Financial Education: Helping Women Plan a Financial Future

Financial Education: Helping Women Plan a Financial Future

Workshop Resources Allstate Foundation REAP
NeighborWorks® Training Institute Kentucky Housing Corporation Juli Clark, OASIS Hadley Meserve, OASIS Andrea Miller, KDVA

What is Financial Education? Identifying and Overcoming Economic Abuse
Lesson 1 What is Financial Education? Identifying and Overcoming Economic Abuse

Goals and Objectives Goals for today’s lesson:
Learn the importance of financial education/build foundation for remaining lessons Identify different forms of economic abuse Objectives: Identify financial fears and visions for success Ease financial fears through discussion Learn appropriate record-keeping/organization Identify /discuss different forms of economic abuse Learn about the abuse of power where it revolves around money

What is Financial Education?
Following strategies to make the most of your financial resources or income: Budgeting Saving Understanding and using credit wisely Responsible choices Needs vs. wants

Complete activity worksheet
Financial Fears Complete activity worksheet

Financial Fears: When I think of my finances, I am afraid of:
Being poor and living in poverty Losing Money Making a mistake that will cost me a lot of $ Never having $ for emergencies Being sued by a creditor Having to file for bankruptcy Not being able to afford living on my own Someone stealing my identity Outliving my retirement savings Not being able to work due to an injury Having medical expenses I can’t afford to pay Having bad credit Not being able to get a better paying job Not being able to buy food Never being able to pay off my debts Not being able to establish good credit Having my wages garnished by a creditor Making financial decisions on my own Trusting a stranger to manage my finances Investing my money and losing it all

What are your financial values?
Identify 3 important reasons to save money. Identify 3 important ways to spend money. Identify 3 ways that you think money is wasted or used carelessly.

What is your vision of financial success?
Complete the activity

Check all that apply; Rank importance
Not living paycheck to paycheck Having 3-6 months of living expenses saved Being free of credit card debt Having a fully funded retirement fund and retiring comfortably Owning my own home Being able to pay all of my bills when they are due Not relying on credit to purchase things I want or need Having a plan for how I will save and use my money Having a good credit score No longer struggling to make ends meet Owning my own vehicle Having life insurance and an estate plan Sending myself and/or my children to college Having the money to buy anything I could ever want or need

Why keep records? Provides proof of ownership, that a bill/debt has been paid, evidence if official records are lost Captures legal events (birth, divorce, etc) Able to dispute errors in banking/billing statements Enter claims (insurance, social security, etc) Tax deductions Pay fees/premiums on time

Why keep records? (cont’d)
Make good decisions, save time, and reduce stress!!!

What to keep? Social Security Cards Any legal document (marriage, divorce, custody, wills, etc) Insurance (health, auto, property) Banking/credit card/loan statements Investment records Tax records

Organization of Documents: 3 Categories
Active Files Inactive Files Safe Deposit/Lock box

Active Files: Keep for 12 months
Unpaid and paid bills Bank (checking/saving statements) Active insurance policies Warranties/Instructions for appliances Current papers for tax returns Last 3 years of tax returns Employment records List of items in lock box/safety deposit box

Inactive Files: Keep for 3-7 years
Bank statements for the last three years Tax returns for past seven years Educational records, diplomas, transcripts, etc. Statements for home/property improvement expenses

Safe Deposit/Lock Box Birth, death, marriage, divorce, etc, certificates or decrees Mortgage papers, property deeds, rental agreements Credit card numbers/phone & address of credit card company in case of theft/loss All banking account numbers Home inventory with photos Medical records Copy of will Car title

Economic Abuse Occurs when one person/group uses money to control another person/group Examples?

Examples of Economic Abuse
Controlling the financial resources (check book, paying bills, etc) or Access to resources Taking partner’s money Destroying partner’s credit Forcing partner to ask for money or giving an “Allowance” Gambling/spending savings Purpose getting partner fired from work Demanding receipts/details of how money was spent Not letting partner talk to others about money Not allowing partner’s name to be on accounts Devaluing partner’s contributions Preventing partner from working Destroying homework for school

Case Study #1 Beth was only given $5 at a time for gas. Beth wants to leave but won’t because she doesn’t think she can make it on her own. She is disabled and receives $700 per month. She has 3 children and the Section 8 waiting list is closed. When asked about a shelter, she states “I have done that and I don’t want to go back.” Abuse/Not abuse? What would you do?

Case Study #2 Lisa saved up and re-built her credit history so she could buy a new car. She had it for 5 days when her ex-boyfriend stole it. Lisa paid $4500 and has a loan for $10,000 at 7% for 5 years. A week later, Lisa found her car abandoned on the side of the road with slit seats, a broken front windshield, and profanity written on the seats with black marker. Lisa’s insurance will not cover the repairs. Lisa cannot get to work and was fired for missing too much work. She is now homeless and living with friends. Abuse/Not abuse? What would you do?

