1. Money Matter$
Workshop
Home Conference
2012
Sue Rogan
MD CASH Campaign
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2. MD CASH Campaign
S Maryland CASH (Creating Assets, Savings and Hope)
Campaign: a network of organizations from
across Maryland that seeks to improve the financial stability of
working families.
S Advocates on behalf of low-and moderate-income taxpayers
throughout the state
S Assists partners in capacity building and training—VITA sites
S Provides financial education programs

3. MD CASH Campaign
S In partnership with Consumer Credit Counseling Service of
Maryland and Delaware, Inc., MD CASH Campaign created:
Maryland Money Helpline (877-254-1097)
free financial service where callers may speak with a certified,
nonprofit financial counselor about debt, credit, budgeting, job
loss and
more.

4. Financial Beliefs/Attitudes
Objectives:
• Clients explore their
beliefs/values/attitudes
about money
Resources:
• Utah State University
CE's "Financial Attitudes
and Goals"
Tools:
• Money Habitudes
• Money Personality Quiz

5. Financial Beliefs
S “Money”—What comes to mind?
S Money Memories
S How do you use your $?
S Influencing Factors —family;
social, religious; media

6. Financial Goals, Tools & Resources
Objective: Brainstorm with client on various "term" financial goals:
• Short Term Financial Goals: Up to a year
• Mid Term Financial Goals: 3-7 years
• Long Term Goals Goals: 7+ years
Resources: www.nefe.org; www.mymoney.gov
Tools: Write some examples of financial goals on note cards and
have client sort them into long term and short term
PB & J Exercise
Create a "vision board“

7. Financial Goal
Statement
“We want to buy a car in 5 years (May 2XXX). We
will save $16.66 per month (a total of $1,000) to
down payment.”
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8. Spending Plans
Objective: Clients track their spending, create a real time
Spending Plan, and learn to check it frequently to stay on
track
Resources: MD Extension Fact Sheets:
http://extension.umd.edu/family/ManagingMoney/index.cfm
MD CASH Campaign toolkit: www.mdcash.org
Tools: Sample Spending Plans; Excel spreadsheet, Software
such as Quicken, online sites such as www.mint.com, Bean
Game

9. Spending Plan
S Spending log
S Put fixed expenses first
S Identify needs vs. wants
S Put savings/goals in
S Prioritize spending plan

10. Estimate Income
S wages, salaries
S public assistance
S cash gifts, inheritances
S rental income
S child support, alimony
S commissions, tips, bonuses
S tax refunds
S farm income
S interest dividends
S Social Security
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11. Define Expenses
Fixed
Flexible
Periodic
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12. Fixed
Flexible
Fixed Expenses
Periodic
S Due on specific dates, in specific amounts
S Less control
S Examples: taxes, rent, car payment, utility budget
plans
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13. Fixed
Flexible
Periodic
Flexible Expenses
S Living expenses that vary from month to month
S More control over amounts spent
S Examples: telephone, food, clothing, entertainment,
transportation, gifts
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14. Fixed
Flexible
Periodic
Periodic Expenses
S Occur occasionally during the year
S Catch you off-guard
S Examples: automobile insurance premiums, car or
appliance repairs or replacement, tag renewals
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15. Prioritized Spending
What
about
Starbucks?

16. Ways of Increasing Income
Upgrade present job Child support
Additional family member to Social security
work
Veterans benefits
Part-time jobs
Food stamps
Overtime
Unemployment insurance
Government assistance
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17. Ways of Decreasing Expenses
S Energy Audit, implement energy efficient ideas, ck energy bill
before moving in
S Thrift Store shopping
S Use coupons if it makes Cents
S Avoid fees
S Don’t go into stores
S Others?

18. Credit
S Objectives: Clients-- learn how to get their free credit
report, how to dispute errors and ways to improve their
credit score.
S Resources: www.annualcreditreport.com ;
www.mymoney.gov; www.ftc.gov
S Tools: FTC Brochure, local credit cafes, pie chart of
credit score—tipsheet on www.mdcash.org

19. What is Credit?
• Money or services given
with expectation of
repayment, usually with
interest.
o Interest = Money paid for a borrower’s use
of money, calculated as a percentage of the
money borrowed and paid over a specified
time.
Copyright 2011 Maryland CASH Campaign
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20. Why Credit is Important
• Credit
• Housing
• Insurance
• Employment
Copyright 2011 Maryland CASH Campaign
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21. What is a Credit Report?
• Credit Report: a report that is compiled by credit
reporting bureaus on an individual’s history of debt,
credit and borrowing behavior
• Major Credit Reporting Bureaus:
o Equifax
o Experian
o TransUnion
• Retrieve a free consumer credit report at
AnnualCreditReport.com or call 1-877-322-8228
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22. What’s on Your Credit Report?
S Personal Information
S Account Information
S Inquiries
S Collections
S Public Record Information
S Creditor’s Contact Information

23. How Long Do Items Stay on Credit Report?
7 years?
10 years?
Indefinitely?

24. Sample Credit Report
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25. Disputing Incorrect Information
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26. What is a Credit Score?
• Credit Score: a number based on the
analysis of an individual’s credit reports
that represents the creditworthiness of that
person.
• Fair Isaac Corporation (FICO) is renowned
for their credit scoring model.
• Credit scores are available for purchase.
Alternatively, you can use credit score
estimators.
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27. Basics of Credit Scoring
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Copyright 2011 Maryland CASH Campaign

28. Myths About Credit
• Close old accounts.
• Never close any
accounts.
• You must carry a balance
to build credit.
• Individuals with higher
incomes have higher
credit scores.
• If I get married, my
spouse and I will have a
joint credit score.
• All credit scores are the
same. S

29. 4 C’s of Credit
S Character
S Capacity
S Collateral
S Capital

30. How to Build/Rebuild
Credit
• Open a bank or Credit Union
checking and savings account
• Secured credit card
• Installment Credit Account
• Department store Charge Card
• Co-Signer/Authorized User S

31. Managing Debt
S Objective: Client learns to verify debt, prioritize debt
payments and create a plan to get out of debt.
S Resources: National Consumer Law Center,
www.nclc.org Nolo, www.nolo.com , credit counseling
agencies, FTC, www.ftc.gov
S Tools: Debt Worksheet, sample creditor letters

32. Managing Debt
S Rip off the band aid—assessment of debt
S Create Budget
S Emergency Fund
S Call Creditors
S Payment Plan—everything in writing!
S How to choose what to pay first?

33. Summary
Help Clients:
S Understand their money values/habits
S Create a Spending Plan and Check it—weekly
S Learn that Emergency Savings is critical
S Develop specific steps to attain financial goals
S Understand their credit history and ways to improve score
S Become empowered to avoid/get out of debt

34. Questions?
Contact info:
Sue Rogan
sue@mdcash.org
410-782-1428