Welcome to Arkansas week.

I'm Chris Kane.

This week, we're taking a closer look at how women across Arkansas are making financial decisions.

And the challenges many are facing, especially in rural communities.

A new report from the Women's Foundation of Arkansas titled You Learn as You Go Economic Risk and Reality for Women in Rural Arkansas, commissioned with support from Stone Bank, reveals a striking reality.

While more than 90% of women are responsible for household financial decisions, very few feel confident making them.

Well, joining us to break down that study is Sarah Riffle, chief growth officer with the Women's Foundation of Arkansas, and Carol Bank, chief credit officer with Stone Bank.

Thank you so much, both for being here.

I know that this report is something that it revealed, something Sarah and I know this was about a nine month report you commissioned.

Yes.

Let's talk about the the motivation behind it.

First.

Why was this something that the Women's Foundation wanted to pursue?

Sure.

Well, and Stone Bank, especially has been a longtime partner of the Women's Foundation.

And they actually approached us and said, look, you know, the majority of our markets are in rural parts of Arkansas, and we want to learn more about our customers, specifically women in those markets.

And that really made sense with some larger national conversations and trends that the Women's Foundation is seeing with the great wealth transfer that's happening in our country right now.

So, you know, over the next ten years, $84 trillion in assets will transfer to the next generation.

And we're seeing that about 34 trillion of that is going to be in the hands and control of women.

Wow.

And that's the first time in our country's history that that's ever happened, and is actually double the amount of assets that women hold today.

So how greatly that will change.

And even a decade it was, really gave us the idea of now's the time to have the conversation about our women prepared to manage their financials at this magnitude, and what kinds of tools and support do they need to do that better?

And care.

When you approach to Sarah and the Women's Foundation, what were some of the things that you all of Stone Bank wanted to highlight?

And you mentioned a lot of your customers being in rural parts of the state.

What were some of the things that you wanted to see, what the study could find out?

You know, it's really hard to to know how to manage money.

I mean, you just wake up and know how to do it.

It's kind of trial and error a lot of times.

And so the thought process was for us to, think about that, offer support, and ideas for women because they've taken on a lot of responsibility that they haven't always had in the past.

You know, one of the things was that we found out from the study was that if if you had an unexpected $400 expense, how do you pay for it?

What do you do?

And a lot of people don't know what to do.

And that seems like a small amount.

It's a large amount to me, but sounds like a small amount.

But you got to figure out how to make it happen.

And you said you learn as you go and that's the title of it.

So and there can be a lot of things in life that that implies to financial decisions though.

That's where the, you know, all the cards are on the table, so to speak.

So what does that phrase imply?

Whenever you talk about this study and how it applies to women.

Sure.

Well, just like you mentioned, 92% of women that we found in our study really are either in part or fully responsible for financial decisions in their household, but they do not view themselves as financial decision makers.

And so many of these women, especially in rural communities, don't have formal education when it comes to financial education and financial literacy.

And so that's something that a lot of women feel like.

I'm just figuring it out as I go.

Like care.

I mentioned when I have an unexpected expense come up, when a car breaks down or when potentially someone in the household and has an illness and has to be off of work for a few weeks.

They're just kind of figuring it out.

Every grocery bill, you know, every expense that comes along.

But they don't feel confident in the in the resources and in how they're managing these finances in a more structured and sustainable way.

Care from the bank's perspective, were any of these findings surprised to you or the bank?

What did you what did you really weren't surprised?

Really?

You know, as a young adult, I wish I had had the opportunity to, to learn more.

And I've been in this position too.

So, I mean, I get it personally.

And we focused on rural communities.

Was there any highlight of difference between some of the more metropolitan areas of the state versus rural communities?

Were there any big differences that stood out?

I think the only thing we saw was just proximity.

And the availability of resources is more abundant in urban areas versus rural areas, which I think that is probably to be expected.

But also one of the greatest resources that community banks have, like Stone Bank in these more rural communities, is that relationship that women have with bankers at their local community banks.

So even though they might not feel confident in financial institutions or the systems that are in place, they do have confidence in relationships with people.

