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Promoting Financial Literacy COUPLES and MONEY www.credit.org

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About Springboard <ul><li>Springboard is a non-profit organization founded in 1974. </li></ul><ul><li>We offer personal financial education and assistance with money, credit, and debt management through educational programs and confidential counseling. </li></ul>

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About Springboard <ul><li>Accredited by the Council on Accreditation (COA) </li></ul><ul><li>Member of the Association of Independent Consumer Credit Counseling Agencies (AICCCA) </li></ul><ul><li>Member of the National Foundation for Credit Counseling (NFCC) </li></ul><ul><li>Certified by the Department of Housing and Urban Development (HUD) </li></ul><ul><li>Member of the Better Business Bureau (BBB) </li></ul>

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Our Services Include <ul><ul><li>Credit and Debt Counseling </li></ul></ul><ul><ul><li>Financial Education Programs – Seminars and Materials </li></ul></ul><ul><ul><li>Debt Management Plans </li></ul></ul><ul><ul><li>Homeowner Assistance (Foreclosure Prevention) </li></ul></ul><ul><ul><ul><li>1-888-995-HOPE or 1-888-995-4673 </li></ul></ul></ul><ul><ul><li>First Time Home Buyer Education Seminars </li></ul></ul><ul><ul><li>Reverse Mortgage Counseling </li></ul></ul><ul><ul><li>Pre-Bankruptcy Budget and Credit Counseling </li></ul></ul><ul><ul><li>Pre-Discharge Financial Management Instructional Course </li></ul></ul>

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<ul><li>Over and over, research studies indicate that money is a </li></ul><ul><li>source of conflict for couples. </li></ul><ul><li>One study showed that more than three-quarters of young couples divorcing before age 30 reported financial problems as the primary cause of their divorce. </li></ul><ul><li>Another study found one-third of married couples cited money as their #1 issue. </li></ul>Introduction

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<ul><li>According to the survey, </li></ul><ul><li>Couples who fight about money argue more often about how it is to be spent, than about how much they have. </li></ul><ul><li>It is the set of symbols that money represents the values, expectations and personal meaning attached to money that is often the true root of the argument. </li></ul>Introduction

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Planning Styles <ul><li>Morphostatic planners. These folks are oriented to the present </li></ul><ul><li>Morphogenic planners. These people are flexible, wanting as many people as possible involved in the purchasing process. </li></ul>

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<ul><li>What happens when these different types marry? It isn't hard to imagine some of the fights that could develop around financial issues. </li></ul>Bob and Mary fight about how to spend money:

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<ul><li>Values are deeply rooted in our history and experience of </li></ul><ul><li>life. </li></ul><ul><li>From birth, we begin to learn what is important from our families. </li></ul><ul><li>The acquisition of values continues on through the schools, groups and teams we belong to, friendship and relationships we are part of. </li></ul><ul><li>Sometimes others are aware of what they are teaching us. Often they are not. </li></ul><ul><li>The media plays a big role in development of values. </li></ul>Values and Expectations

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<ul><li>Consider George and Patty purchasing a new car: </li></ul>Differences in values make for conflict.

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How to Talk About Money <ul><li>Find a neutral time </li></ul><ul><ul><li>Don’t wait until spouse has charged up on the credit card. </li></ul></ul><ul><ul><li>Have a calm and relaxed discussion when there is no money issue. </li></ul></ul><ul><li>Share your feelings </li></ul><ul><ul><li>Volunteer your own feelings about experiences and hopes about money. </li></ul></ul><ul><li>Know where you stand </li></ul><ul><ul><li>Be honest with yourself about how you feel. </li></ul></ul><ul><li>Bring in a third party </li></ul><ul><ul><li>Seek out a financial/marriage counselor or therapist. </li></ul></ul>

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Track Your Spending! <ul><li>There are two things everyone needs to know before they begin to budget: </li></ul><ul><ul><li>How much they earn </li></ul></ul><ul><ul><li>How much they spend </li></ul></ul><ul><ul><li>Track all of your spending for at least 90 days to </li></ul></ul><ul><ul><li>get started. But make it a habit to track Always! </li></ul></ul>

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Daily Tracking <ul><li>Use the forms provided in this book </li></ul><ul><li>Carry a small notebook </li></ul><ul><li>Checkbook register </li></ul><ul><li>Keep your receipts in a separate envelope for each day </li></ul><ul><li>Use software like Microsoft® Money or Quicken® (chances are you already own one of these applications if you own a personal computer) </li></ul><ul><li>Locate a central place to put your receipts at the end of each day! </li></ul>

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Monthly Expenses Tracking Sheet <ul><li>Housing </li></ul><ul><li>Food </li></ul><ul><li>Insurance </li></ul><ul><li>Medical </li></ul><ul><li>Auto </li></ul><ul><li>Child Support </li></ul><ul><li>Taxes </li></ul><ul><li>Personal </li></ul><ul><li>Savings </li></ul>

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Creating Your Budget <ul><li>Your budget should be developed based on: </li></ul><ul><ul><li>Your goals </li></ul></ul><ul><ul><li>Your income </li></ul></ul><ul><ul><li>Your expenses. </li></ul></ul>

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Track Your Sources of Income <ul><li>Use this chart to track all </li></ul><ul><li>your sources of income: </li></ul><ul><li>Job </li></ul><ul><li>Spouse’s job </li></ul><ul><li>Part time job </li></ul><ul><li>Rentals </li></ul><ul><li>Commission/bonuses </li></ul><ul><li>Child support/alimony </li></ul><ul><li>Investments </li></ul>

