reaching out to organizations that may provide incentives to save can help bridge the hurdle of starting. Debt reduction is also key. #bridgingthegap
@TheWisestPenny

A2. A great way to begin savings is using payroll deduction in a 401k plan or IRA. Pay yourself first! #bridgingthegap
@kalamarides

A2. Living check to check describes a generic condition but challenges can be very different depending on a person’s circumstances. Someone in poverty working fulltime for sub-living wage that barely covers basic needs faces a different challenge 1/2 #bridgingthegap #asw18 #msw18
@jerrybuchko

Q3. The retirement savings landscape is changing. What are ways to accumulate long term savings without access to a traditional employer retirement plan?

A3. Even if your employer doesn’t offer a retirement plan, you can still save for retirement – and get some tax benefits in the process – by putting money in an Individual Retirement Account (IRA). #bridgingthegap
@MilitarySaves

A3: Investing in a Roth IRA can be a great source of tax-free income in retirement. #bridgingthegap #bridgingthegap
@AFCPE

A3: There are traditional IRAs and Roth IRAs, as well as SEP-IRAs for self-employed individuals. This article breaks down the differences: http://bit.ly/2C6vWhK #bridgingthegap #ASW18
@AmericaSaves

A3. Save your money in a money market account, share certificate or IRA account. #bridgingthegap #ASW18
@AirForceFCU

Q4. Similarly, what savings tips would you provide someone who has an irregular income?

A4. Even those without regular income have regular bills to pay that can be outlined in a budget. Consider your savings goal a line in your budget! Prioritize it and be sure to put what you can afford into savings each paycheck. #bridgingthegap
@MilitarySaves

A4: A monthly spend plan is key. be conservative when planning income & save any additional income over that amount #bridgingthegap , #ASW18 #MSW18
@financialfavor

A4: Once your bank account reaches a certain limit, transfer the excess to savings (emergency and retirement). #bridgingthegap
@H_Benedict1

A4: Irregular pay? A4: Set aside $$$ from “peak” months 2 pay bills in “lean” months; plan ahead 2 transfer $$$ as needed
@moneytalk1

A4: There are digital tools available to help you adjust your budget on the fly and maximize savings month-to-month, but the real issue is adding skills to increase consistent income long term. Life is not a sprint, it’s a marathon, stay consistent. # bridgingthegap #ASW18 #MSW18
@InviteEducation

A4: Set up separate bank accounts. From the primary account, make 3 transfers per month – 1 for bills & essentials, 1 for emergency savings, 1 for longterm/essential #savings. # bridgingthegap
@AFCPE

A4: Save at least part of lump sums & windfalls such as a tax refund, settlement, gifts, or prize money. #bridgingthegap
@moneytalk1

A4. Automation can also be an irregular earner’s best friend. Automating debt can reduce interest, while automating savings can put away $$ for short or long-term goals. #bridgingthegap
@MilitarySaves

Q5. How do we set our children up with early options to save to help them build sustainable wealth?

A5. Involve your kids in the family budgeting process and let them learn from experience. #ASW18 #bridgingthegap
@CreditDotOrg

A5. A 529 college savings plan is one early way to set your child up for financial success. These accounts can be opened by parents or grandparents as early as birth and have both automation and tax-savings perks. #bridgingthegap
@MilitarySaves

A5. I like to use the piggy bank with my grandchildren. We have a picture of what they are saving for and a graph that we fill in each time they reach a certain milestone. #bridgingthegap
@TThreadford

A5: We believe you should talk to your kids about money early and often. Educating about financial wellness is a great way to set up healthy financial futures. #bridgingthegap #ASW18 #MSW18
@PenFed

A5: Explain awesome power of compound interest to kids with this calculator: https://www.econedlink.org/tool/2/ #bridgingthegap
@moneytalk1

A5: A great resource for kids books is @CFPB Money as You Grow book club. It’s about teaching “the building blocks of financial well-being – patience, planning, & problem-solving”: https://t.co/CxgOm8VB8V # bridgingthegap
@AFCPE

A5: Talk! It’s never too early to start talking to your kids about why it’s important to save. Make sure you model the behavior—walk your talk. #ASW18 #bridgingthegap
@Claudus19

A5: We also love programs like @oaklandpromise #BrilliantBaby model, which incentivizes #saving & provides #FinancialCoaching:
http://oaklandpromise.org/programs/brilliantbaby/ @sagemoney #bridgingthegap

@AFCPE

A5: For young children, physically handling money, having a piggy bank, and making trips to the bank can help turn savings from an abstract to a concrete idea. A regular allowance builds the idea of regular savings #bridgingthegap
@bizzywhiz

A5: It’s early on that children also begin forming their understanding of what work, jobs, money, earning, savings, spending, borrowing, etc mean & how each of these relates to the others within the context of their lives. #bridgingthegap #asw18 #msw18
@jerrybuchko

Q6. What savings advice do you have for families who are providing not only for children, but also for their aging parents?

A6. First and foremost, don’t stop saving for your own goals. It will always feel like there’ll be a better or more opportune time for saving, but the truth is that you’ll miss out on the benefits of saving early (#compoundinterest) by waiting. #bridgingthegap
@MilitarySaves

A6. See if your parents qualify for any government benefits that may provide you with some financial relief. #bridgingthegap
@AirForceFCU

A6: Have an, open & honest financial conversation w/your parents early. Help them prepare for later years, so you can plan ahead for #bridgingthegap
@AFCPE

A6. Consider the value of aging parents’ home in their financial planning. May be their largest asset. #bridgingthegap
@kalamarides

Q7. Why is a spending plan or budget important when building savings?

