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Tri-Town has been awarded a Financial Literacy Grant
United Way of Rhode Island has donated funds
Tri-Town Community Action Agency has been awarded a grant to provide financial literacy skills to low and moderate income families. Services will also be at South County Community Action Agency. The goal of the program is to provide clients with knowledge of banking basics, budget development/budget maintenance skills, and strategies to identify and increase savings.
Financial counselors will use the "Money Smarts" curriculum developed by the Federal Deposit Insurance Corporation (FDIC). Tri-Town and South County have been using this curriculum for the past three years to successfully increase financial literacy outcomes for low and moderate income individuals. The curriculum is designed to be delivered in a one-on-one or classroom setting and requires no prior teaching or financial literacy knowledge. Instructors are trained to facilitate the modules and help guide participants to their own individual financial goals. Although "Money Smarts" incorporates 10 modules covering a variety of financial literacy skills, service members will be trained to deliver the following three modules:
- Bank On It - Identify the major types of insured financial institutions; identify five reasons to use a bank; describe the steps involved in opening a bank account; describe two types of deposit accounts; identify additional bank services that come with deposit accounts.
- Money Matters - Track daily spending habits; prepare a personal spending or budget to estimate monthly income and expenses; identify budgeting tools that will help you manage your bills; list and prioritize financial goals; recognize how to create a plan to achieve financial goals.
- Pay Yourself First - Explain why it's important to save; determine goals toward which you want to save; identify savings options; determine which savings options will help you reach your savings goals; recognize investment options that will work for you; list ways to save for large-expense goals, including college tuition, car or home purchase, or a vacation.
In past Financial Literacy Programs, Tri-Town has found that client results increase when the program focuses on specific goals and topics versus general concepts and ideas. Focusing on specific concepts and tasks allows clients to establish interim goals that they can then work toward to achieve their desired outcomes. A recent paper by the Federal Reserve Bank of Cleveland confirms this by noting that "highly targeted programs, unlike general programs, tend to be effective in changing financial behavior, both in the short run and the long run (suggesting that) programs should be highly targeted toward a specific audience and area of financial activity."
In response to these findings, Tri-Town will provide clients with highly specific, short-term goals such as opening a savings account, creating a monthly budget that includes savings, and using those savings to build assets leading to increased financial stability. These short term goals will help clients achieve small doses of success and keep them moving toward higher levels of financial knowledge and stability.
For more info, contact us at 401-351-2750.
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