The Power Continuum Which of the following, if any, affect your financial power?
Gender Race/ethnicity Sexual orientation Educational level Age Occupation Political views Religion

Safety Planning Tip If you are planning to leave, try to obtain the following five: Photo identification Most recent tax records Most recent bank statement Vehicle registration (if you own a car) Insurance contact (health and vehicle)

Creating a Monthly Spending Plan (budget)
Lesson 2 Creating a Monthly Spending Plan (budget)

Identify the need for a “monthly spending plan” Begin to create an individual plan Objectives: Define a spending plan and its importance Learn how to create a plan Learn to total/track monthly income Create a practice budget

Spending Plan = Plan to pay for monthly expenses based on income
Why is this important?

Helps you control your money instead of your money controlling you
Helps tell if you are living within your means Helps meet savings goals Helps you to set aside extra money for things you need and/or want Helps you plan for emergencies or unexpected expenses Helps you to see where you are spending money so you can focus your goals Helps to keep you out of debt or get you out of debt Helps give you peace of mind

Creating a Spending Plan
Record all sources of income Record list of monthly expenses Divide expenses into “fixed” and “variable” Fixed expenses stay the same each month Variable expenses change from month-to-month Note whether the expense is a “want” or a “need” Needs are basic to SURVIVAL (food, water, shelter, etc) Wants are desired but not necessary (dining out, cable, movies, nail care, etc) Adjust expenses to fit within income Review/adjust/update monthly

Sample Worksheet

Practice Scenarios What suggestions or thoughts do you have for Lisa?
For Katarina? How will this help you with your spending plan?

Building (or Rebuilding) Your Credit
Lesson 3 Building (or Rebuilding) Your Credit

Teach the importance of developing and maintaining positive credit Learning the basics of a “financial” resume Objectives: Definition of credit Why we need good credit 4 C’s of credit worthiness Difference between creditors and credit bureaus Credit report basics Dispute letters Credit scores Tips/Strategies for raising credit scores Consumer rights regarding credit

What is credit? The present use of future income

Good credit allows you to:
Purchase item/s you need or want Get the lowest interest rates Get a job (in some industries) Rent an apartment Open a checking account Obtain insurance at lower rates Establish utility service in your name Purchase a home or other asset

Four C’s of Credit-worthiness
Capacity =ability (income; past, present and future) Capital = resources (cash in banks, stocks, gifts, etc) Character = responsible credit patterns (repayment history) Collateral = security in event of default (solid home, fair market value) Would you lend to you?

Creditors vs. Credit Bureaus
A Creditor is the person/entity granting credit A Credit Bureau reports on credit provided to others Examples: Banks Finance companies Stores Insurance companies Landlords Credit Card companies Examples: Experian Trans Union Equifax Important to note that not all bureaus report the same information Each creditor can choose (and has to pay) the bureau to which it reports information

Contact Information Experian Equifax Trans Union Attn: NCAC PO Box 2002 Allen TX 75013 PO Box Atlanta, GA 30375 Consumer Disclosure Center PO Box 1000 Chester, PA 19022

Free Credit Report Request online from (all three bureaus) Security questions are asked to verify your identity Can request (1) free copy per year from each CRA

What’s in the report? Identification information (full name, last two addresses, SSN, DOB, place of employment) Detailed information on the accounts listed (name of creditor, date account opened, balance information, late payment history, and current status of account) Public record information (bankruptcies, tax liens, judgments, other filings) Credit report inquiries (name of each creditor who has requested a copy) – last two years Consumer statement (place for a consumer to place a statement challenging or explaining any creditor entry, in < 100 words per trade line)

What is NOT in the report:
Race, religion, gender, marital status, national origin, age Salary, dates of employment, thorough employment history Interest charged on particular accounts Child support/family obligations (unless judgment rendered and in default) Participation in credit counseling Any information not predictive of future performance

Review your report! Verify that ALL personal information is correct including SSN, DOB, addresses, etc. Review credit information/trade lines to ensure information is accurate Review public record information (local, state and federal courts) Review inquiries (people who have obtained a copy of your information) NOTE: Courts/Homeland Security/Child Support enforcement can request WITHOUT your permission

Disputes Write letters to dispute incorrect information on your credit report Include copy of report with highlight of disputed item and reason for dispute Incorrect information must be removed Adverse, but correct, information does not have to be removed until terms apply (generally 7 years days)