A7: A spending plan is a financial roadmap. Be sure 2 include savings 4 goals & emergencies as an expense. #bridgingthegap
@moneytalk1

A7: A budget is the cornerstone of a good financial plan. It is the best way to manage your cash flow and avoid overspending. #bridgingthegap
@AFCPE

A7. Budgets are critical piece of savings because the unexpected will happen. #FinancialWellness means not running out of money today (budget), tomorrow (insurance), and in the future (savings). #bridgingthegap
@kalamarides

A7. A spending plan is your game plan for financial success. It helps keep you on track! #ASW18 #MSW18 # bridgingthegap
@FinanceLacey

A7: How much time would you waste driving without Google Maps? Instead of guessing your way to savings, set a spending and budget plan to know when and how much to save and arrive on goals efficiently #bridgingthegap #ASW18 #MSW18
@InviteEducation

A7. A budget is the recipe for making your delicious financial cake! Without a recipe, you’ll end up with an inedible disaster By following the recipe, you know exactly how much you can afford to save while still meeting all your obligations. #ASW18 #bridgingthegap
@Claudus19

A7: A spending/budget plan can also be an important tool for reminding you about your priorities & savings goals. It’s easy to forget who you are & what you want as just getting through a typical day draws the focus of your attention in other directions. #bridgingthegap #asw18 #msw18
@jerrybuchko

Q8. How do we bridge the savings gap for people of color, closing the gap on wealth inequality?

A8 Financial Education programs in at risk communities are a must. Encouraging families and individuals to attend can be the hard part. #bridgingthegap #ASW18 #MSW18
@navicorePR

A8: “Financial advice is subsidized for wealthier households, as cost of advisor is deductible. Only 1/3 of families itemize so most can’t access that subsidy. What if we had a refundable credit for financial coaches?” @womenswealthgap #bridgingthegap
@AFCPE

A8: Education and meeting people where they are – #savings is not one size fits all. #bridgingthegap #ASW18 #MSW18
@H_Benedict1

A8: Reputable & affordable financial institutions located in minority neighborhoods; Building trust through community involvement # bridgingthegap
@financialfavor

A8. Thank you for asking this important question! Education and affordable access to it is, IMHO, key to building wealth and tearing down wealth inequality. Supporting access to HE is something we can all do in our communities using our fin knowledge. #ASW18 #bridgingthegap
@Claudus19

A8: Educate yourself & advocate for change. Remember, successful advocacy starts w/ understanding the situations of those we serve. #bridgingthegap #ASW18 #MSW18
@AFCPE

A8: Some reading & resources I’ve found helpful & can share along these lines: #bridgingthegap #asw18 #msw18
@jerrybuchko

A8: More advocacy to address larger issues related to policy-Pay equity, sick leave, affordable childcare, accessible transit systems that make it easier to get to work & other essential services #bridgingthegap
@financialfavor

Q9. What’s your number one savings tip for individuals and families who are taking the savers pledge this week?

A9: Connect with a financial coach! While meeting with a financial coach, individuals can not only receive individual support, but they can learn about these resources & more. #bridgingthegap
@financialfavor

A9. Your financial journey is like riding the NYC Subway. You can choose your stop or wait until you end up somewhere you never wanted to be. There will be delays & not all journeys take the same time but if you know where you’re going, you’ll get there. #bridgingthegap #ASW18
@investgirls

A9: Make savings automatic. Ask your employer if you can split your paycheck into two accounts – checking and savings. Or, set up automatic bank or credit union transfers to a separate savings account. #bridgingthegap #ASW18
@AmericaSaves

A9: Talk with a professional. Getting on the right track early makes a big difference, but it’s never too late to develop and plan and start saving. #bridgingthegap #MSW18
@MFLNPF

A9. My number one tip is to discover the power of saving #1percentmore. Your future self will thank you! #bridgingthegap #ASW18 #MSW18
@kalamarides

A9: Start small, but think big. Just start. Set a goal, make a plan and save automatically. #bridgingthegap
@MilitarySaves

A9. When you are trying to manage your money & save, keep your stress low. It’s hard to make good financial decisions when you’re maxed out. Stay calm and save on! #bridgingthegap #MSW18 #ASW18
@FinanceLacey

A9. Set reasonable and attainable goals so that you don’t lose motivation. #bridgingthegap #ASW18 #MSW18
@AirForceFCU

A9. Take the plunge! Once you’re in, the water will feel fine Make the pledge this week and then keep on going for the other 42 weeks remaining in 2018. You can do it! #ASW18 #bridgingthegap
@Claudus19

A9. Take stock of your savings goals & the techniques you’re using to save, then learn something new & try it. Succeeding at savings & personal finances is partly a learning process, and there is almost always something new to learn. #bridgingthegap #asw18 #msw18
@JerryBuchko

Q10. If you have questions about saving, where can you turn?

A10: Contact Cooperative Extension 4 services like classes, financial counseling, & publications: https://nifa.usda.gov/land-grant-colleges-and-universities-partner-website-directory?state=All&type=Extension#bridgingthegap
@moneytalk1

A10: Speak with your credit union about ways you can save. We have lots of financial education resources at http://bit.ly/pfculearn #bridgingthegap #CUDifference #peoplehelpingpeople
@PenFed

A10. If you have questions about savings turn to great resources like @AmericaSaves @MilitarySaves @1to1Fund and all the participants of today’ #bridgingthegap twitter chat! Thanks to @AFCPE for hosting today! #ASW18 #MSW18
@kalamarides

A10: Use our online search to find an AFC^® near you: http://www.afcpe.org/find-an-afc or check out @CFPB financial coaching initiative: http://www.findmyfinancialcoach.com/find-coach.html #ValueofanAFC #FFC #bridgingthegap
@AFCPE

A10. If Service members have questions they can check out @MilitarySaves @AmericaSaves @Military1Source or financial counselors at your installations for help. #bridgingthegap #MSW18 #ASW18
@FinanceLacey

Keep the conversation going! Add your tips and resources in the comments section below!

