Money Smarts Training Presented to BIA Staff

Posted on March 18, 2015 by rblauvelt

Fraud occurs when someone unlawfully misrepresents information, facts or events for financial gain, and according to the Financial Industry Regulatory Authority (FINRA) Investor Education Foundation, it’s a big problem in America. Each year eight in 10 Americans are solicited with a potentially fraudulent offer such as a phony charity fundraiser or bogus disaster-relief effort. About $50 billion is lost to fraud annually in this country and, sadly, elders are 34% more likely to be targets than middle-age individuals.

Native-led nonprofit First Nations Development Institute (First Nations) and the FINRA Investor Education Foundation have teamed up to see that Native Americans don’t fall prey to scams by creating the Fighting Fraud 101 campaign. On February 4, 2015, Cherokee Agency Bureau of Indian Affairs employees had a chance to learn more about the exciting awareness campaign as part of an interactive financial skills workshop.

Cherokee Agency BIA staff at training were, L to R, Denny Rochester, Heather McNichols, Renee Bible, Tony Cabe, Lisa Parker, Kelcye Cook, Kim Chiltoskie, and Brooke Brown

Sarah Dewees is the Senior Director of Research, Policy and Asset-Building Programs at First Nations and helped design a Fighting Fraud 101 toolkit to assist Native communities that could be especially susceptible to fraud. She warns that big payouts have focused a lot of attention toward Indian Country in recent years and that technology in the form of text messages, social media and email has made communities that were previously isolated and remote, like much of Indian Country, more accessible to fraudsters.

“There are definitely some at-risk Native communities right now,” Dewees said. “We’ve seen a number of highly publicized legal settlements resulting in payouts to Native people across the country. Not to mention ongoing per-capita and allotment income from sources such as gaming, leasing, and oil and gas revenues. Our goal is to work within Native communities to ensure that tribes and individuals are not targeted by fraudsters and scammers looking to exploit these windfalls.”

The three-hour workshop was offered in both morning and afternoon sessions and included detailed information on budgeting, financial recordkeeping, retirement planning and basic investing in addition to fraud awareness and prevention. Engaging learning activities were featured to reinforce key topics and concepts. One particularly interesting exercise tested recordkeeping and organizational habits by challenging participants to estimate how quickly and efficiently they could collect critical personal information and documents such as birth certificates, past years’ income tax returns, a current retirement account statement, and even the total amount they spent on holiday gifts last year.

“We’re thrilled our staff is able to receive this type of training onsite,” noted Agency Superintendent Darlene Whitetree and Deputy Superintendent Ruth McCoy. “Sound financial skills are crucial to the success of our employees both in the workplace and outside. Moreover, we encourage our staff to share this information with their families and others who might benefit from gaining a clearer understanding of finance.”

For more information on how you can join the Fighting Fraud 101 campaign or to request free fraud-fighting materials, contact First Nations Programs Consultant Shawn Spruce at agoyopi@gmail.com or (505) 247-8861. You can dowload the Fighting Fraud 101 pamphlet at this link: http://www.firstnations.org/knowledge-center/predatory-lending.

By Shawn Spruce, First Nations Programs Consultant

Crow Nation Financial Workshops Help Make Sense of Tribal Land Buy-Back Program

Posted on January 9, 2015 by rblauvelt

What do you get when you combine an innovative and informative financial skills workshop with other financial information geared toward a special land buy-back program? You get lots of attendees – more than 200 – who are highly interested and engaged landowners and their families!

In November 2014, First Nations Development Institute (First Nations) worked with the U.S. Interior Department’s Office of the Special Trustee for American Indians, the Crow Nation, and the FINRA Investor Education Foundation to offer a series of financial skills workshops designed to assist landowners on the Crow Indian Reservation in Montana. The full day of outreach also included presentations by senior advisors from the newly formed Land Buy-Back Program for Tribal Nations (LBBP). Information booths were provided by the Office of the Special Trustee, the Bureau of Indian Affairs (BIA), and the Crow Tribe to provide assistance to landowners with questions about their offer packets from the Land Buy-Back Program and related issues.

The financial skills workshop was developed in response to demand from certain tribes who wished to prepare their members for the Land Buy-Back Program opportunity. The Land Buy-Back Program for Tribal Nations was established by the Interior Department to implement the land-consolidation provisions of the Cobell settlement agreement. The settlement provided for a $1.9 billion Trust Land Consolidation Fund to consolidate fractional land interests across Indian Country and will ultimately affect approximately 150 unique reservations that have fractional interests. The Land Buy-Back Program allows interested individual owners to receive payments for voluntarily selling their land. All interests sold are restored to tribes, which helps to keep Indian lands in trust for tribal communities.

