On the Money 2014

Are you doing all you can to assure that your finances are in order? Do you need some help learning tips on safe money-handling to rest assured knowing your financial in the right spot? Well, most of us need a little help in that area, so we talked to local finance experts and they’ve agreed to help. Use their knowledge and a little bit of your own to get your money lined up so you can breathe easy and spend wisely with Volume One’s newest special section. writers Tom Giffey and Eric Christenson editors Tom Giffey and Eric Christenson design Serena Wagner and Eric Christenson

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on the money learning about your money WESTERN DAIRYLAND FINANCIAL LITERACY SPECIALIST A D R I A N K L E N Z ON THE VALLEY’S NEED FOR FINANCIAL EDUC AT I O N WORDS: ERIC CHRISTENSON PHOTO: ANDREA PAULSETH

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unified vision of “You know what’s best for our students? Let’s create a centralized office of financial literacy – or whatever you want to call it – and we’ll work with different programs, all the students and try to teach about this important topic.”

And everyone was very competitive and worried about their own program.

I’m not on campus anymore, so maybe that’s changed. Maybe they’re working towards that. I even went to the dean of students, I talked to anyone that would listen and said “We need some kind of centralized office” – I met with counseling services and they said like 75% of their students when they’d do their intake surveys listed finances as a major worry in their lives. I don’t care if it comes out of counseling services.

I don’t care if it comes out of the dean of students. I don’t care who does it, but there should be one office and their job should be to teach about financial literacy. So one of the things that I’ve done while I was on campus and now since I’ve left, professors have asked me to come speak to their class about budgeting, about credit. Usually two or three times a semester I get phone calls or emails saying “Can you some speak to our group?” And that’s a start, but really it should be across the board. I think it should be every year because as you get older, you have different needs. It’s something I’m passionate about. I really think that it’s politics; it’s everyone jockeying for their own dollars. It’s very territorial. And I think that while I was there, that’s what I saw.

drian Klenz wants change. As a financial literacy specialist at

Western Dairyland Community Action Agency, his vision is a world where everyone is finan-

cially literate, they’re taught the basics of personal finance alongside math, literature, science, and other essentials. We sat down with him to talk education, the local economy, and what changes need to made now.

What exactly do you do? It’s not exactly debt consolidation — that’s a different thing — but more restructuring and negotiating?

I do financial counseling. A big part of what I do is budgeting and helping people get access to their credit reports and understand them. Once people are in a position to do so, I do debt negotiation. So that’s where I work with the client – either with them or on their behalf – and contact folks that are coming after them for money and basically help them navigate that process, and negotiate a settlement for less than what they owe.

A big thing is financial literacy, getting people to be financially literate. I’m wondering how you define that.

That’s a good question. I know that there’s different curricula and standards, you know, quizzes and tests that they have to determine whether or not Americans are financially literate and we’re abysmal with it. We’re not good. As far as a blanket definition, I don’t think you can do that.

I think it has to be a case-by-case situation. You have to look at each individual and see where they’re at within their own lives. There’s some broad themes: Understanding how to do a budget, understanding how to gain access to your credit reports, how to understand them, those are some very basic things that hopefully everyone can get better at, but everyone’s different.

Last time we talked we talked about how Eau Claire has a lot of young college-aged people and –

It’s not something that anyone disagrees would be a good thing for the university to have. It’s just there’s a lot of red tape involved in getting something going.

especially through the University – you had mentioned there’s no hard-and-fast resource for young people to learn the basics, you know, creating a budget, living within their means, being responsible with credit, stuff like that.

Is that specific to the University?

Why do you think that is?

I taught at the university for about 18 months. And I was in the College of Business. I specifically was working within the accounting and finance department. And there was my position

and the goal was “Alright, we’re gonna create a class where ultimately all accounting and finance students will go through this and they will get a semester of experience where they’re working with community members, helping with personal finances and by doing that, they’ll also learn about their own personal finance.” I went around to these different programs and I was talking to them like “Hey we have this great program here and it’d be great if we could work together.” What I saw was all of these programs were competing for dollars. And they wanted to have their own program, instead of having this overall

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There’s a lot of red tape. I mean, you’re right. Everyone agrees on it. Everyone sees it’s an important need. But I think everyone’s worried about their departments and their own dollars. And the same thing can be said for the nonprofit world I think, too. Competing for limited dollars, everyone’s trying to fight for it.

