1、Dimes, Dollars and Decisions,Everyday Spending and Saving Strategies,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 Dicti
2、onary,Objectives,Familiarize you with various resources available to you and your clients and ways to access these resources.,Resources,Brainstorm resources clients have available to them what “helps” do they have and use?,Resource Management,Using what you have to get what you need Today the primar
3、y 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.,Plugging Your Spending Leaks,Circle all items members of your household have spent money on i
4、n 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?,COMPASS,pass.state.pa.us Commonwealth of Pennsylvania Application for Social Se
5、rvices About Compass,Family Savings Account,http:/ Site Who has the program in your county?-handout,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
6、 W-4 withholding,Medical,Medicare Beneficiaries Part D Drug Insurance Benefit Extra Help to pay for Part D Samples from Doctor Pharmaceutical company patient assistance programs Example: BlueChip/ Adult Basic,PowerPay,Online resource to help develop a debt repayment plan PowerPay 1 2 3 “Credit Coun
7、seling” agencies may only be consolidators-offer no true counseling,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
8、checking 5 years w/no account for abuse,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,Recordkeeping,Improve family financial recordkeeping practices Ch
9、eck receipts Save receipts Get organized,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,Bankruptcy Changes,Allowable monthly expenses based on GROSS income. Family of one example.,Bankruptcy,Can not
10、 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.,401(k) and other retirement plans,In general protected from bankruptcy If you leave employment 4
11、choices Cash out Let it stay with previous employer Move to new employers plan Rollover to IRA,401(k) Loans a BAD idea,Borrowing pre-tax money and paying with post tax money- interest cost + marginal tax rate makes it a 6%+15%=21% interest rate. May not be able to continue to contribute while loan o
12、utstanding 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.,Price Books,Develop a notebook of frequ
13、ently purchased items and regular prices.,Angel Food Ministry,NOT income based http:/www.angelfoodministries.org/,Goodwill Industries,Check when truck comes in CONCEPT: Time is Money (trading one resource for another),Utilities,Telephone Lifeline 150% poverty - $8.20 reduction on monthly phone bill
14、LinkUp America 50% off initial connect Electric Gas,Penn State Publications,Build a Budget Book Calendar Taking Control of Your Money Bouncing Back When Your Income Drops,Other resources,Dollar Stretcher Iowa State University weekly tip Borkowski, Doug dborkmail.hs.iastate.edu University of Missour
15、i Financial Tips http:/www.missouri.edu/cfewww/financial/tipoftheweek W www.Personal.psu.edu/rlk16,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
16、your downfall.,Evaluation,Please complete and return,The Pennsylvania State University is committed to the policy that all persons shall have equal access to programs, facilities, admission, and employment without regard to personal characteristics not related to ability, performance, or qualificati
17、ons as determined by University policy or by state or federal authorities. The Pennsylvania State University does not discriminate against any person because of age, ancestry, color, disability or handicap, national origin, race, religious creed, sex, sexual orientation, or veteran status. Direct all inquiries regarding the nondiscrimination policy to the Affirmative Action Director, The Pennsylvania State University, 201 Willard Building, University Park, PA 16802-2801: (814) 865-4700/V, (814) 863-1150/TTY.,