The financial skills workshop offered information about buy-back readiness plans, budgeting and spending plans. Another very important aspect featured information to protect landowners from various types of financial fraud they could be targeted for, such as investment fraud and other related scams. Materials were provided to assist individuals and families with identifying different types of fraud, recognizing risk factors, spotting persuasion tactics, and knowing what to do if one becomes a victim. Money tips and skills like record-keeping, organization, consumer savviness, and avoiding “big money mistakes” were also hot topics. (To see more about the FINRA Investor Education Foundation/First Nations effort to prevent financial fraud, visit http://org2.salsalabs.com/o/5855/t/0/blastContent.jsp?email_blast_KEY=1310510.)

First Nations Consultant Shawn Spruce explained: “It was wonderful to see such a fantastic turnout of over 200 landowners. People were really excited to be there and feedback following the event was extremely positive. Of course none of this would have been possible without so many great partners to help bring us all together.”

There are several more land buy-back events planned in 2015, and First Nations plans to coordinate with the Office of the Special Trustee, the BIA and the Land Buy-Back Program to continue their outreach and training on avoiding fraud and successfully planning for windfall payments.

By Tawny Wilson, First Nations Program Officer

Gila River Goes Crazy for “Crazy Cash City”

Posted on January 9, 2015 by rblauvelt

Once again, students are going crazy for First Nations Development Institute’s “Crazy Cash City” workshop. In December 2014, 84 high school students from the Gila River Indian Community in Arizona participated in a “Crazy Cash City” financial education simulation in which students navigated a series of simulated financial tasks and challenges designed to teach basic budgeting and banking skills. The goal was for them to successfully balance their personal budgets through a simulated month of spending.

First Nations Development Institute (First Nations) staff conducted three two-hour reality fairs at the Gila River Indian Community’s new multipurpose building in Chandler, Arizona. The event was organized through a collaboration of First Nations and the Pima Leasing & Financing Corporation (PLFC), which is community development financial institution organized by the Gila River Indian Community Council. The mission of PLCF is to promote self-sufficiency and economic development by providing financing and business development services for community members. PLFC sponsored the workshop to promote financial skills development for local youth.

The workshop was a success thanks to volunteer support provided by the Office of the Special Trustee for American Indians – Gila River Agency, and numerous Gila River tribal programs and partners. Funding for the workshop was provided in part by the FINRA Investor Education Foundation. The event was presented as an exciting, hands-on financial simulation for the students – since they were spending play money and not really buying things – but it was also informative, educational and highly interactive. The “Crazy Cash City” workshop is based on experiential learning principles – the belief that youth learn by doing, which research suggests is more effective than lecture-format workshops.

“Crazy Cash City” students were all given a folder containing a fictitious yet culturally appropriate family profile that listed an occupation, income, spousal and dependent information, and any outstanding debt or benefits, along with a debit card and budget-balancing sheet. The high school students then visited nine merchant booths that provided various choices for housing, transportation, child care and more, and they were asked to make smart financial decisions based on their family profile. “Fickle Finger of Fate” cards were also given to students to help them learn to plan for unexpected emergencies and opportunities that can arise in day-to-day life. The youth also were presented with examples of financial and investor fraud so they could learn when an offer might be too good to be true.

At the conclusion of the seminar, the students were expected to have a fully balanced budget logged in their check register and budgeting sheet. “One of the hardest things is trying not to go over your budget, trying not to go into debt,” said one student. “It’s really easy to go over your budget and get a lot of stuff.”

The main goal of “Crazy Cash City” is to give high school students the opportunity to practice good spending and budgeting habits prior to entering the real world after graduation, as well as to promote smart and informed decision-making skills that will last a lifetime. Learning how to manage finances ensures that Native people will be more likely to save and to challenge financial service providers to develop products that respond to their particular needs. These dynamic, interactive simulation workshops allow students to try out the skills they are learning and gain confidence when managing their money.

At the end of our last workshop, one enthusiastic student commented: “This is a great workshop. I think it should be brought to more communities around the nation.”

We concur young man. We concur!

By Tawny Wilson, First Nations Program Officer

Protecting Native Money: How to Avoid Financial Fraud

Posted on November 17, 2014 by rblauvelt

Financial fraud is far too common in Native American communities, and is a growing problem with the recent increase in tribal lawsuit settlements with the federal government. First Nations Development Institute has partnered with the FINRA Investor Education Foundation to produce a pamphlet that can help people protect themselves from common financial fraud techniques.

Over the past five years more than $1 billion in tribal trust settlements have been reached, including the Keepseagle and Cobell class-action legal settlements. Many of these settlements have resulted in payments to individual tribal members, which makes them targets for fraudsters who follow a simple strategy: They go where the money is. The FINRA Investor Education Foundation is collaborating with First Nations to help reach the recipients of these trust fund settlements, as well as other tribal members who may be targeted for their wealth.

The pamphlet, titled “Fighting Fraud 101: Smart Tips for Investors,” is designed to appeal to individuals, members of tribal investment committees, and retirees. It lists some common fraud tactics, such as the “Social Consensus” tactic that lead you to believe that your savvy friends and neighbors may have already invested in a product. With the “Source Credibility” tactic, a fraudster may falsely suggest they have worked with other tribal investment committees or helped people manage lump sum payouts from tribal lawsuits to try to gain trust. The pamphlet also teaches several techniques to avoid being taken advantage of and how to report suspicious behavior.