And so in rural communities, we really saw that that was a highlight, an opportunity for community banks to be able to build on those relationships with women and be a trusted advisor.

You mentioned education a moment ago.

This is a financial education has talked about a lot these days.

It has been for the last decade, really.

There's been an implementation in education curriculums around the state of financial education, but we know that can only go so far.

So when it comes to educational opportunities to help bolster confidence, what are some opportunities available out there to provide that platform, to say, hey, you can make these decisions more confidently?

Sure.

And I'll let Cara hit on that as well, because a lot of that is coming from your financial institutions being able to provide that kind of information to your customers.

But one thing that we've implemented at the Women's Foundation is actually something called our finance clubs, which we have wine clubs.

We have book clubs.

Why don't we provide an opportunity for women to be able to, in a comfortable, relaxed setting, talk about their finances and ask questions of their family, their friends, members of their church members from their community.

And so we've actually created a step by step guide for weekly or monthly finance club, where women can have guided discussions about money and feel more comfortable asking questions that they might not feel comfortable asking to, you know, other people out in their community.

This is probably something, too.

That's an opportunity for them to say there are no bad questions, right?

Because there's probably several people who have the same question, but they may be afraid to ask it.

So this setting offers more casual, relaxed opportunities for them to say, hey, look, this is not a it's not a place where you're going to be ridiculed for a question.

Right?

Yeah, I think that was one thing, too.

That really just reinforced something that we saw in our study was a lot of women.

The fear comes from they feel like maybe they're too late to start asking these questions, or that they're the only one that doesn't know this information.

92% of women in this study are fully responsible.

100% of our focus group women that participated in our focus groups, not a single one, said they feel fully confident in answering questions and how they're managing their finances, not one.

So that means that this is prevalent.

You know, all women across the state, regardless of rural or urban, are wanting to find more information and access to these resources and those resources and the information.

So I was just mentioning the educational aspect is something that I know you all are trying to also bring forth and and provide that resource.

Absolutely, absolutely.

We are we're rolling out, part in our app.

It's called My Money Map and it helps you look at your app.

You can set budgeting.

You can look at your cash flow needs.

You can say what's where's my money going to go into this?

Is it going to that?

It divides it all up and kind of helps you keep track of where things are going, where your money's going, what you're doing with it.

And it's a really, really great tool.

One of the study highlights, women learning through trial and error.

How does that impact their ability to make long term financial decisions?

If there's been some errors in that trial, even with some success.

Did you notice any hesitancy to make long term financial decisions for some of the participants in this study, because they made even a minor error previously?

Is that something that you saw?

Well, I think to your point, trial and error, right, is the way that so many women are figuring this out.

And nowadays, especially with technology, there's a lot of additional resources that women are turning to to manage their finances, which aren't always the best way.

So think about your cash apps, your Venmo, some of these online platforms that a lot of people, women as well, are utilizing in place of a financial institution, they're putting money in here.

They're taking money out to pay certain things.

Right.

But these are not FDIC insured.

They're not safe places to keep your money.

And then also your money's not growing in those places either.

So I thought that was a really interesting part of the study as well, that there was an opportunity to be able to provide women education about, you know, sometimes just that ease and what seems like it's just easily accessible probably isn't the best place and the best way to manage your money.

And again, those are apps that, you know, we're talking about the cameras just before this.

That's a heartless, soulless object where banks have people and and that care about you inside, you know, your community, your, your, your neighbors are in these banks to be able to help guide you through this process.

Care mentioned the $400 emergency.

Was that something that, was asked, is it the number itself, or is that something that more participants brought up that they wouldn't know what to do?

That was a baseline that our researcher used, just as I think an average of, you know, what would be, again, an unexpected car expense or, you know, having to deal with a few days of lost wages.

But it is something I think that's an approachable amount that so many of us can see happens all of the time.

And for so many women, that can be very nerve racking, even just having that looming over your head, that if that is something that happens, how are we going to do that?

How are we going to meet that need?

And so I think that's an approachable figure that a lot of us can resonate with.