And it goes to a higher level of looking at our government.

Is this a problem you think will persist for a bit, or do you see it shifting?

I think it’ll persist for a bit. I don’t see any change on the horizon. I don’t know what it’s going to take to change it. It doesn’t matter what your political label is. Gov. Walker has an office of financial literacy, Gov. Doyle did.

on the money

President Obama has it, President Bush had it. Both sides talk about it, but it really would come down to there being a commitment from the parties to say, “You know, we need to contribute X number of dollars to financial literacy programs” and it’s just not there. And so I don’t know what it would take. A Bill Gates or somebody, a billionaire…

Bloomberg or somebody willing to pump money into that. It’s a shame. Like I look at Western Dairyland – we’ve been doing this for five years – the first year I was funded through Americorps.

The four years since, it’s literally been pieced together every year ... the threat of lay-offs at least once a year if not more, and they always find a way to keep me, but we’ve met with community members, we’ve met with banks, credit unions, different partners saying “Please, will you help fund us,” and no one is able to do it, unfortunately, and it’s really been a tough battle.

On that note, what is the financial landscape like locally, in the community in general and how can it improve?

It can improve on all levels. First of all, there needs to be a formal curriculum in our schools. So few require that in order to graduate high school you have to have a personal finance curriculum.

I’m talking about a social revolution: not with tanks and overthrowing the government, I’m not saying that, but we need to somehow get people to the point where they’re not so ashamed of talking about money. It’s kind of like religion. It’s kinda like sex. People just don’t want to talk about money. – ADRIAN KLENZ We don’t. Eau Claire doesn’t have anything. And it needs to start at a young age, where you start to talk to kids about money. Parents, I know they struggle – I meet with a lot of parents that it’s an internal battle for them. They don’t know like, “How much should I talk to my kids about this?” Sometimes they’re worried about scaring their kids. Sometimes they’re ashamed of their own finances so they’re afraid to share that with their kids. So that’s something that parents need to work on. But like I said, if it started in the schools, that would help.

We talked about the college thing already. As you go through life your needs change. And it might be something where the kids are talking to them about allowance. Talking to them about how to save. And once you get to college and you start getting your first credit card,

you start getting student loans, making sure you’re understand the commitments there. It’s becoming a huge issue.

I’m talking about a social revolution: not with tanks and overthrowing the government, I’m not saying that, but we need to somehow get people to the point where they’re not so ashamed of talking about money. It’s kind of like religion.

It’s kind of like sex. People just don’t want to talk about money. We’re taught at a young age that you don’t talk to people about money. Well, the result is so many people you see at all income levels, all age groups let problems go until it’s too late. We somehow have to get people to the point where they’re able to talk to somebody about money, so that if you come to somebody like me or somebody at Catholic Charities or somebody at Family Means and say, “Look,

VolumeOne.org 35 Oct. 16, 2014

I need help. I’m falling behind on my credit card bills” or “I’m behind on my mortgage.” Because unfortunately, they wait until it’s too late oftentimes.

That’s a conversation that we need to have. It’d be great to start it locally. So people know there are resources out there and that it’s a confidential thing – you’re going to be protected. You can come and talk to someone and they’re not gonna go out on the street and blare to the whole world that so-and-so is late on their credit card bill. In my personal experience, the weight that’s lifted once you face those financial difficulties, you can’t even measure it. It’s night and day.

I remember all too well that feeling of being afraid to answer my phone, or open my mail. Just constantly in the back of mind worrying about it. Until you don’t have to worry about it. It’s just an amazing feeling. So we need to have that conversation about it. As cheesy as that sounds, if we started it in Eau Claire, or the Chippewa Valley, that’s a start. And if every community started doing that, starting at a young age in schools and in colleges, parents start having a conversation about it, I think it would make a significant difference.

