2013 MN Coalition for the Homeless
Conference Workshop:
Financial Asset Building
Through FAIM
WELCOME!
Who are we?
Minnesota’s Community Action Network
Anoka County CAP
Arrowhead Economic Opportunity Agency
Bi County CAP
Community Action Duluth
CAP of Ramsey & Washington Counties
CAP of Suburban Hennepin
Heartland Community Action Agency
Inter County Community Council
Kootasca Community Action
Lakes & Pines Community Action Council
Lakes & Prairies CAP
Mahube-Otwa CAP
MN Valley Action Council
Northwest Community Action
Prairie Five Community Action Council
Scott Carver Dakota CAP
Semcac
Southwestern MN Opportunity Council
Three Rivers Community Action
Tri -CAP
Tri County Community Action
Tri-Valley Opportunity Council
West Central MN Communities Action
Western Community Action
Wright County Community Action
What is FAIM?
• Comprehensive program to reduce asset
poverty & build financial capability
• Connects low income households with
asset building opportunities through:
 Individual Development Accounts (IDAs),
 Financial education,
1:1 coaching
Access to other resources and services
Why build assets?
“Lack of Income means you don’t get by.
Lack of assets means you don’t get ahead.”
Ray Boshara, Federal Reserve Bank St. Louis, former New
America Foundation VP
“Assets are hope in concrete form”
Michael Sherraden, Center for Social Development, “Assets
and the Poor” (1991) launched asset building initiatives
Importance of
Savings & Assets
Savings & assets as foundation
for economic stability:
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Savings & assets as economic cushion
Savings can lower costs
Assets protect when social safety net fails
Savings encourage future thinking
Savings as gateway to self employment
Savings key to higher ed & higher income
Impact on local
economies
Asset purchases boost local economies:
• increased home ownership property
taxes,
• newly created jobs,
• local small business purchases, and
• increased professional skills.
Asset poverty – what it
looks like in MN
• Asset poverty: financial resources < 3
months to provide for basic needs
• 26% US households asset poor
• 21% Minnesotans asset poor
• MN asset poverty racial disparities:
58% African Americans, 43% Native Americans,
42% Latinos, 22% Asian Americans, 18% Whites
• ¼ HHs $37,741 - $59,604 asset poor
FAIM launched in 1999
• 1990s research and demo projects
showed that low income people can save
with the right support
• MN took part with FAIM 1999- 2004 with
AFI grant, state appropriation,
U of MN research. Success!
• IDAs one tool, but many are
needed to help Minnesotans
build assets
FAIM Partners
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MN Community Action Partnership
MN DHS - Office of Economic Opportunity
Bremer Bank & Bremer Foundation
Community Action Agencies
Emerge Community Development
City County Federal Credit Union
Leech Lake Tribal Government
University of Minnesota
Inver Hills Community College
Rice County Youth IDA project
Local partnerships
FAIM: How It works
• Eligible households with incomes below
200% FPL open savings accounts at local
banks
• Can save up to 2 years to buy a home,
launch a small business, or go to college
• Savings matched 3:1
FAIM: How It Works
Participant Savings:
$480 / year ($40 month) for up to 2 years
Match Available:
3 to 1
Participant savings = $ 960.00
Maximum Match = $2,880.00
Available funds = $3,840.00
Financial Education &
Coaching
• 12 hours financial education +10 hours
asset specific training
• 1:1 coaching “the invisible 4th dollar”
• Other resources & supports:
Access to free tax prep/credits
Loans & grants
Work supports
Safety net services
Consumer protection
Demographics of MN
FAIM Savers
Participants Racial background
Gender
& Income:
8%
Caucasian-52%
4% 2% 3%
African Amer-31%
52%
31%
Asian Amer-8%
Latino-4%
Native Amer-2%
Other-3%
• 78%
female
• Most at
or below
145%
FPL
FAIM Results
• Nearly $3 million in savings deposited
• Over 3,100 people completed 12 hours of
financial education
• Over 3,500 people used mainstream
financial services
• Nearly 2,700 assets
purchased
FAIM Results:
ASSET PURCHASES
2,654 assets purchased
606
(23%)
1170
(44%)
878
(33%)
What does FAIM
success look like?
http://minnesotafaim.com/
ROI Research
2012-13 research: U of MN Humphrey School &
Gustavus Adolphus College:
• 326 FAIM graduates interviewed
• Small Business Asset Findings (130):
 89% still in business after 2 yrs (national avg: 44%)
• Home Ownership Asset Findings (81)
 No foreclosures. 97% still owned home.
• Education Asset Findings (115):
 65% completed degree + 31% in pursuit
Impact of Financial Education
and Coaching
Improved
Credit
Reduced
Debt
Increased
Earnings/
Savings
Next Steps
• Continue educating policymakers and
funders about the importance of assetbuilding
• Support evolution of Asset Building Coalition
• Continue seeking funding to increase access
• Support IDA expansion, share
training and technical assistance
For More Information
Kate Ouverson, Statewide FAIM Coordinator
West Central MN Communities Action
(218) 685-4486
kateo@wcmca.org
Pam Johnson
Minnesota Community Action Partnership
(651) 645-7425 x2
pamjohnson@minncap.org
QUESTIONS?
FOR ALL YOU DO!