January 2016 Newsletter
RAISE Texas News
Save the Date: RAISE Texas Summit May 11-12, 2016
The 2016 RAISE Texas Summit and workshops “Building Financial Success for Texans: In Schools, The Workplace and Our Communities” will be held on May 11- 12, 2016 at the Federal Reserve Bank of Dallas in Dallas, Texas. We will be discussing the latest cutting-edge information on:
- Financial coaching,
- College savings accounts for children through schools,
- Small dollar loan alternatives,
- Implementing asset-building products and programs in the workplace.
Get Ready for the 2016 RAISE Texas Membership Drive
RAISE Texas wants to wish everyone a Happy New Year and to take a moment to personally thank you for your continued commitment to helping us build what we believe is a true savings revolution in Texas. RAISE Texas is dedicated to continue our state policy work and community outreach efforts to reach all parts of the state. Your support is crucial to our success. We can't do it without you!
In February, we are going to kickoff the 2016 RAISE Texas Membership Drive. RAISE Texas Bronze and Gold Members enjoy discounts and scholarships such as for the 2016 RAISE Texas Summit and Workshops just four months away! Our goal is to have 20 new members by March 1 when summit registration and scholarship applications will be available. Membership is easy and affordable, starting at as little as $75 for individuals, $250 for nonprofits and government agencies, and $1,000 for for-profits. We hope you will consider becoming a RAISE Texas Member!Texas News
Houston Chronicle: Fewer Texans Fall Behind on Mortgage Payments
At the end of 2015, the 60-day mortgage delinquency rate in Texas was forecast to be 2.29 percent, down from 3 percent in 2014 and 5.57 percent in 2009. Transunion recently reported that consumer lending nationwide might be fully recovered from the recession by the end of 2016, and that in Texas the mortgage delinquency rate is predicted to drop to 1.79 percent. Ezra Becker, vice president of research and consulting for TransUnion pointed out that “consumers nationwide have better access to credit and that they’re using it responsibly” as one of the reasons for this positive trend. Read the entire article here.
Texas Health Care Guide Now Available
Center for Public Policy Priorities launched TexasHealthCareGuide.org, a new online guide to enrolling in and keeping health coverage. This comprehensive website can help with choosing plans, applying for coverage, getting health insurance-related tax help, and more. Click here to access the guide.National News and Resources
Employee Satisfaction Impacts Worker Productivity
Jet.com, a start-up in the United States e-commerce market, is using employee happiness as the way to separate itself from all of the failed companies and hopefully help itself become a major force in the industry. Jet employees receive perks like: free food, four months of paid parental leave, an ownership stake that has the potential to be worth a lot one day, and unlimited vacation. Click here to read The New York Times article about Jet.com and its employee satisfaction practices.
Campaign for Postal Banking Push for Low-Cost Financial Services at U.S. Post Offices
Recently the Campaign for Postal Banking, a coalition of national consumer, labor and civic organizations delivered petitions to Postmaster General Megan Brennan urging her to establish basic banking services in the 30,000 U.S. post offices. The petitions had more than 150,000 signatures. Since the U.S. Postal Service is the biggest seller of money orders in the country, the coalition feels that it can fill the critical need with more than 30,000 locations across the country and the authority to offer banking services with Congressional approval. The campaign is expected to ramp up this year. Read the entire article here.
Congress Approves Budget with Community Tax Assistance Funding
Last month Congress passed a $1.1 trillion budget deal that included an agreement to make the recent improvements to the Earned Income Tax Credit (EITC) and Child Tax Credit (CTC) permanent. The budget deal also has a 25% increase ($3 million) to the Volunteer Income Tax Assistance (VITA) program! This tax deal ensures that 16 million families, including 8 million children, will have the opportunity to be lifted out of poverty and have access to increased financial stability. These provisions are a major achievement and we would like to thank all of the organizations and individuals that fought hard in their advocacy efforts! Click here to read about all of the tax provisions in the budget deal.
Report on Impact of EARN’s TripleBoost Microsavings Program on Families’ Education Savings Available
Last month, EARN released a report on their randomized control trial, “Saving 10x for Education: The Impact of Earn’s TripleBoost Microsavings Program on Families’ Education Savings”. TripleBoost is a program designed to help working families save for their children’s education over a 24 month period. The report shows that families in the program saved an average of $681 for their children’s education during the 6-month study period. This amount is more than 10 times the average amount saved by families in the control group, which was $67 according to the report. In fact, 90% of families in the TripleBoost program saved $500 or more, while most families in the control group didn’t save at all. Click here to read the report.
Student Debt Repayment is the Hot New Company Benefit
Companies that are hiring lots of college graduates are hoping that offering student loan repayment programs as a benefit will help with campus recruiting to attract and retain the best workers. These programs don’t cover the employees’ entire debt, but some help cover monthly payments and others offer a meaningful lump sum payments throughout the employee’s time with the company. One of the main advantages to using benefits like student loan repayment programs is that it is easier for a company to cut a benefit during economic hardships than it is to cut salaries. Although these programs have advantages, they are still relatively uncommon given that the Society for Human Resource Management’s 2015 Employee Benefit Survey found only 3 percent of over 450 companies were offering these programs as part of their benefit plans. However, a recent survey by lontuition showed that student loan repayment programs are a coveted perk with 80 percent of the 1,000 people surveyed wanted to work for a company that offers this benefit. Click here for more information on this new trend.
Too Many Families Don’t Believe They Can Move Beyond Their Current Financial Struggles
In a new book, What It’s Worth: Strengthening the Financial Future of Families, Communities and the Nation, contains essays that reveal why the financial health of every household matters for the U.S. economy, and provides evidence that too many families don’t believe they can get past their financial struggles. In an NBC News online poll, nearly 60 percent of Americans said that today’s children in the United States will grow up to be worse off than they are, and 48 percent say they are just making ends meet. This book shows the need to shift this mindset by trying to integrate improved financial health efforts into a range of initiatives and policies. Click here for more information on how we can do this.