To contact Adrian Klenz or chat about financial literacy, email him at aklenz@ westerndairyland.org

on the money mastering your money C hippewa Valley financial g uru K ev in Mc K inley says the key to financial freedom is simple : J ust spend less .

WORDS: TOM GIFFEY P HOTO: ANDREA PAULSETH

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evin McKinley is one of the most recognizable financial figures in the Chippewa Valley, in no small part because of the decadeplus he’s spent doling out good-humored advice on Wisconsin Public Radio and in a weekly Leader-Telegram column (not to mention columns for Money.com and Registered Rep magazine as well as a book).

A financial planner for more than 25 years, McKinley has made a name for himself by pairing light-hearted wit with no-nonsense financial advice.

Over the course of his career, he says, people seem to have gotten smarter about money matters – or at least less foolish.

“I do think they’re becoming more concerned (about money), in part because we feel like we live in a more fragile world right now, both globally and personally, and there are less guarantees and support systems for people,” McKinley says. “That’s mostly bad, but the upshot is we have more control over our decisions.” In other words, we’re less likely to depend on government or a long-term employer to take care of our financial futures for us.

Overall, McKinley believes, more Americans are coming around to the “spend-less, have-more” philosophy he espouses and that many in the Chippewa Valley have always stuck to. “More people are acting like people in the Chippewa Valley than they were before,” he says. “They’re less aggressive, they’re not spending as much. … They’re more concerned about financial security.” Likewise, thanks to the Internet, people are more awash in financial advice than ever before. However, he adds, “It’s difficult for people to know what information is true and what they can trust, and how it applies to their situation. …. For the time being I’m not afraid of the death of getting good financial advice from a human being.”

And speaking of good advice, here are some suggestions from McKinley on what to do about student loans, how to boost your credit score, and the best possible decade to save for your retirement (hint: it’s not the 10 years right before you retire).

You started working for an investment firm at age 17. I assume this meant you had your act together, financially speaking, at a young age. Nonetheless, is there any sage financial advice that adult Kevin would give to teenage Kevin – or to teenagers today?

Number One: Treasure that thick, lustrous head of hair. Number Two: It’s easier to spend less money than it is to make more. And spending more generally means you have to work more, longer, and harder to pay for your spending.

Sooner or later you’ll start to treasure your time and freedom more than you will value the money, or the stuff you can buy with it.

Considering how expensive college has gotten, and the massive long-term debt many grads are saddled with, is higher education still a worthwhile investment for those who have to borrow money to pay for it?

Yes – as long as the economics of both VolumeOne.org 36 Oct. 16, 2014

the education and the subsequent employment prospects are considered.

Wisconsin residents are very fortunate to have a bevy of in-state two- and four-year public schools that can provide a very good education at an excellent value. But taking on six figures of debt in pursuit of a questionable degree at a high-priced institution is usually not a good idea.

Interest rates are very low right now, historically speaking. Should young adults who have student loans focus on paying them down, or should they use any extra money they have for other investments?

No – after making the minimum payments required on the loans, they should set aside money in savings until they have at least six months’ worth of living expenses in a bank or credit union account. Once that goal is reached, they can start saving for retirement, a down payment on a house, or paying off credit card bills. Extra payments on student loans should only be made when there is no other perceived need for the money.

on the money What are the biggest money mistakes that people make when they get their first “real job” and have a steady stream of income coming in?

Not saving for retirement right away, while their financial obligations (i.e., a mortgage payment, mouths to feed) are still likely as low as they’re ever going to be. People usually would be better off saving for retirement from age 22 to 32 (and then stopping), than they would be waiting until the turn 32 and then saving until 62. But of course, it’s better if they save from 22 to 62 and retire very comfortably.

Payday lenders seem ubiquitous these days, but the interest they charge ends up being outrageous.

What are other ways that people in precarious financial positions can access cash?

Go to a traditional bank or credit union first. The worst they can do is say “no,” but people might be surprised at the kind of help these lenders can offer. If that’s not enough, consider picking up some part-time work at least until the cash crunch is solved. There’s no shame in taking a second (or third) job to dig yourself out of a hole.

