Presentation on theme: "Financial Education: Helping Women Plan a Financial Future"— Presentation transcript:
1Financial Education: Helping Women Plan a Financial Future
2Workshop Resources Allstate Foundation REAP NeighborWorks® Training InstituteKentucky Housing CorporationJuli Clark, OASISHadley Meserve, OASISAndrea Miller, KDVA
3What is Financial Education? Identifying and Overcoming Economic Abuse Lesson 1What is Financial Education?Identifying and Overcoming Economic Abuse
4Goals and Objectives Goals for today’s lesson: Learn the importance of financial education/build foundation for remaining lessonsIdentify different forms of economic abuseObjectives:Identify financial fears and visions for successEase financial fears through discussionLearn appropriate record-keeping/organizationIdentify /discuss different forms of economic abuseLearn about the abuse of power where it revolves around money
5What is Financial Education? Following strategies to make the most of your financial resources or income:BudgetingSavingUnderstanding and using credit wiselyResponsible choicesNeeds vs. wants
7Financial Fears: When I think of my finances, I am afraid of: Being poor and living in povertyLosing MoneyMaking a mistake that will cost me a lot of $Never having $ for emergenciesBeing sued by a creditorHaving to file for bankruptcyNot being able to afford living on my ownSomeone stealing my identityOutliving my retirement savingsNot being able to work due to an injuryHaving medical expenses I can’t afford to payHaving bad creditNot being able to get a better paying jobNot being able to buy foodNever being able to pay off my debtsNot being able to establish good creditHaving my wages garnished by a creditorMaking financial decisions on my ownTrusting a stranger to manage my financesInvesting my money and losing it all
9What 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.
10What is your vision of financial success? Complete the activity
11Check all that apply; Rank importance Not living paycheck to paycheckHaving 3-6 months of living expenses savedBeing free of credit card debtHaving a fully funded retirement fund and retiring comfortablyOwning my own homeBeing able to pay all of my bills when they are dueNot relying on credit to purchase things I want or needHaving a plan for how I will save and use my moneyHaving a good credit scoreNo longer struggling to make ends meetOwning my own vehicleHaving life insurance and an estate planSending myself and/or my children to collegeHaving the money to buy anything I could ever want or need
12Why keep records?Provides proof of ownership, that a bill/debt has been paid, evidence if official records are lostCaptures legal events (birth, divorce, etc)Able to dispute errors in banking/billing statementsEnter claims (insurance, social security, etc)Tax deductionsPay fees/premiums on time
13Why keep records? (cont’d) Make good decisions, save time, and reduce stress!!!
14What 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
15Organization of Documents: 3 Categories Active FilesInactive FilesSafe Deposit/Lock box
16Active Files: Keep for 12 months Unpaid and paid billsBank (checking/saving statements)Active insurance policiesWarranties/Instructions for appliancesCurrent papers for tax returnsLast 3 years of tax returnsEmployment recordsList of items in lock box/safety deposit box
17Inactive Files: Keep for 3-7 years Bank statements for the last three yearsTax returns for past seven yearsEducational records, diplomas, transcripts, etc.Statements for home/property improvement expenses
18Safe Deposit/Lock BoxBirth, death, marriage, divorce, etc, certificates or decreesMortgage papers, property deeds, rental agreementsCredit card numbers/phone & address of credit card company in case of theft/lossAll banking account numbersHome inventory with photosMedical recordsCopy of willCar title
19Economic AbuseOccurs when one person/group uses money to control another person/groupExamples?
20Examples of Economic Abuse Controlling the financial resources (check book, paying bills, etc) or Access to resourcesTaking partner’s moneyDestroying partner’s creditForcing partner to ask for money or giving an “Allowance”Gambling/spending savingsPurpose getting partner fired from workDemanding receipts/details of how money was spentNot letting partner talk to others about moneyNot allowing partner’s name to be on accountsDevaluing partner’s contributionsPreventing partner from workingDestroying homework for school
21Case Study #1Beth 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?
22Case Study #2Lisa 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?
