Envisioning Your Clients' Financial Capability TOOL 3: Theory of Change

Section 1: Envisioning Your Clients’ Financial Capability

TOOL 3: Theory of Change (Section 1 Capstone Tool)

TOOL 3, Part A: Financial Capability Services Select the financial capability services that will help the participants in each program achieve the desired outcomes (from Tool 2) and list them in the middle column of the table below. Make sure that all the outcomes listed in your Theory of Change table connect directly to at least one of the financial capability services you plan to provide. You can revise or remove outcomes you selected in Tool 2 if they no longer seem attainable. You will further refine these services and determine who will provide them in the next two sections of this Guide.

Program Clients’ Current Financial Financial Capability Target Outcomes Capability Services (From Tool 2, Part B) (From Tool 1, Part B) e services that you think will help List financial capability outcomes that would represent an List the program into which you will integrate financial clients achieve the target improved result for these clients capability, and summarize program clients’ current financial outcomes *Use an asterisk to denote any outcomes you already track capability in your work. ● Access to free and affordable checking and Financial Products and Services: savings accounts ● 84% of current students use a checking ● Access to Safe and o 100% of students would have a account, Affordable Financial checking account by the time they ● Two-thirds of student report not using a Products complete the program savings account to manage their money, o 60% of students would have a ● 20% report having had a bank account savings account by the time they closed by the institution, complete the program; 80% would have one a year after completing the

program

Tools for Building Financial Capability: A Planning Guide for Integrated Services (c) 2015 by CFED and the Administration for Children & Families under GSA Schedule Contract GS-10-F-0177L/Order No HHSP233201200674G Section 1: Envisioning Your Clients’ Financial Capability

● Understand the circumstances that Credit and Debt: impact credit and your credit score (i.e. ● Only 24% of the students know their credit ● Credit Counseling inquiries on accounts, opening credit score. They report that they are using credit ● Credit Building cards, etc.) karma to keep track of their credit. ● Understand how to access free credit ● The majority of current students want to reports and read the credit report and know how to repair credit and build credit. how it can change They are carrying many debts including ● Understand a healthy debt to income college/school loans, credit card loans and ratio personal debt. ● know how to access their free credit report by the time they complete the program ● know their credit score by the time they complete the program ● Develop a personalized plan on steps to take to build and/or repair their credit over the next year Money Management: ● 100% of students will participate in a ● Nearly 40% of students do not feeling ● Financial money management workshop confident in managing their finances and Education before completing the program bills ● Financial ● 100% of student will create a ● 80% report saving less than $50 monthly Counseling individual budget; outlining expenses with 57% noting that as a financial struggle and resources ● major reason for not saving is a current inability to “make ends meet” and trouble with general budgeting or planning a financial future; generalized belief that savings is not possible with limited funds ● The majority of the students have little to no education regarding money at home. They struggle with accumulating debt, credit repair, getting kicked out of their home and not having enough money. Good credit, finding an apartment, paying for college,

owning a business, financial independence and being able to pay a mortgage are all the hopes and dreams of the students. The primary sources of income among the students are parents and employment. ● Students consider being financially independent when they are managing their money well. The most common expenses were cellphone, rent, cable, electricity and food. Parents and employment are the sources of their money management. Unique expenses for students include childcare, school loans, and credit card balances with no employment. Young people’s incomes are not enough to meet the basic requirements. Savings and Investment: ● 60% of students would have a ● The majority of the students do not have ● Incentivized savings account by the time they and are not working toward a specific Savings Programs complete the program; 80% would savings goals. Immediate needs take have one a year after completing the priority. program. ● The majority of the class is interested in saving money. Young people have hopes to save in order to invest in the future, have retirement accounts, and also want to save from every paycheck that they receive.