I keep hearing radio ads from companies that say they can consolidate my debt so I will pay only pennies on the dollar. That sounds like a great deal. What’s the catch?

The “catch” is that they charge for something that you can probably do yourself. And even if you’re successful, you’ll have a badly downgraded credit report that could last for years.

If I’m not planning on buying a home or a car in the near future, how worried should I be about my credit score? If I should be worried, what can I do to improve it?

It’s most important if you plan on borrowing money in the next year or so.

But your credit score can also affect your insurance premiums and your ability to get a job. Go to www.creditkarma.com for a free (ad-supported) tool to not only determine your score, but what steps you can take to improve it.

Speaking of cars, is it true that it’s always a better investment to buy a used car?

Not necessarily. Often dealers actually make a larger percentage profit

on used cars than they do on new cars.

Plus, new cars can be purchased with better financing terms, and have more predictable costs, since they’re usually more reliable and covered by the manufacturer’s warranty. That said, because new cars cost more, the dollars lost to depreciation each year will be greater – usually about 15-20 percent of the vehicle’s value annually.

themselves against such situations?

You’re a big proponent of saving for retirement with Roth IRAs. Briefly, why are these better for many people than just sticking money into a 401(k) or a traditional IRA?

Eager for more McKinley? You can hear him every Tuesday at 8am on The Joy Cardin Show on Wisconsin Public Radio’s Ideas Network (88.3 WHWC-FM in the Chippewa Valley). His column runs each Sunday in the LeaderTelegram, and his website is www.onyourmoney.com.

Roth IRAs don’t provide any immediate income tax deduction, but the contributions can be withdrawn at any time for any reason with no taxes or penalties.

Therefore, they can be better for people who are in a low tax bracket, may need the money in an emergency, or who have already maxed out their savings into an at-work retirement account.

It seems that every week or so we hear about another major data breach at a retailer or bank that exposes personal financial information. How can individuals guard

“It’s easier to spend less money than it is to make more.

And spending more generally means you have to work more, longer, and harder to pay for your spending. Sooner or later you’ll start to treasure your time and freedom more than you will value the money, or the stuff you can buy with it.”

– local financial guru Kevin McKinley

VolumeOne.org 37 Oct. 16, 2014

Monitor your accounts closely and report any suspicious transactions right away. You can also freeze your credit report for a small fee by going to tinyurl.com/cfreeze. And pay cash whenever possible – not only will you not be subjecting your information to potential hackers, but you can only spend what’s in your pocket.

on the money SUBMIT TED PHOTOS

making sense of your money RCU, WESTconsin offer in-school programs to boost kids’ financial smarts W O RDS: TOM GIFFEY

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sk many middle school students what they want to be when they grow up, and you’ll probably hear answers like “pro football player” or “video-game tester” or “pro football player who also tests video games.”

For students involved in programs like Royal Credit Union’s School $ense, the answer is more likely to be “banker.”

“I like the idea of banking, and I thought it would be kind of cool to do something with money at lunch,” ABOVE: With the help of RCU staff members such as Ali Peterson, right, student “team members” like these at Meadowview Eleme ntary School in Eau Claire said Carter Jaenke, a Northstar Middle help their peers and teachers make transactions. BELOW: Students can earn prizes, such as toys and T-shirts, for making freque nt deposits.

School eighth-grader who is beginning his third year as a student team member in the School $ense program. “We in Amery, Hudson, Menomonie, New pens to T-shirts and $5 gift cards – to teaching kids the ABCs of financial litget to help people deposit money, withmake frequent deposits. Student team Richmond, and River Falls. At these eracy. “The overall goal is to really draw money, and put checks in,” he said. members count the money and enter WESTconsin sites, student tellers gain teach the kids to be good financial savStudents mostly make cash deposits, he transactions into the credit union’s work experience while their peers get ers, to start them out at an early age explained, while adults make deposits to save their money, to pay themselves computer system (under adult supervi- tips on financial literacy. Likewise, both with checks and sometimes even make WESTconsin and RCU offer in-classsion, naturally). While most deposits first, and when it’s time to be good loan payments. spenders, to know what a budget it is,” are small, they add up: According to room educational programs for students The program brings credit union serto gain important financial knowledge.