23The Power Continuum Which of the following, if any, affect your financial power? GenderRace/ethnicitySexual orientationEducational levelAgeOccupationPolitical viewsReligion
24Safety Planning TipIf you are planning to leave, try to obtain the following five:Photo identificationMost recent tax recordsMost recent bank statementVehicle registration (if you own a car)Insurance contact (health and vehicle)
25Creating a Monthly Spending Plan (budget) Lesson 2Creating a Monthly Spending Plan (budget)
26Goals and Objectives Goals for today’s lesson: Identify the need for a “monthly spending plan”Begin to create an individual planObjectives:Define a spending plan and its importanceLearn how to create a planLearn to total/track monthly incomeCreate a practice budget
27Spending Plan = Plan to pay for monthly expenses based on income Why is this important?
28Helps you control your money instead of your money controlling you Helps tell if you are living within your meansHelps meet savings goalsHelps you to set aside extra money for things you need and/or wantHelps you plan for emergencies or unexpected expensesHelps you to see where you are spending money so you can focus your goalsHelps to keep you out of debt or get you out of debtHelps give you peace of mind
29Creating a Spending Plan Record all sources of incomeRecord list of monthly expensesDivide expenses into “fixed” and “variable”Fixed expenses stay the same each monthVariable expenses change from month-to-monthNote 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 incomeReview/adjust/update monthly
31Practice Scenarios What suggestions or thoughts do you have for Lisa? For Katarina?How will this help you with your spending plan?
32Building (or Rebuilding) Your Credit Lesson 3Building (or Rebuilding) Your Credit
33Goals and Objectives Goals for today’s lesson: Teach the importance of developing and maintaining positive creditLearning the basics of a “financial” resumeObjectives:Definition of creditWhy we need good credit4 C’s of credit worthinessDifference between creditors and credit bureausCredit report basicsDispute lettersCredit scoresTips/Strategies for raising credit scoresConsumer rights regarding credit
35Good credit allows you to: Purchase item/s you need or wantGet the lowest interest ratesGet a job (in some industries)Rent an apartmentOpen a checking accountObtain insurance at lower ratesEstablish utility service in your namePurchase a home or other asset
36Four 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?
37Creditors vs. Credit Bureaus A Creditor is the person/entity granting creditA Credit Bureau reports on credit provided to othersExamples:BanksFinance companiesStoresInsurance companiesLandlordsCredit Card companiesExamples:ExperianTrans UnionEquifaxImportant to note that not all bureaus report the same informationEach creditor can choose (and has to pay) the bureau to which it reports information
38Contact InformationExperianEquifaxTrans UnionAttn: NCACPO Box 2002Allen TX 75013PO BoxAtlanta, GA 30375Consumer Disclosure CenterPO Box 1000Chester, PA 19022
39Free Credit ReportRequest online from (all three bureaus)Security questions are asked to verify your identityCan request (1) free copy per year from each CRA
40What’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 yearsConsumer statement (place for a consumer to place a statement challenging or explaining any creditor entry, in < 100 words per trade line)
41What is NOT in the report: Race, religion, gender, marital status, national origin, ageSalary, dates of employment, thorough employment historyInterest charged on particular accountsChild support/family obligations (unless judgment rendered and in default)Participation in credit counselingAny information not predictive of future performance
42Review your report!Verify that ALL personal information is correct including SSN, DOB, addresses, etc.Review credit information/trade lines to ensure information is accurateReview 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
43DisputesWrite letters to dispute incorrect information on your credit reportInclude copy of report with highlight of disputed item and reason for disputeIncorrect information must be removedAdverse, but correct, information does not have to be removed until terms apply (generally 7 years days)
