FINANCIAL LITERACY

BGB Proposal: Financial Literacy

Loan Nguyen
Jose Rojas
Melany Tim
Marcela Valverde
BCOM 3310.007, Business Communication
Professor Elizabeth Bruce
2015, December 04

Better $ave than Sorry

Figure 1. Piggy bank (Flikr, 2012).

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Some of the American population are fortunate to have their essential daily needs but not
everyone is as lucky. According to the U.S. Census in 2014, 46.7 million Americans lived in poverty,
having lost many of their hopes and dreams. As time progresses and social security starts to run scarce,
many top leaders are striving for financial illiteracy awareness. As U.S. Secretary of Education Arne
Duncan said, Financial literacy needs to be a staple of the American education system If our young
people aren't financially literate, we are part of the problem, not part of the solution. And as a nation,
we have a huge problem (Comtois, 2014). The main source of this problem derives from the lack of
retirement preparation and savings amongst individuals. Currently, Dallas has a poverty level above the
state average, and being that it is on the rise, many side effects can follow such as: homelessness, higher
crime rates, divorces and split families, suicides, opportunity constraints, and much more (5 Effects of
Poverty, 2014). By addressing the need for financial literacy and savings, we can help reduce these
problems and steer Dallas, as well as America, towards a promising future.
Debt in Texas
A report done by Experian, showed the top 20 U.S. major metropolitan areas with the highest
debt. Dallas ranked number one with the average debt per person of $28,240 (Yip, 2014). According to
Bill Fay, the average debt per person in Texas was $35,300 in 2010. He also mentioned that Texans had
one of the lowest credit scores in the U.S.; this is mainly due to individuals not paying their bills on time.
Company History
Texans Credit Union
Texans Credit Union is a community bank that serves parts of North Texas and its surrounding
cities. Our company started with 11 Texas Instrument (TI) employees who wanted low-cost loans and
savings for TI employees. These 11 TI employees founded Texins Credit Union. For over 40 years,
Texins was only open to TI employees and then they shifted gears and opened it up to the other public
businesses outside of TI in 1991. In 1998, Texins Credit Union changed its name to Texans Credit Union
as well as expanded the bank to the community. We make it a point to [serve] Texans for Texans
(Texans Credit Union, 2013). Part of our mission is to not only improve the financial well-being of its
members, but also improve the well-being of the communities it serves (Texans Credit Union, 2013).
We want to work for our community, and by doing so, we can actively encourage financial literacy
programs throughout the community. Our company believes that building a strong financial foundation
through education will promote healthy financial choices in adulthood (Texans Credit Union, 2013).
Texans wants to fulfill its members with utmost integrity, respect and accountability, not only to its
members, but within the credit union itself (Texans Credit Union, 2013).
Promise House
Promise House began in the early 1980s when Lovers Lane United Methodist Church led a
community needs survey. The survey uncovered that homeless and runaway youth in Dallas was the top
need in the community. Promise House was then established in 1984; however, the organization is far
from where it used to be. Promise House has multiple programs to fit the needs of most problem areas

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in the homeless community. They have helped over 70,000 youth and families in the surrounding North
Texas area and what they do can vary from individual to individual (Promise House, 2015). Promise
House provides emergency shelter, transitional living, pregnant and parenting teen services, counseling,
outreach and intervention programs (Promise House, 2015).
Transitional Living Program
The Transitional Living Program is one of the more recognized programs offered at Promise
House. This program is offered to youth teens, ages 16-24, that are in serious need and do not have any
other options. The Transitional Living Program is aimed to offer the bare necessities such as giving these
youths a place to stay, providing them with medical and dental care, evaluating the usage of drugs and
alcohol, and providing them with job aptitude tests, career planning services, informal education, and
skills for independent living (Transitional Living Program, 2015). Of all the programs Promise House
offers, the transitional living program lasts longer than most because the program is broken down into
four phases. The first phase is when they evaluate the teens from other programs, within Promise
House, over the duration of one month. Afterwards, the teens will get placed into group homes within
Promise House in phase two. In this phase, teens are supervised by on-site staff members, as well as
their case managers (Transitional Living Program, 2015). During the next phase, teens are under
supervision in smaller group homes than in phase two. The fourth and final phase is the hardest to
accomplish as the transitional living program will then support participants [by] locating and leasing
their own apartments, working full time and fully supporting themselves as independent, healthy young
adults (Transitional Living Program, 2015). The teens will continue to have support, such as therapy and
access to case management services throughout phase four (Transitional Living Program, 2015). With
the help of this program, low-income teens are given the opportunity to sustain themselves, financially
and independently. Promise house offers them moral support as well as the tools needed for these
teens to succeed.
Cost per Homeless Person
Table 1: Average Cost Per Household Per Month for Homeless Program Types
Emergency
Shelter

Transitional
Housing

Permanent
Supportive
Housing

Fair Market Rent

Individual Sites

$853-$1,817

$1654

$664-$1,757

$612/ 1-bed

Family Sites

$1,391

$1,940-$4,482

$799

$743/ 2-bed

(Table 1. Cost per program. Spellman et al., 2010)

