Strategies for Investing In Financial Coaching: A Grantmaker Briefing and Roundtable

Transcription

1 Strategies fr Investing In Financial Caching: A Grantmaker Briefing and Rundtable Hsted by The Annie E. Casey Fundatin December 1, 2014

2 Cmmunity Science Funder Briefing: New Insights in Financial Caching Prgrams, Outcmes, and Replicatin Julia Lee, Cmmunity Science Sctt Hebert, Sustained Impact December 1, 2014

3 Cllin O Rurke J. Michael Cllins Hallie Lienhardt

4 COACHING PROGRAMS

5 PURPOSE OF SCAN Desired Result: Develp recmmendatins fr the field fr peratinal nrms t standardize and t fster replicatin f prmising financial caching practices assciated with imprved utcmes

6 SCAN OF CURRENT PRACTICES Online survey distributed t 89 financial caching prgrams (including bth AECF grantees and nngrantees) 48% (r 43 prgrams) cmpleted the survey Cmparisn between subsets f high perfrmers (n=15) and lw perfrmers (n=10) Disclaimer: The terms high/lw perfrmers used in the presentatin are relative terms based n the survey respnses. We use the terms in rder t prvide a framewrk fr assessing the practices f thse prgrams wh appear t be high perfrmers.

7 SCAN OF CURRENT PRACTICES (CONT.) 10 high perfrmer prgrams selected fr additinal inquiry thrugh site visits r phne interviews Selectins made based n: Perfrmance (number f peple served, types f utcmes tracked, utcmes reprted [e.g., % f success rates]) Variatins in client ppulatin and prgram settings (demgraphics/types f clients served; types f institutinal settings [e.g., cmmunity cllege, state-wide, nn-prfit])

8 KEY PROGRAM PHILOSOPHY BASED ON SITE VISITS/PHONE INTERVIEWS (HIGH PERFORMERS) Cmmn Themes Definitin Empwerment (n=8) Client-Driven (n=8) Understanding Client Values/Cntext (n=7) Relatinship & Trust Building (n=5) Walking clients thrugh a self-discvery and learning prcess that ultimately enables clients t take the lead in managing the security f their financial future Caching sessins are shaped by what clients define as gals and caches then serve a rle in guiding the actin planning clients use twards attaining the gals they set fr themselves. Recgnizing that clients perceptin f financial capabilities, respnsibilities, attitudes and behavirs are cnnected t hw their families and cmmunities apprach such matters. Building relatinships and trust with clients as the crux f the financial caching style. Strength-Based (n=3) Frm the start, clients are deemed resurceful individuals wh already have the skills t achieve their gals (rather than they are at a deficit and need t be built up) and caches serve as guides thrugh the jurney.

9 PROGRAM & PRACTICE FEATURES BASED ON SURVEY RESPONSES Cmmn elements f high-perfrming prgrams Generally, lw financial cach turnver All caches had cmpleted frmal caching training Caching clients able t access additinal related services Fairly frequent client cntact (typically, at least nce a mnth) Cmpared t lw-perfrming prgrams, highperfrmers: Mre likely t screen individuals at enrllment Generally, smaller client caselads Greater emphasis n ne-n-ne caching Active listening and prmting client self-reflectin and selfefficacy given greater emphasis than imparting substantive inf and technical advice

10 KEY FACTORS CONTRIBUTING TO PERFORMANCE & CLIENT OUTCOMES BASED ON SITE VISITS/PHONE INTERVIEWS (HIGH PERFORMERS) Emphasis n meeting clients/families where they are at ; caching custmized based n client circumstances & cmpetencies Qualities f the caching staff Fcusing n shrt- & lng-term gals and actins Accessible lcatins and flexible (and synchrnized) scheduling Management supprt; caching apprach part f culture f rganizatin and partners Mst frequently named: strng links t ther services (with integrated/bundled services apprach)

11 Alignment f Themes and Best Practices Client-centered, gal-fcused, emphasis n selfawareness, mnitring and accuntability Regular meetings with gals and prgress dcumented Clarity f expectatins f relatinship between client and cach Safe, secure, and trusted lcatin/envirnment fr caching sessins High quality training and subsequent supervisin f caches Selective referrals t resurces fr clients Respnsibility fr searching and selecting financial prducts rests with client

12 EVALUATION & OUTCOMES

13 Center fr Financial Security Outcme Measures fr Cmmunity-based Financial Caching Prgrams

14 Gals f Financial Caching Outcme Measures Prject Develp a set f measures that satisfy scial science standards and caching/cunseling agency needs alike Test the set f standardized measures Encurage agencies t adpt use f the measures Increase cllective understanding f hw and why financial capability prgrams wrk

15 Building Financial Capability Gal is t develp ur capability t slve prblems n ur wn We are all creative and resurceful We want t imprve ur perfrmance We need a structure t develp wn slutins Caching Offers: Fcus f attentin Exercising self-cntrl/accuntability Building adaptable skills Facilitating empwered cnsumers in marketplace nt abut a prduct r any ne decisin Recgnizing that we all struggle t change behavirs 15

16 An Evidence-Based Mdel Psitive psychlgy Fcus n achieving persnal happiness Use strengths t attain gals Slutin r utcme fcused Nt therapy Caching Psychlgy Behaviral Ecnmics Self-mnitring and Adherence 16

17 Key Measurements Financial behavirs Cnfidence/self-efficacy Emergency savings Cmmitment t saving Planning ahead Late payments

18 What else t measure? Credit scres and credit reprt data Demgraphic infrmatin Other self reprted infrmatin Hw wuld yu rate yur current credit recrd? D yu currently have at least ne financial gal?

