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

Lesson 1

What is Financial Education?Identifying and Overcoming

Economic Abuse

Goals and Objectives

Goals for today’s 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 success2. Ease financial fears through

discussion3. Learn appropriate record-

keeping/organization4. Identify /discuss different

forms of economic abuse5. 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 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 CardsAny legal document

(marriage, divorce, custody, wills, etc)

Insurance (health, auto, property)

Banking/credit card/loan statements

Investment recordsTax 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 ContinuumWhich 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 today’s 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 importance2. Learn how to create a

plan3. Learn to total/track

monthly income4. 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?

Lesson 3

Building (or Rebuilding) Your Credit

Goals and Objectives

Goals for today’s lesson:1. Teach the importance

of developing and maintaining positive credit

2. Learning the basics of a “financial” resume

Objectives:1. Definition of credit2. Why we need good credit3. 4 C’s of credit worthiness4. Difference between creditors

and credit bureaus5. Credit report basics6. Dispute letters7. Credit scores8. Tips/Strategies for raising

credit scores9. 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 BureausA 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 InformationExperian Equifax Trans Union

Attn: NCACPO Box 2002Allen TX 75013

PO Box 740241Atlanta, GA 30375

Consumer Disclosure CenterPO Box 1000Chester, PA 19022

888.397.3742 800.685.1111 800.916.8800

www.experian.com www.equifax.com www.transunion.com

Free Credit Report

• Request online from www.annualcreditreport.com (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 + 180 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 300-850– 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 501-990– 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 mattersYour FICO Score Your Interest Rate Your Monthly Payment

720-850 6.27% $925

700-719 6.39% $937

675-699 6.93% $991

620-674 8.08% $1109

560-619 8.53% $1157

500-559 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 10%

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 (1.888.567.8688) 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 year @

www.annualcreditreport.com or 877.322.8228• 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?

a. Once a yearb. Every three monthsc. Every six monthsd. Every monthe. Never

Let’s 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 timeb. Switch employersc. Open up more lines of creditd. Don’t bounce checkse. Both a & d

Let’s take a QUIZ!

3. What is the Fair Credit Reporting Act?a. A law that helps consumers correct errors on billing

statementsb. A law that helps consumers correct errors on their

credit reportc. A law that requires credit card companies to

disclose terms and conditionsd. A law that protect consumers against discriminatione. All of the above

Let’s take a QUIZ!

4. Improving your credit score can mean ____a. Living with relatives for at least 6 monthsb. You are in a less risky group and will pay

lower interest rates and loan feesc. Being elected to public officed. Increase your chances of being approved for

lines of credit or a loane. Both b & d

Let’s take a QUIZ!

5. Credit reports contain the following information:

a. Your genderb. Your payment historyc. Your raced. Only your open lines of credite. All of the above

Lesson 4

Banking, Checking and Preventing Identity Theft

Goals and Objectives

Goals for today’s 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

banked2. Explore criteria for evaluating

financial institutions3. How to manage checking

information4. 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 & TermsTypes 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 #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 Friendly

Convenience Very Convenient Convenient Not Convenient

ATM $1 service fee per use

Free Free

Personal Safety My abuser banks here

Partner does not bank 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

email, 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 email

• 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: 800.269.0271

• 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

www.ftc.gov/idtheft877.438.4338Identity Theft Clearinghouse, FTC600 Pennsylvania Avenue NWWashington DC 20580

Lesson 5

Grocery Savings

Goals and Objectives

Goals for today’s lesson:1. Learn to make wise

spending choices2. Learn to maximize

groceries and other purchases to impact monthly budget

Objectives:1. Importance of effective

shopping2. Review ways to save money

when shopping3. How to buy items in season at

the grocery4. Unit prices/store brands5. Balanced menus6. 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 margin @ 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 ShoppingCalculate the missing values

Product UPC Size Price Unit Price

Kraft Mac & Cheese Box 45236941 16 oz $0.89 0.056¢

Kroger Mac & Cheese Box 45653923 12 oz $0.49 0.041¢

Del Monte Pears 45982223 24 oz $1.29

Great Value Pears 45626359 12 oz $1.09

Tyson Chicken Fingers 23568952 3 lbs $5.97

Amick Farms Chicken Fingers 23562541 7 lbs $10.43

Tyson Boneless Skinless Chicken 56269384 3 lbs $5.97

Tyson Whole Cut Up Chicken 56235125 3 lbs $5.97

Comparison ShoppingWhich of the pair presents the best

buy?Product UPC Size Price Unit Price

Kraft Mac & Cheese Box 45236941 16 oz $0.89 0.056¢ per oz.

Kroger Mac & Cheese Box 45653923 12 oz $0.49 0.041¢ per oz.

Del Monte Pears 45982223 24 oz $1.29 0.054¢ per oz.

Great Value Pears 45626359 12 oz $1.09 0.091¢ per oz.

Tyson Chicken Fingers 23568952 3 lbs $5.97 $1.99 per lb.

Amick Farms Chicken Fingers 23562541 7 lbs $10.43 $1.49 per lb.

Tyson Boneless Skinless Chicken 56269384 3 lbs $5.97 $1.99 per lb.

Tyson Whole Cut Up Chicken 56235125 3 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?

Creditor APR Term Monthly Payment

Total Finance Charge

Total Payments

A 14% 3 years $205.07 $1382.52 $7382.52

B 14% 4 years $163.96 $1870.08 $7870.08

C 15% 4 years $166.98 $2015.04 $8015.04

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 today’s 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 search2. 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)

DiscussionWhat are my feelings when I

think about looking for a job?

Why Work?

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 today’s 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 62. Review tips for completing

job applications3. Learn components of a

successful resume4. Identify the types of resumes

and which type to select5. 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

Directions Activity

Job ApplicationsAre 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 ResumesChronological: 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 ResumesFunctional : 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 ResumesCombination: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 ResumesCreative Financial Helping Manage-

mentTechnical Clerical

Created Administered Assessed Supervised Assembled Arranged

Designed Analyzed Coached Developed Built GeneratedEstablished Balanced Counseled Directed Operated CompiledConceptualized 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 informationThe dateName/address to whom you

are writingGreetingWhy you are writingHow your skills relate to the jobRequest for interviewClosingSignature

Lesson 8

Interviewing PracticeOn the Job

Goals and Objectives

Goals for today’s lesson:1. Learn effective

interviewing techniques

2. Learn strategies for answering interview questions

3. Improve oral communication skills

Objectives:1. Review interview process2. Review interview dos and

don’ts3. Practice answers to potential

interview questions4. Review interview follow up5. Review tips for maintaining

employment6. 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

DON’T• 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 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

Lesson 9

Paying yourself 1st!IDA Programs

Goals and Objectives

Goals for today’s lesson:1. Learn the importance

of saving to meet financial goals

2. Learn about individual development account programs

Objectives:1. Discuss ways to save

money2. Set individual savings

goals3. 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 PlanGoal

(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

Lesson 10

How to Avoid Predatory Lending

Goals and Objectives

Goals for today’s lesson:1. Learn about predatory

lending practices2. Identify alternative

resources

Objectives:1. Discuss the following:

a. Payday lendingb. Check cashing servicesc. Rent to Ownd. Car Title Loanse. Refund Anticipation

Loansf. 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 CashingCheck Type Average Cost Check Amount Cost to Cash Annual Cost

Paycheck 2.5-5% $650 $16-27 $425-695

Government 2.44% $1200 $30 $350

Personal 8.77-15% $500 $44-75 $526-900

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 yrs @ 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 file @ www.irs.gov• 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?