By Chayla Fisher

​Building financial literacy is essential to closing the wealth gap, but it is not a solution on its own. Financial literacy needs to be met with systemic changes that create new financial systems that don’t discriminate based on the color of ones’ skin. This means that, in addition to teaching how to budget and build credit, we need to activate and strengthen the economic and political power of families. Our communities have power, they have a voice. Financial CAPABILITY allows them to utilize that power to start to build the economy they wish to see.

In 2016, 27% of Santa Cruz residents (66% white identified) and 50% of Watsonville (81% Latine identified) residents were unbanked or underbanked. Rent in Santa Cruz County is 55% higher than the national average, preventing savings and wealth accumulation. To add to that, Latinas only make $0.42 to the dollar of white males. All these factors cause rural communities in the Monterey Region to have some of the highest unbanked households, highest income gaps, and highest predatory lenders.

​That is where Ventures fits in -- Ventures partners with rural Latino working-class families in California’s Central Coast to ensure a shared and equitable economic future for all. Our transformational programs make certain that individuals understand and use their economic and political power. From building their savings to advocating for a living wage, our approach builds community and connects financial stability, wealth building, and self-determination. Our work creates dignity by recognizing, acknowledging, and valuing our community members’ leadership in making change happen. Together, we are working towards a shared and prosperous economic future where zip code, race, gender, or immigration status do not dictate income or wealth.

The Financial Literacy Gap can be closed with community movements that change our economic models. Creating systems where everyone belongs and benefits will allow us to move towards a prosperous and shared economic future for all.

To learn more about the work Ventures does within our community, visit sccvonline.org. 

Hola comunidad.

​My name is Kayla Gomez and I am a student at UCSC currently working on a project to collect the demographic information of our elected officials by conducting a census. At the start of my work with SCCV, we thought it would be interesting to look at the makeup of our elected bodies. After calling both Monterey and Santa Cruz counties, their staff informed me that this data is not available and suggested that I should search the internet to find these answers.

If I want to understand, I will have to either dig deep and search through various sites-- possibly even order lists from the elections office for a fee. As much as I love an opportunity to practice my open source research skills, this would not be the most effective way to go about it. As entrepreneur and co-chair of the Kapor Center, Mitch Kapor put it, “Getting information off the internet is like taking a drink from a firehose.” I share this quote because it reminds me of the overwhelming amount of unorganized information available online. When it comes to who is representing us, this information should be available and easily accessible since most of our community members don’t have hours upon hours to spend searching for bits of information.

The policies our local leaders form and vote on directly affect our communities so it is important that these leaders do in fact reflect the diversity of our county. In partnership with Santa Cruz Community Ventures, I hope to conduct a census that will help us gather data on the demographics of our current leaders within the Santa Cruz and Monterey Counties. If we had demographic data for our boards, councils and commissions, it could help us identify any gaps and we could work together to ensure that we move toward filling these gaps. With that said, I will be keeping you all up to date throughout this process by writing blog posts with updates.

​​Kayla Gomez, SCCV Team Member

By Marco Aguilar, Financial Capability Lead

​I am a first-generation college graduate who comes from immigrant parents from Nayarit, Mexico and I am the oldest of three. My parents taught me the importance of my roots never forgetting who I am and where I come from which has shaped my passion for Latinx empowerment. I first moved up to Santa Cruz to start school at UC Santa Cruz and I graduated with a degree in Spanish Studies with a concentration in Language and Linguistics.

I spent some time living in Mexico to pursue a dental degree I was not able to finish it due to the financial hardship my family was going through at the time, so I decided to come back to the US. So, I know of the challenges that some may face in trying to pursue higher education. During my time at UC Santa Cruz, I was part of an organization called Hermanos Unidos where I served as fundraising chair which gave me the opportunity to be helped and help others in the journey that is graduating college. I am happy to have the opportunity to be able to share my story with other people and help future generations find a path to success as well as provide the tools needed to get there.
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I have experience in management since I was a General Manager at Panda Express after graduating from UC Santa Cruz. I decided to work for a non-profit because I wanted to find ways in which my career could involve helping Latinx community here in Santa Cruz county as well as being able to be a resource to people in this community. I am excited to be part of this team and look forward to the great things that we can accomplish together. 

By Haven Shannon, Program Associate  

This week, we hosted a community conversation on Predatory Lending. After a welcome from Watsonville’s City Manager, Matt Huffaker, Professor Heather Bullock from UC Santa Cruz’s Blum Center presented to the audience the findings of Mamas con Mas, a report that identified that the City of Watsonville had almost three times the number of predatory lenders as compared to the City of Santa Cruz. 

