Presentation on theme: "Financial Education: Helping Women Plan a Financial Future."— Presentation transcript:
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
Lesson 1 What is Financial Education? Identifying and Overcoming Economic Abuse
Goals and Objectives Goals for todays lesson: 1.Learn the importance of financial education/build foundation for remaining lessons 2.Identify different forms of economic abuse Objectives: 1.Identify financial fears and visions for success 2.Ease financial fears through discussion 3.Learn appropriate record- keeping/organization 4.Identify /discuss different forms of economic abuse 5.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
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 cant 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? (contd) 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 partners money Destroying partners 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 partners name to be on accounts Devaluing partners 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 wont because she doesnt 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 dont 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. Lisas 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)
Lesson 2 Creating a Monthly Spending Plan (budget)
Goals and Objectives Goals for todays lesson: 1.Identify the need for a monthly spending plan 2.Begin to create an individual plan Objectives: 1.Define a spending plan and its importance 2.Learn how to create a plan 3.Learn to total/track monthly income 4.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
Practice Scenarios What suggestions or thoughts do you have for Lisa? For Katarina? How will this help you with your spending plan?
Lesson 3 Building (or Rebuilding) Your Credit
Goals and Objectives Goals for todays lesson: 1.Teach the importance of developing and maintaining positive credit 2.Learning the basics of a financial resume Objectives: 1.Definition of credit 2.Why we need good credit 3.4 Cs of credit worthiness 4.Difference between creditors and credit bureaus 5.Credit report basics 6.Dispute letters 7.Credit scores 8.Tips/Strategies for raising credit scores 9.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 Cs 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 Examples: – Banks – Finance companies – Stores – Insurance companies – Landlords – Credit Card companies A Credit Bureau reports on credit provided to others 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 ExperianEquifaxTrans Union Attn: NCAC PO Box 2002 Allen TX PO Box Atlanta, GA Consumer Disclosure Center PO Box 1000 Chester, PA
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
Whats 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 ScoreYour Interest RateYour Monthly Payment %$ %$ %$ %$ %$ %$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 ComponentScore Weight Payment History35% Amounts Owed30% Length of Credit History15% New Credit10% Types of Credit Used10% TOTAL100% Vantage Score Component Score Weight Payment History32% Utilization23% Balances15% Depth of Credit13% Recent Credit10% Available Credit7% TOTAL100%
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. Dont swap accounts constantly. Dont apply for new credit unless you really NEED it Have a sensible mixture of credit
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 3 rd 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 1 st 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
Lets take a QUIZ! 1. How often should you review your credit report? a.Once a year b.Every three months c.Every six months d.Every month e.Never
Lets take a QUIZ! 2. Which of the following can you do to improve your chances of being approved for credit? a.Pay your bills on time b.Switch employers c.Open up more lines of credit d.Dont bounce checks e.Both a & d
Lets take a QUIZ! 3. What is the Fair Credit Reporting Act? a.A law that helps consumers correct errors on billing statements b.A law that helps consumers correct errors on their credit report c.A law that requires credit card companies to disclose terms and conditions d.A law that protect consumers against discrimination e.All of the above
Lets take a QUIZ! 4. Improving your credit score can mean ____ a.Living with relatives for at least 6 months b.You are in a less risky group and will pay lower interest rates and loan fees c.Being elected to public office d.Increase your chances of being approved for lines of credit or a loan e.Both b & d
Lets take a QUIZ! 5. Credit reports contain the following information: a.Your gender b.Your payment history c.Your race d.Only your open lines of credit e.All of the above
Lesson 4 Banking, Checking and Preventing Identity Theft
Goals and Objectives Goals for todays lesson: 1.Develop confidence in banking institutions and how to choose a bank 2.Learn check-writing basics, balancing a check book, reconciling check register with bank statement 3.How to avoid identity theft Objectives: 1.Learn reasons for becoming banked 2.Explore criteria for evaluating financial institutions 3.How to manage checking information 4.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 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 Terms 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
Financial Institution Comparison Table Bank #1Bank #2Bank #3 Savings Acct Effective yield 2.0%2.6%1.0% Checking AccountsFree checkingFree checking with minimum $75 bal. $5.00 monthly fee, unlimited checks Customer RelationsFriendlyNot FriendlyFriendly ConvenienceVery ConvenientConvenientNot Convenient ATM$1 service fee per use Free Personal SafetyMy 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 $ There are NO outstanding deposits The subtotal with deposits is the same- $ 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 persons 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 Dont use obvious passwords or PINs Dont 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 Dont 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
Goals and Objectives Goals for todays lesson: 1.Learn to make wise spending choices 2.Learn to maximize groceries and other purchases to impact monthly budget Objectives: 1.Importance of effective shopping 2.Review ways to save money when shopping 3.How to buy items in season at the grocery 4.Unit prices/store brands 5.Balanced menus 6.Creating shopping lists from pre-planned menus
Grocery Facts/Marketing Techniques Facts and Figures 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 $90 in your monthly budget? Marketing Techniques Retailers put the highest priced items/highest profit eye level Essentials are put in the back to encourage pick up of other items on the way Products complementing each other placed together Kid-marketing Enticing smells/free samples encourage buying more
Exercise: Comparison Shopping Calculate the missing values ProductUPCSizePriceUnit Price Kraft Mac & Cheese Box oz$ ¢ Kroger Mac & Cheese Box oz$ ¢ Del Monte Pears oz$1.29 Great Value Pears oz$1.09 Tyson Chicken Fingers lbs$5.97 Amick Farms Chicken Fingers lbs$10.43 Tyson Boneless Skinless Chicken lbs$5.97 Tyson Whole Cut Up Chicken lbs$5.97
Comparison Shopping Which of the pair presents the best buy? ProductUPCSizePriceUnit Price Kraft Mac & Cheese Box oz$ ¢ per oz. Kroger Mac & Cheese Box oz$ ¢ per oz. Del Monte Pears oz$ ¢ per oz. Great Value Pears oz$ ¢ per oz. Tyson Chicken Fingers lbs$5.97$1.99 per lb. Amick Farms Chicken Fingers lbs$10.43$1.49 per lb. Tyson Boneless Skinless Chicken lbs$5.97$1.99 per lb. Tyson Whole Cut Up Chicken lbs$5.97$1.99 per lb.