What is a credit score? A number lenders use to determine if you are a good credit risk Most common = FICO (Fair Isaac Corporation) Range from Proprietary formula – lenders must pay FICO to obtain and pay for software to calculate Vantage Score = new model developed using 7.5 million files from all three credit bureaus Range from What you usually receive when getting your “free” score from the internet

FICO Credit Score Ranges

Profile of high FICO score holders
NO late payments or other payment problems Use of less than 10% of the amount available on credit cards Most have credit history > 20 years Most have opened no more than one new credit account in the past year Most have between 6-15 credit accounts (all types)

Why the FICO score matters
Your FICO Score Your Interest Rate Your Monthly Payment 6.27% $925 6.39% $937 6.93% $991 8.08% $1109 8.53% $1157 9.29% $1238

What if you have no score?
Establish a non-traditional credit history with an agency such as (PRBC-Pay Rent, Build Credit) based on: Rent payments Utility payments Child care or child support payments Other recurring expenses Microloans Loans using a co-signer

Components of FICO and Vantage Scores
FICO Score Component Score Weight Payment History 35% Amounts Owed 30% Length of Credit History 15% New Credit 10% Types of Credit Used TOTAL 100% Vantage Score Component Score Weight Payment History 32% Utilization 23% Balances 15% Depth of Credit 13% Recent Credit 10% Available Credit 7% TOTAL 100%

Strategies to Improve Credit Score
~3/4 of your score is under your control!!! Pay your bills ON TIME Decrease your balances and increase your limit/balance ratio Keep older accounts open . Don’t swap accounts constantly. Don’t apply for new credit unless you really NEED it Have a sensible mixture of credit

Drive the car!!!

Consumer Rights Consumer Credit Protection Act (Truth in Lending Act-TILA) Consumer Leasing Act Fair Credit Reporting Act Equal Credit Opportunity Act Credit Repair Organization Act Fair Credit Billing Act Fair Debt Collection Practices Act Fair and Accurate Credit Transaction Act (FACTA) Bankruptcy Reform Act Credit Card Accountability Responsibility and Disclosure Act

Consumer Credit Protection Act (Truth in Lending Act)
Requires lenders to disclose in common language the “true cost” of credit Disclosures must be made when credit is denied Disclosures must be “uniform” Creditors must tell consumer in writing the terms of the deal BEFORE the deal is signed Disclosures must be clear, concise, and in a timely manner In some cases, consumer can change mind on deal within specified time period $50 maximum limit on amount of money cardholder is responsible to pay in case of unauthorized use of card before consumer has notified card issuer

Consumer Leasing Act Provides protection against unreasonable end of term changes in open-ended leases Certain information on cost of terms must be grouped together and separated from other information on the lease What consumer will pay at lease signing Monthly/periodic payments during the lease Other charges that consumer may face TOTAL amount consumer will pay over lease term

Fair Credit Reporting Act (FCRA)
Requires CRAs to report accurate and complete information; consumers responsible to ensure accuracy Consumer must be told each time information used against them with CRA contact info Consumer may receive (1) free report each year; more free reports under certain circumstances CRA must correct or delete inaccurate, incomplete, or unverifiable info within 30 days after notice from consumer CRA must exclude information over 7 years old (10 yrs for bankruptcies) Allows consumer OPT OUT ( ) from prescreened credit offers

Equal Credit Opportunity Act (ECOA)
Requires ALL applicants to be considered on actual qualifications for credit, not personal characteristics Creditors may not refuse to consider income from retirement benefits, PT employment, or alimony/child support Consumer must be notified within (30) days of decision

Credit Repair Organization Act
Protects public from unfair or deceptive advertising and business practices by CRO Defines “credit repair” organizations CRO must have written contract with disclosures of terms and conditions of payment AND services; consumer has 3-day of rescission Consumer can sue for fraud – 5-year statute of limitations

Fair Credit Billing Act (FCBA)
Establishes procedures to correct errors promptly and without damage to credit rating Defines billing errors Consumer must give written notice within 60 days of receiving bill in question Creditor must respond within (30) days and resolve dispute within two billing cycles (< 90 days) Creditor cannot report as delinquent or place for collection while in resolution period

Fair Debt Collection Practices Act (FDCPA)
Applies to 3rd party collectors, not those to whom original debt is owed Prohibits making threats, using/threatening violence, using profane/obscene language, continuously or repeatedly calling debtor Contact may occur between 8AM-9PM in time zone of consumer Debt must be validated by collector and burden of proof is on collector Collectors cannot communicate with debtors represented by attorneys unless permission is granted

Fair and Accurate Credit Transactions Act (FACTA)
Enacted to help combat Identity Theft (1) free credit report per or Allows for fraud alerts, credit freezes Defines credit score Limits medical information in making credit decisions

