2. Roy C. Lopez Senior Community Development Advisor Federal Reserve Bank of Dallas 2200 N. Pearl Dallas, Texas 75201 roy.lopez@dal.frb.org Texas Panhandle Regional Community Asset Building Forum April 19, 2012

3. Why is the Federal Reserve Interested in personal Asset Building/Accumulation?  As the keeper of our economy, the Fed has a responsibility to promote and educate people about sound economic principles.  Today there is increasing recognition that acquiring financial assets is key to poverty reduction, social mobility and securing middle class status.  Income is essential for a family to get along, but assets help them get ahead.

4. The State of Rural Texas Facts that are changing the way we see rural Texas  79 of 254 Texas counties lost population, mostly in rural West Texas and the Panhandle.  Proximity to urban cores is changing the way rural residents live.  Rural Texas county residents tend to be older than their urban counterparts in addition to poorer and less-educated.  Hispanics account for the bulk of the growth in rural Texas  Poverty is 3% higher in Rural Texas than Urban Texas

5. Meaning?  As the rural landscape changes economically, socially and demographically, the need for asset building has never been more pressing.  Asset accumulations can help secure your financial future and can help insulate families from financial insecurity.  Post-recession, there is an asset building movement that is happening and rural communities need to be a part of the movement.  Asset accumulation strategies can be different in a rural setting.

6. Barriers toward Asset Building in Rural Texas  Rural jobs pay lower wages and lack the educational reimbursement programs and medical and retirement benefits that can lead to future economic success.  Local, state and federal governments face daunting budget shortfalls in the recession’s aftermath, causing public programs that could help improve economic opportunities to be cut or never started. (Utility Assistance, DPA, Grants and Loans for Higher Education)  Distance can test effective program delivery

7. What’s our agenda?  To promote and encourage saving and investment for education, home-ownership, small-business development and retirement.  Identifying ways to make tax-based savings incentives accessible to lower-income families.  Increase access to financial education and foster the notion of credit as an asset.  Encourage families to avoiding high-cost alternatives such as payday lenders and auto-title lenders.

8. Questions? The views expressed are those of the presenters and do not necessarily reflect the views or positions of the Federal Reserve System.