February 28, 2018

The post America Saves Week: Bridging the Savings Gap appeared first on AFCPE.

AFCPE: Advancing the Profession and Bridging the Gap Across Professionals and Communities

Rachael Deleon — Tue, 19 Dec 2017 18:17:40 +0000

One of the things I love most about AFCPE is the diversity and depth of our professionals. Each one brings a different area of expertise and experience from across the field of personal finance, from research to practice. This connected, dynamic network is a hallmark of AFCPE.

This year’s Annual Research and Training Symposium was nothing short of powerful. Sessions focused on diversity, inclusion, and wide ranging issues affecting our country, for which our professionals are uniquely equipped to work together to bridge the gaps. We talked about important issues, like the racial and gender wealth gap, communication and behavior change, incorporating research and practice, and building the continuum of care with our financial planning colleagues. As always, AFCPE professionals also gave back to the local community by offering pro bono financial counseling services.

At AFCPE, we believe a comprehensive continuum of care across different specialties is essential to achieve our mission and vision for the field. But it’s up to each one of us to ensure that consumers are educated about the range of services available to help them: financial education, counseling, coaching, planning, and therapy. We must work together, have important conversations, build professional relationships and referral networks, and invite other professionals to join our network.

As we’ve grown as an organization, so has the influence and impact of our professionals. This year’s symposium program exemplified the crucial role that AFCPE professionals play in our field and in critical national issues that impact financial security. More specifically, it emphasized our role and responsibility in addressing systemic and societal problems that plague the economic security of people across our nation; issues like consumer protection, the rising levels of income and wealth inequality, skyrocketing student debt, declining wages, and decreased savings.

At AFCPE we don’t just set A standard — we set THE standard — not just because it’s the best thing to do, but because it’s the right thing to do.

It’s right to demand professionalism and excellence for all people, not just those with wealth.
It’s right to commit to a higher level of knowledge because each person is unique and deserves a customized financial approach.
It’s right to care about our clients and our communities, and to use our expertise to help them reach life goals and expand opportunities.
It’s right to be forward-thinking, to be focused and compassionate, and to make a difference — not just in dollars and cents, but in people’s lives.

At AFCPE we’re setting the standard, not because it’s simple or easy, but because it’s what we are inspired to do. We believe in motivating change, in bridging gaps, in making connections through knowledge and empathy. Because we know that the best way to impact our culture is by improving individual lives.

As we look to the new year, it is our hope that we can continue the momentum by combining our individual passions and areas of expertise to collectively solve the challenges we are facing as a society. These are uncertain times in our country and around the world. Our field and our professionals are a vital part of the solution.

Let’s recommit to setting the highest standards for our field and the people we serve, and to the fundamental belief that all people, regardless of their income or background, deserve access to professionals who uphold these standards. Our clients, our communities, and our country depend on it for economic security and a brighter future.

Membership: Join a diverse and inclusive network of financial educators, researchers and practitioners to exchange ideas, share best practices and influence change. AFCPE^® Membership offers important benefits to enhance your work and your career, including a strong network, cutting edge research and information and professional development.

Certification: Earn the gold standard, nationally recognized credentials for financial counseling and financial coaching to help you make a difference in the lives of the individuals and families that you serve, by meeting them where they are and guiding them on a new financial path.

Support our Initiatives: Provide scholarships or funding to support certification opportunities for community groups, nonprofit professionals or students, or partner with us to enhance the nation’s financial capability.

Rebecca Wiggins, Executive Director, AFCPE
Download our Annual Report: 2017 AFCPE Year in Review

December 19, 2017

The post AFCPE: Advancing the Profession and Bridging the Gap Across Professionals and Communities appeared first on AFCPE.

America’s Wealth Gap: What It Is and What We Can Do To Close It

Rachael Deleon — Tue, 12 Dec 2017 18:41:58 +0000

On Monday, December 11, we hosted a #BridgingtheGap twitter chat. Special guests, Heather McCulloch, director of Closing the Women’s Wealth Gap, and Tom Shapiro, author of Toxic Inequality and thought-leader on the racial wealth gap provided us with a deeper dive into America’s wealth gap and gave us a platform to discuss what we can do to close it.

If you weren’t able to attend, we encourage you to share or retweet these insights, look for more opportunities to engage in these types of conversations, and expand your own knowledge and skills so you can better advocate for those whom you serve.

What is the wealth gap and what can we do to close it?

Wealth is a household’s assets (e.g., cash, stocks, bonds) minus liabilities (e.g., mortgage, credit card debt). It’s savings for emergencies or retirement; equity in a home or business; and it can be passed to future generations.
@womenswealthgap
Wealth is stored resources like savings, investment, and business equity. We should think about an asset poverty line. That is if we have no sources of income, can our wealth take us to about three months at the poverty line? 42% of households are asset poor–most families vulnerable.
@tmshapiro

Causes or perpetrators of the wealth gap:

Income inequality:

The pay gap is a huge driver of the wealth gap. Women are 2x as likely to work PT so less likely to have access to employer-based benefits. Most lower-income women don’t itemize so they can’t access tax deductions that subsidize wealth building.
@womenswealthgap
Income is a useful tool to help build wealth, but it doesn’t guarantee it – must be utilized properly.
@saveforgem (An important testament to the work of AFCPE^® certified professionals!)

