In his presentation at FDIC’s Foreclosure Symposium, Dr. Raphael Bostic (Lusk Center for Real Estate, University of Southern California) discussed, at length, some of the factors responsible for the current economic crisis. He covered many topics throughout his insightful presentation; among them was the importance of financial education as a long-term solution for helping families make better, more informed financial decisions (prevention). Dr. Bostic caught me off guard with this comment (in a good way). I was pleasantly surprised to hear someone at his level advocating a service many of the people I work with have been advocating for years. His presentation made me think back to the foreclosure prevention workshop, which I volunteered at a few weeks prior. Hosted by LA Neighborhood Housing Services, the event drew hundreds of homeowners from Downey and the surrounding communities. This being the first time I ever volunteered at such an event, I expected the day to be emotional and somewhat stressful—I prepared myself mentally on the short drive to the venue. The event started off hectic, but eventually, the staff and other volunteers had everything under control.
At the event, I took the opportunity to engage participants in discussions ranging from the weather to their specific financial dilemmas. I was surprised to find how willing many of them were to share their experiences with me (a stranger)—some were, obviously more vocal than others about how they arrived at this event. Many of the people I talked to as they left the event expressed how relieved they were to finally connect with a real person. I was especially surprised to find that less than half of the people I talked to (+/-40) never clearly understood how to maintain a household budget, or knew about community-based organizations offering financial education services in their community. In the end, I completed my volunteer assignment with an increased understanding of the needs for this particular community.
It has been almost three weeks since the foreclosure prevention event. Last Friday, August 1, I attended a First Four Fridays meeting at the Federal Reserve Bank of San Francisco in Downtown LA. Marguerite Womack (United Way of Greater LA) and Melody Winter Nava (Federal Reserve Bank) were our hosts. Coincidently, the topic for this meeting was financial education. At this meeting, Melanie Stephens (Centro Latino de Educacion Popular) and Victor Ramirez (Citi) conducted separate, but equally compelling presentations dealing specifically with this concept: Melanie discussed the development of a culture of awareness while Victor highlighted best practices and successes of Citi’s commitment to supporting financial education programs worldwide.
The vibe in the room, in my opinion encompassed collaboration—not the kind that develops for the sake of collaboration, but the kind fueled by an actionable sense, purpose, and resolve. Along with initiatives like Bank on LA, FDIC’s Alliance for Economic Inclusion, and the Greater LA EITC Campaign Partnership, the negative effects of the economy are forcing a window of opportunity—one that strengthens the collective momentum needed to align and leverage resources to create change. Together, these groups have the power bring their respective constituencies together; united, they will, in my opinion, ensure that communities are well informed and given access to the resources to make educated decisions about their finances.
I always look forward to attending events like the ones I’ve mentioned in this blog. While at the Federal Reserve Bank, (who, by the way serve an outstanding breakfast) I had the distinct pleasure of meeting Liana Molina from California Reinvestment Coalition. After meeting Liana, I visited CRC’s website and learned about all the work she and her agency are doing throughout the state. Also on CRC’s site, I found a video (Mo\' Money, Mo\' Money, Mo\' Money: How Greedy Corporations Destroy the American Dream) on foreclosures and payday lending (I recommend it as you might see some service providers you recognize—doing great work!).
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