44What is a credit score?A number lenders use to determine if you are a good credit riskMost common = FICO (Fair Isaac Corporation)Range fromProprietary formula – lenders must pay FICO to obtain and pay for software to calculateVantage Score = new modeldeveloped using 7.5 million files from all three credit bureausRange fromWhat you usually receive when getting your “free” score from the internet
46Profile of high FICO score holders NO late payments or other payment problemsUse of less than 10% of the amount available on credit cardsMost have credit history > 20 yearsMost have opened no more than one new credit account in the past yearMost have between 6-15 credit accounts (all types)
47Why the FICO score matters Your FICO ScoreYour Interest RateYour Monthly Payment6.27%$9256.39%$9376.93%$9918.08%$11098.53%$11579.29%$1238
48What if you have no score? Establish a non-traditional credit history with an agency such as (PRBC-Pay Rent, Build Credit) based on:Rent paymentsUtility paymentsChild care or child support paymentsOther recurring expensesMicroloansLoans using a co-signer
49Components of FICO and Vantage Scores FICO Score ComponentScore WeightPayment History35%Amounts Owed30%Length of Credit History15%New Credit10%Types of Credit UsedTOTAL100%Vantage Score ComponentScore WeightPayment History32%Utilization23%Balances15%Depth of Credit13%Recent Credit10%Available Credit7%TOTAL100%
50Strategies to Improve Credit Score ~3/4 of your score is under your control!!!Pay your bills ON TIMEDecrease your balances and increase your limit/balance ratioKeep older accounts open . Don’t swap accounts constantly.Don’t apply for new credit unless you really NEED itHave a sensible mixture of credit
53Consumer Credit Protection Act (Truth in Lending Act) Requires lenders to disclose in common language the “true cost” of creditDisclosures must be made when credit is deniedDisclosures must be “uniform”Creditors must tell consumer in writing the terms of the deal BEFORE the deal is signedDisclosures must be clear, concise, and in a timely mannerIn 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
54Consumer Leasing ActProvides protection against unreasonable end of term changes in open-ended leasesCertain information on cost of terms must be grouped together and separated from other information on the leaseWhat consumer will pay at lease signingMonthly/periodic payments during the leaseOther charges that consumer may faceTOTAL amount consumer will pay over lease term
55Fair Credit Reporting Act (FCRA) Requires CRAs to report accurate and complete information; consumers responsible to ensure accuracyConsumer must be told each time information used against them with CRA contact infoConsumer may receive (1) free report each year; more free reports under certain circumstancesCRA must correct or delete inaccurate, incomplete, or unverifiable info within 30 days after notice from consumerCRA must exclude information over 7 years old (10 yrs for bankruptcies)Allows consumer OPT OUT ( ) from prescreened credit offers
56Equal Credit Opportunity Act (ECOA) Requires ALL applicants to be considered on actual qualifications for credit, not personal characteristicsCreditors may not refuse to consider income from retirement benefits, PT employment, or alimony/child supportConsumer must be notified within (30) days of decision
57Credit Repair Organization Act Protects public from unfair or deceptive advertising and business practices by CRODefines “credit repair” organizationsCRO must have written contract with disclosures of terms and conditions of payment AND services; consumer has 3-day of rescissionConsumer can sue for fraud – 5-year statute of limitations
58Fair Credit Billing Act (FCBA) Establishes procedures to correct errors promptly and without damage to credit ratingDefines billing errorsConsumer must give written notice within 60 days of receiving bill in questionCreditor 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
59Fair Debt Collection Practices Act (FDCPA) Applies to 3rd party collectors, not those to whom original debt is owedProhibits making threats, using/threatening violence, using profane/obscene language, continuously or repeatedly calling debtorContact may occur between 8AM-9PM in time zone of consumerDebt must be validated by collector and burden of proof is on collectorCollectors cannot communicate with debtors represented by attorneys unless permission is granted
60Fair and Accurate Credit Transactions Act (FACTA) Enacted to help combat Identity Theft(1) free credit report per orAllows for fraud alerts, credit freezesDefines credit scoreLimits medical information in making credit decisions
