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Opportunity Alliance

Own Your Financial Future

Learn: To participate in the mainstream economy, people need to learn basic financial skills. They can develop these skills through formal education and financial counseling, including policies and programs that integrate savings and financial education into schools and social services.

Earn: To maximize income, people need access to quality jobs, benefits and tax incentives such as the Earned Income Tax Credit.*

Save: To save, households need income left over after meeting basic needs and paying down debt. They can increase savings through affordable and accessible financial products such as Individual Development Accounts and Children’s Savings Accounts.*

Invest: Households invest and grow wealth by leveraging savings through debt financing and public incentives that allow them to purchase a home, make financial investments or start a business.

Protect: Families need access to products, services and policies that protect them against loss of income or assets, extraordinary costs, and harmful, discriminatory, or predatory practices.

Assist: Communities are strengthened when people support their neighbors through strategic volunteerism or donations. Recipients of services will assist others in achieving the objectives above.

May 2014 CONCEPT PAPER

Goals:

Improve access to high quality financial information, education and counseling

Increase access to income-boosting supports and tax credits

Connect residents to safe, affordable financial products and services

Create opportunities to build savings and assets

Integrate effective cross-sector programs and strategies

VISION: The Opportunity Alliance strengthens individuals and families to help them attain and preserve assets, become more financially stable, and achieve long-term economic independence.

MISSION: CREATING AND

SUPPORTING PARTNERSHIPS TO BUILD AND SUSTAIN FINANCIAL INDEPENDENCE AND COMMUNITY CAPACITY.

The Concept:

The Opportunity Alliance will

create and support partnerships to

achieve six key objectives:

*A living wage is the hourly rate that an individual must

earn to support their family, if they are the sole provider

and are working full-time. Nevada’s minimum wage is

$7.55/hr and the same for all individuals, regardless of

how many dependents they may have. Providing a living

wage is essential to Earn and Save. In Nevada an adult

with a child must earn $20.45 for a living wage.

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The Issue at Hand

Family and finances are key sources of

strength and self-sufficiency that interact in

the lives of most Americans. However, many

face ongoing problems and stress because of

family and financial instability. (RTI, 2009)

Washoe County Profile

Asset poverty is a measure of household

security. A household is asset poor if it can’t

support itself at the federal poverty level for

three months in the absence of income. This

means not having enough savings to provide

for basic needs during a sudden job loss or

emergency. A household budget would be so

tight that any unexpected expense like a car

repair or medical bill couldn’t be managed

without incurring debt.

29% of households in Washoe County

live in asset poverty--this includes 38% of

households with children and one in two

households of color

61% of Washoe County consumers don’t

have the credit score to qualify for an

affordable loan

18% (almost one in five) households in

Washoe County have used money

orders, check cashing services, payday

loans, rent-to-own agreements or pawn

shops at least once or twice a year, or a

refund anticipation loans in the past five

years. This is defined as under-banked

(Corporation for Enterprise Development,

2013)

Last year, CFED ranked Nevada worst in the

country for financial security, arguing that

most Silver State residents were living “on the

edge of financial disaster,” with 62.5 percent

of households with less than three months

savings. “Residents in Nevada have been

placed in the position of prioritizing today’s

expenses over the most basis of future goals,”

(Las Vegas Review Journal 1/30/14)

Opportunity Alliance

MAY 2014 CONCEPT PAPER

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FRAMEWORK

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OPPORTUNITY ALLIANCE

CFED created the Household Financial Security Framework to illustrate – from a household’s perspective what it really takes to build financial security over time.

LEARN

Knowledge and skills that enable navigation of and success in markets (labor, financial) have a direct bearing on financial security

K-12 & Postsecondary Education: Basic Literacy and math skills, plus commitment to lifelong learning are

critical for employment and advancement

Financial Education & Counseling: Timely, relevant, accurate information on basic budgeting, taxes, financial

products and services, and use of credit

Asset-specific Education: Preparation for homeownership, business ownership, postsecondary education, and

financial investments

EARN

Wage + Business Income

+ Public & Employee Benefits

+ Tax Credits

+ Investment Income

= Income

Ability to Maximize Income

Depends On: Access to reliable basic goods

and services (housing,

transportation, medical care, child

care, food)

Available quality job and

business opportunities

Access to public benefits and tax

credits (e.g., EITC, Child Care)

Assets Ownership (higher

education, home, business,

financial investments)

Knowledge and skills related to

work, taxes, and benefits

SAVE

Income

- Current Consumption

- Debt Payments

= Savings

Ability to Save Depends On:

Access to affordable basic goods

and services (housing, transportation, medical care, child

care, food)

Debt reduction

Convenient, low-cost financial

products (transaction and savings

vehicles, credit and insurance

products)

Convenient, affordable financial

structures (e.g., direct deposit,

automatic enrollment, online banking, bank location)

Knowledge and skills related to money management, financial

products, and credit building and

repair)

INVEST

Savings

+ Borrowing

+ Public Incentives

= Assets

Ability to Build Assets

Depends On: Price and appreciation of

assets (higher education, home, business, financial

investments)

Affordable financing

Access to public incentives

(e.g., downpayment assistance, government loan

guarantees, tax incentives,

Pell Grants, IDA/CSA match)

Knowledge and skills related

to asset purchase and management

PROTECT

Gains must be protected against loss of income or assets, extraordinary costs, and harmful or predatory external forces

Insurance (public or private): protects against loss of income or assets as well as against extraordinary costs (e.g., unemployment, disability, life, health/medical, property)

Consumer Protections: Protect consumers from discriminatory, deceptive and/or predatory practices (e.g., redlining,

predatory, mortgage lending, payday lending, banking practices)

Asset preservations: Depends on government policies (e.g., community investments, blight ordinances, foreclosure

prevention) and market conditions

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OA General Membersip

Programming

Committee

Youth

Economy and Jobs

Education

Policy and Advocacy

Communications and Public Engagement

Fund Development

OA Steering Committee

Fiscal Agent

Coordinator

MAY 2014 CONCEPT PAPER

OPPORTUNITY ALLIANCE

Goal: Improve access to high quality financial information, education and counseling Strategies • Create financial education and counseling networks and referral structures. • Incorporate financial education into social service and workforce programs.

• Standardize and certify financial education services and providers. Goal: Increase access to income-boosting supports and tax credits Strategies • Promote ways to leverage technology to streamline public benefits screening and

uptake.

• Support access points for benefits screening in high-need communities. • Support VITA and EITC public awareness campaigns and free tax prep services.

Goal: Connect residents to safe, affordable financial products and services Strategies • Increase access to affordable transaction, saving, and credit products through

programs with mainstream financial institutions. • Identify alternative, affordable credit products, e.g., small dollar, refund anticipation

(RALs) or auto refinance loans.

• Encourage employers to use direct deposit. Goal: Create opportunities to build savings and assets Strategies • Promote the protection of consumers from high-cost alternative financial service

providers. • Advocate to preserve and create affordable housing options. Goal: Integrate effective cross-sector programs and strategies

Strategies • Identify and promote effective programs. • Convene partnerships to increase awareness. • Help secure resources to support implementation.