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Financial Stability Partnership

Help for Struggling Individuals and Families

Financial stability is a key component of a strong, self-sufficient individual or family. Valley of the Sun United Way’s efforts to improve financial stability begin with tools and strategies that help individuals and families increase and maximize their income in order to meet daily expenses, as well as to begin the longer-term process of saving and building assets.

Quality financial education coupled with access to low-cost mainstream bank products can help place individuals on a more stable financial path. A large number of Arizonans face barriers in accessing mainstream financial services, which leaves them particularly vulnerable in times of crisis. A bank account provides access to savings and reasonable loans, avoiding costly alternatives that can charge high fees and interest rates, such as refund anticipation loans, check cashing services and payday loans.

Valley of the Sun United Way recently brought together financial institutions and local nonprofits to create a Financial Stability Partnership.  The Partnership will launch a pilot project in two neighborhoods with a high concentration of unbanked individuals. The project will provide quality financial education, dispel the fears and raise awareness about the benefits of account ownership, and identify appropriate low-cost bank products to help residents secure and maintain a banking relationship with a mainstream financial institution.

Valley of the Sun United Way has engaged Wells Fargo, Chase, US Bank and Desert Schools Federal Credit Union as the key financial institutions to help develop and fund the pilot. In addition, two long-term United Way agencies, Friendly House and Golden Gate Community Center, have been chosen as the lead neighborhood nonprofit organizations. VSUW will partner with these nonprofits in each neighborhood to help reach out to community members in need, deliver financial education, cultivate relationships with participating financial institution branch managers and provide training and technical support.

This pilot project will create and develop the framework for a statewide program and will assist VSUW in meeting its goal of empowering 100,000 individuals in Maricopa County to become more financially stable by 2020.