Kara, one of the things that was mentioned was there may be some hesitancy towards trust of financial institutions from the bank's perspective.

Before we go to a break here, what is something that you found about that that was, you know, startling or how do you combat that moving forward to help bridge that gap of trust and distrust?

That was an interesting result.

I was very surprised to hear that.

I guess I've never been afraid of a bank before, but I can see how, you know, rumors, things of the past, you know, that kind of stuff carries on from generation to generation.

But, you know, banks are regulated.

We have regulators every 18 months.

And, that I mean, we're not going to lose your money, you know, but FDIC insurance, as Sarah mentioned, is very important.

Also, you know, you walk into any of our branches and you're going to see a smiling face, that will be happy to sit down and go over anything with you, help you with anything.

Our bank has been very, very, diligent in making sure there's some really great women that are involved in the daily base and on a daily basis that can help anyone at any time.

Sarah, was that something to that?

Did they say why they had any distress, like, here?

Is that social media driven?

Is it historic experiences?

Maybe, when national things happen, what was is that uncovered at all, or is it just kind of a general question?

I think I remember specifically that I think there was one woman that specifically said, you know, my dad always told me he wants to keep his money where he can see it.

Okay.

And so I think to Kara's point, those kinds, even just that one sentence that someone might have said in passing and they kid maybe when they're right, you know, not stuck out like, oh man, that's how you manage your money.

Well, you keep it where you can see it under the mattress or something.

Mattress is pretty scary.

Yeah I agree, I agree.

Yeah.

So I mean, I think that it's just overcoming those, you know, misconceptions and stereotypes of financial institutions and that comes through more formal education and trusted relationship with financial institutions.

A lot to uncover with this.

When we come back, we're going to tell you what this report means for community banks, small businesses, and the future of financial education in Arkansas.

Stay with us.

Welcome back to Arkansas Week.

We're continuing our conversation on a new report examining how women in Arkansas make financial decisions and the challenges they face, especially in rural communities.

I'm joined by Sarah Riffle with the Women's Foundation of Arkansas and Carol link with Stone Bank.

All right.

Let's continue the conversation.

Kara.

We'll start with you.

The report highlighting that women are considered an underserved customer base in banking institutions.

Why is that been the case historically?

I think a lot of times the men have let it, but I think nowadays it's totally different.

You know, a lot of women, do what's what can be labeled as a side hustle.

But I had a coworker say, you know, that's not really a side hustle.

That's entrepreneurship.

Yeah, but they're not.

Yet again, it's getting them used to going in the bank to using the app to to.

It's just a safer way to use the money that you're making from your side hustle.

Entrepreneurship.

Yeah.

So we're seeing more and more opportunities to do that when it comes to entrepreneurs have more avenues to be able to buy sell goods to own a business, operate a business than ever before thanks to mobile technology.

With that comes risks, though, as you've highlighted for sure.

How can community banks, though, like yours, really bridge that gap of mentality where you're talking about either the distrust that we talked about in the previous segment or it's something where folks just don't feel as comfortable and confident.

What are some of the steps you all are taking to bring them into a bank?

To have them sit down, help them understand the opportunity at hand, and then create a path of goals to meet theirs.

We have a lot of good offerings in our banks.

We have a course free checking, but we also get involved in our community.

So we're out meeting people.

We're serving people.

We go to all kinds of school events, all types of community events, and just meeting someone face to face is really different than, you know, a faceless person on an app.

That's, that's that's how you're going to get to know your customer.

And that's the best way to create trust when you have a person's name and a face.

Sarah.

How following up to that, how does entrepreneurship kind of lead into that conversation for women?

Because if they are, especially in some of these communities that are not in a urban area where it's a little more spaced out, trying to start a business, run a business, and have the confidence to make those financial decisions.

What were some of the report highlights that you all saw that that entrepreneurship.

And they need to be bolstered and have that kind of confidence moving forward so they can grow their business?

Well, an aside from this report, actually one of the previous reports that the Women's Foundation commissioned a few years ago was completely focused on women and entrepreneurship in rural parts of the state.