19 MOST FREQUENTLY TRACKED OUTCOMES BASED ON SURVEY RESPONSES Outcme Being Tracked Freq. %* in clients' credit scres 33 77% in clients' debt levels 32 74% in clients' budgeting and payment behavirs 28 65% in clients' savings levels 28 65% in clients' savings behavirs 28 65% in clients' attitudes n managing their finances 21 49% Achievement by clients f a lnger-term financial gal 21 49% in clients' brrwing behavirs 19 44% in clients' attitudes regarding credit and debt 15 35% Other 13 30% Client utcmes are nt tracked 1 2%

20 MOST FREQUENTLY TRACKED & REPORTED OUTCOMES BASED ON SITE VISITS/PHONE INTERVIEWS (HIGH PERFORMERS) Outcmes Examples Credit Scres (n=8) Debt (n=5) Incme (n=5) Savings (n=5) Assets (n=4) Emplyment (n=3) Establishment f credit scre; changes in credit scre Changes in debt amunt Net incme, which includes public benefits Savings behavirs (cnsistent cntributin t savings) Increase in savings levels (including tax refunds) Placement int emplyment, retentin, hurs wrked

21 EFFICACY OF FINANCIAL COACHING AS PART OF BUNDLED SERVICES Research cnducted n bundled services delivery at LISC s Financial Opprtunity Centers (FOCs) and United Way f the Bay Area s SparkPint sites Statistically-significant findings relative t a psitive assciatin between receipt f the cmbinatin f financial caching and emplyment cunseling services and better client utcmes UWBA labeled this service cmbinatin the magic bundle Stanfrd research team study f SparkPint sites fund receipt f magic bundle a strng predictr f clients achieving prgress tward self-sufficient incme

22 EFFICACY OF FINANCIAL COACHING AS PART OF BUNDLED SERVICES (CONT.) LISC research n FOCs fcused n client receipt f Emplyment Cunseling (EC), Financial Caching (FC), and Incme Supprts Cunseling (ISC) Statistically significant findings: Clients jb placement and emplyment retentin success greater with cmbinatin f FC + EC, then with just receipt f EC r with the cmbinatin f EC + ISC The cmbinatin f all three services (FC + EC + ISC) had the highest rates f success Althugh a substantial % f clients with FC alne realized net incme gains, the success rates increased significantly fr clients accessing additinal services (EC,r EC+ISC)

23 EFFICACY OF FINANCIAL COACHING AS PART OF BUNDLED SERVICES (CONT.) Caveat regarding the UWBA/SparkPint and LISC/FOC in-prgram analyses Assciatin versus causatin Scial Innvatins Fund (SIF) evaluatin f sme LISC FOC sites using external cmparisn grups is underway Final reprt frm Ecnmic Mbility Crpratin -expected mid- t late-2015 Sme early findings indicate FOC participants mre likely t pay bills n time than cmparisn grup members

24 TRAINING & SCALE

25 Center fr Financial Security Financial Caching Training Field Scan

26 Summary f Training Field At least 12 rganizatins ffering financial caching training All ffer basic financial caching curse Almst all prgrams cvered bth financial cntent and caching skills cntent Apprximately half ffer CEU s Three furths f the prgrams charge tuitin at an average f $750 per individual On average half f the prgrams train ver 100 individuals per year All 12 f the prgrams are less than 10 years ld

27 Characteristics f Quality Training Prgrams Inclusin f sme financial cntent applied t caching prcess Inclusin f in-depth caching skills cntent Inclusin f behaviral psychlgy cmpnent Extensive pprtunities fr caching practice

28 COACH REQUIREMENTS BASED ON SURVEY RESPONSES Sme frm f financial caching training (cmpleted r will cmplete after hiring) 89% f high perfrmers 78% f lw perfrmers 1+ years experience in the financial field 50% f high perfrmers 78% f lw perfrmers A minimum academic / qualificatin 72% f high perfrmers 100% f lw perfrmers

29 INSIGHTS RE SCALE BASED ON SURVEY RESPONSES Range f numbers f individuals served ver 12 mnths by the financial caching prgrams: All prgrams: 12 t 4,430* individuals per year Median f number f clients/prgram annually High perfrmers: 274 Lw perfrmers: 399 Median case lads/cach High perfrmers: 30 Lw perfrmers: 60