Caregiving:

Leaving work to care for children and other family members are key contributors to the women’s wealth gap, especially given the fact that we don’t have adequate systems in place in the U.S. for paid family leave.
@womenswealthgap

Home Equity, or lack thereof:

Biggest driver is family wealth! Home equity is about 2/3rds wealth for broad 60 % of families, not individual savings. So we are talking institutions and policy and history.
@tmshapiro

Inability to save: The Debt Trap:

Millions of lower-income women, women of color, & their families are trapped in a cycle of debt that is undermining their capacity to build wealth,” @womenswealthgap report
@AFCPE

Lower Financial Knowledge or Confidence

Women often have lower financial knowledge and or confidence. #BridgingtheGap #FinEd #ValueofanAFC
@_RebeccaWiggins
In response: “A man is not a financial plan!”
@penniesforpigs
@moneytalk1 shared slides from a talk she did with this same title, A Man Is Not a Financial Plan.
[Financial] education needs to start sooner — I believe that many of our school systems are failing at reaching these populations at a younger age when learning is in full force and opportunities are available to reach larger #s of captive audiences.
@saveforgem

Systemic & Historical Issues

Many policies and as far back as slavery, less inherited wealth accumulated to pass down to generations, unlike white families.
@AFCPE
Wealth is generated by opportunities in specific historical eras. Largest wealth-building ops have been Homestead Acts (land), FHA (Homes), GI Bill (educations, business, homes), Social Security (retirement,). All systematically excluded people of color.
@tmshapiro
Financial advice is subsidized for wealthier households, as cost of advisor is deductible. Only 1/3 of families itemize so most can’t access that subsidy. Is this fair? What if we had a refundable credit for financial coaches?
@womenswealthgap
Systemic issues force many to turn to alternative financial services. Studies show that 46% of Black households & 40% of Latino households rely on these services @FDICgov @IPS_DC
@AFCPE

All these challenges are intensified for women of color, who are impacted by racial and gender discrimination.

It’s critical to understand these systemic factors and not “blame the victim”. Historic discrimination – in access to credit etc. – have played a huge role for women/people of color (slavery, Jim Crow, redlining, expulsion of farm and domestic labor from Soc Sec). @womenswealthgap

Ways we can #BridgetheGap:

Create access

Access to affordable/appropriate financial products and services could help them to reduce expenses – e.g., many have to turn to predatory products b/c don’t have access to – or know how to access – mainstream
@womenswealthgap
It’s important to note that many low-income working women don’t have access to tailored financial advice. So much good work underway – and to be done – to broaden access to financial coaching. Thanks to @AFCPE and @sagemoney.
@womenswealthgap
Broad-based education isn’t enough. Wealthier families don’t sit in financial education classes–they get one-on-one, tailored advice. Broadening access to financial advisors, counselors and coaches is so critical.
@womenswealthgap

Affect policy

Worth pointing out that many policy solutions will address both wealth gap, racial wealth and gender gaps, like paid sick leave for starters!
@tmshapiro
“If public policy successfully eliminated racial disparities in homeownership rates, the wealth gap between Black and White households would shrink 31%” @tmshapiro @_RebeccaWiggins
Eyes on the Prize. Racial and gender justice. Filter policy and proposals and narrative on how it impacts race and gender.
@tmshapiro

Lend your voice: Advocate

A LOT can be done to change systemic drivers of gap…and people are mobilizing for change – see http://www.womenswealthgap.org – more than 240 leaders active at the local, state and national levels
@womenswealthgap
Advocacy starts with understanding situations of those we serve.
@tmshapiro

Address Personal Attitudes and Narratives

I think a fundamental challenge in all of this is in addressing our cultural attitudes & narratives that justify these inequities.
@jerrybuchko
Bridges are best built by spanning from both sides; change our own behaviors (#ValueofanAFC) and engaging underserved.
@Alaska907Sean
Challenge your assumptions about why clients do or don’t have wealth. Learn about savings and investment norms of different cultures. Help women navigate financial systems that are working against them.
@womenswealthgap
Real responsibility to educated ourselves so that facts, history is accessible, logical explanation. Too often we rely on simply values. Lead with values, backed by information.
@tmshapiro
As professionals, we need to be aware of our own biases, especially when we’re dealing with women and woc.
@pennies4pigs

Putting it all together:

These challenges can be addressed through strategies, programs, products and services targeted to women.
@womenswealthgap
We also have important opportunities to lend our voices & efforts to positive social change for those we serve, beyond our opportunities to educate & motivate on an individual client level.
@jerrybuchko

Want to follow the entire conversation? Search #BridgingtheGap on Twitter.

Additional reading & professional development resources:

Harvard Implicit Bias Test
Stanford Online America’s Poverty and Inequality Course
Prosperity Now Report: The Ever-Growing Gap
Closing the Women’s Wealth Gap Initiative
Tom Shapiro’s new book, Toxic Inequality
Racial Wealth Audit, a tool measuring how policies have shaped the racial wealth divide
2017 AFCPE Symposium General Session Recording: Closing the Racial & Gender Wealth Gap
Bridging the Gap: National Hispanic Heritage Month Webinar Series
Difficult Dialogues in Personal Finance: African Americans and Financial Literacy

December 12, 2017

Recap of a critical discussion

The post America’s Wealth Gap: What It Is and What We Can Do To Close It appeared first on AFCPE.