61Bankruptcy Reform ActCredit counseling must first be completed to determine bankruptcy filing eligibilityMost common types:Chapter 7 … assets liquidated to pay creditorsChapter 11 … business reorganizationChapter 13 … for consumers with regular income to develop plan of repayment for all or part of debts over a period of timeSeek advice from a qualified attorney
62Credit Card Accountability Responsibility and Disclosure Act Creditors cannot :generally raise interest rates during 1st year that acct is openedraise rates on existing balances unless consumer is >60 days late and must restore lower rate after 6 mos. of timely paymentscharge over-limit fees unless consumer approves the transactionCreditors must:apply payments above minimum amount first to higher-interest balancescredit payments received by 5 PMDeliver billing statements 21-days in advance of due dateDisclose 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 yearsConsumers can cancel accounts before effective date of changes and creditor cannot require immediate repayment of entire balance
64Let’s take a QUIZ! 1. How often should you review your credit report? Once a yearEvery three monthsEvery six monthsEvery monthNever
65Let’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 timeSwitch employersOpen up more lines of creditDon’t bounce checksBoth a & d
66Let’s take a QUIZ! 3. What is the Fair Credit Reporting Act? A law that helps consumers correct errors on billing statementsA law that helps consumers correct errors on their credit reportA law that requires credit card companies to disclose terms and conditionsA law that protect consumers against discriminationAll of the above
67Let’s take a QUIZ! 4. Improving your credit score can mean ____ Living with relatives for at least 6 monthsYou are in a less risky group and will pay lower interest rates and loan feesBeing elected to public officeIncrease your chances of being approved for lines of credit or a loanBoth b & d
68Let’s take a QUIZ!5. Credit reports contain the following information:Your genderYour payment historyYour raceOnly your open lines of creditAll of the above
69Banking, Checking and Preventing Identity Theft Lesson 4Banking, Checking and Preventing Identity Theft
70Goals and Objectives Goals for today’s lesson: Develop confidence in banking institutions and how to choose a bankLearn check-writing basics, balancing a check book, reconciling check register with bank statementHow to avoid identity theftObjectives:Learn reasons for becoming bankedExplore criteria for evaluating financial institutionsHow to manage checking informationIdentify types of identity theft, how to protect yourself from identity theft, and what to do if you are a victim of identity theft
71Reasons for Using a Bank CostUsing check cashing services can cost over 10x what you would pay using an banking accountSafety and SecurityMoney is safe from loss or theft; FDIC (Federal Deposit Insurance Corporation) insures your money up to $250,000Establish Financial HistoryHelps with credit history; essential for taking out a loanConvenienceMultiple locations, direct deposit, ATM/debit cards, online banking
72Types & Terms Types of Institutions Terms Commercial Banks Direct DepositAllows for employer or agency to directly deposit earnings or money into your specific accountATMAutomated Teller Machine allows for access to moneyCan charge usage fees for “non members”Debit CardCan double as ATM cardCan be used to make purchases anywhereOnline bankingUsing the internet, access your account, make transfers, pay bills, view account activityUsually free of chargeCommercial BanksProvide multiple servicesUsually have many branchesBeneficial for travelers and those in larger citiesCan be state or nationalSavings & Loan BanksMain purpose is mortgage lending or specialized savingsCredit UnionsMember ownedMay pay membership fee, belong to particular profession or group to become a member
73Financial Institution Comparison Table Bank #1Bank #2Bank #3Savings Acct Effective yield2.0%2.6%1.0%Checking AccountsFree checkingFree checking with minimum $75 bal.$5.00 monthly fee, unlimited checksCustomer RelationsFriendlyNot FriendlyConvenienceVery ConvenientConvenientNot ConvenientATM$1 service fee per useFreePersonal SafetyMy abuser banks herePartner does not bank here
74Managing Your Checkbook Write sample checks as directedReview member statementAre 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?