And what that study found was there was the highest concentration of women owned businesses in the Arkansas Delta region of Arkansas.

And that's for many reasons.

It's from the lack of jobs that are available or women also trying to create sources of income that fit around another full time job, or being able to be caregivers for their family or their children.

And so the Women's Foundation actually has a very specific program that applications are open for right now that supports women, business owners, and some of the tools, like you mentioned, Chris, that we have found that women who owned businesses are just striving to find are first and foremost, building their social capital.

If you are a business owner, you need to have a Rolodex available to you of a banker, an attorney, and, you know, an accountant, someone that can help with your marketing and your branding or H.R.

Support as you begin to hire.

And so our program provides connections for women, with other women who are professionals, leaders and experts in those fields.

But we also provide $5,000 in unrestricted grant funding, so those women can take those funds and scale and grow and invest in their own business.

Credible opportunities available there.

All right.

You highlighted this earlier in the report, talks about this, the generational wealth transfer this coming.

And reminder our audience the numbers you mentioned earlier.

Sure.

So $84 trillion in assets over the next decade will transfer from one generation to the next.

And up to 34 trillion of that will be controlled by women for the first time in our country's history.

How are you all at the bank helping that next generation and even though that that has not happened fully yet, how are you all helping?

You know, people understand when they come in that transfer, the opportunities that are available with it.

And really some of the the safety, the safety things that they need to be aware of when it comes to that kind of transfer.

And that is something that we've been discussing at our bank for for quite a while, is how we're going to handle that.

What we're going to do.

And, you know, our best way again, is to try to provide education.

These are our offerings.

This is what we can do.

This is how we can provide assistance.

And those are the things that we're working towards whenever it comes to barriers for women facing, trying to access capital, for example, maybe historically, they've been higher.

Have you seen them start to come down?

And, I'll follow up with you in a minute.

Sarah, in terms of any kind of response from the recipients, but is that something here that you've seen, be less of a burden for, for women trying to access capital, financial institutions more recently?

I think so I think it's coming down.

I think it's becoming easier.

There's there's SBA loans, there's all types of options, for women, you know, and sometimes those are, those are hard to find because not every bank does those.

Right.

So but a lot of, you know, check with your local bank, check with whoever and see if that's something that would work to help to be helpful.

Were there any questions about that?

And, are there any feedback on terms of access to being able to get capital?

What were the responses?

I mean, a lot of it, to your point, was access to capital, you know, being able to confidently walk into a bank and feel not only that you're going to be taken seriously as a business owner, but that you are prepared with all of the paperwork that you've taken, all of the right steps.

Also, you know, knowing how to register a business with the Secretary of State's office, the types of fees that you need to pay on an annual basis, and the registrations that you need to keep up can be a very daunting process, especially to Kara's point, as so many women just see these as like casual side hustles, when in actuality a lot of what they're doing is is full blown entrepreneurship and how they can grow and scale that not only for themselves, but as something that they can pass on to their children in the next generation.

That helps build generational wealth, which I think that was another big component of this study that we saw is women are duly looking at how can I provide for my family right now, but also how can I be thinking forward about providing financial security for my children and generations to come?

And clearly, majority of the responded saying, I can, but I don't know if I'm confident in being able to or am I doing it right, right, right.

Yeah.

Just the general question is, is this the proper way to do it, the proper channels to do so?

What role should banks and organizations play in financial education to help bridge that gap?

We know that there are resources available, like you mentioned, but for banks specifically, how important is it to be that number one resource, since you are in these communities and out in in the, the neighborhoods, so to speak, around these businesses and homes?

I think it's very, very important.

I think the more you can get your name out there and get your face out there, you meet people.

You can educate them as you talk.

It's just it's it's it's paramount.

Plus, you need to train your children so that your children don't will learn from you.

And they don't have to face any of those lack of confidence going forward.

It's a great point.

I was going to ask you, how early should it start?

I mentioned the curriculum here in Arkansas changed, you know, I think a decade ago where they started adding financial literacy into some of the different curriculum opportunities for students.

What is an age, that people should start maybe teaching their kids and not just dollars and cents, so, so to speak, but really about savings and and what to do with that money.