Bridging the Gap Twitter Chat

Rachael Deleon — Mon, 04 Dec 2017 18:48:35 +0000

At this year’s Symposium, we discussed the importance of #BridgingTheGap of wealth our country is facing. To continue the conversation and further spread the word, we invite you to join our Twitter chat on Monday, December 11 featuring special hosts Heather McCulloch, director of Closing the Women’s Wealth Gap, and Tom Shapiro, author and thought-leader on the racial wealth gap.

The chat will dive deeper into America’s wealth gap and what we can do to close it. Our experts will be on-hand to discuss the topic and answer any questions you may have!

#BridgingtheGap Twitter Chat Questions:

Q1: How is wealth different than income?
Q2: What are key drivers of the women’s wealth gap?
Q3: How does culture affect the wealth gap among minorities?
Q4: Why is the gap so dramatic (a chasm, actually) for women of color?
Q5: How has history shaped the wealth gap among minorities and women?
Q6: What systematic challenges do women and minorities face when trying to grow wealth?
Q7: What role do financial professionals play in closing the gap?
Q8: How does the gap affect how financial professionals interact with clients?
Q9: How can financial professionals be more conscious of culture and its impact on wealth?
Q10: What’s the most important step in closing the wealth gap?

Helpful Tips:

When participating in a Twitter chat, it’s helpful to use a free platform such as Tweetchat or tchat to make participation easier. These types of tools allow you to follow along using the campaign hashtag, #BridgingTheGap, and easily respond to questions, like or retweet answers, or follow participants in real time.
When tweeting a repsponse to one of the questions above (Q1, Q2, etc.), begin your tweet with “A#” (i.e. A1, A2, etc.) and end with the chat hashtag: “#BridgingTheGap”.

If you are not doing so already, be sure to follow our hosts on Twitter!

@AFCPE
@womenswealthgap
@tmshapiro

About our Hosts:

Heather McCulloch is the founder and director of the Closing the Women’s Wealth Gap Initiative, a national network of 175 leaders from across the nonprofit, philanthropic and public sectors who are working to advance policies and strategies that build wealth for low-income women and women of color (www.womenswealthgap.org). Ms. McCulloch is also founder and principal of Asset Building Strategies, a consulting firm that advances policies and strategies to build the financial security of low-wealth individuals and families (www.assetbuildingstrategies.com).

Dr. Thomas Shapiro, Director, Institute on Assets and Social Policy and the Pokross Professor of Law and Social Policy at The Heller School for Social Policy and Management, Brandeis University. Professor Shapiro’s primary interest is in racial inequality and public policy. He is a leader in the asset field with a particular focus on closing the racial wealth gap. He co-authored a groundbreaking study, The Roots of the Widening Racial Wealth Gap: Explaining the Black-White Economic Divide. The Hidden Cost of Being African American: How Wealth Perpetuates Inequality, 2004 was widely reviewed. With Dr. Melvin Oliver, he wrote the award-winning Black Wealth/White Wealth, which received the 1997 Distinguished Scholarly Publication Award from the American Sociological Association. In 2011 he was awarded a Fulbright Scholarship to study the wealth gap in South Africa.

Dr. Shapiro’s widely anticipated new book Toxic Inequality: How America’s Wealth Gap Destroys Mobility, Deepens the Racial Divide, & Threatens Our Future was recently released March 2017.

Questions? Email Rachael DeLeon Hope you can join us!

December 04, 2017

Join us on Twitter on Monday, December 11 from 11:30 AM – 12:30 PM ET

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AFCPE Members are Bridging the Gap

Rachael Deleon — Wed, 15 Nov 2017 19:00:34 +0000

“At AFCPE, we believe in motivating change, in bridging gaps, in making connections with knowledge and empathy. Because we know that the best way to impact our culture is by improving individual lives.” Thank you to the AFCPE Members and certified professionals who make an incredible impact in the lives of the individuals and families that they serve.

A few of our members shared their stories ahead of the 2017 AFCPE Symposium. We invite you to read about the impact of your friends and colleagues below and to share your own!

November 15, 2017

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Zeiders Enterprises builds bridges for military communities worldwide

Rachael Deleon — Mon, 13 Nov 2017 19:07:43 +0000

Bridges enable people to get from one place to another. People go places they couldn’t go before, or previously had to find an ineffective way to get there. At Zeiders Enterprises, Inc. we have a network of financial professionals that includes AFC^® credentialed professionals who help Service members go places they never imagined they could or would go with their finances. Zeiders helps Service members and their families by giving them the tools, education, and counseling to cross the bridge to financial well-being.

As a financial professional working with Zeiders, AFC^® professionals get an opportunity to participate in continuing education on topics that address all areas of personal finance and then hone in on how that impacts Service member families. They learn all they can to help Service members right where they are, on one side of the bridge. Our financial professionals come from a variety of backgrounds. Some have experience serving in the military or are spouses and family members of current or former Service members, while others simply have a desire to give back to those who serve.

Our network of professionals collaborates to continuously improve the community of Zeiders professionals serving military families. They are always striving for mindfulness of hot topics that impact consumers and Service members. Training is one way we build a bridge; training is the foundation for our bridge that takes our professionals to a higher level of expertise to help clients. Zeiders financial providers engage in professional development through Communities of Practice and more specific interactive continuing education opportunities.

We meet clients where they are. Many servicemembers enter military service out of a sense of patriotism, to serve their country, while others join in search of a stable income and great benefits. Our job is to help them learn all they can about how to make their money work and grow for them, and fully use their military benefits. Most are young and come to military life with little knowledge of personal finance. Many have never had any financial literacy education nor have they been taught how to be good consumers by the adults in their lives.