75Answers There are NO incorrect charges on the statement The ending balance is $543.97There are NO outstanding depositsThe subtotal with deposits is the same-$543.97YES, there is one outstanding check for $74.47The new balance is actually $469.50
76Identity TheftCrime of obtaining personal or financial information of another person for the purpose of assuming that person’s name to make transactions or purchases
77Types of Identity Theft PhishingAttempt to access confidential information through , phone calls, fake website, going through your mailbox or digging through your trashKey-LoggingUsing a device to capture key strokes on a computer to steal account numbers/passwordsSocial EngineeringBefriending a person to gain trust and then stealing their personal information
78Steps to Protect Yourself Inspect your credit report annuallyShred financial documents before trashingProtect your SSNDo NOT give out personal information over the phone orDon’t use obvious passwords or PINsDon’t print your SSN or D/L # on checksPut a fraud alert on your credit fileCheck all statements for accuracy of chargesConsider a PO BoxDon’t write an entire account # on checks, only the last 4 digitsPhotocopy the contents of your walletPay attention to bills that do not arrive
79If You Suspect You are a Victim: File a Police ReportContact the Social Security Administration:Place a fraud alert on your identity with the credit bureausClose accounts that have been compromised or opened fraudulentlyContact the Federal Trade Commission Identity Theft Clearinghouse, FTC 600 Pennsylvania Avenue NW Washington DC 20580
81Goals and Objectives Goals for today’s lesson: Learn to make wise spending choicesLearn to maximize groceries and other purchases to impact monthly budgetObjectives:Importance of effective shoppingReview ways to save money when shoppingHow to buy items in season at the groceryUnit prices/store brandsBalanced menusCreating shopping lists from pre-planned menus
82Grocery Facts/Marketing Techniques Facts and FiguresMarketing Techniques2007 … Average American family spent $189/week for food or $812.70/monthUSDA estimates with better planning, the same family could eat for $167.70/week or $721.11/monthWhat could you do with an extra $90 in your monthly budget?Retailers put the highest priced items/highest profit eye levelEssentials are put in the back to encourage pick up of other items on the wayProducts complementing each other placed togetherKid-marketingEnticing smells/free samples encourage buying more
83What’s in Season? Spring Summer Fall Winter Apricots Beets, Summer Squash, ZucchiniAcorn/Butternut SquashChestnutsArtichokesBerriesApplesGrapefruitAvocadoBroccoliCauliflowerKaleCarrotsCabbageFigsLeeksCollardsCornGarlic & GingerLemonsMangoCucumberGrapesOrangesPotatoesGreen BeansMushroomsRadishesPineappleNectarines & PlumsPearsRutabagaRhubarbPeachesPomegranateTangerinesStrawberriesTomatoesPumpkinTurnipsSugar Snap/Snow PeasWatermelonSweet Potatoes
84Exercise: Comparison Shopping Calculate the missing values ProductUPCSizePriceUnit PriceKraft Mac & Cheese Box16 oz$0.890.056¢Kroger Mac & Cheese Box12 oz$0.490.041¢Del Monte Pears24 oz$1.29Great Value Pears$1.09Tyson Chicken Fingers3 lbs$5.97Amick Farms Chicken Fingers7 lbs$10.43Tyson Boneless Skinless ChickenTyson Whole Cut Up Chicken
85Comparison Shopping Which of the pair presents the best buy? ProductUPCSizePriceUnit PriceKraft Mac & Cheese Box16 oz$0.890.056¢ per oz.Kroger Mac & Cheese Box12 oz$0.490.041¢ per oz.Del Monte Pears24 oz$1.290.054¢ per oz.Great Value Pears$1.090.091¢ per oz.Tyson Chicken Fingers3 lbs$5.97$1.99 per lb.Amick Farms Chicken Fingers7 lbs$10.43$1.49 per lb.Tyson Boneless Skinless ChickenTyson Whole Cut Up Chicken
86Shopping AnswersKroger Mac & Cheese is the better buy because it costs 15¢ less per ounce than KraftDel Monte is a better buy because it costs $0.043 less per ounce than Great ValueAmick Chicken Fingers are the better buy because it costs 50¢ less per pound than Tyson Chicken FingersTyson Boneless Skinless Chicken is the better buy than Tyson Bone-In chicken because more meat will be provided for the money spent
87Shopping 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?CreditorAPRTermMonthly PaymentTotal Finance ChargeTotal PaymentsA14%3 years$205.07$$B4 years$163.96$$C15%$166.98$$
88Review 25 Ways to Cut Grocery Costs Buy One Get One (BOGO) offers are only good if you will USE the items before expirationBuy One Get One Half Off is only good if you NEED both items!READ labels and compare prices
89Identifying your skills and abilities Lesson 6Identifying your skills and abilities
90Goals and Objectives Goals for today’s lesson: Understand the importance of knowing skills and abilities prior to beginning a job searchIdentify individual skills and abilities relevant to employmentObjectives:Identify reasons for putting off a job searchUnderstand importance of identifying skills and abilities prior to employment searchDefine personal skills and abilitiesBecome comfortable marketing personal skills (selling yourself)
91What are my feelings when I think about looking for a job? DiscussionWhat are my feelings when I think about looking for a job?
