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Achieving Long-Term Economic Well-Being: Budgeting and Saving

Achieving Long-Term Economic Well-Being: Budgeting and Saving

June 13, 2022

On May 23rd Insights began the exploration of the process involved in helping individuals we serve achieve long term economic well-being. In the past weeks we have considered attitudinal barriers, goal setting, and becoming financially literate as highlighted below.

Step One is the identification and elimination of the attitudinal barriers and limiting beliefs that hold us back. When you grow up lacking money or the resources to make enough of it, thinking that there is a shortage of resources, or watching people around you live paycheck to paycheck, you may be more likely to believe that wealth is reserved for a select few. This way of thinking is tremendously limiting and needs to change.

Step Two is setting a goal and identifying your guide. Harvest Platform compares the process to driving to a destination you haven’t been to before. What I loved about this analogy is that the vehicle to get to the destination does not matter. A station wagon will get you to the same destination just as competently as a sports car. Even walking long enough to the destination will still get you there—as long as you know where “there” is.

Step Three is to educate yourself about money—become financially literate. Being financially means you have a basic understanding of finances and that you have a grasp on the value of money. This can include everything from getting out of debt, budgeting, insurance, investments, real estate, college and retirement planning to and tax and estate planning. Financial literacy is the foundation of your relationship with money, and it is a lifelong journey of learning.

THIS WEEK WE WILL EXPLORE BUDGETING AND SAVING.

The ability to budget and save money assumes that you have a regular source of income. You cannot invest without saving money, and you can’t save money without a regular income. This is foundational—if you have no money coming in, you have no means of paying bills, saving money and building toward economic well-being.

Step Four: Budget. Creating a budget and sticking to it is crucial if you want to achieve long term economic well-being. A budget is a plan that shows you how you can spend your money every month. Making a budget can help you make sure you do not run out of money each month.

A budget also will help you save money for your goals or for emergencies. According to consumer.gov the steps to making a budget are as follows:

  • Document other expenditures for three months—to be able to see your spending patterns for things like food, entertainment, clothing, school supplies, etc. Document every penny spent—every day. This is the only way to get a real handle on your spending.

  • Document other expenditures for three months—to be able to see your spending patterns for things like food, entertainment, clothing, school supplies, etc. Document every penny spent—every day. This is the only way to get a real handle on your spending.

  • Write down how much money you make. This includes your paychecks and any other money you get, like child support.

  • Subtract your expenses from how much money you make. This number should be more than zero. If it is less than zero, you are spending more money than you make.

  • Then you need to look at your budget to see how you can cut your spending. By identifying and cutting unnecessary expenses, your journey to economic well-being will be shorter—not short but shorter.

Step Five: Save.  According to Harvard Business Review, the budgeting technique 50:30:20 is a very effective strategy for building economic well-being. In this technique, you formulate a budget where 50% of income goes to essential expenses (rent, mortgage, food, healthcare), 30% to non-essentials like shopping, vacation, entertainment, and 20% to savings and investments.

While saving 20% of your income might be too lofty a goal for now, the process of trying to save 20% tells you that there are many opportunities for cutting down on expenses that you probably have not yet considered. Remember, it is not about how much you make but how much you keep.

Keep your savings in a different place than you keep your spending. Open up a savings account and as much as possible, only add money. While you may need to tap your savings for emergencies or unanticipated expenditures—and having the money available is a very good thing—the goal is to build sizeable savings that you can in turn invest to grow your money even more.

These five simple steps are the foundation for economic well-being. While they require discipline, the short- and long-term benefits are measurable and make a profound difference.

As always, I welcome your thoughts.

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Matthew Kelleher Finds a Home, a Mentor and a Job at Community Work Services

Matthew Kelleher Finds a Home, a Mentor and a Job at Community Work Services

At Community Work Services, Matthew Kelleher found just what he needed, at just the right time—a mentor, a family-like atmosphere, and a sustainable job.

Growing up in Springfield, MA Matthew has seen a lot of violence in his life, and as a young man lived with the feeling that each day could be his last. After his older brother passed away in 2010, he fell into a cycle of drug abuse that would spiral out of control. “My brother was everything,” Matthew said. “I had two young kids and I wasn’t a father figure at all.”

Matthew was involved with the criminal justice system during those years, incarcerated for a time and sent to rehab programs. In early 2020 he relapsed during a visit to his hometown, MA, but this time he was hospitalized under a civil commitment order. Shortly after that he had what he called a spiritual awakening—he was “sick and tired of being sick and tired.”

“Something changed,” Matthew said. “I stopped worrying, stopped thinking about ways to get out of the program. I just did what I knew I needed to do.”

After leaving the hospital, while living in a halfway house and participating in recovery services, Matthew was referred to CWS. He met the trainers and team, and also Tim Muise. An inspiration to many, Tim, who serves as Program Coordinator for CWS, gave a speech that still resonates with Matthew—don’t let the past define you, and today is first day of the rest of your life.

Tim shared his own story about being a returning citizen—how after a lengthy prison sentence he came to CWS and today is not only the agency’s Program Director, but also an inspiration and mentor to others who may have made bad choices but are looking to turn their lives around.

“I was already motivated, but for him to say that he was showing me another person who has made it, who has turned their life around, it really challenged and motivated me even more,” Matthew said

Matthew Kelleher (left) and Tim Muise of CWS

Matthew will never forget August 30th 2021; it’s the day he began the commercial cleaning training program–and also enrolled in an online university program to earn a Bachelor of Arts degree in psychology. As he made the rounds during training and met just about everyone on the agency’s six floors, Matthew was struck by the fact that no matter where he went, it felt like family. “I saw how much everybody cared about us as people and participants.”

Even after his graduation from the Commercial Cleaning Program, Matthew still sought out the supportive, family-like atmosphere at CWS, returning each day to serve as a volunteer and to maintain his daily routine. Tim could see how serious Matthew was about changing his life, so when a position opened up for supervisor in CWS’ Commercial Production program, he offered Matthew the job. It was a wise choice.

“Matthew was an excellent trainee, and he took our program model to heart,” Tim said. “He has really good acumen with clients, can work with anyone, and he is a very gentle and kind person who wants people to succeed.”

