Financial Education & Income Supports

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Building financial management skills - such as budgeting, reducing debt, improving credit scores, starting savings plans, and investing - is an important step in becoming economically resilient. 

Net worth is a measurement based on a person's total assets minus their liabilities.  Households experiencing net worth poverty do not have enough assets to cover their basic needs for three months.  Net worth poverty limits families' abilities to become economically resilient and to invest in their future (and their children's future).  A groundbreaking study from Duke University found that that over one third of American families were net worth poor in 2019.  The national statistics for people of color were even more grim.  In 2019, 57% of black families and 50% of Latino families with children were net worth poor.

While the exact percentage of people with debt in CMCA's service area is unknown, the percentage of people with debt in collections varied from 23.9% to 35.9%, depending on the county.  The average amount of debt in collections was $2,525.  Debt impacts the amount of funds available for other spending or saving and influences credit scores.  

Establishing and maintaining a savings account is an important step in building financial resiliency.  People without savings often struggle to recover from financial shocks, or unexpected expenses that arise outside of routine bills or living expenses.  In these situations, those without savings often turn to high cost financial services, such as credit cards or payday loans, which often lead to debt and increase the difficulty of establishing a savings fund for emergency expenses.

Credit scores help determine whether or not someone can get credit, the terms on which credit is offered, and how much it will cost to borrow.  Credit scores influence nearly all aspects of life including housing, transportation, insurance, and employment.  Credit also plays a role in setting up utilities, getting a cell phone, and negotiating interest rates or refinancing.  

By developing these financial management skills in conjunction with increasing their net worth, families can significantly improve their economic resiliency and break the cycle of poverty.

Sources:

1. Gibson-Davis C, Keister LA, Gennetian LA. Net worth poverty in child households by race and ethnicity, 1989-2019J Marriage Fam. 2020.

2. Urban Institute. (February 2021). Credit Health during the COVID 19 Pandemic

3. Consumer Financial Protection Bureau. (n.d.). Why savings matters: The latest research. Consumer Financial Protection Bureau. 

4. Taylor, K. (2020, January 29). Credit score ranges and what they mean: How will the New Fico changes impact them? How to Pay For College: The Complete Guide from Nitro. 

How We Impact

The Financial Opportunity Center became active in April 2021, during the third quarter of the agency's fiscal year.  FOCs pair individuals with Financial and Employment Coaches to co-create financial freedom plans. Coaches support individuals with tools and resources that allow them to navigate the complexities of increasing income, decreasing expenses and acquiring assets.

In addition, CMCA partners with local financial institutions to expand the types of financial opportunities available to low-income individuals.  For example, community education on budgeting, loan information, or general banking services might be offered or expanded.

CMCA is also working to build partnerships with local employers, medical professionals, and health-focused programs to ensure that low-income people have access to health care through our Healthcare Advocate Program.

Interested in helping CMCA make an impact in your community?  Click here to learn more.

Action Plan

FY22 Quarter 1 Updates

Key Updates:  

  • Working on hiring a complete FOC team to develop an incentive plan for members.  Partnering with Rural LISC for funding to support efforts.

On Target?  

Challenges:  

Strengths:  

Changes needed?  

FY22 Quarter 2 Updates

Key Updates:  

  • Jan 2022 - Recently signed contract with LISC - GM for second year to ensure funding is available for incentives.

Challenges:  

Strengths:  

Changes needed?  

 

PM
Q3 2022
26
63%
PM
Q2 2022
1
-67%
P
Time
Period
Current
Actual
Value
Next Period
Forecast
Value
Baseline
% Change
Why Is This Important?

Building financial management skills - such as budgeting, reducing debt, improving credit scores, starting savings plans, and investing - is an important step in becoming economically resilient. 

Net worth is a measurement based on a person's total assets minus their liabilities.  Households experiencing net worth poverty do not have enough assets to cover their basic needs for three months.  Net worth poverty limits families' abilities to become economically resilient and to invest in their future (and their children's future).  A groundbreaking study from Duke University found that that over one third of American families were net worth poor in 2019.  The national statistics for people of color were even more grim.  In 2019, 57% of black families and 50% of Latino families with children were net worth poor.

