Dimes, Dollars and Decisions

1
Dimes, Dollars and Decisions

• Everyday Spending and Saving Strategies

2
Resource Management

• Re-source
• A source of supply an available means
• A natural source of wealth or revenue
• Something to which one has recourse in difficulty
• An ability to meet and handle a situation
• Mirriam Webster Collegiate Dictionary

3
Objectives

• Familiarize you with various resources available
  to you and your clients and ways to access these
  resources.

4
Resources

• Brainstorm resources clients have available to
  them what helps do they have and use?

5
Resource Management

• Using what you have to get what you need
• Today the primary resource we will be discussing
  is money and various sources of help to make
  better spending and saving decisions.
• All of us are smarter than any one of us please
  feel free to share throughout the program.

6
Plugging Your Spending Leaks

• Circle all items members of your household have
  spent money on in the past month.
• Fold the paper in half lengthwise
• Fold it twice like a business letter creating 3
  even sections
• Open to reveal 6 rectangles
• Does one rectangle appear to have more items in
  it circled?
• Which one and why?

7
COMPASS

• www.compass.state.pa.us
• Commonwealth of Pennsylvania Application for
  Social Services
• About Compass

8
Family Savings Account

• http//www.newpa.com/programDetail.aspx?id93
• Site
• Who has the program in your county?-handout

9
Taxes

• VITA Volunteer Income Tax Assistance
• Tax Credits
• EITC Earned Income Tax Credit
• Advanced EITC W-5
• Child Tax Credits
• Additional Child Tax Credit
• Child Care Tax Credits
• Retirement Savers Tax Credit
• W-4 withholding

10
Medical

• Medicare Beneficiaries
• Part D Drug Insurance Benefit
• Extra Help to pay for Part D
• Samples from Doctor
• Pharmaceutical company patient assistance
  programs Example www.merckhelps.com
• BlueChip/ Adult Basic

11
PowerPay

• Online resource to help develop a debt repayment
  plan PowerPay
• 1
• 2
• 3
• Credit Counseling agencies may only be
  consolidators-offer no true counseling

12
Banking Services

• Know the rules- may take up to 5 days for
  deposits to be credited to your account.
• Insufficient funds almost instantaneous
  withdrawal from checking-vendor and bank charges
  can accrue
• ChexSystems monitors how we use checking 5
  years w/no account for abuse

13
Free Credit Request Form

• Check at least annually
• Your job to report/fix errors
• Credit history used for
• Lending decisions
• Hiring decisions
• Homeowner insurance rates
• Car insurance rates
• Landlords

14
Recordkeeping

• Improve family financial recordkeeping practices
• Check receipts
• Save receipts
• Get organized

15
Bankruptcy Changes

• Means testing more difficult to file if your
  income is higher than the state median income

Add 6,300 for each additional person
16
Bankruptcy Changes

• Allowable monthly expenses based on GROSS income.
  Family of one example.

17
Bankruptcy

• Can not discharge the following debts
• most taxes
• child support
• alimony
• most student loans
• Court fines and criminal restitution and
• personal injury caused by driving drunk or under
  the influence of drugs.

18
401(k) and other retirement plans

• In general protected from bankruptcy
• If you leave employment 4 choices
• Cash out
• Let it stay with previous employer
• Move to new employers plan
• Rollover to IRA

19
401(k) Loans a BAD idea

• Borrowing pre-tax money and paying with post tax
  money- interest cost marginal tax rate makes it
  a 61521 interest rate.
• May not be able to continue to contribute while
  loan outstanding
• Missed time in the market due to lower invested
  amount
• If you separate from service have 60 days to
  repay or considered early distribution you will
  pay taxes plus 10 penalty depending on the
  amount outstanding could put you into higher tax
  bracket.

20
Price Books

• Develop a notebook of frequently purchased items
  and regular prices.

21
Angel Food Ministry

• NOT income based
• http//www.angelfoodministries.org/

22
Goodwill Industries

• Check when truck comes in
• CONCEPT Time is Money (trading one resource for
  another)

23
Utilities

• Telephone
• Lifeline 150 poverty - 8.20 reduction on
  monthly phone bill
• LinkUp America 50 off initial connect
• Electric
• Gas

24
Penn State Publications

• Build a Budget Book
• Calendar
• Taking Control of Your Money
• Bouncing Back When Your Income Drops

25
Other resources

• Dollar Stretcher www.stretcher.com
• Iowa State University weekly tip Borkowski, Doug
  dbork_at_mail.hs.iastate.edu
• University of Missouri Financial Tips
  http//www.missouri.edu/cfewww/financial/tipofthe
  week
• www.yourmoneysbestfriend.com
• Wfn.com
• www.Personal.psu.edu/rlk16

26
Closing Thoughts

• If you continue to do what youve always done,
  youll get the same results.
• Use it up, wear it out, make do, or do without
• If your expenses exceed your income, then your
  upkeep will be your downfall.

27
Evaluation

• Please complete and return

28

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  Pennsylvania State University, 201 Willard
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