Table 1 shows the average cost incurred by the homeless system. The breakdown demonstrates
the costs for each type of shelter system. With Promise Houses transitional living program costs, we can

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compare it to other homeless programs (Spellman et al., 2010). The costs that are compared include
providing housing for a homeless person in the system versus the cost of providing rental assistance
without supportive services in the private market (Spellman et al., 2010).
The National Alliance to End Homelessness article, Cost of Homelessness, insists that
emergency shelters were found to be much more costly than permanent living programs as they
average out to be $8,067 more than the average annual cost of low-income housing (Cost of
Homelessness, 2015). According to The Carter Center, The Bridge, a homeless assistance center in
Dallas, spent $21 million to build the facility and spends $7 million a year to operate it, meaning that $28
million was spent at one homeless facility (Horner, 2009). The money being spent to incarcerate
homeless and pay for law enforcement arrests are around $11 million a year, which keeps at least 566
homeless people per day in jail. This money could be used to build more room for transitional and
permanent living, as well as programs to keep homeless people from returning to the streets.
Financial Literacy Proposal
Texans Credit Union will partner with Promise House to conduct financial literacy workshops to
aid those among the low-income, as well as the 47 kids from the transitional living program at Promise
House (Transitional Living Program, 2015). Though the age group in the transitional living program is
from 16-24, we will only be accepting members of ages 18+ to establish eligibility in opening savings
accounts.
These workshops will be provided in six sessions, during the first Friday of every month, starting
February 5, 2016 from 2 to 4 PM at the Regency Hotel conference room in Dallas. Ten member service
representatives will be designated to teach the program and up to 200 people can attend. During each
workshop, all staff members will have their own booths and will then divide all students into smaller
groups for a more interactive experience. These six-session workshop topics include but are not limited
to:

Overviewing a Savings Account

Following a Budget
Building Credit
Avoiding Debt
Saving for Emergencies
Planning Financial Goals

Savings Benefits
Upon attending any of these sessions, students can open a rewards savings account specialized
for them. These rewards include having zero initial fees, one monthly overdraft fee waived, and two
percent interest.

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As illustrated in the chart below, savings can make a huge impact in ones finances by the deficit
of spending versus savings over 20 years. The line in blue represents the growth of a savings account
(with an initial savings of $2000) and a monthly savings of $200 per month; the orange line is the
equivalent of a no-savings scenario where you would not gain nor lose any money; and the gray line
shows the deficit of spending the monthly savings instead of saving it, making this a deficit of $104,506
between savings and spending money.

Financial Literacy Charity Gala

Texans Credit Union will partner up with Promise House to host their annual charity gala at the
Hilton Doubletree Hotel in Dallas on January 16, 2016 at 8PM. This event will have a dress code of semiformal attire and black-tie is optional. During this event, our company could raise awareness for the
financial literacy workshops as well as promote the funds needed for members savings accounts. The
schedule of events is as follows:
8PM Meet and Greet
8:30PM Charity Dinner
9PM Financial Literacy Presentation
10PM Charity Auction

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Online Fundraiser
As an additional method to raise donations, Texans Credit Union will promote an online
fundraiser for anyone who would like to participate as all donations are voluntary. Those interested in
contributing can go to our web site at www.texanscreditunion.com/financialliteracy and click on Gift:
Literacy Charity then scroll down to the gift amount where you can make a one-time donation or set up
monthly payments. There are various amounts of payment methods available such as cash, check, debit,
and credit with a minimum donation of five dollars.
Marketing
Promoting all of our programs will be complex with lots of events happening in the future. Our
goal is to get the word out about the workshops and benefits, connect with donors to create a lasting
relationship with them, and promote a strong attendance to the gala provided by Promise House. Forms
of marketing that will be used are flyers, banners, custom website, all social media platforms, and word
of mouth.
A separate page will be created on Texans website that offers all the details of the event and
related topics. A "share button" also be provided to present the information easily to others. On the
website, customers will be able to sign up for the workshop as well as donate. An advertisement, that
will be placed on Texans Credit Unions and Promise Houses websites, will also be created to direct
people to the website.
Each of our social media platforms will post different types of information related to the gala
and workshops regularly. We will create a special hashtag (#better$avethansorry), that relates to all the

