www.cfefund.org | 1
Financial Empowerment Centers (FEC)
City of Salinas, CA
www.cfefund.org | 2
CFE Fund Approach: Helping government leaders embed financial empowerment strategies into municipal infrastructure Design and fund multi-city programs
Pilot new initiatives and research
Provide robust technical assistance
Replicate and share knowledge and best practices
www.cfefund.org | 2
$70M+ in Grants
www.cfefund.org | 2
160 Cities
63M
Residents
Local Governments in Action
Financial Empowerment Center (FEC) Background
5 www.cfefund.org | 5
Financial Empowerment Centers
The Financial Empowerment Center initiative offers professional, one- on-one financial counseling as a no- cost public service for all residents. www.cfefund.org | 6
55 (37)
FEC PARTNERS (OPEN)
201,000+
CLIENTS SERVED
$344+M
DEBT REDUCED
$69+M
SAVINGS INCREASED
www.cfefund.org | 7
7 Core Elements of the FEC Model
The Financial Empowerment Center initiative offers professional, one-on- one financial counseling as a no-cost public service for all residents.
No Cost
www.cfefund.org | 10
One-on-One
Professional
Integrated
Data Driven
Government Led
Sustainable
Unique Role of Local Governments
Interest in resident financial stability
Connections to unique stakeholders
Access to funding streams
Ability to build lasting infrastructure
Regulatory and enforcement authority
Legitimate voice among scams and costly fringe financial services FEC Launch Event, Detroit
www.cfefund.org | 10
FEC Structure
Local Government Manager (PT or FT)
www.cfefund.org | 10
FEC Program Manager (FT)
3+ FEC Counselors (FT)
Contract
Local Government
Oversees FEC program
CFE Fund
National Convener + Funder
Financial Counseling Provider (typically a local nonprofit) Manages day-to-day services
Financial Counseling Client Journey
Five main counseling areas: Banking, Credit, Debt, Savings, Legacy Planning Sessions are client-focused and
centered on the client’s priorities
FEC relationships are intended to be multi-session
www.cfefund.org | 10
$2,400
in debt
reduced
$1,400
in savings
increased
34 point
increase in
credit score
2 delinquent accounts closed
ACHIEVEMENTS
Med. for clients with an achievement in these service plans
DEMOGRAPHICS
Black
48%
Multiple Races 2%
White 22%
Hispanic 25%
63%
attended 2 or more sessions
50%
are renters
72% $38,400
average income
are female
$36,000
average debt load
68%
are employed- full or part time
Asian
2%
FECs by the Numbers
Other 1%
www.cfefund.org | 10
FECs and Local Priorities
www.cfefund.org | 10
FECs support local priorities through strategic partnerships:
Government Agencies
Housing Services
Libraries
Workforce Development
Utilities Companies
Reentry Services
Legal Services
Veteran Services
And many more…
Planning for a Financial Empowerment Center
15 www.cfefund.org | 15
Implementation Proposal Checklist
www.cfefund.org | 16
Hire (or plan to hire) a dedicated Local Government Manager Secure financial counseling provider(s)
Secure local government and community partnerships
Design a Counselor training plan
Design a marketing plan
Secure year 1 funds
Eligible for CFE Fund grant of up to $150,000 for two years
Thank You
www.cfefund.org | 17