2006 AARP Oregon Money Management Survey: Summary of Oregon Bankers Association Findings Report Prepared by Jennifer H. Sauer

Transcription

1 2006 AARP Oregon Money Management Survey: Summary of Oregon Bankers Association Findings May 2006

2 2006 AARP Oregon Money Management Survey: Summary of Oregon Bankers Association Findings Report Prepared by Jennifer H. Sauer Copyright 2006 AARP Knowledge Management 601 E Street NW Washington, DC Reprinting with Permission

3 AARP is a nonprofit, nonpartisan membership organization that helps people 50+ have independence, choice and control in ways that are beneficial and affordable to them and society as a whole. We produce AARP The Magazine, published bimonthly; AARP Bulletin, our monthly newspaper; AARP Segunda Juventud, our bimonthly magazine in Spanish and English; NRTA Live & Learn, our quarterly newsletter for 50+ educators; and our Web site, AARP Foundation is our affiliated charity that provides security, protection, and empowerment to older persons in need with support from thousands of volunteers, donors, and sponsors. We have staffed offices in all 50 states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands. Acknowledgements Special thanks go to Kathi Brown of Strategic Issues Research, Judith Cohart of AARP Foundation s Money Management Program, and Jerry Cohen, Terry McKinnon, Joyce DeMonnin, and Bandana Shrestha of the AARP Oregon State Office. Knowledge Management s State Member Research staff that provided support and expertise on this project include Darlene Matthews, Jennifer Leslie, Cassandra Burton, Rachelle Cummins and Gretchen Straw. FGI Research entered and tabulated the data. Jennifer H. Sauer of Knowledge Management managed the project, designed the survey, and wrote this report. For more information, please contact her at (202) or by at jsauer@aarp.org.

4 Table of Contents Background...page 1 Methodology...page 2 Summary of OBA Member Findings...page 3 Conclusion...page 7 Annotated Survey of OBA Respondents...page 8 Question 7 List of Organizations...page 16

5 Background The U.S Bureau of the Census conducts the Survey of Income and Program Participation (SIPP) to collect data on labor force, income, and program participation characteristics to help estimate the effectiveness of government aid and support programs. 1 From the SIPP Disability Module fielded in 1999, it is estimated that 2.2 percent of the 18+ population in the U.S. have difficulty keeping track of money or bills because of a physical or mental health condition. As one might expect, this proportion tends to increase with age, with about nine percent of those age 75 to 84 reporting such difficulty, and 22 percent of those age 85 and older. Overall, about seven percent of the U.S. 65+ population report money management difficulties. For over a decade, the AARP Money Management Program (MMP) has attempted to prolong independent living for low-income older and disabled persons. The AARP Foundation currently administers the MMP. The program focuses on people who are at risk of losing their independence due to the inability to manage their financial affairs. The Money Management Program (MMP) agencies use volunteers (see footnote) who are trained, supervised, monitored, and partially insured to provide assistance with money management for those who are unable to manage on their own. 2 The program meets a continuum of ordinary money management needs for its clients. Volunteers help clients organize and keep track of financial papers, establish budgets, write checks, balance checkbooks, and serve as representative payees, if needed. These services allow clients to retain significant independence while preventing financial mishaps from occurring, such as being evicted for nonpayment of rent or not having enough money by month s end to pay for food and other necessities. Because most of the clients live alone, the volunteers are also providing secondary services, which to some clients are even more valuable. These secondary services include socialization and companionship, accessing eligibility for financial benefits, and shopping with or for the clients. Currently, the AARP Foundation supports three Money Management Programs in Oregon. This assessment was conducted to better understand the need for expanding the money management services in Oregon. The key component of this assessment is a survey of organizations from across the state that had been identified as possible sources of money management assistance. 1 SIPP information obtained at 2 These volunteers are volunteers of the local sponsoring agencies, not of the AARP Foundation Oregon Money Management Survey: Summary of Oregon Bankers Association Findings 1