93Definitions What is an ability? What is a skill? The power to do somethingA special talent or personality trait that you have enabling you to accomplish a taskWhat is a skill?Proficiency or dexterityAn art, trade or technique, especially one requiring the use of the hands or body
94Why is this important? Knowing your skills helps you to: Increase self-confidenceKnow what types of jobs are the best fit for youIdentify and focus your goals, including education and trainingCorrectly complete job applicationsWrite a better resumeInterview more effectively
95Practical Exercises Marketing an item Defining Roles Valued PerspectivesPersonal QuestionnaireDiscovering Your Skills
96Application, Resume and Job Search Tips Lesson 7Application, Resume and Job Search Tips
97Goals and Objectives Goals for today’s lesson: Learn skills necessary to fill out applications completelyLearn how to write an effective resume and cover letterImprove written communication skillsObjectives:Identify personal skills from Lesson 6Review tips for completing job applicationsLearn components of a successful resumeIdentify the types of resumes and which type to selectExamine action words in resume and letter writing
98Applying SkillsIdentify (2) skills from the activities completed in Lesson 6How is this skill used in the workplace?
99Do you have the skills Employers want Do you have the skills Employers want? Research shows employers seek these skills:Good work habitsDependabilityAbility to follow instructionsPride of craftsmanship and qualityPositive attitudes toward company and employerResponsibility to follow thru on assigned tasksProductivityAbility to read and apply printed materialAbility to write and speak effectivelyAmbition, motivation or desire to get ahead
101Job Applications Are your promoting yourself correctly? Dress neatly; you might be interviewed on the spotBe polite to EVERYONE with whom you come in contactBe prepared with a pen, personal information, work history, skills, and referencesMake sure your references will provide a good recommendationPrint neatly and carefullyCheck your spellingIf a question does not apply, write N/A. Do NOT leave blanks.Be thorough and honestDon’t forget to sign your nameAsk when and with whom you can follow up on your applicationFOLLOW UP!!!
102A definition of insanity – continuing to do the same thing over and over again and expecting different results!
103Common Job Hunting Mistakes Trying to go it aloneNot defining your interests or skillsFailure to investigate the job marketFailure to manage your timeProcrastinationUnrealistic expectations
104What is a Resume?A document created to highlight your skill and experience for a potential employer
105For 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.
106For 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).
107Types of Resumes Chronological: lists jobs beginning with most recent and briefly describes the main duties of each jobUse if you:Have a strong work history in the area in which you are trying to obtain a positionClearly progressed along a career ladderRecent job experience
108Types of Resumes Functional : describes skills, abilities, and accomplishments that relate to the employment you are seekingWork history is not includedUse if you are:Switching careersHave a varied job historyHave a limited job historyOut of the work force for many yearsDisplaced homemakerVeteran and need to relate military training to civilian jobs
109Types of Resumes Combination: includes both skills and a brief history of work experiencePlace of employment is not emphasizedUse if you:Have transferable skillsAre changing job areasHave a consistent work history
110Action Words for Letters and Resumes CreativeFinancialHelpingManage-mentTechnicalClericalCreatedAdministeredAssessedSupervisedAssembledArrangedDesignedAnalyzedCoachedDevelopedBuiltGeneratedEstablishedBalancedCounseledDirectedOperatedCompiledConceptualizedBudgetedFacilitatedImplementedRepairedOrganized
111Action Words for Any Field Ability to planCommunicatedEnergeticImprovedOpen MindedAdaptableCompetitiveEthicalIndustriousProblem solverAppliedCreativeExplainedInitiatedPlannedAssertiveDetail-orientedFollow throughLeadershipPreparedAchievedDedicatedFlexibleMaintainedSupportiveAccomplishedDistributedGoal-orientedMulti-taskingTeam Builder or Team PlayerCompletedDirectedInstructedMotivatedTrained
112Cover LettersInclude: 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
113Interviewing Practice On the Job Lesson 8Interviewing PracticeOn the Job
114Goals and Objectives Goals for today’s lesson: Learn effective interviewing techniquesLearn strategies for answering interview questionsImprove oral communication skillsObjectives:Review interview processReview interview dos and don’tsPractice answers to potential interview questionsReview interview follow upReview tips for maintaining employmentReview effective communication in the workplace
115Before the Interview Research the company and the job Make sure you are appropriately dressed and groomedClothes should be clean and wrinkle freePerfume and cologne should be minimalMake-up: Less is MORE!Shoes should be cleanPlan your transportation to arrive 5-10 minutes early for your interview – NEVER be late!Have an extra copy of your resume and referencesPractice questions and answersMake your first impression a good one
116During the Interview DO DON’T Project a friendly, confident and positive attitude; Negativity = NO JOB!Make eye contact, sit up straight, and listen carefullySMILE Express 100% interest in the jobState specific career goalsTranslate your skills to the needs of the jobUse slang, argue, or hog the conversationCriticize or bad-mouth previous employers, educators, etc.Act defensively, desperately, or boastfullyEvade questions, huff, or provide poor excusesSmoke, chew gum or eat anything including mints and candyFidget
117After 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
120Interview 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?
