Who or what is WANDA?
Founded in 2007, the Women’s Achievement Network and Development Alliance (WANDA) is a circle of women who pool their donations to invest in a strategy that will increase the economic self-sufficiency of low-income single mothers in San Mateo County. Specifically, WANDA supports financial education for moms and then matches their savings 2:1 over a 2 - 3 year period in an effort to break the cycle of poverty. This strategy is called asset building.
What is asset building?
To break the intergenerational cycle of poverty, families need to accumulate assets. Assets at the individual family level- such as a home or an education-provide a way out of poverty because they are not simply consumed: they endure and can be passed on from generation to generation. When a family owns assets, it has the means to survive economic hardship today and provide security for tomorrow. In addition, assets at the neighborhood level-permanently affordable housing or employment opportunities-are an essential part of strong and vibrant neighborhoods.
Who provides the financial education classes?
Opportunity Fund (formerly Lenders for Community Development) provides financial tools and training that enable WANDA moms-and many others-to transform their lives and their communities. Opportunity Fund's comprehensive approach incorporates housing, savings, credit and financial literacy, making it possible for clients to build assets-a home, a small business, an education-as well as hope for the future. Opportunity Fund has successfully directed over $150 million in community investment into low-income neighborhoods and improved the lives of over 10,000 households. WANDA’s investment brought Opportunity Fund’s proven model to San Mateo County single moms for the first time.
Why single moms?
Children in families headed by a single mother have much higher poverty rates than do children in other families: 41% versus13% in 2004. Statewide, 37% of single mother-headed households live in poverty, making up nearly one-quarter of California’s poor.In San Mateo County, there are more than 13,000 single mothers with children under five, and 36% of them live in poverty.
In the past five years in San Mateo County, food costs have gone up 15% and health care costs have climbed 30%. As of March 2007, the average two-bedroom, one-bath apartment rental in San Mateo County cost $1,643 per month. Child care costs $1,663 or more per month for two children. These combined costs far exceed what a low-wage worker can afford. A single mother of two children must earn $78,894 annually to be economically self-sufficient.
WANDA members believe that low-income single mothers are a strategic investment in building a stronger community. When women are healthy and economically self-sufficient, families are healthier and communities thrive.
What happens after the classes are over?
Graduates receive ongoing support from Opportunity Fund staff and put their new skills and financial know-how to work by saving money right away. Their savings are then matched 2:1 by WANDA's pooled funds. WANDA members have also designed quarterly seminars that complement the formal financial education and allow graduates to continue to build relationships with each other. Seminar topics this year include "Asset Building and Beyond: How to Supplement Your Income or Start Your Own Business" and "College Bound: Navigating the Process to Ensure Success." Seminar topics will change depending upon the interests and needs of the program participants.
What are the results so far?
As of March 2010, the 56 single mom savers had an average monthly savings of $57.26.
Cohorts 1 and 2 had saved a total of $38, 127 and earned a match of $55, 132. But Cohort 3 savings were not calculated at this time.
All Moms have asset goals. Here is what all the moms are saving for:
1 has graduated and purchased her first home in Daly City
1 has graduated with a retirement savings
9 others are saving for education for their children
15 are saving for post secondary education for themselves
19 are saving for their first home
6 are saving to start a new business
5 are saving for retirement
Who are the WANDA members?
WANDA was founded by Susan Kokores, Luba Kipnis and Dianne Giancarlo. Last year, 17 other women who care deeply about making a difference in our community and investing in a healthier San Mateo County became founding members of WANDA.
How exactly does WANDA work?
Members of WANDA each contribute a minimum annual tax-deductible donation of $5,000 that will be collectively invested in financial education and matched savings programs operated by Opportunity Fund. This contribution covers the enrollment costs of financial education classes, case management services and a 2:1 savings match up to a $4,000 for each participating single mother by the end of three years. Ninety-five percent of your contribution goes directly to the program. The funds are held at the Women's Foundation of California, which serves as WANDA's fiscal sponsor.
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