Bankruptcy Reform Act Credit counseling must first be completed to determine bankruptcy filing eligibility Most common types: Chapter 7 … assets liquidated to pay creditors Chapter 11 … business reorganization Chapter 13 … for consumers with regular income to develop plan of repayment for all or part of debts over a period of time Seek advice from a qualified attorney

Credit Card Accountability Responsibility and Disclosure Act
Creditors cannot : generally raise interest rates during 1st year that acct is opened raise rates on existing balances unless consumer is >60 days late and must restore lower rate after 6 mos. of timely payments charge over-limit fees unless consumer approves the transaction Creditors must: apply payments above minimum amount first to higher-interest balances credit payments received by 5 PM Deliver billing statements 21-days in advance of due date Disclose on statements the period of time and total interest to pay off debt using only minimum payment AND what payment would be required to pay off debt in 3 years Consumers can cancel accounts before effective date of changes and creditor cannot require immediate repayment of entire balance

SNL Video

Let’s take a QUIZ! 1. How often should you review your credit report?
Once a year Every three months Every six months Every month Never

Let’s take a QUIZ! 2. Which of the following can you do to improve your chances of being approved for credit? Pay your bills on time Switch employers Open up more lines of credit Don’t bounce checks Both a & d

Let’s take a QUIZ! 3. What is the Fair Credit Reporting Act?
A law that helps consumers correct errors on billing statements A law that helps consumers correct errors on their credit report A law that requires credit card companies to disclose terms and conditions A law that protect consumers against discrimination All of the above

Let’s take a QUIZ! 4. Improving your credit score can mean ____
Living with relatives for at least 6 months You are in a less risky group and will pay lower interest rates and loan fees Being elected to public office Increase your chances of being approved for lines of credit or a loan Both b & d

Let’s take a QUIZ! 5. Credit reports contain the following information: Your gender Your payment history Your race Only your open lines of credit All of the above

Banking, Checking and Preventing Identity Theft
Lesson 4 Banking, Checking and Preventing Identity Theft

Develop confidence in banking institutions and how to choose a bank Learn check-writing basics, balancing a check book, reconciling check register with bank statement How to avoid identity theft Objectives: Learn reasons for becoming banked Explore criteria for evaluating financial institutions How to manage checking information Identify types of identity theft, how to protect yourself from identity theft, and what to do if you are a victim of identity theft

Reasons for Using a Bank
Cost Using check cashing services can cost over 10x what you would pay using an banking account Safety and Security Money is safe from loss or theft; FDIC (Federal Deposit Insurance Corporation) insures your money up to $250,000 Establish Financial History Helps with credit history; essential for taking out a loan Convenience Multiple locations, direct deposit, ATM/debit cards, online banking

Types & Terms Types of Institutions Terms Commercial Banks
Direct Deposit Allows for employer or agency to directly deposit earnings or money into your specific account ATM Automated Teller Machine allows for access to money Can charge usage fees for “non members” Debit Card Can double as ATM card Can be used to make purchases anywhere Online banking Using the internet, access your account, make transfers, pay bills, view account activity Usually free of charge Commercial Banks Provide multiple services Usually have many branches Beneficial for travelers and those in larger cities Can be state or national Savings & Loan Banks Main purpose is mortgage lending or specialized savings Credit Unions Member owned May pay membership fee, belong to particular profession or group to become a member

Financial Institution Comparison Table
Bank #1 Bank #2 Bank #3 Savings Acct Effective yield 2.0% 2.6% 1.0% Checking Accounts Free checking Free checking with minimum $75 bal. $5.00 monthly fee, unlimited checks Customer Relations Friendly Not Friendly Convenience Very Convenient Convenient Not Convenient ATM $1 service fee per use Free Personal Safety My abuser banks here Partner does not bank here

Managing Your Checkbook
Write sample checks as directed Review member statement Are there errors on the statement? What is the ending balance on the statement? Are there deposits not listed on the statement? What is the total including the unlisted deposits? Are there outstanding checks/purchases not listed on the statement? What is the new ending balance including outstanding purchases?

