Policy & Practice June 2015

Figure 2

Source: Building Financial Capability: A Planning Guide for Integrated Services (Washington, D.C.: Department of Health and Human Services and CFED, 2015).

workforce counselor, there is immense opportunity to integrate financial conversations and actions that lead to a change in financial behaviors and outlook. Research continually shows the benefit of providing multiple services to boost overall financial outcomes. A 2009 evaluation by Abt Associates showed that clients who received multiple services were three to four times more likely to achieve a major economic outcome, such as a job attainment, increased income, or increased savings, compared to those who only received one service. Workforce Development Programs Have Multiple Options to Deliver Financial Capability Services CFED, a Washington, D.C-based nonprofit dedicated to expanding economic options for low-income com- munities, has identified three models that different community organiza- tions and social service agencies have adopted to integrate financial capa- bility into their core service model. Š Š Refer. This approach involves finding organizations that provide the relevant services and setting up a process for referring clients to these services. Š Š Partner. This approach involves deeper relationships and “shared” clients. These partnerships can extend as far as co-location, where

multiple organizations are hosted at a single site with centralized intake and outcomes, so that many services can be offered in a “one-stop” setting. Co-branding can be included in this approach, despite multiple agencies providing the services. Š Š Do-It-Yourself (or DIY). This approach involves building internal capacity to embed financial capa- bility services into the existing core service model. Each of these options has advantages and disadvantages, depending on how easily clients can access the service and the resources required to implement it. The set of service delivery options that best suits a social service agency’s clients and capacity can vary widely. Implementation strategies can range from “light touch” integration, such as adding financial topics to an existing workshop, to “high-touch” integration, such as a more fully integrated model, in which many service providers organize under one roof to provide a range of financial capability and social services. The U.S. Department of Health and Human Services and CFED recently released an interactive resource, Building Financial Capability: A Planning Guide for Integrated Services, which provides a step-by-step process for service providers interested in

Workforce development programs provide a key leverage point to strengthen a household’s financial stability. Research by the Catholic University of Portugal and the Center for Research on Consumer Financial Decision Making finds that moments when people can use their finan- cial skills and knowledge—such as choosing an auto loan or filling out a direct deposit form—are ideal for con- necting them to the financial services, tools, and resources they need to make sound financial decisions. It is the most important time to create new habits, because the information and resources are relevant to a decision in their lives at that moment. This approach also allows people to put what they have learned into action immediately, as they have the skills, tools, and income to practice what they learn. This hands-on and meaningful skill-building helps boost individuals’ confidence about their ability to handle financial issues in the future, creating long-lasting behavioral change that can help stabilize house- holds into the future. Financial capability services often require providing ongoing support as clients change financial behaviors. While a one-time financial capability service such as pulling a person’s credit report or opening a bank account can be effective, it is not often associated with long-lasting behavioral changes. Rather, when someone has a long-time, trusted relationship, such as with a

See Financial Capability on page 39

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June 2015 Policy&Practice