2017 STATEWIDE PARENTAL INVOLVEMENT CONFERENCE

THE SECRET TO STRESS-LESS MONEY MANAGEMENT“DON’T STOP BELIEVING” IN YOUR ABILITY

FRIDAY, DECEMBER 1, 2017 – CROWNE PLAZA HOUSTON

By Yvonne Green, LMSW – Director, Bank On Houston

In Collaboration with Wesley Community Center

Lucretia Jelks, Director – Financial Opportunity Center

Bank On Houston founding partners

Fiscal sponsor

What is Bank On Houston?

◦Collaborative to reduce the number of

unbanked or underbanked households

in Houston

◦Bank On started in San Francisco in 2007

◦Adopted by National League of Cities

◦Bank On Houston founded in 2008

◦70+ Bank On initiatives in the U.S.A.

What does Bank On do?Bank On shares information with the unbanked and underbanked about:

Low or no cost checking and savings accounts(including 2nd Chance accounts)

Alternatives to predatory loans (e.g. low cost consumer loans)

Down payment assistance programs

Resources (i.e. Covenant Community Capital Corporation, Baker Ripley, SER-Jobs for Progress, Wesley Community Center, United Way THRIVE Collaborative, etc.)

Houston HouseholdsLiquid Asset Poverty

43.5% Don’t have 3 months of savings

to live above poverty level

22% Have Zero Net Worth

11.5% Don’t have a checking or savings

account

20.9% Have a bank account but still use

check cashing or pay day loans

http://scorecard.prosperitynow.org/reports

“Financially secure families strengthen neighborhoods and the City”

EncourageIncorporate

WWW.BANKONHOUSTON.ORG

Contact Yvonne: (832) 393-3523

Bank On YOU! 4 Steps to Saving Money and Building Assets

Unplanned & Unexpected Expenses?

I. Spending choices,

behavior/emotions

II. Marketing/peer pressure

III. Solution: Create a

financial inclusive—

healthy community

7

Compare Banks/Credit Unions vs. Check-Cashing Services

Check-Cashing

Services

Check-cashing fees:

4 x $5 = $20 a month

$20 x 12 = $240 a year

Money order fees:

5 x $1 = $5 a month

$5 x 12 = $60 a year

Total: $300

Bank or Credit Union

Monthly fee:

$5 a month

$5 x 12 = $60

Box of checks: $18

Total: $78

Savings: $222

Cycle of Debt Payday and auto title loans help in the short-term, but create a long-term debt trap.

9

• 4 out of 10 borrowers roll over loans five or more times. (Texas Office of

Consumer Credit Commissioner consumer disclosure)

• After 5 loan rollovers, a borrower has paid $690 in fees and still owes the

entire $500 loan.

• This high-cost debt cycle often drives borrowers to social service agencies to

meet basic needs.

• In the first three quarters of 2012, Texas auto title businesses repossessed

641 cars every week.

Texas Fair Lending Alliance, 2013: http://www.texasfairlending.org/the-issue/the-problems/

Health: Recognize & acknowledge behaviors/emotions

Stress•Don’t react•Be proactive

Peer pressure – practice willpower

Fear/shame – overcome it

Financial habits •Practice positive financial habits

10

During Superbowl:

o Coke – $5.5 m.

o Microsoft - $8 mi.

o Kia - $8 mi.

o Jaguar - $8 mi.

o Bud Light - $12 mi.

o Chrysler - $12 mi.

11

What’s the Purpose of MarketingAnd the Cost of a 30-second TV Commercial?

http://fortune.com/2017/01/30/s

uper-bowl-commercials-

marketing/

Sunday Night Football:

o $665,375 in 2015

o $625,000 in 2014

o 21.2 million

viewers

http://adage.com/article/media/

nfl-staggering-ad-prices-2015-16-

season/300376/

Let’s make SAVINGS a community conversation!

Access to resources:

• Employment trainings

• Matched-Savings

Account

• Credit Builder

Loans

• Down-Payment

Assistance for First-

Time Home Buyers

www.americasaves.org

How to Achieve Your Financial Goals

Begin with the end on mind.