“I snatched the job right up,” Matthew said, “I had a habit of limiting myself, and settling for things, but Tim helps me see you can do anything you want in life. Every day, he sends out awesome and encouraging emails.

As Supervisor of Commercial Production, Matthew had the opportunity to meet many participants in CWS programs, including many with disabilities, and it really opened his eyes. “To be able to help them, and to see how hard they want to work, I am speechless. Giving back to these great participants that’s why I wake up every day and I look forward to coming here.”

Matthew’s natural empathy and skilled ways of interacting with participants were recognized within the CWS family, and he was offered a job as Case Manager. “It’s awesome to be able to help guide people to the right direction in life, and help them get back into the workforce. At CWS they find your best qualities and make use of them.”

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Achieving Long-Term Economic Well-Being

Achieving Long-Term Economic Well-Being

June 6, 2022

On May 23rd, Insights began exploring the process involved in helping individuals we serve achieve long term economic well-being. We considered attitudinal barriers and goal setting. 

Step One is the identification and elimination of the attitudinal barriers and limiting beliefs that hold us back. According to a study conducted at Purdue University, many of our financial habits are formed by age seven. That means our feelings about money are largely influenced by how people around us talked about or behaved around it. When you grow up lacking money or the resources to make enough of it, thinking that there is a shortage of resources, or watching people around you live paycheck to paycheck, you may be more likely to believe that wealth is reserved for a select few. This way of thinking is tremendously limiting.

Step Two is setting a goal and identifying your guide. Harvest Platform compares the process to driving to a destination you haven’t been to before. What I loved about this analogy is that the vehicle to get to the destination does not matter. A station wagon will get you to the same destination just as competently as a sports car. Even walking long enough to the destination will still get you there—as long as you know where “there” is.

Step Three is to educate yourself about money. Being financially literate or “having financial literacy” is not difficult to define. It simply means you have a basic understanding of finances and that you have a grasp on the value of money. As in any educational pursuit, the more you study the more you know, and in time you will become familiar with essential terms like income, expenses, net worth, return on investment, and more.

According to Athene, being financially literate means having the knowledge and confidence to efficiently and effectively manage, save and invest money for you and your family. This can include everything from getting out of debt, budgeting, insurance, investments, real estate, college and retirement planning to and tax and estate planning.

Financial literacy is the foundation of your relationship with money, and it is a lifelong journey of learning. The earlier you start, the better off you will be because education is the key to success when it comes to money.

“Everyone has the ability to build a financial ark to survive and flourish in the future,” said Robert Kiyosaki, business magnate and author of Rich Dad, Poor Dad. “But you must invest time in your financial education to build an ark with a solid foundation.”

Financial education must be a continuous activity and according to Kiyosaki should involve one or more of the following tasks:

• Surround yourself with experts—virtually or otherwise and ask questions—a lot of questions. Some basic questions might include:

o How do I understand my pay stub?
o How do I calculate my monthly expenses?
o How much do I pay in taxes?
o How do I start saving?
o How do I calculate my net worth?

• Subscribe to financial newsletters—many are free.

• Listen to financial podcasts and read books; the library offers a wealth of learning opportunities.

• Understand your own spending patterns. (We will focus more on this next week).

Lack of financial capability can make it hard to make important financial decisions like opening the right kinds of bank accounts, understanding the process of saving, long-term planning for retirement, and paying off personal debts including student loans or credit cards.

Whatever your current level of financial literacy, it’s important to keep your knowledge base growing. Any step toward getting a better handle on your financial situation is a step in the right direction. The key is to just start. Knowledge is power and the more you know about the basics of money, the smarter your financial decisions.

Next week we will delve into the process of budgeting and money management.

As always, I welcome your thoughts.

6 junio 2022

Lograr el Bienestar Económico a Largo Plazo

El 23 de mayo, “Insights” comenzó a explorar el proceso implicado en ayudar a las personas a las que servimos a lograr el bienestar económico a largo plazo. Se consideraron las obstáculos de actitud y el establecimiento de objetivos.

El primer paso es la identificación y eliminación de los obstáculos de actitud y las creencias limitantes que nos detienen. Según un estudio realizado en la Universidad de Purdue, muchos de nuestros hábitos financieros se forman a los siete años. Eso significa que nuestras impresiones sobre el dinero están influenciadas en gran medida por la forma en que las personas que nos rodean hablaban o se comportaban acerca de ello. Cuando creces tanto sin dinero como sin los recursos para ganar lo suficiente, pensando que hay una escasez de recursos, o mirando a las personas a tu alrededor vivir de cheque en cheque, es más probable que creas que la riqueza está reservada para unos pocos seleccionados. Esta forma de pensar es tremendamente limitante.

El segundo paso es establecer una meta e identificar tu camino. Harvest Platform compara el proceso con el de conducir a un destino en el que no ha estado antes. Lo que me encantó de esta analogía es que el medio para llegar al destino no importa. Una camioneta te llevaría al mismo destino de la misma manera que un automóvil deportivo. Incluso caminar el tiempo suficiente hasta el destino aún te llevaría allí, siempre y cuando sepas dónde está el “allí”.

El tercer paso es educarte tu mismo/a acerca del dinero. Tener conocimientos financieros o “tener educación financiera” no es difícil de definir. Simplemente significa que tú tienes tanto una comprensión básica de las finanzas como una comprensión del valor del dinero. Como en cualquier actividad educativa, cuanto más estudies, más sabrás, con el tiempo te familiarizarás con términos fundamentales como ingresos, gastos, patrimonio neto, ganancias de la inversión y más.

Según Athene, tener conocimientos financieros significa tener el conocimiento y la confianza para administrar, ahorrar e invertir dinero de manera eficiente y efectiva para ti y tu familia. Esto puede incluir todo: desde salir de la deuda, presupuestos, seguros, inversiones, bienes raíces, planificación universitaria y de retiro y hasta planificación fiscal y patrimonial.