Answers There are NO incorrect charges on the statement
The ending balance is $543.97 There are NO outstanding deposits The subtotal with deposits is the same-$543.97 YES, there is one outstanding check for $74.47 The new balance is actually $469.50

Identity Theft Crime of obtaining personal or financial information of another person for the purpose of assuming that person’s name to make transactions or purchases

Types of Identity Theft
Phishing Attempt to access confidential information through , phone calls, fake website, going through your mailbox or digging through your trash Key-Logging Using a device to capture key strokes on a computer to steal account numbers/passwords Social Engineering Befriending a person to gain trust and then stealing their personal information

Steps to Protect Yourself
Inspect your credit report annually Shred financial documents before trashing Protect your SSN Do NOT give out personal information over the phone or Don’t use obvious passwords or PINs Don’t print your SSN or D/L # on checks Put a fraud alert on your credit file Check all statements for accuracy of charges Consider a PO Box Don’t write an entire account # on checks, only the last 4 digits Photocopy the contents of your wallet Pay attention to bills that do not arrive

If You Suspect You are a Victim:
File a Police Report Contact the Social Security Administration: Place a fraud alert on your identity with the credit bureaus Close accounts that have been compromised or opened fraudulently Contact the Federal Trade Commission Identity Theft Clearinghouse, FTC 600 Pennsylvania Avenue NW Washington DC 20580

Lesson 5 Grocery Savings

Learn to make wise spending choices Learn to maximize groceries and other purchases to impact monthly budget Objectives: Importance of effective shopping Review ways to save money when shopping How to buy items in season at the grocery Unit prices/store brands Balanced menus Creating shopping lists from pre-planned menus

Grocery Facts/Marketing Techniques
Facts and Figures Marketing Techniques 2007 … Average American family spent $189/week for food or $812.70/month USDA estimates with better planning, the same family could eat for $167.70/week or $721.11/month What could you do with an extra $90 in your monthly budget? Retailers put the highest priced items/highest profit eye level Essentials are put in the back to encourage pick up of other items on the way Products complementing each other placed together Kid-marketing Enticing smells/free samples encourage buying more

What’s in Season? Spring Summer Fall Winter Apricots
Beets, Summer Squash, Zucchini Acorn/Butternut Squash Chestnuts Artichokes Berries Apples Grapefruit Avocado Broccoli Cauliflower Kale Carrots Cabbage Figs Leeks Collards Corn Garlic & Ginger Lemons Mango Cucumber Grapes Oranges Potatoes Green Beans Mushrooms Radishes Pineapple Nectarines & Plums Pears Rutabaga Rhubarb Peaches Pomegranate Tangerines Strawberries Tomatoes Pumpkin Turnips Sugar Snap/Snow Peas Watermelon Sweet Potatoes

Exercise: Comparison Shopping Calculate the missing values
Product UPC Size Price Unit Price Kraft Mac & Cheese Box 16 oz $0.89 0.056¢ Kroger Mac & Cheese Box 12 oz $0.49 0.041¢ Del Monte Pears 24 oz $1.29 Great Value Pears $1.09 Tyson Chicken Fingers 3 lbs $5.97 Amick Farms Chicken Fingers 7 lbs $10.43 Tyson Boneless Skinless Chicken Tyson Whole Cut Up Chicken

Comparison Shopping Which of the pair presents the best buy?
Product UPC Size Price Unit Price Kraft Mac & Cheese Box 16 oz $0.89 0.056¢ per oz. Kroger Mac & Cheese Box 12 oz $0.49 0.041¢ per oz. Del Monte Pears 24 oz $1.29 0.054¢ per oz. Great Value Pears $1.09 0.091¢ per oz. Tyson Chicken Fingers 3 lbs $5.97 $1.99 per lb. Amick Farms Chicken Fingers 7 lbs $10.43 $1.49 per lb. Tyson Boneless Skinless Chicken Tyson Whole Cut Up Chicken

Shopping Answers Kroger Mac & Cheese is the better buy because it costs 15¢ less per ounce than Kraft Del Monte is a better buy because it costs $0.043 less per ounce than Great Value Amick Chicken Fingers are the better buy because it costs 50¢ less per pound than Tyson Chicken Fingers Tyson Boneless Skinless Chicken is the better buy than Tyson Bone-In chicken because more meat will be provided for the money spent

Shopping for a Car: Best deal. A car is sold for $7500 with $1500 down
Shopping for a Car: Best deal? A car is sold for $7500 with $1500 down. Which is the best deal? Creditor APR Term Monthly Payment Total Finance Charge Total Payments A 14% 3 years $205.07 $ $ B 4 years $163.96 $ $ C 15% $166.98 $ $

Review 25 Ways to Cut Grocery Costs
Buy One Get One (BOGO) offers are only good if you will USE the items before expiration Buy One Get One Half Off is only good if you NEED both items! READ labels and compare prices

Identifying your skills and abilities
Lesson 6 Identifying your skills and abilities

Understand the importance of knowing skills and abilities prior to beginning a job search Identify individual skills and abilities relevant to employment Objectives: Identify reasons for putting off a job search Understand importance of identifying skills and abilities prior to employment search Define personal skills and abilities Become comfortable marketing personal skills (selling yourself)

What are my feelings when I think about looking for a job?
Discussion What are my feelings when I think about looking for a job?

Why Work?