Create a S.M.A.R.T. plan:

Specific, Measurable,

Attainable, Realistic,

and Timely.

Save your money.

PRIORITIZE WHAT’S IMPORTANT TO YOU

S.M.A.R.T. Goal: Example, save $45 in 9 weeks.

1. Emergency

savings

2. Car/Truck

3. Education

4. Apartment

5. Other

S.M.A.R.T. Goals WorksheetHow can a

financial coach

help?

• Where do I start?

• Call a financial

coach.

• What’s your one

goal that’s

Specific,

Measurable,

Attainable,

Realistic, and

Timely?

Did you know the City of

Houston (PWE) Water

Customer Services

Department has a

Financial Coach?

Have a SPENDING/SAVINGS PLAN

SAVINGS/MISC

SAVINGS

FEES, FEES, FEES

Make a WSH List!

*WSH = When Stuff

Happens

Bank On YOU

Your

Own

Uniqueness

INCOME

• Salary

• Hobby–2nd Income

EXPENSES

• SAVINGS• Rent/Mortgage

• Child Care

TOTAL: INCOME – EXPENSES

(SAVINGS +/-)

Make a WSH List.Take the first STEP, the rest will follow!

50/20/30

Rule

Or you can

create the

”YOU”

Rule!

https://www.pinterest.com/pin/104075441366215178/

SECRET TO SAVING CASH “Don’t stop believing in your ability”

◦ Safe and affordable financial products and services

◦ Understand account fees: inactivity fees, overdraft fees, available funds

◦ Second chance accounts

◦ Find support, accountability, and financial coaching (at no cost):

◦ Financial education

◦ Build savings

◦ Improve credit

◦ Manage payday & auto loans

◦ Build assets (i.e. home, retirement)

◦ United Way THRIVE

◦ 211 Texas—United Way Helpline

Why National Account Standards?

• Validated and Certified Accounts

• No opportunity to overdraft– Use safe & affordable financial products to

avoid zero/negative account balances while talking with a financial coach to understand spending habits.

• Only spend what you have

• Behavior change

• Money to save for emergencies and retirement*

*https://forabettertexas.org/images/EO_2017_Reti

rementSavings_FullReport.pdf

Record All Transactions

Check

Number

Date Description of

Transaction

Payment/Debit

(-)

Deposit/Credit

(+)

Balance

2/20 Opening Balance $200 00

105 2/26 Coffee Mart 19 75 $180 25

3/12 Withdrawal 100 00 $80 25

3/19 Deposit 30 00 $110 25

3/19 Deposit 50 00 $160 25

Community

Resources

Understand Credit Scores

FICO score based on the following:

◦Number grade attached to credit report

◦Payment history (35%)

◦Amount of debt (30%)

◦Length of credit history (15%)

◦Types of credit (10%)

◦New credit (10%)

Improving your Credit Score

◦Correct any inaccurate information

◦Pay bills on time

◦Minimize debt

◦Apply for and open new credit accounts only as needed

◦Use credit cards responsibly

◦Re-establish credit if you have had problems

Healthy Habits Healthy FinancesCHOOSE your MINDSET!

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Dave’s Daily Tip

Unless you control your spending, making more money won’t help. You’ll just end up with bigger payments.

Poor is a state of mind. Broke is a place you’re just passing through.

A goal without a plan is a dream.

We buy things we don’t need with money we don’t have to impress people we don’t like.

https://www.google.com/search?q=dave%27s+daily+tips&tbm=isch&tbo=u&source=univ

&sa=X&ved=0ahUKEwjfmrPVpILUAhWR2YMKHZN_BqIQsAQILA&biw=911&bih=441

27

Everyone needs a mentor.

Be accountable.

Have a support system.

For more information about Bank On Houston call (832) 393-3406 or visit www.bankonhouston.org

THANK YOU!

From Bank On Houston

For financial coaching and additional resources contact: Wesley Community Center, (713) 821-8916United Way Helpline: Dial 211 and ask for a THRIVE Specialist