© January 23, 2013
Cities for Financial Empowerment Fund
All rights reserved.
www.cfefund.org
Financial Empowerment Center
Counselor Training Curriculum
Overview: Financial Empowerment
www.cfefund.org
Cities for Financial Empowerment (CFE)
With support from the CFE Fund, CFE Coalition brings
together pioneering municipal governments from across
the country to use their power and positions to advance
innovative financial empowerment initiatives. By working
with key partners in the public, private, and nonprofit
sectors, the CFE Coalition leverages its 12 member cities
collective power to advance the financial empowerment
agenda on a state and national level.
© January 23, 2013
Cities for Financial Empowerment Fund
All rights reserved.
Source: www.cfefund.org
www.cfefund.org I 3
CFE Coalition
• Founded by New York City Mayor Michael R.
Bloomberg and San Francisco Mayor Gavin Newsom.
• Member Cities: Chicago, Hawai'i County, Los Angeles,
Louisville, Miami, Newark, New York, Providence,
San Antonio, San Francisco, Savannah,
and Seattle.
Source: www.cfefund.org
© January 23, 2013
Cities for Financial Empowerment Fund
All rights reserved.
www.cfefund.org I 4
CFE Fund
The CFE Fund's mission is to leverage municipal
engagement to improve the financial stability of
households by embedding financial empowerment
strategies into local government infrastructure. The
Fund will work with mayoral administrations and those
interested in supporting them to actually “pull triggers
-- and will measure its success accordingly.”
© January 23, 2013
Cities for Financial Empowerment Fund
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Source: www.cfefund.org
www.cfefund.org I 5
SUPERVITAMIN EFFECT:
Integrating Financial Empowerment
Just as certain vitamins are beneficial at
varying stages of development, financial
empowerment strategies can and should be adapted to
serve unique client needs at important transition
points.
© January 23, 2013
Cities for Financial Empowerment Fund
All rights reserved.
Source: http://cfed.org/assets/pdfs/BuildingEconomicSecurityInAmericasCities.pdf
www.cfefund.org I 6
SUPERVITAMIN EFFECT:
Professional Financial Counseling
All Financial Empowerment Center (FEC)
counselors are required to take and pass
City University of New York (CUNY) Consumer and
Personal Finance course. Class sessions cover a range of
12 topics.
Material is intended for inclusion in counseling and
educational sessions.
© January 23, 2013
Cities for Financial Empowerment Fund
All rights reserved.
Source: NYC_FECOperations Manual
www.cfefund.org I 7
SUPERVITAMIN EFFECT:
Integrating Professional Financial Counseling
New York City
Denver
Lansing
San Antonio
Philadelphia
Nashville
© January 23, 2013
Cities for Financial Empowerment Fund
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www.cfefund.org I 8
SUPERVITAMIN EFFECT: FEC’s
New York City’s FEC’s are the first manifestation of this
new, professional approach to financial education and
counseling.
At the Centers clients get free one-on-one financial
counseling delivered by professionals, all of whom
have taken and passed the City-designed course
developed by CUNY.
© January 23, 2013
Cities for Financial Empowerment Fund
All rights reserved.
Source: http://cfed.org/assets/pdfs/BuildingEconomicSecurityInAmericasCities.pdf
www.cfefund.org I 9
SUPERVITAMIN EFFECT: The FEC Approach
1. Triages consumers’ financial situations, sets goals, and
establishes a specific plan of action with each client.
2. Delivers services at scale because they are embedded
in existing multiservice organizations to provide
on-site opportunities for cross-referrals.
3. Systematically tracks data and outcomes for client
management and evaluation.
© January 23, 2013
Cities for Financial Empowerment Fund
All rights reserved.
Source: http://cfed.org/assets/pdfs/BuildingEconomicSecurityInAmericasCities.pdf
www.cfefund.org I 10
SUPERVITAMIN EFFECT: The FEC Approach
4. Integrates counseling into a range of City and nonprofit
service delivery mechanisms to make interventions more
effective
5. Leverages infrastructure, established relationships, and
resources from the City and nonprofit lead entities
6. Establishes an ongoing coaching/mentoring relationship
with the client
7. Provides linkages to strategic referrals, including benefits
access, legal assistance, and tax assistance
© January 23, 2013
Cities for Financial Empowerment Fund
All rights reserved.
