Upload
haleigh-provins
View
221
Download
2
Tags:
Embed Size (px)
Citation preview
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?