Definitions What is an ability? What is a skill?
The power to do something A special talent or personality trait that you have enabling you to accomplish a task What is a skill? Proficiency or dexterity An art, trade or technique, especially one requiring the use of the hands or body

Why is this important? Knowing your skills helps you to:
Increase self-confidence Know what types of jobs are the best fit for you Identify and focus your goals, including education and training Correctly complete job applications Write a better resume Interview more effectively

Practical Exercises Marketing an item Defining Roles
Valued Perspectives Personal Questionnaire Discovering Your Skills

Application, Resume and Job Search Tips
Lesson 7 Application, Resume and Job Search Tips

Learn skills necessary to fill out applications completely Learn how to write an effective resume and cover letter Improve written communication skills Objectives: Identify personal skills from Lesson 6 Review tips for completing job applications Learn components of a successful resume Identify the types of resumes and which type to select Examine action words in resume and letter writing

Applying Skills Identify (2) skills from the activities completed in Lesson 6 How is this skill used in the workplace?

Do you have the skills Employers want
Do you have the skills Employers want? Research shows employers seek these skills: Good work habits Dependability Ability to follow instructions Pride of craftsmanship and quality Positive attitudes toward company and employer Responsibility to follow thru on assigned tasks Productivity Ability to read and apply printed material Ability to write and speak effectively Ambition, motivation or desire to get ahead

Directions Activity

Job Applications Are your promoting yourself correctly?
Dress neatly; you might be interviewed on the spot Be polite to EVERYONE with whom you come in contact Be prepared with a pen, personal information, work history, skills, and references Make sure your references will provide a good recommendation Print neatly and carefully Check your spelling If a question does not apply, write N/A. Do NOT leave blanks. Be thorough and honest Don’t forget to sign your name Ask when and with whom you can follow up on your application FOLLOW UP!!!

A definition of insanity – continuing to do the same thing over and over again and expecting different results!

Common Job Hunting Mistakes
Trying to go it alone Not defining your interests or skills Failure to investigate the job market Failure to manage your time Procrastination Unrealistic expectations

What is a Resume? A document created to highlight your skill and experience for a potential employer

For all resumes … Type your resume! Print on good quality paper (no bright colors, borders or smells). Do NOT include irrelevant personal information (age, weight, pictures, marital status, etc.). Do NOT include expected salary OR wage information from previous jobs. Don’t use abbreviations, unless standard for your field. Be positive … identify accomplishments.

For all resumes - continued
Use action verbs (e.g. analyzed, coordinated, improved, arranged, generated, designed, created, etc.) Keep it short. Be specific and use concise sentences … ONE page is best. Neat and easy to read! Proofread carefully and have someone else review for errors! Only send good copies (no smudges, stains, marks, wrinkles, smells).

Types of Resumes Chronological:
lists jobs beginning with most recent and briefly describes the main duties of each job Use if you: Have a strong work history in the area in which you are trying to obtain a position Clearly progressed along a career ladder Recent job experience

Types of Resumes Functional :
describes skills, abilities, and accomplishments that relate to the employment you are seeking Work history is not included Use if you are: Switching careers Have a varied job history Have a limited job history Out of the work force for many years Displaced homemaker Veteran and need to relate military training to civilian jobs

Types of Resumes Combination:
includes both skills and a brief history of work experience Place of employment is not emphasized Use if you: Have transferable skills Are changing job areas Have a consistent work history

Action Words for Letters and Resumes
Creative Financial Helping Manage-ment Technical Clerical Created Administered Assessed Supervised Assembled Arranged Designed Analyzed Coached Developed Built Generated Established Balanced Counseled Directed Operated Compiled Conceptualized Budgeted Facilitated Implemented Repaired Organized

Action Words for Any Field
Ability to plan Communicated Energetic Improved Open Minded Adaptable Competitive Ethical Industrious Problem solver Applied Creative Explained Initiated Planned Assertive Detail-oriented Follow through Leadership Prepared Achieved Dedicated Flexible Maintained Supportive Accomplished Distributed Goal-oriented Multi-tasking Team Builder or Team Player Completed Directed Instructed Motivated Trained

Cover Letters Include: Your contact information The date Name/address to whom you are writing Greeting Why you are writing How your skills relate to the job Request for interview Closing Signature

Interviewing Practice On the Job
Lesson 8 Interviewing Practice On the Job

Learn effective interviewing techniques Learn strategies for answering interview questions Improve oral communication skills Objectives: Review interview process Review interview dos and don’ts Practice answers to potential interview questions Review interview follow up Review tips for maintaining employment Review effective communication in the workplace