Source: http://cfed.org/assets/pdfs/BuildingEconomicSecurityInAmericasCities.pdf
www.cfefund.org I 11
SUPERVITAMIN EFFECT:
Financial Counseling Session Defined
• Providing information that increases the recipient’s
knowledge and ability to take self-improving action in
areas of money management, financial planning,
savings, debt and credit, and affordable banking
products and services.
• Conducted with the goal of achieving financial
outcomes for the client.
© January 23, 2013
Cities for Financial Empowerment Fund
All rights reserved.
Source: http://cfed.org/assets/pdfs/BuildingEconomicSecurityInAmericasCities.pdf
www.cfefund.org I 12
SUPERVITAMIN EFFECT:
Financial Counseling Session
Client Intake:
1. Authorization – signed Client Service Agreement.
2. Financial Health Assessment - the initial session.
3. Service Plans - four major financial areas in which
clients can make improvements to become
financially empowered.
© January 23, 2013
Cities for Financial Empowerment Fund
All rights reserved.
Source: NYC FEC Operations Manual, Version 1, June 14, 2012
www.cfefund.org I 13
Evaluation and Performance Tracking
FEC’s are evaluated using an outcome driven client
management system that tracks numerous data points
for clients based on customized service plans suited to
their particular needs.
At each financial counseling session, milestones or
action steps are taken and recorded toward the
financial outcomes.
Sources: http://cfed.org/assets/pdfs/BuildingEconomicSecurityInAmericasCities.pdf
© January 23, 2013
Cities for Financial Empowerment Fund
All rights reserved.
NYC FEC Operations Manual, Version 1, June 14, 2012
www.cfefund.org I 14
Integrating Financial Empowerment
Focus is on outcomes where clients achieve specific
numerical increases in the following measures of
financial stability:
• Banking and Financial Services Access/Affordability
• Improved Budgeting and Money Management
• Improved Credit History and Access
• Debt Reduction
• Establish or Increase Savings
© January 23, 2013
Cities for Financial Empowerment Fund
All rights reserved.
Source: NYC FEC Operations Manual, Version 1, June 14, 2012
www.cfefund.org I 15
SUPERVITAMIN EFFECT: FEC MODEL
© January 23, 2013
Cities for Financial Empowerment Fund
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www.cfefund.org I 16
SUPERVITAMIN EFFECT: FEC MODEL
REFERRAL
SOURCES
CITY FUNDED
PROGRAMS
2-1-1/PUBLIC
AWARENESS
CLIENT
FINANCIAL
PARTNERS NETWORK
OTHER SOCIAL
SERVICE
PROVIDERS
© January 23, 2013
Cities for Financial Empowerment Fund
All rights reserved.
SERVICE PLANS
FINANCIAL
EMPOWERMENT
CENTER
SAVINGS
CREDIT
DEBT
BANKING
BUDGETING
LINKAGES to TAX
PREP, BENEFITS,
LEGAL & OTHER
SERVICES
EXAMPLES OF
MILESTONES
CREATE SAVINGS PLAN
REVIEW CREDIT REPORT
ADDRESS DEBT
OPEN BANK ACCOUNT
DEVELOP BUDGET
IMPROVEMENT IN
OTHER SOCIAL
SERVICES
OUTCOMES
INCREASED SAVINGS
INCREASED CREDIT
SCORE
REDUCED DEBT
USE & MAINTAIN BANK
ACCOUNT
IMPROVED FINANCIAL
STABILITY
SUCCESS IN OTHER
SOCIAL SERVICE
PROGRAMS
Source: NYC FEC Operations Manual, Version 1, June 14, 2012
www.cfefund.org I 17
SUPERVITAMIN EFFECT:
Professionalizing a Field of Service
The professionalization of a field of service
requires not only setting a very high bar for quality
services but also a high degree of standardization of
service provider training, service delivery metrics,
performance outcomes, and impact measurement.
© January 23, 2013
Cities for Financial Empowerment Fund
All rights reserved.
Source: http://cfed.org/assets/pdfs/BuildingEconomicSecurityInAmericasCities.pdf
www.cfefund.org I 18
THE SUPERVITAMIN EFFECT:
National Standards and National Certification
Ultimately, national standards and certification will
facilitate a growing body of clear, measurable evidence
about the quality of financial education and counseling
for federal agencies, funders, service providers, and
consumers alike.
© January 23, 2013
Cities for Financial Empowerment Fund
All rights reserved.
Source: http://cfed.org/assets/pdfs/BuildingEconomicSecurityInAmericasCities.pdf
www.cfefund.org I 19