121Maintaining 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 lateRead and understand company policiesDo your job and cooperate with othersBe neat and cleanKeep your personal life/problems at homeArrange for reliable childcareAsk for more responsibility and/or trainingDon’t make promises you cannot keepDon’t just quit. Try to solve problems or find another job before leaving.
123Tips for Getting Along with Co-Workers Know their namesGive sincere compliment sHandle your angerDon’t gossip or say unkind thingsDon’t get offended by criticism; try to do betterDon’t cover for your co-workersPractice good manners
124Paying yourself 1st! IDA Programs Lesson 9Paying yourself 1st!IDA Programs
125Goals and Objectives Goals for today’s lesson: Learn the importance of saving to meet financial goalsLearn about individual development account programsObjectives:Discuss ways to save moneySet individual savings goalsReview the process for opening an IDA account
12610 Common Ways to Save Plan ahead for purchases Make a shopping list and stick to itUse CouponsRead the sale papers and comparison shopShop alone when possibleDon’t drink sodas, they are costly and high in sugarLimit eating outBuy store brandsUse generic prescriptions if availableSimplify phone and cable plans
127My Individual Savings Plan Goal (what I want to buy)Today’s DateGoal 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 monthComputerApr 1Dec 1$700$50$6509$72.22
128WHAT IS AN INDIVIDUAL DEVELOPMENT ACCOUNT (IDA)? Opportunity for matched savings of up to $2000 incomePurpose: Asset building toolMust be income eligibleTwo IDA program types
130Car IDA Privately funded Income/asset limitations 1:1 match for up to $4000 asset purchaseTwo years to saveMust complete “Car Maintenance” workshopPurchase must be “certified”Available only to DV survivorsLimited Availability
131Traditional IDA Federal program (AFI-Assets for Independence grant) Income/asset limitations2:1 match for up to $6000 for asset purchaseThree years to saveMust complete individual plan toward one of (3) purposes:home purchasepost-secondary educationstarting a businessEnd goal can change
132General InformationIDA accounts do not count against participants for public assistance programsAccounts are custodialCase management through KDVA member programParticipants sign savings plan agreementsMonthly statements created to show matchParticipating banks waive fees and minimum balance requirementsIf participant cannot continue … account can be closed; only participant $ returned
133Program RequirementsCan only use earned income or SSI/SSDI with verifiable PT work for traditional IDAAny income source counts for Car IDARegular monthly deposits required (min. $20)Accounts open for minimum of 6 monthsMust complete financial education classes on saving, budgeting, and using credit wiselyEmergency withdrawals allowed but must be pre-approved and authorizedMonthly meetings with case manager for first year; quarterly for years 2 and 3
134Complete IDA application of choice Complete credit report authorizationsSubmit to KDVACredit report pulled/application reviewed by KDVANote: poor credit will NOT disqualifyOnce approved, open account per instructions
135How to Avoid Predatory Lending Lesson 10How to Avoid Predatory Lending
136Goals and Objectives Goals for today’s lesson: Learn about predatory lending practicesIdentify alternative resourcesObjectives:Discuss the following:Payday lendingCheck cashing servicesRent to OwnCar Title LoansRefund Anticipation LoansPredatory credit card practices
137Payday LoansDefinition: small loans given over short term secured by your paycheck or personal checkReasons for using payday loansFastConvenientHassle-freeSeems like a good deal – borrow $100 pay $15True cost - $100 loan for 14 days = 439% APR
139Alternatives to Payday lending Ask creditor for more timeTry a microloanBorrow from family or friendsAsk work for payroll advanceEmergency assistance through social service agency