While the exact percentage of people with debt in CMCA's service area is unknown, the percentage of people with debt in collections varied from 23.9% to 35.9%, depending on the county.  The average amount of debt in collections was $2,525.  Debt impacts the amount of funds available for other spending or saving and influences credit scores.  

Establishing and maintaining a savings account is an important step in building financial resiliency.  People without savings often struggle to recover from financial shocks, or unexpected expenses that arise outside of routine bills or living expenses.  In these situations, those without savings often turn to high cost financial services, such as credit cards or payday loans, which often lead to debt and increase the difficulty of establishing a savings fund for emergency expenses.

Credit scores help determine whether or not someone can get credit, the terms on which credit is offered, and how much it will cost to borrow.  Credit scores influence nearly all aspects of life including housing, transportation, insurance, and employment.  Credit also plays a role in setting up utilities, getting a cell phone, and negotiating interest rates or refinancing.  

By developing these financial management skills in conjunction with increasing their net worth, families can significantly improve their economic resiliency and break the cycle of poverty.

Sources:

1. Gibson-Davis C, Keister LA, Gennetian LA. Net worth poverty in child households by race and ethnicity, 1989-2019J Marriage Fam. 2020.

2. Urban Institute. (February 2021). Credit Health during the COVID 19 Pandemic

3. Consumer Financial Protection Bureau. (n.d.). Why savings matters: The latest research. Consumer Financial Protection Bureau. 

4. Taylor, K. (2020, January 29). Credit score ranges and what they mean: How will the New Fico changes impact them? How to Pay For College: The Complete Guide from Nitro. 

How We Impact

The Financial Opportunity Center became active in April 2021, during the third quarter of the agency's fiscal year.  FOCs pair individuals with Financial and Employment Coaches to co-create financial freedom plans. Coaches support individuals with tools and resources that allow them to navigate the complexities of increasing income, decreasing expenses and acquiring assets.

In addition, CMCA partners with local financial institutions to expand the types of financial opportunities available to low-income individuals.  For example, community education on budgeting, loan information, or general banking services might be offered or expanded.

CMCA is also working to build partnerships with local employers, medical professionals, and health-focused programs to ensure that low-income people have access to health care through our Healthcare Advocate Program.

Interested in helping CMCA make an impact in your community?  Click here to learn more.

Action Plan

FY22 Quarter 1 Updates

Key Updates:  

  • Meetings and staff training have started with internal staff to increase member referrals.
  • CMCA has gone through the process to be approved to pull member credit scores in order to start the Twin Accounts program.

On Target?  

Challenges:  

Strengths:  

Changes needed?  

PM
Q2 2022
10
900%
PM
Q2 2022
9
125%
PM
Q2 2022
0
0%
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Why Is This Important?

In CMCA's service area, nearly 30,000 people (8%) are without health insurance.  Of those under age 65 and living in poverty, over 13,000 (20%) are uninsured.  Racial disparities are evident in access to health insurance coverage across CMCA's service area.  People who are uninsured are at higher risk of future health complications, are more likely to live with an unmanaged but treatable chronic condition, and are less likely to receive a diagnosis in earlier, more treatable stages of disease.  Those who are uninsured have higher mortality rates for treatable conditions such as heart infections, infections, and cancer than those who are insured.

          

Health Insurance Coverage by County and Race

% Uninsured Audrain Boone Callaway Cole Cooper Howard Moniteau Osage
Total, All  Races 10.8% 7.0% 9.1% 8.2% 9.9% 7.8% 14.9% 4.7%
White 10.3% 6.5% 8.5% 6.5% 10.2% 7.6% 14.8% 4.6%
Black/African American 13.1% 8.2% 26.3% 22.1% 1.5% 9.3% 54.8% 6.7%

* Data from other racial groups is surpressed due to the confidentiality risks inherent in reporting data from small numbers of people in other racial groups in several counties.