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. Which is the best deal? CreditorAPRTermMonthly Payment Total Finance Charge Total Payments A14%3 years$205.07$ $ B14%4 years$163.96$ $ C15%4 years$166.98$ $
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
Lesson 6 Identifying your skills and abilities
Goals and Objectives Goals for todays lesson: 1.Understand the importance of knowing skills and abilities prior to beginning a job search 2.Identify individual skills and abilities relevant to employment Objectives: 1.Identify reasons for putting off a job search 2.Understand importance of identifying skills and abilities prior to employment search 3.Define personal skills and abilities 4.Become comfortable marketing personal skills (selling yourself)
Discussion What are my feelings when I think about looking for a job?
Definitions What is a skill? Proficiency or dexterity An art, trade or technique, especially one requiring the use of the hands or body What is an ability? The power to do something A special talent or personality trait that you have enabling you to accomplish a task
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
Lesson 7 Application, Resume and Job Search Tips
Goals and Objectives Goals for todays lesson: 1.Learn skills necessary to fill out applications completely 2.Learn how to write an effective resume and cover letter 3.Improve written communication skills Objectives: 1.Identify personal skills from Lesson 6 2.Review tips for completing job applications 3.Learn components of a successful resume 4.Identify the types of resumes and which type to select 5.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? 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
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 Dont 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. Dont 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 CreativeFinancialHelpingManage- ment TechnicalClerical CreatedAdministeredAssessedSupervisedAssembledArranged DesignedAnalyzedCoachedDevelopedBuiltGenerated EstablishedBalancedCounseledDirectedOperatedCompiled ConceptualizedBudgetedFacilitatedImplementedRepairedOrganized
Action Words for Any Field Ability to planCommunicatedEnergeticImprovedOpen Minded AdaptableCompetitiveEthicalIndustriousProblem solver AppliedCreativeExplainedInitiatedPlanned AssertiveDetail-orientedFollow through LeadershipPrepared AchievedDedicatedFlexibleMaintainedSupportive AccomplishedDistributedGoal-orientedMulti-taskingTeam Builder or Team Player CompletedDirectedInstructedMotivatedTrained
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
Lesson 8 Interviewing Practice On the Job
Goals and Objectives Goals for todays lesson: 1.Learn effective interviewing techniques 2.Learn strategies for answering interview questions 3.Improve oral communication skills Objectives: 1.Review interview process 2.Review interview dos and donts 3.Practice answers to potential interview questions 4.Review interview follow up 5.Review tips for maintaining employment 6.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 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 DONT 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 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 Dont make promises you cannot keep Dont 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 Dont gossip or say unkind things Dont get offended by criticism; try to do better Dont cover for your co-workers Practice good manners
Lesson 9 Paying yourself 1 st ! IDA Programs
Goals and Objectives Goals for todays lesson: 1.Learn the importance of saving to meet financial goals 2.Learn about individual development account programs Objectives: 1.Discuss ways to save money 2.Set individual savings goals 3.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 Dont 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) Todays Date Goal Date (when I want my purchas e) 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 ComputerApr 1Dec 1$700$50$6509$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 IDATRADITIONAL 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
Lesson 10 How to Avoid Predatory Lending
Goals and Objectives Goals for todays lesson: 1.Learn about predatory lending practices 2.Identify alternative resources Objectives: 1.Discuss the following: a.Payday lending b.Check cashing services c.Rent to Own d.Car Title Loans e.Refund Anticipation Loans f.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 TypeAverage CostCheck AmountCost to CashAnnual Cost Paycheck2.5-5%$650$16-27$ Government2.44%$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 ItemRetail CostRent 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 – Its 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! Dont be rushed Have a back-up plan Walk away Ask questions until they are answered to your satisfaction Dont sign blank or incorrect documents Scrutinize costs (TILA) – its your money Have documents reviewed by another party Dont 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