140Check Cashing ServiceDefinition – service provided by stores to cash payroll, government or personal checksFees vary by check typeReasons for check cashing:Do not have a checking accountLack of trust in banksConvenienceAlternatives:Open a checking and/or savings accountUse direct deposit services
141True Cost for Check Cashing Check TypeAverage CostCheck AmountCost to CashAnnual CostPaycheck2.5-5%$650$16-27$Government2.44%$1200$30$350Personal%$500$44-75$
142Rent to OwnDefinition – 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 checksNo waiting for itemNo upfront cashNo commitmentTry out product
143True Costs for Rent to Own ItemRetail CostRent to Own CostComputer$559$3500Refrigerator$430$1700Television$250$1000
144Alternatives to Rent to Own Short-term savings planLong-term rainy day fundBuy usedBuy on credit (90 days same as cash)Use emergency fundsAsk for help from family/friends
145Car Title LoansDefinition – 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 cashEasy approvalNo Credit checksConvenientTrue Cost? State law limits term to 3 36% APRNote that online loans do not have to follow state lawsFailure to pay means repossession of vehicle and/or collection costs
146Alternatives to Car Title Loans Short term savings planLong term rainy day fundWork with creditors on payment planConsult a non-profit debt management companyUse emergency fundsAsk for help from family and friends
147Refund 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 refundIt’s offeredConvenientTrue 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.
148Alternatives to RAL Free Tax prep help through VITA sites File electronicallyUse freeWait the 7-10 days!
149Predatory 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 expensesOverspendingNo waiting for what you wantLack of understanding
150True CostsCredit card companies collect over $15 billion in fees annuallyLate fees have doubled and tripled over the past few yearsLate payments cause overall interest to raise on accountOver limit fees add to balance and cause more interest to be charged
151Alternatives to Predatory Credit Card Practices The new Credit Card Law that went into effect in 2010 addresses some issuesConsider the following:Do not be “sold” a credit cardShred unsolicited offersSay “no” at the checkout line when offered a new cardStay within your budget and/or modify if necessaryChoose your creditor carefully
152Considerations in choosing creditors When opening a credit card account, carefully review:the initial interest rate and interest rate periodthe interest rate after the initial term expiresthe interest rate for purchases, cash advances, and balance transferslate fees, over-limit fees, penalties for defaults and any other fees/chargesthe billing cycle term and how interest is calculated
153Predatory LendingDefinition: Any loan that takes advantage of you, provides you no benefit, and whose costs and interest rates do not match the risk
154Predatory Lending Approach Target people who are financially strugglingOffer “checks” in the mailCall to offer helpAdvertise during late-night programsPersonal visits
155Predatory Sales Tactics High pressure to make an “immediate” decisionExplanations do not make senseQuestions evaded or ignoredOffers are “limited time”Rush through paperworkSuggest they are the “only ones who can help”Overly nice and friendly
157How to Avoid Predatory Lending Shred & Slam!Don’t be rushedHave a back-up planWalk awayAsk questions until they are answered to your satisfactionDon’t sign blank or incorrect documentsScrutinize costs (TILA) – it’s your moneyHave documents reviewed by another partyDon’t lie to yourselfListen to your instincts
158Choosing a Safe Lender Interview the lender – you are hiring them! Good lenders are not afraid of hard questionsCheck references AND licenses!
159Credit Counseling Helps you learn where you are spending your money Helps you develop strategies to get out of debt – faster than you thoughtHelps you to start a savings plan, possibly without increasing your incomeTeaches your children good spending habits – by your exampleTeaches you to control your financial life instead of letting it control you