They begin crossing that bridge by learning the importance of basic money management and establishing and building an emergency savings account. Next, we help clients as they cross the bridge with building credit and debt management education and counseling. We continue with assisting them in setting short-term financial goals such as saving for something special, becoming debt free, or improving their credit score. As we get closer to crossing the bridge, we can focus on those long-term goals such as education funding, buying a home, and retirement planning. Our financial professionals also help military families with the intricacies of comparing the current Legacy retirement system to new Blended Retirement System being implemented in 2018.

We have a community of professionals who have a passion for what they do, and who thrive on seeing the military community grow in their financial well-being. As the saying goes, “we teach them to fish” whether it is from the side of the bridge or on the bank after they’ve crossed the bridge, our ultimate goal is to foster a community of families that are well educated, intelligent consumers at all levels of personal finance.

At Zeiders Enterprises, Inc. we encourage you, as an AFC^® credentialed professional, to join our team of financial professionals in helping to build the financial well-being of the military community. Find out more about openings by going to www.zeiders.com, click on “Join Us.”

Guest Contributor: Andi Wrenn, Provider Network Manager for the Personal Financial Counselor program. awrenn@zeiders.com

November 13, 2017

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Preparing Students to Work in Diverse Professions in Personal Finance

Rachael Deleon — Fri, 10 Nov 2017 19:20:57 +0000

Personal Financial Planning at Kansas State University (K-State) is a nationally recognized and award-winning program that prepares students to work in diverse professions in personal finance. Known for excellence in educating and training students, the K-State Personal Financial Planning program helps to equip students with strong technical and soft skills to be successful in the real world. K-State Personal Financial Planning is home to national leaders in financial planning, financial counseling, and financial therapy, offering cutting-edge undergraduate (online and on-campus) and graduate level programs (online M.S., Graduate Certificates, and hybrid Ph.D.). Go to http://www.ipfp.k-state.edu for information about all of the certificate and degree programs.

Financial Therapy Graduate Certificate Program

Kansas State University’s Financial Therapy Graduate Certificate program is the first of its kind in the nation to provide graduate level educational training to professionals who want to improve clients’ financial health by integrating relational, behavioral, cognitive, and emotional elements with personal finance. Upon successful completion of the program, students will be able to understand the interplay of psychology, relationships, and money. Students will also be able to implement practical techniques into their work with clients. Currently, financial therapy is an unregulated field and, therefore, educational training in the area does not lead to certification or licensure as a therapist, counselor, or planner. K-State’s Financial Therapy Graduate Certificate can be completed entirely online within 12 months, consisting of four eight-week courses.

Master’s Degree Program and PFP Graduate Certificate

The Personal Financial Planning Master’s program allows students to choose among three curriculum options to meet their needs. Whether an experienced financial professional looking to enhance their skills or someone wanting to advance their education or enter the financial field, K-State Personal Financial Planning M.S. degree offers options in financial therapy and advanced financial planning. Students who are employed full-time typically complete the online 30 credit hour program in two to three years.

K-State students have the option of beginning the master’s degree with the graduate certificate program in Personal Financial Planning. As a CFP^® Board-Registered Program, the graduate certificate qualifies you to sit for the CFP^® certification exam. Upon successful completion of the certificate program, students will transition into either the Financial Therapy Graduate Certificate program or the Advanced Planner track. Students who are already CFP^® certificants can combine the Financial Therapy Graduate Certificate and the Advanced Financial Planner tracks plus take six additional credit hours. Students also can take a financial counseling course to meet the educational requirements for the Accredited Financial Counselor^® (AFC^®) certification. The degree also fulfills the educational requirements for these designations: Registered Financial Consultant, Registered Financial Associate, and Certified Retirement Counselor.

Guest Contributor: Tierra Dimond, Program Coordinator
Inquire about the program at ipfp@k-state.edu or 785-532-1480

November 10, 2017

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Bridging the Gap between Money and Our Emotional Messages

Rachael Deleon — Thu, 09 Nov 2017 19:39:25 +0000

My goal as the creator of Money Habitudes^® has been to make it easy for people make the connection between our financial behaviors and our emotional messages.

When individuals seem to be facing the same financial challenges repeatedly, it’s a good bet that their behavior is actually fulfilling an important emotional need. By identifying the motivation and emotional payoffs for their seemingly irrational behavior, they can either work through those needs or use strategies to get their needs met in less financially demanding ways. Here are three examples of people who were able to successfully resolve their perpetual financial challenges by identifying their emotional needs from the conversations that resulted when they saw their Money Habitudes^®results.

Fran, a single mom, was continually struggling to make ends meet. She spent way too much money buying her daughters trendy clothes, music lessons and experiences that she believed would be good for them. She discovered that because she felt cheated growing up, she took great pleasure buying everything for her girls so she could live vicariously through them. That insight had not been obvious to Fran and realizing it made it easier for her to judge what did and didn’t have real value for her daughters. She was open to learning how to shop differently and how to find resources that would provide excellent experiences for children without the high price tag. Fran’s spending was more focused, and she got it under control.
Lynn was nearing retirement and was constantly giving away her money. Her financial planner had warned her not to jeopardize her financial future. Even though she felt it was out of control, she couldn’t stop herself. Through our conversation, she had a new perspective and questions to ask her older brother. He told her that although she was too young to remember before their father died, her mother had felt trapped in an abusive marriage because she had no means of support. Her mother’s demands for academic excellence and her constantly absence working two jobs was to ensure that her daughter could go to college and be self-supporting. That was her way of loving her. Once Lynn realized that she had been loved, she began to gradually learn to love herself and realize she didn’t need to “buy” friendships. She continued to be generous but in a healthier, more financially responsible way.
In spite of a commitment to his wife to buy a house, James could never seem to save enough money make the down payment successfully. He got pretty close three times, but then gambled the money away each time. Strangely, he was not a gambler at other times. He didn’t understand it himself. Here’s what he realized. He grew up hearing his parents constantly complain about all the “no good rich folks” who lived in luxury and didn’t fix up the rundown rental properties where he and his family lived. Then there were the stories of the “no good rich folks” who swindled his grandparents out of their home. Homeownership had come to signify becoming like those “no good rich folks.” He couldn’t tolerate that image, so he subconsciously sabotaged himself. That insight helped him challenge his old messages about homeowners, and he was successful on his fourth try.