La educación financiera es la base de tu relación con el dinero, y es un trayecto de aprendizaje de por vida. Cuanto antes comiences, mejor estarás porque la educación es la clave del éxito cuando se trata de dinero.
“Todo el mundo tiene la capacidad de construir un arca financiera para sobrevivir y florecer en el futuro”, dijo Robert Kiyosaki, magnate de los negocios y autor del libro “Rich Dad, Poor Dad”. “Pero debes invertir tiempo en tu educación financiera para construir un arca con una base sólida”.

La educación financiera debe ser una actividad continua y según Kiyosaki se debe tener en cuenta una o más de las siguientes tareas:

• Rodéate de expertos, ya sea virtualmente o no, y haz preguntas, muchas preguntas. Algunas preguntas básicas pueden incluir:

o ¿Cómo interpreto mi recibo de pago?
o ¿Cómo calculo mis gastos mensuales?
o ¿Cuánto pago en impuestos?
o ¿Cómo empiezo a ahorrar?
o ¿Cómo calculo mi patrimonio neto?

• Suscríbete a boletines financieros, muchos son gratuitos.

• Escuchar “podcasts” financieros y leer tales libros; la biblioteca ofrece una gran cantidad de oportunidades de aprendizaje.

• Estudia tus propios patrones de gastos. (nos centraremos más en esto la próxima semana).

La falta de capacidad financiera puede dificultar la toma también de importantes decisiones financieras; como: abrir los tipos correctos de cuentas bancarias, comprender el proceso de ahorro, planificar a largo plazo para la jubilación y pagar deudas personales; incluidos préstamos estudiantiles o tarjetas de crédito.
Cualquiera que sea tu nivel actual de educación financiera; es importante mantener tu base de tales conocimientos en crecimiento. Cualquier paso hacia un mejor manejo de tu situación financiera, es un paso en la dirección correcta. La clave es empezar. El conocimiento es poder y cuanto más sepas sobre los conceptos básicos del dinero, más inteligentes serán tus decisiones financieras.

La próxima semana profundizaremos en el proceso de la elaboracion de un presupuesto y del manejo del dinero.


Como siempre, espero tus comentarios.

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They Are Still With Us

They Are Still With Us

May 27, 2022

Today’s Insights is from our guest Colonel Sam Whitehurst US Army (Ret.), VP of Dixon Center for Military and Veterans Services. Our Dixon Center team works tirelessly every day to advance the well-being of our military, veterans and their families.

Midnight, on August 22, 2007, 10 young men marshalled together on a barren hilltop in Iraq to board a helicopter for the return trip to their forward operating base. They had just concluded a successful combat operation that had required them to remain in place for over 24 hours, with little sleep or food, while they ensured that resupply convoys were able to move safely and securely without enemy interference.

They were tired, dirty, and hungry and I’m sure they couldn’t wait to get back to our base where a hot shower and hot food awaited them. But they also knew that because of their efforts, their fellow Soldiers had been able to move freely and accomplish their key resupply mission.

But this would be their last mission. Shortly after taking off from that lonely, dusty hilltop, they along with the four helicopter crewmembers were killed when the helicopter suffered a malfunction and spun out of control into the ground.

These 14 soldiers are representative of the men and women I think about on Memorial Day. Men and women who have made the ultimate sacrifice and whose commitment and dedication to their country and to each other represent the best in all of us. They are forever part of my memories and in my heart.

Even though they are gone, they continue to live through each of us, especially their families. I’ve met the families of the 10 men who boarded the helicopter that night and it’s an experience that I will never forget. Even against the backdrop of their sorrow, their resiliency and their strength is something that to this day I try to emulate. These young men continue to be part of their families, and their families continue to be part of me.

Memorial Day is about reflecting on the service and sacrifice of our fallen comrades but is also about the perseverance and strength of the living. This is the only day where the American flag is flown at half-staff from sunrise to noon, to honor our fallen comrades, and then raised to full height from noon to sunset, to represent our living veterans and symbolize the “persistence of the nation in the face of loss.” Those that we honor on Memorial Day, are still with us, in our hearts, in our families, and in the noble work of making the lives of veterans and families better.

 

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Building Sustainable Economic Well-Being

Building Sustainable Economic Well-Being

May 23, 2022

Many of the people served by The Fedcap Group believe that creating personal wealth is simply not within their realm of possibility. They have experienced decades of generational poverty, there is no clear pathway that they can see to financial security and there are no cheerleaders telling them that they can create sustainable long-term economic well-being.
Our goal is to change this perspective and to help individuals see what is possible in their lives.

According to a 2019 report by Wealth-X, 67.7% of the world’s wealthy population were self-made. People with very little who did not fantasize about economic security, or the money they wish they inherited—they created a plan, learned, studied and worked hard.

In the next several Insights I want to discuss the critical steps involved in creating economic well-being and how The Fedcap Group is integrating these steps into our day-to-day programming. These ideas came from a variety of sources including Harvest Platform, the Balance, and Harvard Business Review.

Today I want to discuss mindset and the process of achieving economic health.

The first step is to identify and work to eliminate the attitudinal barriers and limiting beliefs that many people who grew up in poverty possess. For most of us, believing that there are enough resources and opportunities for everyone requires an intentional effort. Without a change in mindset no amount of planning or savings will matter. People have to believe that sustainable economic well-being is accessible and that they are worthy of it.

According to a study conducted at Purdue University, many of our financial habits are formed by age seven. That means our feelings about money are largely influenced by how people around us talked about or behaved around it. When you grow up lacking money or the resources to make enough of it, thinking that there is a shortage of resources, or watching people around you live paycheck to paycheck — you may be more likely to believe that wealth is reserved for a select few.

“Every day, many negative thoughts race through our minds. If we don’t learn how to filter those thoughts, we start to believe them. Eventually, they can lead to a scarcity mindset, which leads to scarcity actions, or what I call broke-ass decisions,” said Rachel Rodgers, CEO of Hello Seven and author of We Should All Be Millionaires.

For The Fedcap Group, it is important to help every person we serve see The Power of Possible in their lives. We work to uncover any emotional barriers to building wealth, and intentionally help people reframe what is possible in their lives, silencing those messages they may have heard about what they cannot do, what is not available to them and strengthen the voice that tells them what they can do and what IS available to them. This is as important as education, job training and job placement.

