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Mary Dupont
Delaware Director of Financial Empowerment
May 2012
www.standbymede.org
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TYPICAL FINANCIAL CHALLENGES:
Many low-income working families have traditionally struggled with the following
financial issues that are now affecting nontraditional customers that have been
victims of our economy:
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High debt for medical, student loan, and credit cards
Low credit scores
Lack of access to financial services and products
Exploitation by the “fringe” financial sector
Monthly expenses that exceed income
No savings or safety net
Copyright 2012. Delaware Financial Empowerment Partnership. All Rights Reserved.
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FINANCIAL CRISIS 2008 - 2011
The worst economic crisis since the Great Depression has affected thousands of
lives through lost income, foreclosure, and uncertainty in the job market.
Impact in Delaware:
 Record unemployment and plant closures in Delaware: Chrysler, GM, Valero,
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layoffs at Astra Zeneca, Barclays, Wilmington Trust, and Bank of America
Record foreclosures continue to rise monthly
Employers cut back on benefit coverage passing costs on to employees
Households with reduced income struggle to pay bills using credit cards for
survival
Retirement savings in jeopardy through declined value in investments,
pensions at risk, and record number of boomers drawing on social security
Booming fringe financial sector exploit the need for credit and financial
transactions, charge high fees for service
Growing number of bankruptcies
Record number of vulnerable households apply for public benefits
Copyright 2012. Delaware Financial Empowerment Partnership. All Rights Reserved.
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PARTNERSHIP
The Key Element of the Strategy
A mandate of Governor Jack Markell
Founded by a unique partnership between non-profit and
government – State of Delaware, Dept. of Health and
Social Services and United Way of Delaware
Joined by powerful coalition of educational, corporate,
foundation and non-profit organizations (ShopRite Supermarkets, Hilton,
Walgreens, University of DE, Del Tech Community College, Foundations, Financial
Institutions, Nonprofits, etc.)
Built on a relationship of trust between client and knowledgeable partner (coach)
Copyright 2012. Delaware Financial Empowerment Partnership. All Rights Reserved.
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FINANCIAL EMPOWERMENT SERVICE PACKAGE
Goal: Increase financial capability and management of personal finances
 Personal Financial Coaching and Education: budgeting, debt, financial goal
setting, savings, and personal money management
 Financial Services: work with credit unions and non-profits to develop and
increase access to consumer-friendly savings, loan, and transaction products
 Post Secondary Education Services: Financial planning for post-secondary,
FAFSA applications, managing student loan debt
 Community Referrals: debt consolidation, foreclosure assistance, free tax
preparation, matched savings programs, home ownership counseling
Copyright 2012. Delaware Financial Empowerment Partnership. All Rights Reserved.
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DELAWARE METHODOLOGY
Service Integration
Provide services to diverse constituencies served by state government:
middle and high school students and families, benefit recipients, clients of
child support system, kids aging out of foster care, re-entry initiative, un and
under-employed.
Taking It to the Streets
Financial Empowerment Center Without Walls:
• Co-locate to serve a range of constituencies (businesses, community
colleges, State Service Centers, state employees)
• Work with organizations to understand their needs and goals and
collaborate to serve the constituency through win-win relationships.
Copyright 2012. Delaware Financial Empowerment Partnership. All Rights Reserved.
Slide 6.
New Paradigm for State Prosperity Systems Change
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Non-Profits
National
Partners
Faith Based
K-12
Higher
Education
Employers
DIVERSE PARTNERS SHARE
ONE MISSION
Governor Led
State/County/ Local
Governments
Economic
Empowerment
Initiative
Veterans
Disability
Seniors
$tand By Me®
Delaware
$tand By Me® Delaware
Coaching/Financial Inclusion :
Across the Lifespan – Free – Individual – Employer/Market Based
Together. No Matter. We’re Here.
Copyright 2012. Delaware Financial Empowerment Partnership. All Rights Reserved.
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Win/Win Public/Private Partnerships: Laying the Groundwork for a
Statewide Financial Empowerment Alliance
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State of Delaware: Increase financial stability and self-sufficiency for all
Delawareans. Reduce poverty. Increase and sustain employment. Increase access
to financial services and post-secondary education.
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United Way of Delaware: Programs that encourage long-term financial planning,
asset building, and financial stability. 1. Increasing Income 2. Building Savings 3.
Gaining and Sustaining Assets
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West End Neighborhood House/Non-Profits: Dedicated to helping individuals
achieve self-sufficiency, reach and maintain their maximum potential, and live
responsibly and harmoniously in a healthy community and complex world.
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Businesses: Develop and grow competitive businesses with a strong and dedicated
workforce. Increase retention, performance, and career growth opportunities for
employees.
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Middle and High Schools/Community College/ University: Work with students
and parents to provide them with the skills to navigate the educational system in
order to achieve the credentials needed to be competitive in the workplace.
Increase retention, performance, and graduation.
Copyright 2012. Delaware Financial Empowerment Partnership. All Rights Reserved.
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PROGRAM OUTCOMES
Clients take charge of their own financial challenges,
initially with a coach, ultimately on their own
• Household budget established
• Savings strategy established and
maintained
• Debt reduced
• Credit rating improved
• Increased number of clients who transition
from the fringe financial sector to the use
of mainstream financial services
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Participation in tax preparation
Participation in college bound program
Enroll in college and obtain financial aid
Participation in financial planning workshops
Repeat visits to financial the financial coach
Access relevant tax credits and deductions
Reduce financial stress in household
Increased job retention, performance, and sense of well-being in the workplace
Increased access, retention, and graduation rates in post-secondary education
Reduced stress and distraction, increases sense of control over one’s life.
Copyright 2012. Delaware Financial Empowerment Partnership. All Rights Reserved.
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May 2011 – May 2012
1247 served (603 coaching, 644 FAFSA, Taxes, workshops)
2208 total units of service (1509 coaching units of service)
What have our customers have accomplished in 12 months:
TARGET: Credit and debt position improved
RESULT: 52% of coaching customers are working on their credit through debt repayment plans,
correcting credit reports, opening credit building accounts, and increased credit scores
80% of coaching clients have reviewed their credit reports with the coach.
TARGET: Financial skills and personal money management improved
RESULT: 45% of coaching customers have improved personal money management by creating a
household budget and adding savings to their budget plan.
TARGET: Savings strategy established and maintained
RESULT: 30% of customers have established new savings strategies that includes
opening new savings accounts, initiating monthly auto deposit into savings,
and saving regularly for emergency fund or specific asset goals.
Copyright 2012. Delaware Financial Empowerment Partnership. All Rights Reserved.
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FUTURE GROWTH PLANS
• Statewide expansion: Local partnerships with non-profits, businesses, and
educational institutions in Kent and Sussex Counties. Program launch underway.
• Financial Empowerment Alliance: Link all stakeholders into an Advisory Board
that meets quarterly to inform operations, expansion, and innovation.
• Target services for specific markets: Active Duty military and veterans; people
with disabilities; public housing residents; kids aging out of foster care, middle
and high school students and their families, college drop-outs and grads with
student loan debt.
• Launch Consumer Friendly Financial Products: Conduct promotion around 8
innovative new financial products designed for the market, including loans,
reloadable debit cards, and checking account.
Copyright 2012. Delaware Financial Empowerment Partnership. All Rights Reserved.
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FOR MORE INFORMATION
Mary Dupont
Delaware Director of Financial Empowerment
Email: mary.dupont@state.de.us
Phone: 302-255-9245
www.StandByMeDE.com
Copyright 2012. Delaware Financial Empowerment Partnership. All Rights Reserved.
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