 

Nationally, 73.% of uninsured adults report that cost is the key barrier preventing them from obtaining health insurance coverage.  Similarly, one of the primary barriers to seeking needed medical or dental care is cost.  In CMCA's service area, 43.9% of people (with and without insurance) report delaying or not receiving needed medical care due to cost.  Likewise, 16.1% reported delaying or not receiving needed dental care for the same reason.  

Delayed treatment also increases the cost of health care services, as health conditions require more complex medical intervention - and therefore more expensive intervention - the longer they are left untreated.  When healthcare costs rise, so does the likelihood of falling into medical debt.  Medical debt is the top form of debt in collections.  Nationally, Americans face $140 billion in medical debt.  New annual medical debt has been reduced by nearly 50% for states that adopted Medicaid Expansion, compared to a 10% reduction for states that did not.

Access to health insurance has a greater economic impact, as well as an individual one.  Employees in poor health have less productivity than employees in good health.  Workers in poor health miss more days of work that those in good health due to their medical issues.  Nationally, health-related losses in productivity total $260 billion per year.  

CMCA coaches work with families to assist them in determining eligibility for and applying for public health coverage.  Coaches also help families receive training, education, and other supports they need to get and keep jobs with benefits such as health insurance.

Join CMCA in making an impact in mid-Missouri.

 

Sources:

1.  U.S. Census Bureau. (2021). 2019: ACS 5-Year Estimates Comparison Profiles, Tables CP03 and S2701.

2. U.S. Census Bureau. (2021). Model-Based SAHIE Estimates for Counties and States: 2018.

3.  Missouri Department of Health and Senior Services. (2021). Missouri Resident County-Level Study Profile, 2016.

4. Tolbert, J. F., Orgera, K., & Damico, A. (2020, November 12). Key facts about the uninsured population. Uninsured. 

5. Increasing access benefits everyone: Health consequences of being uninsured. National Immigration Law Center. (2017, August 28). 

6. Increasing access benefits everyone: Economic consequences of being uninsured. National Immigration Law Center. (2017, August 28). 

7. Mitchell, R. J., & Bates, P. (2011). Measuring health-related productivity loss. Population Health Management14(2), 93–98. 

8. Kluender, R., Mahoney, N., Wong, F., & Yin, W. (2021). Medical debt in the US, 2009-2020. JAMA326(3), 250. 

How We Impact

CMCA's Healthcare Advocate Program provides assistance to low-income individuals interested in obtaining health insurance for themselves and their families.  This free service offers one-on-one enrollment assistance for the Health Insurance Marketplace, Medicaid, and Medicare.  It also offers post-enrollment assistance with using health care coverage.

Head Start provides comprehensive child development and family support services to young children and their families.  Through intensive family coaching, members can set and accomplish goals that lead to increased self-sufficiency.

BRIDGE is a unique program that brings families, schools, and communities together to strengthen outcomes for children.  The program supports social and emotional health in the family, engages teachers in activities that lead to classroom success for students, develops relationships between families and their schools, and connects a community of support to both families and their children.  Through family coaching, members receive supports to meet their family goals in order to positively impact their children's success in school.

Interested in helping CMCA make an impact on your community?  Click here to learn more.

Action Plan

FY22 Quarter 1 Updates

Key Updates:  

  • Healthcare Advocates have been out recruiting with community partners, participating in training, assisting with Medicaid expansion applications, and assisting with enrollments in the ACA Marketplace.
  • Events where the Healthcare Advocates have promoted Medicaid Expansion and Marketplace include Family Impact Center’s Wellness Day, Rock the Community Resource Fair, MU Health Fair.
  • Shared information with partners including Medzou, Columbia Housing Authority, Twin Towers in Columbia, and the Moniteau Related Service Council.
  • Program Officer present to the City/County Health Department Board of Health meeting on Medicaid Expansion efforts.

On Target?  

Challenges:  Medicaid expansion applications are taking up to 8 weeks for approval, causing a delay in data from the time of application to when they can be counted as approved for health insurance.

Strengths:  

Changes needed?  

PM
Q2 2022
19
-14%
PM
Q3 2022
26
63%
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