The second step is setting a goal and identifying your guide. Harvest Platform compares the process to driving to a destination you haven’t been to before.

First, you decide on a new destination (own a home by age 30, have $100,000 in savings by age 35) you want to drive to then you reference Google Maps, or even an old-fashioned map to guide you there (engage people who know about money and learn from them). Both the destination and the guide are made to work together. If you just have a destination but no guide it will be tremendously challenging. Similarly, if you only have the map but no destination, you’ll just wander aimlessly.

What I loved about this analogy is that the vehicle to get to the destination does not matter. A station wagon will get you to the same destination just as competently as a sports car. Even walking long enough to the destination will still get you there.

Perhaps one of the single most important aspects of achieving economic security is that it takes time. As much as we’d like it to happen overnight, for nearly everyone it is a slow and steady journey. Getting on the right track will take days, finding financial stability will take months, and building net worth will take years.

Next week I will discuss the importance of learning about money and suggest some specific steps involved in becoming financially literate.

22 de mayo de 2022

Construyendo un Bienestar Económico Sostenible

Muchas de las personas atendidas por The Fedcap Group creen que la creación de riqueza personal simplemente no está dentro de su ámbito de posibilidades. Han experimentado décadas de pobreza generacional, no hay un camino claro que puedan ver hacia la seguridad financiera y no hay portavoces que les digan que pueden lograr un bienestar económico sostenible a largo plazo.

Nuestro objetivo es cambiar esta perspectiva y ayudar a las personas a ver lo que es posible en sus vidas.

Según un informe de 2019 de Wealth-X, el 67,7% de la población acaudalada mundial fueron hechos por sí mismos. Las personas con muy poco que no se hacían ilusiones con la seguridad económica, o el dinero que desearían heredar; crearon un plan, aprendieron, estudiaron y trabajaron duro.

En los próximos “Insights”, quiero hablar sobre los pasos críticos involucrados en la creación del bienestar económico y cómo The Fedcap Group está integrando estos pasos en nuestra programación día a día. Estas ideas provienen de una variedad de fuentes, incluyendo: Harvest Platform, Balance y Harvard Business Review.

Hoy quiero hablar sobre la actitud y el proceso de lograr la salud económica.

El primer paso es identificar y trabajar para eliminar los obstáculos de actitud y las creencias limitantes que poseen muchas personas que crecieron en la pobreza. Para la mayoría de nosotros, creer que hay suficientes recursos y oportunidades para todos requiere un esfuerzo deliverado. Sin un cambio en la actitud, ninguna cantidad de planificación o ahorro importará. La gente tiene que creer que el bienestar económico sostenible les es accesible y que son dignos de ello.

Según un estudio realizado en Purdue University, muchos de nuestros hábitos financieros se forman a los siete años. Eso significa que nuestra impresión sobre el dinero está influenciada en gran medida por la forma en que las personas que nos rodeaban hablaban o se comportaban acerca de ello. Cuando creces sin dinero o los recursos para ganar lo suficiente, pensando que hay una escasez de recursos, o viendo a las personas a tu alrededor vivir de cheque en cheque, es más probable que creas que la riqueza está reservada para unos pocos elegidos.

“Todos los días, muchos pensamientos negativos aparecen en nuestras cabezas. Si no aprendemos a filtrar esos pensamientos, comenzamos a creerlos. Eventualmente, pueden llevarte a un modo de pensar de escasez, lo que lleva a actitudes de escasez, o lo que yo llamo decisiones quebrantadas”, dijo Rachel Rodgers, Directora Ejecutiva de Hello Seven y autora de We Should All Be Millionaires.

Para The Fedcap Group, es importante ayudar a cada persona a la que servimos a ver The Power of Possible en sus vidas. Trabajamos para descubrir cualquier discapacidad emocional para construir riqueza, e intencionalmente ayudamos a las personas a replantear lo que es posible en sus vidas, callando los mensajes que pueden haber escuchado sobre lo que no pueden hacer, lo que no está disponible para ellos y fortalecer la voz que les dice lo que pueden hacer y lo que ESTÁ disponible para ellos. Esto es tan importante como la educación, la capacitación laboral y la contratación laboral.

El segundo paso es establecer una meta e identificar a tu camino. Harvest Platform compara el proceso de conducir a un destino en el que no has estado antes.

Primero, tú decides un nuevo destino (poseer una casa a los 30 años, tener $ 100,000 en ahorros a los 35 años) al que deseas ir y luego utilizas el Google Maps, o incluso un mapa anticuado para guiarte allí (involucrar a personas que sepan sobre dinero y aprender de ellos). Tanto el destino como el camino están hechos para trabajar juntos. Si solo tienes un destino pero no un camino, será tremendamente desafiante. Del mismo modo, si solo tienes el mapa pero no el destino, simplemente vagarás sin rumbo.

Lo que me encanta de esta analogía es que el vehículo para llegar al destino no importa. Una camioneta te llevará al mismo destino de la misma manera que un automóvil deportivo. Incluso caminar el tiempo suficiente hasta el destino aún te llevaría allí.

Quizás uno de los aspectos más importantes para lograr la seguridad económica es que se lleva tiempo. Por mucho que nos gustara que sucediera de la noche a la mañana, para casi todos es un viaje lento y constante. Ponerse en el camino correcto llevará días, encontrar la estabilidad financiera llevará meses y construir un patrimonio neto llevará años.

La próxima semana hablaré de la importancia de saber sobre el dinero y sugeriré algunos pasos específicos implicados en la alfabetización financiera.

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Educational Access: A Critical Priority to Economic Well-Being

Educational Access: A Critical Priority to Economic Well-Being

May 16, 2022

Each year, 250,000+ people come to The Fedcap Group with barriers to long-term economic well-being. And for the entirety of our 90-year history, we have delivered a service array that integrates education and employment, underscoring our conviction that education levels the playing field for people with barriers and fundamentally increases opportunities for meaningful careers.