6 Methodology AARP Oregon commissioned a survey to assess the need for expanding a state-wide Money Management Program. Two different list-assisted samples were obtained. One sample consisted of a list of social services agencies or organizations compiled by the AARP Oregon state office that are believed to have contact with individuals with money management issues. Because this is a convenience sample, it is not truly representative of all social service or human service agencies in the state of Oregon. The other sample came from a list of members of the Oregon Bankers Association (OBA). AARP Oregon has enjoyed a long-standing relationship with the OBA who expressed interest in the Money Management Program, and offered feedback from their members to help AARP determine where such services might most be needed. Because this sample came from a list of association members, it is not truly representative of all banking institutions in the state of Oregon. AARP State Member Research used a multi-contact approach to get organizations to respond to the survey. Each organization in both samples was sent a pre-notification letter, a cover letter and survey, and a reminder postcard. Organizations not responding to the initial survey were mailed a second cover letter and survey. While the agency sample was mailed a third cover letter and survey to obtain an even greater response, the Oregon Bankers Association declined a third mailing. 1,226 agency surveys were mailed and in the field from October 25 through November 30, 2005, the final cut-off date for the survey. Eleven agencies were determined undeliverable or closed, so 1,215 agencies were considered the final sample. Agency respondents returned a total of 461 completed surveys providing a 38 percent response rate. Of the 1,984 members on the list provided from the Oregon Bankers Association, 51 banks had closed, leaving 1,035 possible members to be surveyed. Among these members, 238 returned completed survey for a response rate of 23 percent. The survey to the members of the Oregon Bankers Association was fielded between January 30 and March 17, 2006, the final cut-off for the survey. This report describes the findings from the survey sent to members of the Oregon Bankers Association Oregon Money Management Survey: Summary of Oregon Bankers Association Findings 2

7 OBA Member Findings Responding OBA members who are they? About four in ten responding OBA members (42) indicate that the population of their town or metropolitan area is less than 20,000 residents. Almost one third (30) say their branch is located in an area where the population is approximately between 20,000 and 100,000, and about one quarter of all responding OBA members say the population of their community is over 100,000 residents. Most (85) of the responding OBA members describe their organization as a commercial bank, sixteen percent say they work for a thrift or savings bank, and only 3 percent work for a trust company. The counties represented by the responding OBA members are: County Where Branch is Located (n=238) Baker Grant Marion Benton Harney Morrow Clackamas Hood River Multnomah Clatsop Jackson Polk Columbia Jefferson Tillamook Coos Jospehine Umatilla Crook Klamath Union Curry Lane Wasco Deschutes Lincoln Washington Douglas Linn Yamhill Gilliam Malheur 2006 Oregon Money Management Survey: Summary of Oregon Bankers Association Findings 3

8 Do responding OBA members have clients that face financial problems? The data clearly show that the responding OBA members do indeed have clients that face many financial problems. One in five of the responding OBA members have clients that are often faced with unpaid bills or paying them late or being unable to read or understand financial materials. Moreover, roughly half have clients that sometimes face issues like financial abuse, unpaid bills or paying bills late, or buying many unneeded items or services. Just over four in ten respondents have clients that sometimes face being unable to read or understand financial materials or are unable to buy necessities like food or prescription drugs. Slightly fewer report having clients that are sometimes involved in excessive gambling or playing the lottery. In general, few respondents report they are not sure or had no answer regarding the frequency with which a client faces financial issues. Financial Problems Faced by Clients Often Sometimes Rarely Never Not sure No answer Financial abuse from family, friends or others Unpaid bills or bills being paid late Buying many unneeded items or services Excessive gambling/lottery Spending more than they can afford to Unable to read/understand financial materials Threat of eviction or losing home Receiving disconnection notices Unable to buy necessities food, Rx medication Oregon Money Management Survey: Summary of Oregon Bankers Association Findings 4

9 What types of financial services do responding OBA members provide formally or informally? The majority of responding OBA members help people with their banking tasks, and twothirds say they help people write checks. Just under half of responding OBA members say they help people pay their bills and help with budgeting and budget management, and one in five help people apply for financial assistance programs. Most OBA members report that each of the services they provide are done so informally not as a formal bank service. Service provided by branch Yes Among Yes, INFORMAL service Among Yes, FORMAL service Help people with banking tasks 88 (n=210) Help people write checks 65 (n=155) 94 3 Help people pay bills 48 (n=115) Help people with budgeting/budget management Help people apply for financial assistance programs 46 (n=109) (n=47) Do responding OBA members refer clients to other organizations and do they receive referrals? Almost half (48) of the OBA members that responded to the survey say they refer people who need help managing their money to other organizations because their branch cannot meet the needs of those people. Moreover, only about one in ten (12 or 29 members) say their branch has received referrals (see Annotated Survey of Agency Respondents, Questions 6 and 8). Among these few who have received referrals from other organizations, most of the new clients needing help had incomes below $31,000 for a couple and below $22,000 for an individual, and within that group, many had incomes below $13,000 (see Annotated Survey of Agency Respondents, Questions 9 and 10). Moreover, about half of those OBA members who have received referrals say that in an average month up to five people are referred to their agency for help managing money due to mental, physical, or social limitations. 3 About one in five say that more than five people are referred to their agency in a given month for money management assistance. However, one quarter of the referral-receiving branches did not or could not answer this question. Also among referral receiving branches, two-thirds are generally providing up to three hours of assistance per client per month. Only ten percent of them provide three or more hours of help per client per month. 4 Additionally, these branches say the most difficult task for their clients is budgeting and budget management, followed by banking (see Annotated Survey of Oregon Bankers Association Members, Question 13). 3 Because the number of OBA members who have received referrals is small (n=29), actual proportions could appear misleading and so they have not been reported here. Please refer to annotated survey questions 8 through Although respondents were asked in question 8 whether or not they accept referrals, question 12 offered them the opportunity to indicate they do not provide assistance even if there is a need. Three percent of those who indicated they were a referral receiving agency reported in question 12 that they never provide assistance even if there is a need. This left question 13 with n= Oregon Money Management Survey: Summary of Oregon Bankers Association Findings 5