Before the Interview Research the company and the job
Make sure you are appropriately dressed and groomed Clothes should be clean and wrinkle free Perfume and cologne should be minimal Make-up: Less is MORE! Shoes should be clean Plan your transportation to arrive 5-10 minutes early for your interview – NEVER be late! Have an extra copy of your resume and references Practice questions and answers Make your first impression a good one

During the Interview DO DON’T
Project a friendly, confident and positive attitude; Negativity = NO JOB! Make eye contact, sit up straight, and listen carefully SMILE  Express 100% interest in the job State specific career goals Translate your skills to the needs of the job Use slang, argue, or hog the conversation Criticize or bad-mouth previous employers, educators, etc. Act defensively, desperately, or boastfully Evade questions, huff, or provide poor excuses Smoke, chew gum or eat anything including mints and candy Fidget

After the Interview Send a thank you note to follow up
If not hired, ask what feedback can be provided to help you with your next interview

Interview Humor

Interview Practice Tell me about yourself.
Why are you looking for a new position? Why should we hire you? What are your strengths and weaknesses? What are your goals and what are you doing to achieve them? Describe how you would handle an angry customer. What salary do you expect?

Maintaining Your Job Remember: EVERY job is an opportunity
Show up for work, be on time, and do your job with enthusiasm! Call if you will be absent or late Read and understand company policies Do your job and cooperate with others Be neat and clean Keep your personal life/problems at home Arrange for reliable childcare Ask for more responsibility and/or training Don’t make promises you cannot keep Don’t just quit. Try to solve problems or find another job before leaving.

Team work Humor

Tips for Getting Along with Co-Workers
Know their names Give sincere compliment s Handle your anger Don’t gossip or say unkind things Don’t get offended by criticism; try to do better Don’t cover for your co-workers Practice good manners

Paying yourself 1st! IDA Programs
Lesson 9 Paying yourself 1st! IDA Programs

Learn the importance of saving to meet financial goals Learn about individual development account programs Objectives: Discuss ways to save money Set individual savings goals Review the process for opening an IDA account

10 Common Ways to Save Plan ahead for purchases
Make a shopping list and stick to it Use Coupons Read the sale papers and comparison shop Shop alone when possible Don’t drink sodas, they are costly and high in sugar Limit eating out Buy store brands Use generic prescriptions if available Simplify phone and cable plans

My Individual Savings Plan
Goal (what I want to buy) Today’s Date Goal Date (when I want my purchase) Cost (how much product will cost) Current Savings (what I have now) Savings Needed (Cost minus what I have now) How Many Months divide $ needed by this # How Much per Month=what I need to save each month Computer Apr 1 Dec 1 $700 $50 $650 9 $72.22

WHAT IS AN INDIVIDUAL DEVELOPMENT ACCOUNT (IDA)?
Opportunity for matched savings of up to $2000 income Purpose: Asset building tool Must be income eligible Two IDA program types

Two Types of IDA CAR IDA TRADITIONAL IDA

Car IDA Privately funded Income/asset limitations
1:1 match for up to $4000 asset purchase Two years to save Must complete “Car Maintenance” workshop Purchase must be “certified” Available only to DV survivors Limited Availability

Traditional IDA Federal program (AFI-Assets for Independence grant)
Income/asset limitations 2:1 match for up to $6000 for asset purchase Three years to save Must complete individual plan toward one of (3) purposes: home purchase post-secondary education starting a business End goal can change

General Information IDA accounts do not count against participants for public assistance programs Accounts are custodial Case management through KDVA member program Participants sign savings plan agreements Monthly statements created to show match Participating banks waive fees and minimum balance requirements If participant cannot continue … account can be closed; only participant $ returned

Program Requirements Can only use earned income or SSI/SSDI with verifiable PT work for traditional IDA Any income source counts for Car IDA Regular monthly deposits required (min. $20) Accounts open for minimum of 6 months Must complete financial education classes on saving, budgeting, and using credit wisely Emergency withdrawals allowed but must be pre-approved and authorized Monthly meetings with case manager for first year; quarterly for years 2 and 3

Complete IDA application of choice
Complete credit report authorizations Submit to KDVA Credit report pulled/application reviewed by KDVA Note: poor credit will NOT disqualify Once approved, open account per instructions

How to Avoid Predatory Lending
Lesson 10 How to Avoid Predatory Lending

Learn about predatory lending practices Identify alternative resources Objectives: Discuss the following: Payday lending Check cashing services Rent to Own Car Title Loans Refund Anticipation Loans Predatory credit card practices

Payday Loans Definition: small loans given over short term secured by your paycheck or personal check Reasons for using payday loans Fast Convenient Hassle-free Seems like a good deal – borrow $100 pay $15 True cost - $100 loan for 14 days = 439% APR