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information that is posted on the events. This will bring more awareness and remind people constantly
that these events are going to happen. Texans Credit Union can also talk to a journalist about the
workshops and gala so they can write an article showing how it will improve the community. We will
also write a press release about the events and send it to a relevant media company.
We will send an informative email with an invitation to all members of the bank providing the
website page link and a way to donate on the email. Flyers will be created and laid out at the front of all
nearby Texans Credit Union locations. This flyer will provide a brief description of the gala and workshop
with a link to the website. In addition, a tall banner will be set up in front of all Texans Credit Union
locations in the region and used during the gala. The banners will each have information pertaining to
the workshops. Tellers will also have the opportunity to talk to the customers about all the events we
are going to have, and will also be able to answer any questions related to the events and try to
convince them to sign up for the workshop or donate.
Staffing
There will be six workshops to complete the entire sessions of financial literacy. Each workshop
will provide ten employees for three hours to help facilitate the event. These employees will be the
member service representatives from the bank and their job duties qualifies them to be able to teach
the program. The workers can also help open accounts and service existing ones. Member service
representatives are cross-trained in all departments at Texans Credit Union, and they will be teaching
from a set of information prepared from the branch manager and corporate office.
Budget
The budget will include everything from the gala to all the workshops. The gala is provided by
Promise House, however, Texans Credit Union will help sponsor $10,000. This money will be used to
provide a booth and poster during the gala to promote the workshops and ask for donations. During the
charity gala, a special speaker from Texans Credit Union will talk about the workshops and the effect it
can have in the community. The money will also be directed towards Promise House with some costs of
the gala like providing dinner.
During the workshops, snacks and water will be provided for all participants and workers. This
will be a one-time purchase that will last for all six workshops for $385. The workers will work for three
hours every workshop, thirty minutes prior to the workshop for setup and thirty minutes after the
workshop to close and clean the conference room. This will total to about $2,300 for all six workshops
where the employees will have a wage of $12.91/hour. The venue for the workshops will be at the
Regency Hotel, costing $2,400 for the whole duration of the workshops. The conference room is open
and has the ability to be rearranged to have ten different sections.

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The only way Texans Credit Union will be able successfully implement the workshops is if the
marketing plan works well. The marketing has to be able to reach potential donors and attendees to the
workshops. With everything to consider for marketing, we are going to spend $1,500 to cover all the
costs.
Budget
Wages

$2,325.60

Gala

$10,000

Snacks

$245

Water

$140

Marketing

$1,500

Venue

$2,400

Total

$16,610.60

Texans Credit Union is determined to give back to the community and by partnering up with
Promise House, we can reach our goal. Financial literacy is essential for a brighter future for all our
citizens and will help build a stronger economy and prosperous lives. Though there might not be a
significant impact in the beginning, this proposal will help look beneath the surface and make a huge
difference in our society where every little grain counts. There is not such a thing as a small contribution,
and Texans Credit Union is kindly asking the Dallas Regional Chamber to help us with $8305.30 for this
program so that many lives can be changed for the better. We will keep you informed and show you the
process from beginning to end so you can see the gains of your investment. By putting this proposal into
effect, we can help make Dallas better $ave than sorry.

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9
References

Comtois J. (2014). Education secretary pushes need for financial literacy. Pensions and Investments.
Retrieved from http://www.pionline.com/article/20140707/PRINT/307079999/educationsecretary-pushes-need-for-financial-literacy
Cost of Homelessness. (2015). National Alliance to End Homelessness. Retrieved from
http://www.endhomelessness.org/pages/cost_of_homelessness
Fay, B. (2015). Consumer debt in Texas. Americas Debt Help Organization. Retrieved from
https://www.debt.org/faqs/americans-in-debt/consumer-texas/
Figure 1. Piggy bank (Flikr, 2012).
https://www.bing.com/images/search?q=piggy+bank&view=detailv2&&id=C70BFAD93077F0E7
BD8733D711F95083D44BF463&selectedIndex=8&ccid=IpTKu4Y3&simid=608034599598686451
&thid=OIP.M2294cabb8637cca10885b5036e2255b8H0&ajaxhist=0
Horner, K. (2009, March 30). Battling Homelessness in Dallas Requires more housing, mental health
services, advocates say. The Carter Center. Retrieved from
http://www.cartercenter.org/health/mental_health/archive/documents/Dallas_homeless_horn
er.html
Poverty. (2014). US Census Bureau. Retrieved from
https://www.census.gov/hhes/www/poverty/about/overview/
Promise House. (2015). About us. Promise House. Retrieved from http://promisehouse.org/about-us/

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10

Spellman, B., Khadduri, J., Sokol, J., Leopold, J. (March 2010). Costs associated with first-time
homelessness for families and individuals. U.S. Department of Housing and Urban Development.
Retrieved from http://www.huduser.gov/portal//publications/pdf/Costs_Homeless.pdf
Texans Credit Union. (2013). Company information. Texans Credit Union. Retrieved from
http://www.texanscu.org/home/about/compinfo/history
Transitional Living Program. (2015). Promise House. Retrieved from
http://promisehouse.org/programs/transitional-living-program/
Yip, P. (2014, April 29). Dallas-area consumers lead nation in average debt at $28,240. The Dallas
Morning News. Retrieved from http://bizbeatblog.dallasnews.com/2014/04/dallas-shouldershighest-average-debt-per-consumer-study-says.html/
5 Effects of Poverty. (2014). The Borgen Project. Retrieved from http://borgenproject.org/5-effectspoverty/