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Setting Goals <ul><li>A short–term goal should be accomplished within one year. </li></ul><ul><li>A mid-range goal takes between 2 and 5 years to accomplish. </li></ul><ul><li>Long-term goals take over 5 years to achieve. </li></ul><ul><ul><li>Write them down and post them to your refrigerator or bulletin board so everyone in the family can see them everyday. </li></ul></ul>

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Our Financial Goals <ul><li>_Save for retirement_______ </li></ul><ul><li>_Trip to Europe to see family </li></ul><ul><li>_New car________________ </li></ul><ul><li>_Backyard Spa___________ </li></ul><ul><li>_New roof_______________ </li></ul>

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Monthly Budget <ul><li>Now that you’re more familiar with your income, expenses, and goals, it’s time to propose a budget. </li></ul>

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Adding It All Up <ul><li>Total Necessary Expenses </li></ul><ul><li>+ Total Discretionary Expenses </li></ul><ul><li>+ Total Debt Payments </li></ul><ul><li>= Total Monthly Expenses </li></ul>

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If Your Expenses Exceed Your Income <ul><li>Work to find solutions </li></ul><ul><li>Credit counseling can help if you have high debt payments that are upsetting your budget. </li></ul><ul><li>Whatever you do, don’t cut into the 10% - 15% you should be saving; you need to save up to three – six total month’s of expenses to get through an emergency </li></ul><ul><li>Re-evaluate your budget periodically, especially when your income or needs change. </li></ul>

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Budget Saving Tips <ul><li>Household </li></ul><ul><ul><li>Take advantage of sales, coupons, and always comparison shop! </li></ul></ul><ul><ul><li>Never pay more than you have to for anything. </li></ul></ul><ul><li>Personal Care </li></ul><ul><ul><li>Find out where discount stores, beauty colleges, and low cost dry cleaners are in your area, the money you save will be your own. </li></ul></ul>

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Budget Saving Tips <ul><li>Child Care </li></ul><ul><ul><li>Can you work with your neighbors to form a babysitting co-op? </li></ul></ul><ul><li>Clothing </li></ul><ul><ul><li>Discount outlets, secondhand clothing stores, and thrift shops are great places for saving money on clothing. </li></ul></ul>

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Budget Saving Tips <ul><li>Entertainment </li></ul><ul><ul><li>Rent a DVD/Video, make a bowl of popcorn and have fun! </li></ul></ul><ul><ul><li>Check your local paper for events in your area that are free, or almost free for entertainment. </li></ul></ul><ul><li>Food </li></ul><ul><ul><li>Plan your meals, make a list, and stick to it. </li></ul></ul><ul><ul><li>Try to shop once a week or less. Extra trips to the store are budget busters. </li></ul></ul><ul><ul><li>Avoid fast food – this is the #1 leak in most budgets. </li></ul></ul>

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Always Keep Your Budget In Mind! <ul><li>Plan : Plan for the future, major purchases and periodic expenses. </li></ul><ul><li>Set Financial Goals : Determine shore, mid and long range financial goals. </li></ul><ul><li>Know the difference between wants and needs : Take care of real needs first. Save what is left. </li></ul><ul><li>Don’t allow expenses to exceed income : Your take home pay is what you have available to spend or save. </li></ul>

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Suggested Budget and Expense <ul><li>Housing 35-45% </li></ul><ul><li>Utilities 8-15% </li></ul><ul><li>Food 10-20% </li></ul><ul><li>Transportation 15-25% </li></ul><ul><li>Medical 8-15% </li></ul><ul><li>Clothing 3-5% </li></ul><ul><li>Personal & Misc. 5-10% </li></ul><ul><li>Saving for goals 5-10% </li></ul><ul><li>Monthly Installments 10-20% </li></ul>

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Money Tips for Couples <ul><li>Try a joint household account for routine expenses and a separate personal account for each partner. </li></ul><ul><li>Set aside a regular time for discussion of money matters </li></ul><ul><li>Discuss facts and figures on paper </li></ul><ul><li>Avoid blaming each other </li></ul>

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Money Tips for Couples <ul><li>Try not to bring up how parents or friends handle money </li></ul><ul><li>Keep each other regularly informed to avoid surprises </li></ul><ul><li>Have individual credit card history </li></ul><ul><li>Look at other ways of managing your money </li></ul>

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Money Tips for Couples <ul><li>Divide responsibilities for financial tasks as evenly as possible </li></ul><ul><li>Avoid refusing to take an interest in financial matters </li></ul><ul><li>Avoid using money to control your spouse </li></ul><ul><li>Discuss and agree about any unexpected windfall </li></ul>

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Money Tips for Couples <ul><li>Involve your children </li></ul><ul><li>Seek help immediately if spending is out of control </li></ul><ul><li>Develop some short and long range financial goals together and check your progress </li></ul>

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Your Free Credit Report <ul><li>You should review your credit reports at least once a year. </li></ul><ul><li>You are entitled to one free report from each bureau every 12 months from: </li></ul><ul><li>www.annualcreditreport.com </li></ul><ul><li>877-322-8228 </li></ul><ul><li>Scores are not free! </li></ul>

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Thank You! <ul><li>Springboard Nonprofit Consumer </li></ul><ul><li>Credit Management </li></ul><ul><li>800-WISE PLAN </li></ul><ul><li>www.credit.org </li></ul><ul><li>[email_address] </li></ul>