In each of these situations, a logical reason to change behaviors would be overwhelmed by the reinforcing emotional payoffs. To be as effective as possible, financial professionals would be well served to encourage conversations that help clients see the connection between their persistent financial behaviors and their emotional messages. Using financial coaching techniques, developing excellent listening skills and reaching out to work with other professionals who are more skilled in these emotional areas are all ways to help your clients be more successful. And I would be remiss if I didn’t mention that Money Habitudes^® cards or the online version are a proven way to start conversations that often lead to these types of insights in a non-judgmental, non-threatening way.

Guest Contributor: Syble Solomon

Syble Solomon is the founder of LifeWise Strategies, a popular speaker on the psychology of money, the creator of Money Habitudes^® and an executive coach. AFCPE honored her as the Mary Ellen Edmondson Educator of the Year, and the North Carolina Jump$tart Coalition named her the Outstanding Contributor to the Financial Education of Youth. She has been the keynote speaker for events for universities, international women’s groups, independent financial planners, the NFL and non-profit organizations. Washington Post’s financial columnist Michelle Singletary called Money Habitudes the simple, but extraordinarily insightful game. It is available in the original card version for adults (English and a new Spanish version), teens and young adults (also a new version) and the new online version. Contact her at syble@lifewise.us or www.moneyhabitudes.com.

November 09, 2017

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Happy Change-Making!

Rachael Deleon — Wed, 08 Nov 2017 19:46:35 +0000

It all started with scribbled notes on the back of a napkin. As a financial coaching organization led by experienced frontline practitioners, we were all too aware of the gaps programs face that can take precious time away from serving customers, such as finding access to the resources and answers that customers need to succeed or effectively tracking data to discover patterns and improve services. Then the ‘aha’ moment: We could leverage the innovation of financial technology to boost nonprofit missions and outcomes! Thus, Change Machine was born. A dynamic, web-based financial coaching platform, Change Machine contains all the tools and resources practitioners need to address their customers’ underlying financial insecurity. It bridges the gap for financial coaching services in three crucial ways:

Meeting Coaches Where They Are

Change Machine provides a one-stop-shop for practitioners, whether they are brand new to financial coaching or a seasoned professional looking to refresh and expand their skills. The LEARN portal features self-paced lessons and quizzes that start with the basics and build out into a ‘choose your own adventure’ course of specializations. Plus, we hold monthly virtual trainings to dig further into specialty skills and specific sectors. When meeting with a customer, coaches can instantly access over 150 tipsheets and worksheets through the Toolbox to guide customers through their unique financial insecurities — from identity theft to student loans to filing taxes and more. It’s as easy as typing in the issue area and sending it to the printer! (P.S. Download a selection of free tools here)
The “D” Word

Data management can be intimidating, time-consuming, and yet necessary for fundraising. It is also an important element when trying to improve service delivery and programming. It doesn’t matter how big or small your organization is, Change Machine makes data management easy and painless. Data is collected organically in coaching meetings through COACH’s intake process and customer management portal. Outcomes are tracked in six areas: assets, banking, credit, debt, taxes, and (most importantly) goals. Then, MANAGE gives supervisors special access to slice and dice customer and staff data with both out of the box and custom reporting capabilities. As one client explains, “Our staff recognizes that for us to be sustainable as an organization, we need to demonstrate the value of our services. Change Machine provided us with a platform to really track what the financial impact on our participants’ personal finances is – and that was hugely valuable. Without that, you’re just making the qualitative argument as to the quality of the service you’re providing.” (Alex Breen, Senior Associate, Seedco)
Connecting Coaches, Near and Far

“I get by with a little help from my friends.” Or a lot. Financial coaches are amazingly versatile in their ability to support customers in any area where they find a financial barrier. Yet, there was no way to apply that knowledge to the field broadly. Until now! Change Machine’s SHARE is an online community of over 1,000 practitioners nationwide. Financial coaches can get their toughest questions answered, share best practices and pertinent news, and celebrate success stories.

Financial coaches deserve the same level of support that they provide to their customers every day. Change Machine seamlessly bridges skills training with data collection with service delivery with a strong community of practice. We give coaches and programs the freedom to concentrate on what really matters — building financial security for themselves and their communities.

Guest Contributor: The Financial Clinic

November 08, 2017

Empowering financial coaches through Change Machine

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Casting a Net Gain for Law Students

Rachael Deleon — Tue, 07 Nov 2017 19:55:17 +0000

We’ve all heard the old adage: give a man a fish, and he’ll eat for a day, but teach a man to fish, and he’ll never be hungry again. It was with that in mind that MAX by AccessLex^® was designed, to be a sort of personal finance bait and tackle box, if you will. A first-of-its-kind comprehensive, innovative and effective financial education program created expressly for law students. With its in-depth curriculum and multi-faceted approach, MAX was built to drive the knowledge gain and behavior change essential to making sound financial decisions while in school — and in life.

