Earn Save Succeed’s aim: Build financial literacy

United Way of Acadiana is launching Earn Save Succeed, a financial literacy program. We asked UW to respond to some questions about the program. Jason Huffman, United Way of Acadiana director of impact strategies, provided answers.

Question: What is the target audience and what is the goal of the program?

Answer: As a part of a comprehensive effort to increase the number of financially stable individuals and families in area communities, United Way of Acadiana launched a financial literacy campaign that guides Acadiana residents to Earn Save Succeed — as a path to a more secure financial future.

Earn Save Succeed is helping low-income, hardworking families build assets and strengthen financial literacy. Helping others learn how to reduce debt, build savings, budget their income and enhance job skills is just one step in breaking the cycle of poverty. When people are financially stable, it allows them to make financial decisions that benefit themselves and their families, which, in turn, benefits their community. Helping others learn how to manage their finances means a more stable community for us all.

Q: In your previous financial literacy efforts, what have you found in general about people who struggle financially? For example, are some gainfully employed but unable to manage their affairs?

A: Being financially stable puts families in a better position to handle the unexpected.

When families who are living paycheck to paycheck encounter a disaster, such as the BP oil spill, or a crisis, such as a job loss, illness or other unforeseen expenses, the effects are immediate because income is unexpectedly interrupted. Helping others learn how to reduce debt, build savings, budget their income and enhance job skills puts individuals in a better position to handle a crisis.

Currently, more than 3,600 in Lafayette alone are unbanked and rely on check-cashing services, paying more than $40,000 in transaction fees in their lifetime. Thanks to local bank volunteers, Money Smart, a free financial education curriculum, increases knowledge in budgeting and financial literacy. Last year, more than half who attended these classes accessed mainstream financial services, such as checking or savings accounts, and established a household budget.

Every year, more than $28 million in Earned Income Tax Credits go unclaimed in Louisiana. Because a local father of five gained access to free tax preparation assistance and qualified for more than $5,000, he was able to remove mold from his home, which was negatively impacting his children’s health.

More hard-working individuals and families are unable to get ahead financially. Asset-poor families lack the resources to live at the poverty level for more than three months without income. Even moderate-income families can be affected. Living paycheck to paycheck makes a family less equipped to respond to life’s obstacles. Low-to-moderate income families often struggle to build their personal savings because immediate needs take priority over longer-term financial goals. Savings, however, would give individuals the flexibility to make financial decisions that benefit themselves and their families and are critical to helping families manage crisis.

Q: Share some success stories about people who’ve done financial literacy programs and gotten their lives straightened out.

A: Accessing financial services and financial literacy programs can move individuals and families to self-sufficiency.

Gaining financial knowledge has empowered a single mom who has left an abusive marriage to obtain work, a bank account and housing, and start an emergency savings, and has helped a homeless man learn how to save enough money to secure his own residence within six months and to prepare for emergencies.

Q: Do you have local partners in this financial literacy effort? If so, who are they and how do they help?

A: United Way of Acadiana partners with organizations and businesses throughout the region to collectively impact this issue.

Partners in United Way of Acadiana’s Volunteer Income Tax Assistance — VITA — program include the SMILE agency, Acadiana High School, the ASSIST agency, Iberia Parish Library, Continuous Links, St. Mary Community Action Agency and Southwest Center for Rural Initiatives. The VITA program provides free income tax preparation assistance to individuals and families.

The Family Tree is the host site for ongoing free Money Smart classes.

Because of the FamilyWize partnership, underinsured individuals can use free prescription discount cards at many local pharmacies to save on prescription drugs.

232-HELP/LA 211 is a partner in Earn Save Succeed by referring callers to financial literacy resources and services. Earn Save Succeed is made possible by a grant from the FINRA Investor Education Foundation through a partnership with United Way Worldwide.

Q: How can people find out more about this program?

A: Earn Save Succeed aims to increase the awareness, accessibility and availability of financial education resources and services for hard-working, low- to moderate-income families and individuals. The campaign encourages people to call 337-232-HELP (4357) OR 2-1-1 for free financial tips and tools for saving, budgeting, managing credit, understanding lending, and filling taxes.

For financial education opportunities, tools and resources or to obtain more information, call 232-HELP (4357) OR 2-1-1 or visit www.UnitedWayofAcadiana.org/EarnSaveSucceed.