Maria Cadenas, Executive Director of Santa Cruz Community Ventures (SCCV), shared SCCV’s recommendations to address predatory lending in Watsonville, including: 

• Aligning policy with neighboring jurisdictions 
• Limiting new alternative lenders in Watsonville 
• Restricting the locations of these lenders 

Those present then discussed barriers facing the community, their vision for the future of Watsonville, and suggestions of what could be explored to address the issue. Some of the community recommendations included:  

• Placing a moratorium on new alternative lenders opening in Watsonville 
• Engaging local banks and credit unions  
• Providing financial capability to both residents and other nonprofits  
• Mapping community assets and creating a resource guide  

​Some of those present included: City Councilmen Aurelio Gonzalez and Lowell Hurst, Carmen Mansir Herrera of El Pajaro CDC, Erwin Reeves, Community Affairs Regional Manager at the FDIC, as well as leaders of organizations such as Salud Para la Gente, Mid-Pen Housing, Opportunity Fund, Families in Transition, First5 Santa Cruz, FoodWhat?!, Community Foundation of Monterey County, and Health Improvement Partnership of Santa Cruz County. 

By Haven Shannon, Program Associate

SCCV initiative Familas con Mas focuses on education and advocacy around predatory lending. This work was born out of the finding of our Mamas Con Mas study, a project with UCSC Blum Center. This study focused on Latina mothers' financial experiences with both traditional and alternative financial institutions. Mamas con Mas found that despite having bank accounts, many women found alternative lenders easier to access than traditional banks due to confusing fees and limited cultural competency of staff. However, the convenience of these services often comes at an interest rate as high as 459%! 

Mothers used these alternative lenders to obtain funds to pay for basic needs such as rent and emergencies. The study results shed light on the fact that a lack of financial options and education often lead vulnerable community members to fall prey to predatory loan practices. SCCV created the Familias con Mas initiative to educate community members, and advocate to address predatory lending. 

Payday lenders are predatory businesses that target low income, minority communities, and the elderly. In the city of Watsonville, where 82% of the population Latino, many residents experience barriers accessing mainstream banking services. As a result, alternative lenders such as payday loans, pawn shops and check cashing stores are perceived as easier to access. The high rates and density of these businesses is predatory on the community. 

In California, the State Legislature is expected to pass the Fair Access to Credit Act, which blocks lenders from charging more than 36% on loans of $2,500 to $10,000. While this is progress in addressing predatory lending, it does not address the small dollar amount loans that hurt consumers' pockets the hardest.  

At the local level, cities such as Gilroy and San Jose have adopted strategies to protect their residents. To explore what could be done in Watsonville, a community conversation is being planned to discuss the issue on October 15, 2019 at 9am at the Watsonville Civic Plaza Community Room with support of the City of Watsonville. The event is free and open to the public. 
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Register here!  

By Brando Sencion, Program Coordinator  
 
Recently I’ve been receiving multiple phone calls threatening to “suspend” my Social Security number because of illegal activity or unpaid taxes to the IRS. I’ve also asked collages and community members if they have received these calls, and they have.  Beware, these calls are a scam! 
 
The purpose of these calls is to obtain personal information about you or trick you into giving them money. In each situation the main objective of the caller is to financially harm you. By obtaining your personal information, the scammer can use that information to steal your identity. With your information that person can then apply for credit under your name, open accounts, or seek medical attention. 
 
These calls are also known as phishing. Phishing is the fraudulent practice of sending emails or phone calls acting to be from a reputable company or organization in order to convince individuals to reveal personal information, such as passwords, social security numbers, or credit card numbers. 
 
One thing to note is that the IRS or Social Security Office usually (not always though) will contact you by first sending a letter. A phone call is possible, but government agencies tend to communicate with you by mail first. It is also important to note that if the person on the other side of the phone threatens to have you arrested or send police to your home it is more than likely a scam. Those types of threats are illegal and would not be made by a government employee.  
 
Per the IRS website, the IRS will not:
 

• Call to demand immediate payment, nor will the agency call about taxes owed without first having mailed you a bill. 
• Demand that you pay taxes without giving you the opportunity to question or appeal the amount they say you owe. 

• Require you to use a specific payment method for your taxes, such as a prepaid debit card. 
• Ask for credit or debit card numbers over the phone. 
• Threaten to bring in local police or other law-enforcement groups to have you arrested for not paying. 

 
If you have fallen victim to one of these phone calls, please refer to IdentityTheft.gov or IRS.gov for resources. Another proactive step you can take is to check your credit report for free on AnnualCreditReport.com, which allows you to check your report from all three credit bureaus every 12 months.  Note you can choose to pull a report from one of the three credit bureaus and pull another two later down the road if needed.