10 Do responding OBA members think there is a need for money management programs? Thinking about their branch s client population, most OBA members say there is a need for a program where trained, supervised, monitored, and insured volunteers help people with bill paying or are appointed as representative payees to manage a government benefit such as Social Security. While one in seven members think there is a major need, one third say there is a moderate need, and another third feel there is a minor need for such a program. Very few say there is no need at all for a money management program. Amount of Need for Money Management Program in Community (n=238) Not sure 7 Major need 15 No need at all 8 Moderate need 34 Minor need 35 How involved do responding OBA Members want to be with a money management program? Two thirds of OBA Members that responded to this survey would refer their clients to a money management program that used trained, supervised, monitored, and insured volunteers as bill payers or representative payees. Fewer, however, say their organization would be willing to work with the program if it was started in their area. A similar proportion would be willing to serve on an advisory council for the program, but only nine percent of responding members would be willing to serve as a co-sponsor for their community. Interestingly, respondents indicate a substantial degree of uncertainty with respect to each of these offers and perhaps want more information before giving a more definitive response to each opportunity. Would refer clients Willing to work w/ program Serve on advisory council Serve as cosponsor OBA Member Involvement with Money Management Program (n=238) 9 6 Yes No Not sure Oregon Money Management Survey: Summary of Oregon Bankers Association Findings 6

11 Conclusion OBA members surveyed do have clients that face financial problems, namely paying bills on time or having unpaid bills, experiencing financial abuse from family or others, or simply buying many unneeded items or services. Most responding OBA members say they offer financial management assistance as informal services to their customers, and more member branches refer clients to other organizations for assistance than they accept referrals. Among the few responding members who say they receive client referrals from other organizations, most report spending up to three hours of assistance per client per month, and the most difficult tasks faced by these referrals is budgeting and budget management and banking. Overall, responding OBA members feel there is a need for a money management program in their community, but they indicate a hesitancy to be fully involved in such a program. While most say they would refer people to the program and many are willing to work with the program, over half are not sure they would want to work with this program. Likewise, four in ten would serve on an advisory council for this program, but over half just aren t sure they would, and most are not sure they want to serve as a cosponsor of the program. In sum, the findings from this survey suggest that many members of the Oregon Bankers Association would be most supportive of a money management program to which they could refer people to, and many are willing to be active partners with such a program. However, given the number of responding member branches that report being uncertain about being involved, it is possible that after receiving more information about the program, many may indicate less ambiguity about being more involved with this type of program Oregon Money Management Survey: Summary of Oregon Bankers Association Findings 7

12 OREGON BANKERS ASSOCIATION ANNOTATED SURVEY 2006 Oregon Money Management Survey: Summary of Oregon Bankers Association Findings 8

13 OREGON MONEY MANAGEMENT NEEDS ASSESSMENT Oregon Bankers Association Members n=238; Response Rate = 23 percent 1. In which county is your branch located: (write in county name) * Baker 2 Klamath 3 Benton 8 Lane 8 Clackamas 2 Lincoln 2 Clatsop 1 Linn 1 Columbia 1 Malheur 3 Coos 10 Marion 1 Crook 1 Morrow 1 Curry 12 Multnomah 5 Deschutes 3 Polk 5 Douglas 1 Tillamook * Gilliam 6 Umatilla * Grant 1 Union * Harney * Wasco 1 Hood River 6 Washington 3 Jackson 2 Yamhill 1 Jefferson 4 No Answer 3 Jospehine 2. To the best of your knowledge, the population of your town or metropolitan area is: a. Less than 2, b. 2,500 to 9, c. 10,000 to 19, d. 20,000 to 99, e. Over 100, No Answer Oregon Money Management Survey: Summary of Oregon Bankers Association Findings 9

