FINANCIAL WORKSHOP KITS HOMEOWNERSHIP GOOD CENTS WELCOME & INTRODUCTIONS 1

FINANCIAL WORKSHOP KITS 2 Project Manager Strategic Programs & Alliances National Endowment for Financial Education MARY “JEANNETTE” SCHULTZ, MNM

FINANCIAL WORKSHOP KITS A non-profit, non-commercial, independent, 501©(3), self-funded, private foundation based in Denver, Colorado. NEFE inspires empowered financial decision-making for individuals and families through every stage of life. NATIONA ENDOWMENT FOR FINANCIAL EDUCATION 3

FINANCIAL WORKSHOP KITS OVERVIEW 4

FINANCIAL WORKSHOP KITS  Understand the unique expenses of owning a home  Plan for home repairs and maintenance  Avoid financial pitfalls  Remain financially stable to maintain homeownership and achieve long-term goals OBJECTIVES 5

FINANCIAL WORKSHOP KITS BECOMING A HOMEOWNER 6  Homeownership is a major part of the American dream.  Advantages include: 1.A space you can make your own 2.Greater stability for your family 3.Mortgage interest deduction 4.Opportunity to build strong credit 5.Ability to own a home outright, in time

FINANCIAL WORKSHOP KITS COPING WITH NEW NEEDS 7  Trash pickup, sewer line, water, etc.  Lawn and garden tools  Furniture and appliances  Maintenance and repairs

FINANCIAL WORKSHOP KITS  Pay mortgage along with daily expenses  Save for goals  Avoid or minimize debt JUGGLING NEW EXPENSES AND OLD NEEDS 8

FINANCIAL WORKSHOP KITS  Some expenses are mandatory  Research different vendors when possible  Ask about sliding-scale fees  Control energy usage  Including expenses into your spending plan MANAGING MANDATORY NEW EXPENSES 9

FINANCIAL WORKSHOP KITS  Keep a running list of items you need  Consider new locks or re-keying as a need  Set priorities  Resolve to only spend cash PRIORITIZING NEW HOME NEEDS 10

FINANCIAL WORKSHOP KITS  Proceed slowly when buying  Visit flea markets, garage sales, and the like for used items  Research items on-line and ask around  Put off non-crucial purchases CONSIDERING PURCHASING OPTIONS 11

FINANCIAL WORKSHOP KITS  Save 1~3 percent of the home value each year  That’s $1,500~$4,500 on a $150,000 home  Include savings in your spending plan  Visit for detailswww.SmartAboutMoney.org SAVING FOR ROUTINE REPAIRS 12

FINANCIAL WORKSHOP KITS AVOIDING FINANCIAL PITFALLS  Businesses buy lists of new homeowners  Homeowners face tempting offers  Do not act impulsively  Avoid: 1.Using credit cards and home equity lines of credit on non-essentials 2.Rent-to-own 3.Same-as-cash offers 4.Payday loans 13

FINANCIAL WORKSHOP KITS CHANGING OLD HABITS 14  Settling into a new home is a good time to look for cost savings  Review phone and TV needs  Consider changes such as no landline and fewer channels  Cut spending on luxuries

FINANCIAL WORKSHOP KITS CREATING A SPENDING PLAN 15  Three steps: 1.List income 2.List expenses 3.Compare income to expenses and make changes  Track expenses, if necessary  Include savings in your spending plan

FINANCIAL WORKSHOP KITS TRACKING EXPENSES 16  The spending plan requires a clear picture of spending  Track expenses in a notebook for a week  Include savings for and spending on items from your Purchasing Priority List.

FINANCIAL WORKSHOP KITS PLANNING TO SAVE 17  List savings as an expense  Develop a savings habit  Every little bit counts  Include savings for home maintenance and repairs

FINANCIAL WORKSHOP KITS COMPARING INCOME TO EXPENSES 18  Money leftover? Increase savings towards goals  Short on money? Look for ways to save  Identify spending leaks, such as gourmet coffee and takeout

FINANCIAL WORKSHOP KITS AVOIDING DEBT 19  Distinguish between a “need” and a “want”  Watch credit card usage  Save for large purchases  Avoid spending triggers and “keeping up with the Joneses”  Pay bills on time to maintain credit

FINANCIAL WORKSHOP KITS CREATING A DEBT REDUCTION PLAN 20  Organize debts from the highest interest rate to the lowest  Pay at least the minimum due  Pay any extra money to the debt with the highest interest rate  Move on to the next debt as you pay them off

FINANCIAL WORKSHOP KITS  Understand the unique expenses of owning a home  Plan for home repairs and maintenance  Avoid financial pitfalls  Remain financially stable to maintain homeownership and achieve long-term goals SUMMARY 21

FINANCIAL WORKSHOP KITS OUTREACH: E-NEWSLETTER 22

FINANCIAL WORKSHOP KITS SURVEY OF NEFE TOOLS 23 NEFE Tools  Smart About Money  My Retirement Paycheck  Retirement TLC  Life Values Quiz  NEFE Financial Education Evaluation Toolkit ®  NEFE High School Financial Planning Program ® (HSFPP)  CashCourse ®  Spendster

FINANCIAL WORKSHOP KITS SmartAboutMoney.org Consumer Tool SmartAboutMoney.org Consumer Tool 24

FINANCIAL WORKSHOP KITS OTHER NEFE RESOURCES

FINANCIAL WORKSHOP KITS Project Manager Strategic Programs & Alliances National Endowment for Financial Education MARY “JEANNETTE” SCHULTZ, MNM 26