Pilot program will support low-income Milwaukee residents in asset-building, economic mobility
Havenwoods Neighborhood Partnership (HNP) announced a commitment by the PNC Foundation and the Johnson Controls International Corporation’s Foundation to help fund the launch of a new program, Raising Wealth – Individual Development Account (IDA). The pilot program is designed to provide low-income Milwaukee residents with financial education and mentoring to support economic mobility, including a match incentive as a channel to build wealth through a special IDA savings account.
“Financial security can be an overwhelming goal for many in our community,” said Stephanie Harling, HNP executive director. “For those earning low wages or caught in the never-ending cycle of paying down debt, this program provides an opportunity to build their financial acumen and identify a path out of poverty.”
Individual Development Accounts are special, matched savings accounts designed to help participants begin saving with a pre-determined goal to help them build their personal assets. A “savings match” is a promise by HNP to match a participant’s savings at a specified rate. For every dollar that is saved, HNP, with the support of PNC Foundation and Johnson Controls Foundation, will match with the rate dependent on the participant’s goals. This goal can be as little as $20 per month. PNC will hold the custodial accounts.
The HNP program addresses a significant need in neighborhoods where the lack of access to affordable, financial services and resources creates challenges for residents with modest means and low wages seeking economic mobility. More than 11% of Milwaukee’s residents, approximately 40,000, are unbanked according to Bank On Milwaukee, an organization dedicated to collaborating with financial institutions, community-based organizations and local government to ensure that all residents have the opportunity to be financially healthy.
“Creating and nurturing an evolving banking relationship is critical to how PNC looks to help communities move forward to achieve financial wellness and economic mobility,” said Marquita Hicks, PNC Community Development Banking relationship manager in Wisconsin. “This pilot program has the potential to create an impactful pathway for wealth accumulation, good spending habits and other positive outcomes such as future home ownership, a car purchase or the pursuit of higher education to attain better employment.”
Asset building goals for the Raising Wealth IDA program are: auto purchase, debt relief, homeownership and higher education. Participants are required to complete financial education with financial education partner, Jackie Carter of YWCA of Southeastern Wisconsin. A maximum of 10 Milwaukee residents age 18 and above are eligible to participate in the two-year program. Johnson Controls, Inc. Foundation has also invested in this program to assist with operations.
“Many of our participants are single-parent households. This IDA special matched savings incentive is not only a great vehicle to help put money in their pockets it also creates a new level of financial acumen when supplemented with education and mentoring. Our approach to move people out of poverty is to provide them with opportunities that pivot them to a new level of financial wellness and active asset-building,” added Harling. “This is how we can make a high impact on the economic welfare of our Havenwoods families.”
The four-week in-person financial education course launched in late January. For more information and registration assistance, please call the Havenwoods Hotline at 414-431-2271.
About PNC Foundation
The PNC Foundation, which receives its principal funding from The PNC Financial Services Group (www.pnc.com), actively supports organizations that provide services for the benefit of communities in which it has a significant presence. The foundation focuses its philanthropic mission on early childhood education and community and economic development, which includes the arts and culture.
About Johnson Controls Foundation
The JOHNSON CONTROLS FOUNDATION (Foundation) is organized and directed to be operated for charitable purposes which include the distribution and application of financial support to soundly managed and operated organizations or causes which are fundamentally philanthropic.
About Havenwoods Neighborhood Partnership
Since 2012, Havenwoods Neighborhood Partnership (FKA Havenwoods Economic Development Corporation) has operated as a non-profit 501c3, dedicated to sustaining the economic health of the Havenwoods Community on Milwaukee’s far northwest side. For more information, visit www.havenwoods.org.
Source: communityjournal.net