“We are honored to be able to collaborate with several national partners, including the FINRA Investor Education Foundation and the Office of the Special Trustee for American Indians, to provide financial education for tribal members,” said First Nations President Michael Roberts.

First Nations representatives Sarah Dewees and Shawn Spruce spoke at an October 29, 2014, Federal Trade Commission event titled “Fraud Affects All Communities.” The purpose of this meeting was to highlight the range of consumer, financial and investor fraud techniques that affect diverse communities.

“A lot of people aren’t aware that financial fraud is a big problem on many Indian reservations,” said Sarah Dewees, senior director of research, policy and asset-building programs. “I am happy we have been able to continue our work with the FINRA Investor Education Foundation and the Office of the Special Trustee to help community members protect themselves against financial fraud.”

A copy of the pamphlet can be viewed in First Nations’ online Knowledge Center at http://www.firstnations.org/knowledge-center/predatory-lending/research. To order printed copies, you can email info@firstnations.org.

By Sarah Dewees, First Nations Senior Director of Research, Policy and Asset-Building Programs

“My Green” Campaign Releases Music Video

Posted on November 17, 2014 by rblauvelt

First Nations Development Institute’s “My Green” campaign, a social marketing campaign focused on financial empowerment for Native American youth, has just released a new music video that addresses “18 Money,” which is the age at which some Native teens receive a significant financial distribution while they often lack the skills to effectively deal with the windfall.

Theodore “Theo” Brown, a member of the Ho-Chunk Nation in Wisconsin, wrote and recorded a song titled “Turned 18” about the challenges and pitfalls of receiving a minor’s trust payment. Working alongside the Ho-Chunk Players, a Native youth theater troupe directed by Sherman Funmaker, Theo and the group produced a music video to illustrate a day in the life of a Ho-Chunk youth who “turned 18.” The video was shot over several days this past summer in Baraboo and Wisconsin Dells, Wisconsin, and is available on YouTube at https://www.youtube.com/watch?v=NsLB8vzk-80.

Ho-Chunk Players on location in Baraboo, Wis. Left to right are Sherman Funmaker, Sylvia Bisonette, Dean Funmaker, Mariah Funmaker and Diana Concha.

It can be called “Minor’s Trust,” “Big Money” or “18 Money,” and for a number of Native American youth, it represents a blessing and a curse. A small number of tribes pay out dividends from tribal businesses, or per-capita payments, to their members. Payments for tribal members who are age 17 or younger are usually held in a financial trust until the youth turns 18. At age 18 (although sometimes later) youth receive a substantial payment and are faced with the responsibility of managing their “Big Money.”

With funding from the FINRA Investor Education Foundation, First Nations launched the “My Green” campaign to help Native youth learn to manage their “18 Money.” This includes raising awareness of the challenges and opportunities provided by the minor’s trust payment. The campaign features a website at www.mybigmoney.org that provides a platform for four spokespeople – Native youth ages 17-23 – to present their stories about how they managed their money. They share their lessons learned in several videos, and serve as guides throughout the different components of the website.

First Nations & Native America Calling Team Up on Radio Programs with Financial Focus

Posted on July 18, 2013 by rblauvelt

The national radio program Native America Calling and First Nations Development Institute teamed up this summer to offer a series of radio programs with a financial focus. The series, which first aired June 14, was broadcast each Friday through July 12.

In the first program, host Tara Gatewood and expert guests discussed common selling and lending practices by automobile dealers in and around Native communities. Calvin Lee, an attorney with Navajo Nation Human Rights Commission, shared information about problems people have had with unethical car dealers near the Navajo Nation. A second broadcast featured a conversation about minor’s trust payments and how young people can successfully prepare for receiving these large payments, or their “Big Money.”

Another program provided information about how to use credit wisely. The remaining shows focused on “an Indigenous perspective on spending” and understanding retirement planning.

These programs were sponsored in part by the FINRA Investor Education Foundation and the W.K. Kellogg Foundation.

Each weekly broadcast included a brief conversation with the “financial warrior” known as Dr. Per Cap. Dr. Per Cap originated as an advice column sponsored by First Nations that was designed to assist individuals and families in becoming financially independent. On each program, producer Monica Braine consulted Dr. Per Cap for advice on a financial topic, and he shared his insights, advice and wisdom.

Native America Calling, produced by the Koahnic Broadcast Corporation (a Native-operated media center in Anchorage, Alaska), is a live, call-in program linking public radio stations, the Internet and listeners together in a thought-provoking national conversation about issues specific to Native communities. It is heard on more than 52 stations in the United States and Canada by approximately 500,000 listeners each week.

For more information about the radio show, please visit www.nativeamericacalling.com, and for information about the Dr. Per Cap advice columns, visit http://www.firstnations.org/AskDrPerCap.

By Sarah Dewees, First Nations Senior Director of Research, Policy & Asset-Building Programs, and Benjamin Marks, First Nations Research and Program Officer.