14 3. Which of the following best describes your organization; [CHECK ( ) ALL THAT APPLY] a. Commercial bank b. Thrift or Savings bank c. Trust company Thinking about all of your organization s clients, how often would you estimate that your clients or their guardians face these issues? Often. Sometimes Rarely Never Not Sure No Answer a. Financial abuse from family, friends or others b. Unpaid bills or bills being paid late c. Buying many unneeded items or services... d. Excessive gambling/lottery e. Spending more than they can afford to when solicited by charities or sweepstakes f. Unable to read and understand financial materials... g. Threat of eviction or losing their home h. Receiving disconnection notices for non-payment of utilities such as telephone, gas, or electric... i. Unable to buy necessities like food or prescription drugs Oregon Money Management Survey: Summary of Oregon Bankers Association Findings 10

15 5. In answering the following questions, please consider your organization s formal services and informal assistance practices. a. Does your organization ever help people write checks? (n=155) 65 Yes If yes, is it a... 3 Formal service 27 No 94 Informal assistance 3 Not sure 4 No Answer 4 No Answer b. Does your organization ever help people with budgeting and budget management? (n=109) 46 Yes If yes, is it a... 7 Formal 43 No 85 Informal assistance 7 Not sure 7 No Answer 4 No Answer c. Does your organization ever help people with banking tasks? (n=210) 88 Yes If yes, is it a Formal 6 No 69 Informal assistance 2 Not sure 11 No Answer 5 No Answer d. Does your organization ever help people pay bills? (n=115) 48 Yes If yes, is it a Formal 41 No 61 Informal assistance 8 Not sure 7 No Answer 3 No Answer e. Does your organization ever help people apply for financial assistance programs? (n=47) 20 Yes If yes, is it a Formal 59 No 70 Informal assistance 18 Not sure 4 No Answer 3 No Answer 11

16 6. Has your organization referred people to other organizations who need help managing their money because of mental, physical, or social limitations because their needs cannot be met by your organization? 48 Yes 48 No [GO TO QUESTION 8] 5 No Answer 7. Where or to whom do you most frequently refer those people? (Approximately 70 different organizations were mentioned and each were mentioned by 5 percent or less of the responding members. See final page of survey) Name of organization Town/City 8. Have people ever been referred to your organization for help with managing their money or tasks like writing checks or paying bills because of mental, physical, or social limitations? 12 Yes 85 No [GO TO QUESTION 14] 3 No Answer 9. Did any of the people who needed help managing their money have incomes below $22,000 for an individual or below $31,000 for a couple? (n=29) 76 Yes 3 No [GO TO QUESTION 11] 14 Not sure 7 No Answer 10. Did any of the people who needed help managing their money have incomes below $10,000 for an individual or below $13,000 for a couple? (n=26) 39 Yes 4 No 58 Not sure 12

17 11. In an average month, how many people who need help managing their money because of mental, physical, or social limitations would you estimate are referred to your organization? (n=29) [WRITE IN A SINGLE ESTIMATED NUMBER OF INDIVIDUALS PER MONTH - NOT A RANGE ] 17 1 person 14 2 people 7 3 people 10 4 people 7 5 people 3 8 people people 3 15 people 24 No Answer 12. On average, about how much time does your organization spend helping each client manage their finances? (n=29) 3 We never provide assistance even if there is a need [GO TO QUESTION 14] 38 Less than one hour per client per month 28 One but less than three hours per client per month 10 Three but less than five hours per client per month 0 Five hours or more per client per month 10 Not sure 10 No Answer 13. Generally, what is the most difficult money management task for your clients? (PLEASE CHECK ONLY ONE ANSWER.) (n=25) 12 Check writing 44 Budgeting and budget management 24 Banking 0 Bill paying 0 Applications for financial assistance programs 12 Not sure 8 No Answer 13

18 14. Thinking about your organization s client population, how much of a need do you think there is for a program where trained, supervised, monitored, and insured volunteers help people with bill paying or are appointed as representative payees to manage a government benefit such as Social Security? 15 Major need 34 Moderate need 35 Minor need 8 No need at all 7 Not sure 3 No Answer 15. Would your organization refer clients to this kind of money management program? 66 Yes 4 No 29 Not sure 1 No Answer 16. If such a money management program was started in your area, would your organization be willing to work with the program? 42 Yes 1 No 55 Not sure 1 No Answer 17. If such a money management program was started in your area, would your organization be willing to serve on an advisory council for the program? 40 Yes 5 No 53 Not sure 2 No Answer 14

