Financial Fitness in the Roanoke Valley
From there to here...
T
en years ago the poverty rate in the state was 9%, compared to 15% in Roanoke - a gap of 6 points.
The latest DSS report shows that poverty has increased statewide to 11%, but is now 22% in the City of
Roanoke - a gap of 11 points.
During that same period, the unemployment rate gap also grew. It went from about 3.8% in both the city
and the state in 2001 to about 8% in the city and 6% in the state in 2011. It has become apparent that now
is the time for businesses, government and non-profits to come together to strengthen our local economic
development efforts.
Over the past 10 years, many programs addressing financial stability and the financial education needs
of our community have been offered to the public in Roanoke. Programs like Total Action Against Poverty’s
Individual Development Accounts (IDA), Volunteer Income Tax Assistance (VITA) tax preparation assistance
clinics, and Responsible Rides (details on page 2) help low-income families and individuals to gain access,
save and utilize their dollars. Financial education is offered to and/or required of participants in many
community programs addressing financial stability (i.e. - employment, income and basic needs support).
In addition to these programs, financial education classes, which are free and open to the public, have
been offered over the years by multiple financial institutions. Many have found that, while the need for
financial education is great, the attendance at free financial education courses has often been lacking.
Today in Roanoke...
T
he Roanoke Valley Financial Fitness Coalition (RVFFC) was recently formed to assist with coordination
of free and open-to-the-public financial education with local organizations, and more specifically, with
nonprofits who can connect their clients with these free opportunities. RVFFC’s steering committee is
comprised of representatives from the City of Roanoke, SunTrust, Freedom First Credit Union, United Way
of Roanoke Valley, Big Brothers Big Sisters of Southwest VA and the Virginia Cooperative Extension.
We are committed to implementing proven strategies that build the income and net worth of all local
residents and local businesses alike to grow our income per capita ratio and the desirability of the
Roanoke market to a variety of industries. In order to do this, we must be willing to research and be open
to change and working with non-traditional partners in the community.
We are currently beginning local market research in Roanoke City to better determine specific reason
that 9.1% of our population is unbanked and 21% is classified as underbanked (joinbankon.org). Within
some census tracts, up to 24% percent of the population is unbanked, leading to increased use of pay-day
lenders and other types of high-interest credit lenders. Using the information we collect through a door-todoor survey, we will be able to determine how Roanoke can implement a Bank On program to build income
stability in our residents and businesses. For more information please contact Amy Petersen at amy@
uwrv.org.
Financial Fitness in the Roanoke Valley
Programs and Coalitions...
Roanoke Valley Financial
Fitness Coalition
The Roanoke Valley Financial Fitness Coalition was
established in 2011 to respond to the needs of residents in the City of Roanoke and beyond to have access
to free financial education and resources. The Coalition is a partnership between the City of Roanoke,
local financial institutions, and non-profit groups to bring together existing financial education training
opportunities and community financial education training needs. Please follow the link to the RVFFC
website for a schedule of classes. https://sites.google.com/site/roanokevalleyffc
Individual Development Accounts
In June 2001, Total Action Against Poverty (TAP) started the Individual Development Accounts (IDA)
program, a unique and innovative way to help families with limited income become first-time homeowners,
start a small business or go to school. Participants set up a custodial account at a local participating bank.
Participants save at least $20 per month for at least 6 months, attend financial education classes and
receive assistance in becoming a homeowner, small businessperson or going back to school. After they
have fulfilled the requirements of the program and reached their savings goal, funds are withdrawn from
their account and combined with TAP’s $2 to $1 match to be paid to the appropriate vendor (i.e. mortgage
company, business equipment company or college). tapintohope.org
Money Mondays and Financial Education
Money Mondays is an ongoing series of free seminars
and workshops to help people with the facts and practical
skills to better manage their money, get and stay out of
debt, and afford the lifestyle we all want. Currently, Money Mondays also educates Habitat for Humanity
soon-to-be homeowners and IDA program participants. All Seminars are FREE and Open to the Public.
http://offices.ext.vt.edu/roanoke/programs/fcs/Money_Mondays_Fall_2012.pdf.
Roanoke Valley Financial Fitness Fair - Get your finances in shape and build a stronger future for your
family. Attend Free workshops to help you save more! Test your financial knowledge with games and
activities for children and adults! Enter drawings for door prizes. Get a copy of your credit report. Get your
taxes completed for free!
Financial Fitness in the Roanoke Valley
Programs and Coalitions...
Bank On Roanoke
Bank On is just one of many proven strategies that can be implemented quickly to increase people’s
incomes and promote economic development. Bank On is an approach that is being considered as United
Way and other government and business partners look for proven strategies that could be developed and
implemented here in Roanoke. A bank or credit union account is the first step to saving and planning for
the future - but over 6,500 households in our area don't have one. If you are interested in learning more
about the Roanoke Valley banked and unbanked statistics, you can go to joinbankon.org and research
Roanoke. There are statistics and an interactive map of unbanked and underbanked by census tract.
Responsible Rides
Every year low income families try to buy vehicles, but are unable to because of debt, credit challenges
and a lack of basic financial education. Families dealing with limited income need their dollars to be used
wisely. Because of this identified need in the community Freedom First Credit Union, TAP, NRCA, and
Enterprise Car Sales have partnered to develop a car purchase program for low income families called
Responsible Rides. Basic financial education is a required offering for participants and cars are selected
for reliability, mileage, and affordability from the Enterprise fleet list.
Affordable financing and education is available through Freedom First
Credit Union. tapintohope.org
“My Situation was very difficult without reliable
transportation. I am a single mom of eight, who works
full time and I have an older van than is unreliable and in
constant need of repair…..Now, with my new 2009 Mazda
van, I am able to have a feeling of safety for my children,
and we can actually ALL fit in and go places together. With
this transportation, I will be able to get my children to
daycare so that I can work.”
Volunteer Income Tax Assistance Programs
TAP Tax Assistance Project provides FREE tax preparation services to help people access valuable tax
credits such as the Earned Income Tax Credit. TAP offers this service to individuals and families with
incomes less than $51,000 through a tax clinic that is open on evenings and weekends from mid-January
to April. This Project is in partnership with the IRS and Virginia Community Action Partnership (VACap)—
We are an official IRS VITA (Virginia Income Tax Assistance) Site! TAP's free tax clinic is made possible by
the generous support of many volunteers whose contributions allow TAP to operate its clinic free of charge,
and helps to bring hundreds of thousands of dollars in returns and credits to working families in Roanoke.
tapintohope.org
Financial Fitness in the Roanoke Valley
Onward...
A
s Roanoke continues to build programs that address goals and outcomes it wishes to achieve with
regards to Financial Fitness and Economic Development, the community will need to research and
model successful initiatives and best practices in other communities. What many of the outstanding
initiatives have in common is that they work under the framework of “Collective Impact.” To do this
Roanoke will need to tighten relationships across private, public, government, non profit and for profit
sectors and, as a community, work together towards shared outcomes and data measurement against
a common goal. Working together to create a strong financial education and support system through
collective impact is a challenging, yet worthwhile, endeavor that could spell the difference for families in
the Roanoke Valley!
Collective Impact Initiatives are long-term commitments by a group of
important actors from different sectors to a common agenda for solving a
specific social problem. Their actions are supported by a shared measurement
system, mutually reinforcing activities, and ongoing communication, and are
staffed by an independent backbone organization.
- John Kania and Mark Kramer, “Collective Impact” – Stanford Social Innovation
Review, Winter 2011
Special Thanks To...