For anyone committed to the eradication of poverty, to justice, to equity, making education accessible must be a priority. Consider the tremendous benefits of education: 

Education changes one’s view of the world. It develops the ability to think critically and navigate the challenges one will experience in life. Students are asked to reason outside of their comfort zones. Students are required to stretch their imaginations in both oral and written work—forcing students to think differently.

Education makes us a better parent. Children from households with parents who are educated past high school rank six percentiles higher in health (including reduction in abuse and neglect) than children from households whose parents have only a primary education.

Education helps eradicate poverty and hunger, giving people the chance at better lives. According to the Global Partnership for Education (GPE), if workers from poor and rich backgrounds received the same education, financial disparity between the two in could decrease by 39 percent.

Education promotes gender equality and helps empower girls and women. A World Bank report found that an extra year of schooling for girls reduces teen pregnancy rates by six percent and gave women more control over how many children they have.

Education exposes one to diversity of people and thought, and has a history of fostering positive social change, by encouraging things like political participation, social equality, and environmental sustainability.

Education enhances earning power. For the most part, there are better employment opportunities and higher wages for those who complete high school, earn a degree, diploma or certificate, or go on to post-graduate studies. (The chart below from the Bureau of Labor Statistics depicts earning potential by educational level.

For these and many more reasons, The Fedcap Group is committed to removing barriers to educational access and advancement. The people we serve are encouraged and supported to obtain an education. Every program is designed to create an educational pathway. The messages that our customers receive from us are motivational and stress our belief that with support, people of all abilities can achieve educational success.

If we are committed to equity and to long term economic well-being, we must be committed to educational access.

16 de mayo de 2022

Acceso a la Educación: Una Prioridad Crítica para el Bienestar Económico

Cada año, más de 250,000 personas vienen a The Fedcap Group con discapacidades para el bienestar económico a largo plazo. Y durante la totalidad de nuestros 90 años de historia, hemos brindado una gama de servicios que integran la educación y el empleo, lo que subraya nuestra convicción de que la educación nivela la igualdad de oportunidades para las personas con discapacidades y fundamentalmente aumenta las oportunidades de carreras profesionales.

Para cualquier persona comprometida con la erradicación de la pobreza, con la justicia, con la equidad, hacer que la educación sea accesible debe ser una prioridad.
Examina los enormes beneficios de la educación:

La educación cambia la visión del mundo. Se Desarrolla la capacidad de pensar críticamente y navegar por los desafíos que uno experimentaen la vida. A los estudiantes se les pide que razonen fuera de sus terrenos conocidos. Se requiere que los estudiantes expandan su imaginación tanto en el trabajo oral como en el escrito, lo que obliga a los estudiantes a pensar de manera diferente.

La educación nos hace mejores padres. Los niños de hogares con padres que son educados más allá de la escuela secundaria se clasifican seis puntos más altos en salud (incluida la reducción del abuso y la negligencia) que los niños de hogares cuyos padres solo tienen una educación primaria.

La educación ayuda a erradicar la pobreza y el hambre, dando a las personas la oportunidad de una vida mejor. Según The Global Partnership for Education (GPE), si los trabajadores tanto de orígenes pobres o ricos recibieran la misma educación, la disparidad financiera entre los dos podría disminuir en un 39 por ciento.

Education promueve la igualdad de género y ayuda a empoderar tato a las niñas como a las mujeres. Un informe del World Bank encontró que un año adicional de escolaridad para las niñas reduce las tasas de embarazo adolescente en un seis por ciento y les da a las mujeres más control sobre cuántos hijos tendrán.

La educación expone a uno tanto a la diversidad de personas como de pensamiento, y tiene una historia de fomentar un cambio social positivo, alentando las cosas como la participación política, la igualdad social y la sostenibilidad ambiental.

La educación mejora el poder adquisitivo. En su mayor parte, hay mejores oportunidades de empleo y salarios más altos para aquellos que completan la escuela secundaria, obtienen un título, diploma o certificado, o continúan estudios de posgrado. (la siguiente gráfica de la Bureau of Labor Statistics muestra el potencial de ingresos por nivel educativo).

Por estas y muchas más razones, The Fedcap Group se compromete a eliminar las dificultades para el acceso y el avance educativo. Las personas a las que servimos son alentadas y apoyadas para obtener una educación. Cada programa está diseñado para crear un camino educativo. Los mensajes que nuestros clientes reciben de nosotros son motivadores y enfatizan nuestra creencia de que con apoyo, las personas de todas las capacidades pueden lograr el éxito educativo.

Si estamos comprometidos tanto con la equidad como con el bienestar económico a largo plazo, así mismo debemos estar comprometidos con el acceso a la educación.

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The Fedcap Group Reports Strong Operating and Financial Results in Fiscal 2022 First Half

The Fedcap Group Reports Strong Operating and Financial Results in Fiscal 2022 First Half

From humble beginnings as a local agency founded by three World War 1 veterans with disabilities who simply wanted to work, The Fedcap Group has grown into a global family of top-tier agencies serving individuals with barriers to self-sufficiency, and developing scalable, innovative solutions to some of society’s most pressing needs.

On Thursday, May 12th, The Fedcap Group released its first half financial and operating results for first half FY22. The biannual releases provide key stakeholders with timely disclosures about financial and operational performance, mission-related impact, and trends and challenges. The releases are unique in the nonprofit sector and reflect The Fedcap Group’s commitment to transparency.

Key takeaways include placing 10,685 people in jobs—a nearly 100 percent increase from first half FY 2021; serving 30,000 more people in first half FY22 than in first half FY21; double-digit revenue growth reflecting a robust domestic and international service platform, and top-tier performance leading to a +99 percent win rate on re-competing for contracts. The Fedcap Group has 300 contracts in four countries, with international clients accounting for 30 percent of revenue for the period.

“We delivered strong operating and financial results in the fiscal 2022 first half, achieving 96% of all contract deliverables and posting a 14.4% year-on-year revenue increase, primarily driven by organic growth,” said Christine McMahon, CEO of The Fedcap Group. “This performance reflects excellent execution on existing contracts and demonstrates how well our expertise and qualifications are aligned with the needs of funding agencies and consumers.”