Sure.

Well, I mean, the way that we look at it is it's never too early, especially just to make that something that your children see, especially women are taking a proactive role in approach in.

So taking your children with you to the bank, having conversations over dinner around you know, how you're managing your household finances so that it's not something when they grow into adulthood that seems daunting, that seems foreign.

That it's something that's been discussed with within their family structure and in their house for the majority of their childhood.

And that is really an easy first step to making that so much more approachable, especially for young girls as they're coming into adulthood.

What are some of the things that if you could make one immediate change right now based on what you saw in that report, some of the things that were documented, some of the responses that were received, what is one thing that you could change of it that you think would be beneficial to the state, and particularly the respondents, the women who were asked these questions?

You know, I would like to go to every one of their houses and help them, you know, but I other than just providing the education, just the information that you can come to us I mean, the resources I'll provide just as being a friend and neighbor and also their bank already is, is is a step above.

But how do you I guess the question for a lot of these women was, how do I become confident.

Right.

So the education part being huge and never starting too early, it's oh, and you mentioned earlier to Sarah, some women think they're starting too late, right?

When really there is no too late.

Well, and I think one of the other interesting, components that came out of the study was the aversion that women have to debt and that all debt is seen as bad and as Kara can probably attest to, that necessarily is not the case.

And when we look at young women entering adulthood, really men and women entering adulthood, all of a sudden you're racking up student loans, you have access to open a credit card in your name, and a lot of young people are not really sure how to approach that.

And what's the smart way to do it.

So again, I think, Chris, coming back to your conversation about education and incorporating, you know, financial education, budgeting, how to manage, you know, your bank accounts even in junior high and high school is really an easy way that students can access some of that information even before they're put out into the real world.

You got to start somewhere.

You gotta start somewhere.

Yeah, the foundation can be laid early, and then hopefully it grows from there.

This was a report that I know, took, like I said, nine months to do what would be one immediate change, that you would see is if we could start somewhere.

How about that?

Where where would you start in terms of changing some of the the respondent, the responses in this report to have a better outcome for the financial future?

I think especially from the the side of the women's Foundation is just creating a space where it's comfortable to start to have these conversations and ask these questions.

I mentioned our finance clubs are a guide that women can take into their local communities, that just give questions that you can start to ask in a safe environment.

And to me, just feeling safe and secure to start to have those conversations and also the confidence to start to take some control.

And that financial decision making is quite honestly, probably the hardest step for a lot of women because there are so many resources available.

If you know how to access them and you trust what's available and the, the AI or whatever, Google or whatever you use online doesn't always know your personal finances, and you probably should share it with them, and also doesn't have all the resources known that your local bank likely will.

So care.

What are some of the things that you would like to tell the audience if they're, you know, they're feeling if they weren't responding, but they're feeling like some of them in terms of that, that trepidation to make those financial decisions confidently, what would you tell them before we leave?

I would say take the first step.

Go, go visit your local bank.

Ask a friend, do they have, you know, what's the reputation of the local bank?

What what type of people are these?

Do you have a suggestion on a person that might be able to help you?

Just take the first step.

You can't go wrong.

There's no right or wrong.

You just got.

But you got to stop.

You got to start.

No bad questions, right?

Yep.

That's right.

No.

And tell everybody about the Women's Foundation of Arkansas and where they could find all these resources available.

Sure.

So the Women's Foundation of Arkansas is the only statewide foundation that focuses on economic security for women and girls.

We're reaching almost 30 years that we have been a staple here in the state of Arkansas.

And all of our research is available on our website, which is the Women's Foundation of arkansas.org.

Okay.

Wonderful.

Thank you both so much for coming in talking about this today.

An important topic and one that will be talked about for a long time.

So thank you for sharing all of your information and hopefully it will help.

At least a few folks out there feel that confidence to go into their bank, go to the Women's Foundation, get those resources available.

We'll see you all next time.

Thank you so much.

All right.

Thank you for watching Arkansas Week.

That's all the time that we have on Chris Kane.

We'll see you next week.