19 18. Co-sponsors of a money management program publicize the program, develop a client referral network, match volunteers with clients, provide ongoing supervision for volunteers, and monitor client accounts. If such a money management program was started in your area, would your organization be willing to serve as a program co-sponsor for your community? 9 Yes 6 No 82 Not sure 4 No Answer Thank you for your assistance with this effort! Please use the enclosed postage-paid envelope or return it to AARP, State Member Research, 601 E Street, NW, Washington, DC 20049, by March 17,

20 Question 7. WHERE OR TO WHOM DID YOU REFER THOSE PEOPLE? (n=238) SABLE HOUSE, DALLAS SENIOR SERVICES, JUNCTION CITY CONSUMER CREDIT COUNSELING, SALEM GATEKEEPERS, BEAVERTON GATEKEEPERS, PORTLAND COUNTY SENIOR PROGRAMS (UNSPECIFIED LOCATION) CONSUMER CREDIT COUNSELING, COOS BAY SENIOR AND DISABLED SERVICES, COOS BAY SENIOR SERVICES, EUGENE GATEKEEPERS (UNSPECIFIED LOCATION) SENIOR SERVICES, STANTON SENIOR SERVICES, ROSEBURG CONSUMER CREDIT COUNSELING, HERMISTON CENTRAL OREGON COMMUNITY ACTION, BEND SENIOR SERVICES, (UNSPECIFIED LOCATION) SENIOR SERVICES, TILLAMOOK ADULT & FAMILY SERVICES, BEND SENIOR SERVICES, ASTORIA ADULT & FAMILY SERVICES, HOOD RIVER SOCIAL SECURITY ADMINISTRATION, PORTLAND ACCESS, MEDFORD CONSUMER CREDIT COUNSELING, MEDFORD CONSUMER CREDIT COUNSELING, (UNSPECIFIED LOCATION) CONSUMER CREDIT COUNSELING, ALBANY SENIOR CENTER, SILVERTON NW HUMAN SERVICES, SALEM LINCOLN COUNTY MONEY MANAGEMENT, NEWPORT DHS, MADRAS SENIOR SERVICES, OAKRIDGE COOS ELDERLY SERVICES, COOS BAY SENIOR AND DISABLED SERVICES, ALBANY ADULT AND FAMILY SERVICES, (UNSPECIFIED LOCATION) SOWAC, MEDFORD SENIOR AND DISABLED SERVICES, BURNS CHURCHES SENIORS AND PEOPLE WITH DISABILITIES, BAKER CITY CCCS, GRANTS PASS SENIOR CENTER, MOLLALA SOCIAL SECURITY, EUGENE SOCIAL SECURITY FOR PAYEE REP WMFS, MEDFORD SENIOR SERVICES, SALEM STATE OR COUNTY PROGRAMS, BEND CREDIT COUNSELING, KENNEWICK CLACKAMAS COUNTY SOCIAL SERVICES, OREGON CITY MERCY CORP, PORTLAND MULTNOMAH AGING SERVICES GATEKEEPERS, OREGON CITY ADULT AND FAMILY SERVICES, PORTLAND SENIOR SERVICES, ALBANY LOCAL ACCOUNTANTS/BOOKKEEPERS SENIOR SERVICES, WOODBURN TRUST DIVISION, PORTLAND AMERICAN GENERAL, PENDLETON SENIOR AND DISABLED SERVICES, COTTAGE GROVE COUNCIL ON AGING, BEND CONSUMER CREDIT COUNSELING, LAGRANDE FINANCIAL, ALBANY SENIOR SERVICES, TOLEDO MULTNOMAH COUNTY SENIOR SERVICES SSCC MONEY MANAGEMENT, OREGON CITY SENIOR SERVICES, CORVALLIS CAPCO, PENDLETON ORBS, GOLD BEACH FINANCIAL AND MEDICAL SERVICE, PENDLETON SENIOR SERVICES, GRANTS PASS SENIOR AND DISABLED SERVICES, EUGENE HACSA, SPRINGFIELD SOCIAL SERVICES (UNSPECIFIED LOCATION) SENIOR AND DISABLED SERVICES, BEND 16

21 AARP Knowledge Management For more information contact Jennifer H. Sauer (202)