1. FINANCIAL WORKSHOP KITS HOMEOWNERSHIP GOOD CENTS WELCOME & INTRODUCTIONS 1

2. FINANCIAL WORKSHOP KITS 2 Project Manager Strategic Programs & Alliances National Endowment for Financial Education Jeh@nefe.org 303.224.3502 www.nefe.org MARY “JEANNETTE” SCHULTZ, MNM

3. FINANCIAL WORKSHOP KITS A non-profit, non-commercial, independent, 501©(3), self-funded, private foundation based in Denver, Colorado. NEFE inspires empowered financial decision-making for individuals and families through every stage of life. www.Nefe.org NATIONA ENDOWMENT FOR FINANCIAL EDUCATION 3

4. FINANCIAL WORKSHOP KITS OVERVIEW 4

5. FINANCIAL WORKSHOP KITS  Understand the unique expenses of owning a home  Plan for home repairs and maintenance  Avoid financial pitfalls  Remain financially stable to maintain homeownership and achieve long-term goals OBJECTIVES 5

6. FINANCIAL WORKSHOP KITS BECOMING A HOMEOWNER 6  Homeownership is a major part of the American dream.  Advantages include: 1.A space you can make your own 2.Greater stability for your family 3.Mortgage interest deduction 4.Opportunity to build strong credit 5.Ability to own a home outright, in time

7. FINANCIAL WORKSHOP KITS COPING WITH NEW NEEDS 7  Trash pickup, sewer line, water, etc.  Lawn and garden tools  Furniture and appliances  Maintenance and repairs

8. FINANCIAL WORKSHOP KITS  Pay mortgage along with daily expenses  Save for goals  Avoid or minimize debt JUGGLING NEW EXPENSES AND OLD NEEDS 8

9. FINANCIAL WORKSHOP KITS  Some expenses are mandatory  Research different vendors when possible  Ask about sliding-scale fees  Control energy usage  Including expenses into your spending plan MANAGING MANDATORY NEW EXPENSES 9

10. FINANCIAL WORKSHOP KITS  Keep a running list of items you need  Consider new locks or re-keying as a need  Set priorities  Resolve to only spend cash PRIORITIZING NEW HOME NEEDS 10

11. FINANCIAL WORKSHOP KITS  Proceed slowly when buying  Visit flea markets, garage sales, and the like for used items  Research items on-line and ask around  Put off non-crucial purchases CONSIDERING PURCHASING OPTIONS 11

12. FINANCIAL WORKSHOP KITS  Save 1~3 percent of the home value each year  That’s $1,500~$4,500 on a $150,000 home  Include savings in your spending plan  Visit www.SmartAboutMoney.org for detailswww.SmartAboutMoney.org SAVING FOR ROUTINE REPAIRS 12

13. FINANCIAL WORKSHOP KITS AVOIDING FINANCIAL PITFALLS  Businesses buy lists of new homeowners  Homeowners face tempting offers  Do not act impulsively  Avoid: 1.Using credit cards and home equity lines of credit on non-essentials 2.Rent-to-own 3.Same-as-cash offers 4.Payday loans 13

14. FINANCIAL WORKSHOP KITS CHANGING OLD HABITS 14  Settling into a new home is a good time to look for cost savings  Review phone and TV needs  Consider changes such as no landline and fewer channels  Cut spending on luxuries

15. FINANCIAL WORKSHOP KITS CREATING A SPENDING PLAN 15  Three steps: 1.List income 2.List expenses 3.Compare income to expenses and make changes  Track expenses, if necessary  Include savings in your spending plan

16. FINANCIAL WORKSHOP KITS TRACKING EXPENSES 16  The spending plan requires a clear picture of spending  Track expenses in a notebook for a week  Include savings for and spending on items from your Purchasing Priority List.

17. FINANCIAL WORKSHOP KITS PLANNING TO SAVE 17  List savings as an expense  Develop a savings habit  Every little bit counts  Include savings for home maintenance and repairs

18. FINANCIAL WORKSHOP KITS COMPARING INCOME TO EXPENSES 18  Money leftover? Increase savings towards goals  Short on money? Look for ways to save  Identify spending leaks, such as gourmet coffee and takeout

19. FINANCIAL WORKSHOP KITS AVOIDING DEBT 19  Distinguish between a “need” and a “want”  Watch credit card usage  Save for large purchases  Avoid spending triggers and “keeping up with the Joneses”  Pay bills on time to maintain credit

20. FINANCIAL WORKSHOP KITS CREATING A DEBT REDUCTION PLAN 20  Organize debts from the highest interest rate to the lowest  Pay at least the minimum due  Pay any extra money to the debt with the highest interest rate  Move on to the next debt as you pay them off

21. FINANCIAL WORKSHOP KITS  Understand the unique expenses of owning a home  Plan for home repairs and maintenance  Avoid financial pitfalls  Remain financially stable to maintain homeownership and achieve long-term goals SUMMARY 21

22. FINANCIAL WORKSHOP KITS OUTREACH: E-NEWSLETTER 22

23. FINANCIAL WORKSHOP KITS SURVEY OF NEFE TOOLS 23 NEFE Tools  Smart About Money  My Retirement Paycheck  Retirement TLC  Life Values Quiz  NEFE Financial Education Evaluation Toolkit ®  NEFE High School Financial Planning Program ® (HSFPP)  CashCourse ®  Spendster

24. FINANCIAL WORKSHOP KITS SmartAboutMoney.org Consumer Tool SmartAboutMoney.org Consumer Tool 24

25. FINANCIAL WORKSHOP KITS OTHER NEFE RESOURCES 25 www.HSFPP.org www.FinancialWorkshopKits.org www.Spendster.org www.SmartAboutMoney.org

26. FINANCIAL WORKSHOP KITS Project Manager Strategic Programs & Alliances National Endowment for Financial Education Jeh@nefe.org 303.224.3502 www.nefe.org MARY “JEANNETTE” SCHULTZ, MNM 26