Not so far from the truth …

Alternatives to Payday lending
Ask creditor for more time Try a microloan Borrow from family or friends Ask work for payroll advance Emergency assistance through social service agency

Check Cashing Service Definition – service provided by stores to cash payroll, government or personal checks Fees vary by check type Reasons for check cashing: Do not have a checking account Lack of trust in banks Convenience Alternatives: Open a checking and/or savings account Use direct deposit services

True Cost for Check Cashing
Check Type Average Cost Check Amount Cost to Cash Annual Cost Paycheck 2.5-5% $650 $16-27 $ Government 2.44% $1200 $30 $350 Personal % $500 $44-75 $

Rent to Own Definition – Any program where you rent a household item for a weekly or monthly fee. At the end of the rental period, you own the merchandise. Reasons for using: No credit checks No waiting for item No upfront cash No commitment Try out product

True Costs for Rent to Own
Item Retail Cost Rent to Own Cost Computer $559 $3500 Refrigerator $430 $1700 Television $250 $1000

Alternatives to Rent to Own
Short-term savings plan Long-term rainy day fund Buy used Buy on credit (90 days same as cash) Use emergency funds Ask for help from family/friends

Car Title Loans Definition – Short term loans that use your car as collateral. The title is signed over to the lender until you pay the loan. Reasons to use: Quick cash Easy approval No Credit checks Convenient True Cost? State law limits term to 3 36% APR Note that online loans do not have to follow state laws Failure to pay means repossession of vehicle and/or collection costs

Alternatives to Car Title Loans
Short term savings plan Long term rainy day fund Work with creditors on payment plan Consult a non-profit debt management company Use emergency funds Ask for help from family and friends

Refund Anticipation Loans
Definition – short term cash advance against an expected income tax refund. It is a loan you give yourself and pay someone for! Reasons for using RAL: Immediate access to refund It’s offered Convenient True Cost: Average refund of $3000 with fees from $89-$170. Reduces refund to $2830. Average loan term 7-10 days = 200% APR. With direct deposit, IRS refunds are available within 7-10 days. CAUTION: If your return is rejected or reduced, you still owe the remaining balance to the lender at the same cost.

Alternatives to RAL Free Tax prep help through VITA sites
File electronically Use free Wait the 7-10 days!

Predatory Credit Card Practices
Definition – lenders that have unexpected fees, changing terms or terms that are disclosed but not explained, on the policies, after account opening. Reasons: Unexpected expenses Overspending No waiting for what you want Lack of understanding

True Costs Credit card companies collect over $15 billion in fees annually Late fees have doubled and tripled over the past few years Late payments cause overall interest to raise on account Over limit fees add to balance and cause more interest to be charged

Alternatives to Predatory Credit Card Practices
The new Credit Card Law that went into effect in 2010 addresses some issues Consider the following: Do not be “sold” a credit card Shred unsolicited offers Say “no” at the checkout line when offered a new card Stay within your budget and/or modify if necessary Choose your creditor carefully

Considerations in choosing creditors
When opening a credit card account, carefully review: the initial interest rate and interest rate period the interest rate after the initial term expires the interest rate for purchases, cash advances, and balance transfers late fees, over-limit fees, penalties for defaults and any other fees/charges the billing cycle term and how interest is calculated

Predatory Lending Definition: Any loan that takes advantage of you, provides you no benefit, and whose costs and interest rates do not match the risk

Predatory Lending Approach
Target people who are financially struggling Offer “checks” in the mail Call to offer help Advertise during late-night programs Personal visits

Predatory Sales Tactics
High pressure to make an “immediate” decision Explanations do not make sense Questions evaded or ignored Offers are “limited time” Rush through paperwork Suggest they are the “only ones who can help” Overly nice and friendly

Predatory Lending Practices
Bait & Switch High fees, junk fees Asset based lending Fraud Home improvement scams Balloon mortgages Repeated financing Refinancing low cost loans Foreclosure “rescue” Mandatory arbitration Right to rescission

How to Avoid Predatory Lending
Shred & Slam! Don’t be rushed Have a back-up plan Walk away Ask questions until they are answered to your satisfaction Don’t sign blank or incorrect documents Scrutinize costs (TILA) – it’s your money Have documents reviewed by another party Don’t lie to yourself Listen to your instincts

Choosing a Safe Lender Interview the lender – you are hiring them!
Good lenders are not afraid of hard questions Check references AND licenses!

Credit Counseling Helps you learn where you are spending your money
Helps you develop strategies to get out of debt – faster than you thought Helps you to start a savings plan, possibly without increasing your income Teaches your children good spending habits – by your example Teaches you to control your financial life instead of letting it control you

Questions?

Financial Education: Helping Women Plan a Financial Future

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