Other highlights include the ramping up of a large, multi-year contract in the UK to provide services to the unemployed, and ongoing management of a large Canadian workforce development contract. International clients accounted for close to 30 percent of total first half revenues. The Fedcap Group leveraged its prior acquisitions of APEX Technical School and Civic Hall, and strategic partnership with Paul Smith’s College, to further expand its footprint in education and training, and planned the launch of an 80,000 sq. ft. digital training center that can train up to 3000 students per year.

A pioneer in social enterprise and vocational rehabilitation, The Fedcap Group’s commercial businesses employ 1,798 people who have a disability or barrier to employment. Total Facilities Management, The Fedcap Group’s largest commercial enterprise, added 158 new jobs in first half FY22.

The Fedcap Group’s proprietary Single Stop platform served over 25,000 new people, including 10,000 college students, connecting them to over $88 million in federal and state benefits and resources. And building on its history as a pioneer in social enterprise, The Fedcap Group announced that it employs 1,798 individuals with a disability or barrier to employment in its commercial businesses.

For the period, The Fedcap Group provided wellness services to 23,270 people (behavioral and physical health care, treatment for substance use disorders), with a view to helping them stabilize and gain employment, and provided services to 3,123 children ages 0-8, designing and delivering an array of evidence-based practices that promote long term economic and social well-being.

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First Half Fiscal Year 2022 Financial and Operating Results

First Half Fiscal Year 2022 Financial and Operating Results

The Fedcap Group Reports First Half Fiscal Year 2022 Financial and Operating Results

  • Double-Digit Revenue Growth Reflects Robust Domestic and International Services Platform
  • Leveraged Fiscal 2021 Acquisitions to Further Expand Education and Workforce Development Capabilities
  • Expect Full Year 2022 to Be Another Year of Strong Growth

New York, May 12, 2022 The Fedcap Group, the parent company for a growing network of top tier nonprofit agencies, today reported its operating and financial results for the first half fiscal 2022 ended March 31, 2022. Committed to providing services that positively impact the lives of people with barriers to economic well-being, The Fedcap Group is structured in four areas of practice: Education, Workforce Development, Health, and Economic Development and operates through 21 nonprofit subsidiaries, in the U.S., Canada and the UK.  

Commenting on the results, Christine McMahon, Chief Executive Officer, said, “We delivered strong operating and financial results in the fiscal 2022 first half, achieving 96% of all contract deliverables and posting a 14.4% year-on-year revenue increase, primarily driven by organic growth. This performance reflects excellent execution on existing contracts and demonstrates how well our expertise and qualifications are aligned with the needs of funding agencies and consumers.

“In the first half, we ramped up the large, multi-year contract we won in the UK to provide support for those unemployed as a direct impact of the pandemic, and we continued to effectively manage our large Canadian workforce development contract. Our work for international clients accounted for approximately 30% of total first half revenues.

“In the US, we leveraged our fiscal 2021 acquisitions of APEX Technical School and Civic Hall and our strategic partnership with Paul Smith’s College to further expand our footprint in Education and Training, areas of high demand in today’s dynamic workplace.

“Additionally, we continued to expand our proprietary Single Stop Technology Platform—a screening tool that drives resources to individuals seeking to find work and/or stay in school, augmenting our supportive services for connecting people with jobs. In the first half of FY 2022, Single Stop served 25,127 people, connecting them to over $88 million in resources.”

2022 First Half Operating Results

In the first half of FY 2022, we continued to refine our work in our five key areas of focus: Children ages 0-8, youth transitioning from foster care, individuals with intellectual and developmental disabilities, the previously incarcerated, and those on public assistance.

The Fedcap Group provides a diversified its revenue array of services to at-risk populations across four key practice areas.

Economic Development comprises business services operations that directly employ the populations we serve. A total of 1,800 people are employed in our commercial businesses—the majority of whom have disabilities or other employment barriers. 158 new jobs were added in first half FY 2022 in Total Facilities Management—our largest commercial enterprise. The average wage is approaching $40,000 annually.

Workforce Development continues to represent the area in which The Fedcap Group serves the largest number of individuals through a broad range of services, including the Single Stop platform. In the first half of FY 2022 we placed 10,685 people in jobs—nearly a 100% increase from the first half of FY 2021. 27% of new job placements earned $17.00 or more per hour.

Education represents growth in early childhood services provided through Easterseals and other programs assisting individuals with intellectual and developmental disabilities entering the workforce. We provided services to 3,123 children ages 0-8, designing and delivering an array of evidence-based practices that promote long term economic and social well-being. Our special education school located in New Jersey achieved 100% graduation rate for seniors for the past three years.

Health
In the first half of FY 2022 we provided wellness services to 23,270 people (behavioral and physical health care, treatment for substance use disorders), with a view to helping them stabilize and gain employment.

In the first half of FY2022, ReServe—a subsidiary of The Fedcap Group—was awarded over $10MM in contracts to serve New York City neighborhoods most impacted by the pandemic including funding from NYC Health and Hospitals to provide vaccine education, enrollment, and community organizing, funding from NYC Fund for Public Health expand Community Health Worker teams in neighborhoods impacted by COVID-19 and long-standing racial/ethnic inequities, and to serve as a trusted messenger campaign for Public Health Solutions to promote COVID-19 vaccination among low-income pregnant women in New York City, primarily women of color. This work has impacted the lives of over 729,606 New Yorkers.




2022 First Half Financial Metrics

The first half of fiscal year 2022 ended March 31, 2022. Revenue was $174.9MM, a 14.4% increase from the same period last year. Operating expenses were $173.3 million, 88% of which represented direct program expenses. The Fedcap Group reported an operating profit of $1.53 million for the period ended March 31, 2022, considerably above the $604 thousand earned in the same period last year.

At March 31, 2022, cash and marketable securities were $50.2 million compared with $34 million for the prior year.

Summary and Outlook

“The first half of 2022 has been an exciting period for The Fedcap Group. We were able to achieve positive outcomes for an expanded universe of individuals, while building out our service platforms in the U.S. and internationally.