Because at a time when complaints about student loan servicers jumped more than 300% in the first three months of this year compared with the same period a year ago, and the nation’s largest student loan servicer is on record as saying, “There is no expectation that the servicer will act in the interest of the consumer,” loan counseling has never been more needed.

And yet, debt management isn’t the whole story. Law students need an education in personal finance that lays the foundation for making informed financial decisions, about student loans and about so much more. But, law school is an investment, and often a tremendously expensive one. And students need to understand the short- and long-term implications of the decisions they are making.

In other words, law students need to learn how to fish.

Of course, creating a program to improve financial capability among students in any discipline is obviously a good idea, but a lot of things look good on paper. We knew that to truly make this an impactful resource, we had to get into the heads of our specific end users: law students. We had to know what they wanted and needed in a program like this. And we had to learn what would keep them engaged.

So, we asked them.

We initiated a pilot program to test specific program elements and delivery mechanisms with more than 5,000 law students and administrators at over 40 law schools contributing to focus groups and surveys.

Participants generously offered their insight on everything from financial knowledge and current financial behaviors to what schools and students want – and need – in a personal finance program.

The feedback was outstanding — and very revealing. Of the students surveyed:

25% don’t budget or track their spending;
42% worry about being able to pay for their monthly expenses;
70% feel stressed about personal finances;
77% are worried about their student debt growing; and
85% of respondents gave themselves a grade of B- or lower for ‘personal finance knowledge.’

Students further commented that a law school that offered a well-defined personal finance curriculum would be viewed as “caring about their students as individuals” and “respectful of the substantial financial investment to attend.” Many described it as a “selling point.”

With these and many other insights gleaned from the pilot, we created MAX to leverage the strengths and skillsets of law students, address their weaknesses, and acknowledge their pain points – those times they feel most beleaguered and overwhelmed by their finances on top of everything else that law school is throwing at them.

MAX is designed to provide a robust financial education incrementally, in smaller, easily digestible bursts. And to accommodate law students’ different knowledge bases and learning styles, MAX takes a building-block, multi-format approach that combines in-person workshops, online and virtual programming, and one-on-one personal counseling – all facilitated by our team of Accredited Financial Counselors (AFC^®). In a six-week registration period earlier this summer, 120 law schools signed on as MAX schools in the program’s first year, and already over 2,500 students have established MAX online accounts.

MAX creates a path for every student to put every student on the path to success. Because it’s true: give a man a fish, and he’ll eat for a day, but teach a man to fish, and he’ll never be hungry again.

Guest Contributor: Billy Thompson, Communications Manager at AccessLex Institute

November 07, 2017
AccessLex Institute Releases New Program to Maximize Law Students’ Financial Capability

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Bridging the Gap through Credit Building

Rachael Deleon — Mon, 06 Nov 2017 17:00:49 +0000

A good credit history is crucial in today’s economy. Far more than just a number, a good credit score is a prerequisite for everyday financial services like a low-cost credit card, a bank account or car loan. A good credit history can make the difference in accessing the affordable lending products necessary to go to college, buy a home, or start and grow a small business. Renting an apartment, paying for car insurance, signing up for utilities and even landing a job can also be affected by a person’s credit history – or the absence of one. Yet, 26 million Americans are “credit invisible,” meaning that they do not have any credit history with the three main credit reporting bureaus.

For many low-income individuals with no or “thin credit files,” the ability to establish a good credit history is hindered by lack of access to affordable mainstream credit building financial products. Individuals with poor or thin credit often rely on payday loans to meet their credit needs. The high-cost of these loans, combined with the fact that on-time payments are not reported to the credit bureaus, prevent people from building credit and other assets, often across generations. Without a strong credit history, it is difficult, if not impossible, for households to get and stay ahead.

Credit building is a powerful tool that helps individuals and small businesses take control of their financial lives and supports asset-building goals, such as homeownership, small-business ownership and the pursuit of higher education. Credit building is defined as the act of making on-time monthly payments on a financial product such as an installment loan or a credit card that is reported by the creditor to the major credit bureaus. Credit Builders Alliance (CBA) believes that responsible credit building pairs reporting payments to the credit bureaus with relevant and timely credit education; opening and successfully managing financial products is key to building and maintaining a good credit history.

A good credit history is not only an asset; it is the means to greater and more sustainable financial stability, savings and asset building opportunities. Over the last ten years, nonprofit and community-based organizations, financial capability practitioners, and even local governments have begun to embrace credit building as integral to helping low- and moderate-income and other underserved constituents build and sustain financial assets. This progress has been accomplished be innovating new credit building products, expanding access to responsible credit building products through relationships with financial institutions, and raising the profile and need for innovative solutions such as alternatives to payday lending and Rent Reporting. Financial coaches and counselors can continue to leverage their resources to support responsible credit building programs and policies that combine access to safe, affordable financial products with skilled and relevant financial education. In this way, they create ideal conditions for individuals and families to build credit and assets.

Credit Builders Alliance (CBA) is a nonprofit organization creating innovative solutions to help non-traditional financial and asset building institutions, serving low and moderate-income individuals, build client credit and financial access to grow their businesses and/or personal assets.

[i] CFPB Office of Research (2015) “Data Point: Credit-invisibles,” retrieved from http://files.consumerfinance.gov/f/201505_cfpb_data-point-credit-invisibles.pdf.

Guest Contributors: Carmina Lass and Alesha Klein, Credit Builders Alliance

Stop by CBA’s exhibit booth at the 2017 AFCPE Symposium to learn more about how they can help you move people from poverty to prosperity through credit builiding

November 06, 2017

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