“Looking ahead, we expect to see substantial benefits from our APEX and Civic Hall acquisitions and partnership with Paul Smith’s College beginning later this fiscal year, including the launch of an innovative 80,000-square-foot digital training center will address the re-skilling and up-skilling of workers, supplying a trained workforce to meet the demand of our transforming economy and job landscape. In addition, we recently developed a new training curriculum in ‘green technologies,’ which will expand our ability to educate, prepare and train at-risk individuals for employment in the high-demand areas of clean energy and renewables.

“The Fedcap Group remains committed to innovation, identifying new strategies to affect change in people’s lives, and improving the systems within which services are delivered. Our staff work diligently every day to bring critical services to individuals in need across our expanding geographic footprint. As we make a positive impact on society, we also are managing to the highest Environmental, Social and Governance (ESG) standards, by reducing our energy usage, maintaining a collaborative working environment, and prioritizing transparency, specifically as we provide semi-annual updates on our operating and financial results,” said Christine McMahon, President and Chief Executive Officer.

About The Fedcap Group

For 87 years, The Fedcap Group has developed scalable, innovative, and potentially disruptive solutions to some of society’s most pressing needs. Serving 250,000 people each year, The Fedcap Group provides educational services to every age group, vocational training in high-growth industries, behavioral health services, work readiness skill building and jobs—all targeted to helping people achieve long-term self-sufficiency.

The Fedcap Group also invests its time and resources in broader system change—working in partnership with federal, state, and local government to improve the way services are designed, funded, and delivered.

Conference Call Details

Join the webcast on Thursday, May 12, 2022 at 11:00 AM ET 
If you do not wish to join from your computer, you may dial-in:
US: +1-844-792-3735
Canada: +1-855-669-9657
UK: 08002799489

Financials

Fedcap Rehabilitation Services, Inc. and Subsidiaries Consolidated Statement of Financial Position

 

Fedcap Rehabilitation Services, Inc. and Subsidiaries Consolidated Statement of Financial Position

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How CEOs Can Drive Their Company Toward Being Customer-Centric

How CEOs Can Drive Their Company Toward Being Customer-Centric

May 9, 2022

Over the past four weeks Insights has focused on developing a customer centric organization. The discussions focused on the following four strategies:

  • Developing a customer-centric organizational culture;
  • Ensuring ease of customer data sharing;
  • Robust technology that allows a company to understand the consumer experience; and
  • Designing products and services with data collection in mind.

According to Blake Morgan, Senior Contributor at Forbes, customer-centric companies live and breathe their customers and are laser-focused on providing amazing experiences. They are innovative and they make a difference in the world. These companies disrupt their industries and are often rewarded with growth and increased revenue.

Today, the last article in this series, I am focusing on the role of the CEO in bringing customer-centricity to the forefront of the organization. These ideas represent a compilation of ideas from Harvard Business Review, Forbes, and Deloitte.

  • Explicitly Define How the Values and Mission of the Organization Align with Being Customer Centric. Create the business case for being customer-centric and devote time during leadership discussions to underscore its importance and why Harvard Business Review stresses that enhancing the customer experience is the new competitive battleground. Research by Bain found that increasing customer retention rates by 5% can grow profits by 25-35%.

    Forrester analyst Harley Manning found that companies with higher CX scores outperformed their rivals in the same industry when it came to revenue growth. Leaders across the organization must understand its importance, and be committed, or it will never happen.

  • Shine a Spotlight on the Data and Act. The third article in this series stressed the importance of having technological infrastructure capable of compiling data and generating real time reports. Yet compiling and analyzing data means little if the results of the analysis are not highlighted by leadership and if course correction as required is not implemented and monitored.

    Elevate customer satisfaction and other customer metrics at the same level as revenue and profits. Businesses succeed when their customers succeed and yet many companies bury the customer metrics in favor of only revenue and profits. But revenue and profits are the outcome of the customer metrics. In competitive markets, if you see declines in customer satisfaction, increases in customer defection and reductions in customer lifetime value, a profit decrease is sure to follow.

    The practice of communicating what is on customers’ minds on a regular basis across the entire organization demonstrates that customers and their issues are important. According to Deloitte, great customer centric companies publish these regularly, and they come straight from the top. Treating all feedback as valuable and potentially actionable is energizing. Make sure complaints are viewed as opportunities by presenting them in a “here is what we are going to do about it” fashion.

  • Benchmark Current levels of Customer Performance Against Competitors. As we have stressed, companies with a strong culture of customer focus outperform their competitors on a consistent basis. According to Forbes, companies like Wegmans, Trader Joe’s, Citizens Bank, Kaiser Permanente, FedEx, and Cisco have dominated their markets with an unrelenting focus on customers.

    Customer expectations are continually rising and regardless of the area of service—social services, retail, or insurance—they expect a positive experience. That means companies need to constantly reinvent the experience they deliver if they want to compete. Therefore, benchmark yourself against recognized customer experience leaders, whatever their sector, and see what lessons you can learn and put into practice within your own organization. Know what customers say about your company and compare it with what customers say about the top performing companies.

  • Evaluate every decision in light of the message they send to customers. When you decide the location of an office, change the service flow, change office hours, etc., think about what message those decisions send to customers. Is it clear from your decisions that customer needs were put first?

    As a CEO, ensure that decisions are made through the lens of the customer experience AND through the lens of revenue and margin.

This has been an important discussion and as always, I welcome your thoughts.

9 de mayo de 2022

Cómo los Directores Ejecutivos Impulsan a Su Empresa a Centrarse en la Atención al cliente

Durante las últimas cuatro semanas, “Insights” se ha centrado en el desarrollo de una organización centrada en la atención al cliente.

Los debates se centraron en las cuatro estrategias siguientes:

  • Desarrollar una cultura organizacional centrada en la atención al cliente;
  • Garantizar la facilidad de intercambio de datos de los clientes;
  • Tecnología robusta que permita a una empresa comprender la experiencia del consumidor; y
  • Diseñar productos y servicios teniendo en cuenta la recopilación de datos.

Según Blake Morgan, colaborador principal de Forbes, las empresas centradas en la atención a \l cliente viven y suspiran por sus clientes y se centran en proporcionar experiencias increíbles. Ellos son innovadores y hacen la diferencia en el mundo. Estas empresas desvían el curso de sus industrias y a menudo son recompensadas con el crecimiento y el aumento de los ingresos.

Hoy, en el último artículo de esta serie, me estoy centrando en el papel del director/a ejecutivo/a, llevando a la vanguardia el enfoque en la centralidad en la atención el cliente de la organización. Estas ideas representan una recopilación de ideas de Harvard Business Review, Forbes y Deloitte.

  • Definir explícitamente cómo los valores y la misión de la organización se alinean estando centrados en la atención al cliente. Crear el modelo de negocio de centrarse en la atención al cliente y dedicar tiempo durante las discusiones de la dirección para subrayar su importancia y por qué Harvard Business Review enfatiza que mejorar la experiencia del cliente es el nuevo campo de batalla competitivo. La investigación de Bain encontró que aumentar las tasas de retención de clientes en un 5% puede aumentar las ganancias de un 25 a 35%.

    El analista de Forrester Harley Manning descubrió que las empresas con puntajes más altos en la experience del consumidor superaron a sus rivales en la misma industria en lo que respecta al crecimiento de los ingresos. Los líderes de toda la organización deben comprender su importancia y estar comprometidos, o nunca sucederá.

  • Ponga el Enfoque en los datos y actúe. El tercer artículo de esta serie destacó la importancia de contar con una infraestructura tecnológica capaz de recopilar datos y generar informes en tiempo real. Sin embargo, recabar y analizar datos significa poco, si los resultados del análisis no son destacados por la dirección y si la corrección del curso según lo requerido no se implementa y monitorea.

    Elevar la satisfacción del cliente y otros parámetros del cliente al mismo nivel que los ingresos y las ganancias. Las empresas tienen éxito cuando sus clientes tienen éxito y, sin embargo, muchas empresas entierran los parámetros de los clientes a favor solamente de los ingresos y las ganancias. Pero los ingresos y las ganancias son el resultado de los parámetros de los clientes. En los mercados competitivos, si ves disminuciones en la satisfacción del cliente, aumentos en la deserción de ellos y reducciones en el valor de por vida del cliente, seguramente seguirá una disminución de las ganancias.

    La práctica de comunicar lo que hay en la mente de los clientes de forma regular en toda la organización demuestra que los clientes y sus problemas son importantes. Según Deloitte, las grandes empresas centradas en la atención al cliente los publican regularmente, y vienen directamente de la parte superior. Tratar todos los comentarios como valiosos y potencialmente procesables es vigorizante. Asegúrate de que las quejas se vean como oportunidades; presentándolas de una manera de "esto es lo que vamos a hacer al respecto".

  • Comparar los niveles actuales de rendimiento del cliente frente a los competidores. Como hemos subrayado, las empresas con una fuerte cultura de enfoque en la atención al cliente superan a sus competidores de manera consistente. Según Forbes, compañías como Wegmans, Trader Joe's, Citizens Bank, Kaiser Permanente, FedEx y Cisco han dominado sus mercados con un enfoque implacable en los clientes.

    Las expectativas de los clientes aumentan continuamente e independientemente del área de servicio (servicios sociales, venta minorista o seguros), esperan una experiencia positiva. Eso significa que las empresas necesitan reinventar constantemente la experiencia que ofrecen si quieren competir. Por lo tanto, compárate con líderes reconocidos en la experiencia del cliente, sea cual sea su sector, y ve qué lecciones puedes aprender y poner en práctica dentro de tu propia organización. Conoce lo que los clientes dicen sobre tu empresa y compáralo con lo que los clientes dicen sobre las empresas de mejor rendimiento.

  • Evalúa cada decisión teniendo en cuenta el mensaje que le envían a los clientes.. Cuando decidas la ubicación de una oficina, cambia el flujo de servicio, cambia las horas de oficina, etc., piensa sobre qué mensaje le envían esas decisiones a los clientes. ¿Está claro dentro de tus decisiones que las necesidades de los clientes se pusieron en primer lugar?

    Como un director/a ejecutivo/a, asegúrate de que las decisiones se tomen a través de la lente de la experiencia del cliente, así mismo como a través de la lente de los ingresos y el margen.

Este ha sido un debate importante y, como siempre, espero con ansia tus comentarios.

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Older Workers: A Solution to the Labor Shortage

Older Workers: A Solution to the Labor Shortage

NerdWallet.com interviewed ReServe Executive Director Edward Bolognini about what older workers bring to businesses, and how they can help solve the labor shortage.

Ed Bolognini, Executive Director of ReServe was recently interviewed for an article on the website of NerdWallet, a personal finance company with a strong online presence.

The article–Are Older Workers a Solution to the Labor Shortage?–asks whether older workers, classified as those age 40 and over by the federal Age Discrimination in Employment Act, are the answer to today’s labor shortage. There are 10,000 people turning 65 every day in this country. They possess a wealth of knowledge and expertise that can be tremendously beneficial to companies. Currently ReServe has 435 ReServists placed in organizations throughout New York City, Miami, Augusta, MA, Boston, MA and Wilmington DE.

To date, the article has been picked up by Yahoo Finance, Syracuse.com, The Tallahassee Tribune, BlueMountainEagle.com (in Grant County, Oregon), The Weekly Journal (Puerto Rico & Caribbean), WFMZ-TV website (Berks County/Philadelphia/Lehigh Valley), Madisonville Messenger (Kentucky), and Alexander City Outlook (Alabama).

ReServe was founded in 2005 by Jack Rosenthal, Herb Sturz and Michael Weinstein, on the premise that hiring older workers, leveraging their experience and talents is good for business and good for the older worker. In the NerdWallet article, Ed had the opportunity to expand on the value of older workers–beyond the experience and knowledge they bring to the workplace, there is also a cultural advantage they bring to the organization. Their no-nonsense work ethic, ability to motivate co-workers and insight on how to solve seemingly intractable problems is invaluable.

“You’ve worked with people, for people, around people for a long enough time that you have settled into how you successfully interact with colleagues, supervisors, customers and clients,” he said.

Click here to read the article. Congratulations to Ed for sharing his insights, and for bringing ReServe to the attention of a wide national audience.

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