Buyze, last year students and teachers explains Kathy Buyze, RCU’s school site vices to thousands of students and adults Eighth-grader Carter Jaenke is lookmade more than 22,000 deposits totaling supervisor. at 27 school sites across west-central a whopping $462,000! The program not ing forward to getting involved in the School $ense, now in its 21st year, Wisconsin. In total, about 350 young team high school portion of the School $ense only encourages students to be savers, involves numerous schools in Chippewa members like Carter and his sister, sixthit also helps their schools: For every program when he attends North High Falls and Eau Claire, as well as elsegrader Morgan, learn how to make deposwhere in the region, including Balsam 500 deposits made at a school site, the School. For young team members like its, withdrawals, and other basic transacCarter, part of the program involves Lake, Colby, Rice Lake, River Falls, participating school gets a $250 donations for their peers and teachers during marketing School $ense, and he is quick and St. Croix Falls. School braches are tion from RCU. weekly branch hours at their schools.

Student participants at School $ense to point out that banking at school is typically open once a week (sometimes And while helping students to develhigh school sites get more responsibil- much easier than going to a branch more often at the high school level) and ope job skills is one aspect of the proity and experience. At Memorial and to make a transaction, and that the offer kids incentives – from light-up gram, School $ense is primarily about program also educates kids about the North high schools in Eau Claire, they are hired as interns through a youth apprenticeship program, and in addition to working at the high school, they are given teller responsibilities at regular branches after school and on weekends, Buyze said.

RCU isn’t alone in providing inschool services in western Wisconsin.

Menomonie-based WESTconsin credit union offers similar handson education efforts in the western Wisconsin communities it serves, and maintains offices in high schools

importance of saving money – particularly for college – and not just spending it. There are also benefits for team members, like himself, he adds: “You learn a little about responsibility, and math, and some leadership.”

To learn more about RCU’s School $ense program, visit www.rcu.org/investments_and_savings/school_sense_sites. phtml. For information on WESTconsin Credit Union’s school programs, go to www.westconsincu.org/Student$avers/ schoolprograms.aspx.

“You learn a little about responsibility, and math, and some leadership.”

– Carter Jaenke, Northstar Middle School eighthgrader and RCU School $ense team member VolumeOne.org 38 Oct. 16, 2014

on the money money listings Get to know your finances better with the help of areA financial counselors and planners Financial Counseling This list features just local financial counseling services.

If we forgot your service, let us know!

Catholic Charities Financial Counseling 448 North Dewey St., Eau Claire • 715-514-5556 • eauclaire@cclse.org • www.cclse.org/financialcounseling. php Offering bankruptcy counseling, debt management, housing counseling, financial stability counseling, and a representative payee program.

FamilyMeans Financial Solutions 2194 East

Ridge Center, Eau Claire • 800-780-2890 • www.familymeans.org/financial-solutions.html Consumer Credit Counseling Service (CCCS) offers tools and education so people can regain financial stability and reduce unmanageable debt, with locations available in Minnesota and Wisconsin.

Bernicke & Associates 4813 Keystone Crossing, Eau Claire • (715) 832-1173 • www.bernicke.com.

Blue Sky Financial Associates 130 S. Barstow

St., Eau Claire • (715) 598-1563.

Cadott Tax & Financial Services 119 E. Chip-

pewa St., Cadott • (715) 289-4948 • www.cadott-tax. com.

ClifftonLarsonAllen 3402 Oakwood Mall Dr., Eau Claire • (715) 832-1100 • www.claconnect.com.

Cornerstone Financial Advisers 1109 W. MacArthur Ave., Eau Claire • (715) 834-5366.

Deborah Becker Insurance & Financial Services Inc. 404 S. Barstow St., Eau Claire • (715) 5144939 • www.deborahbecker.com.

Hall Financial Group LLC 4319 Jeffers Rd, Eau

Freund Law 920 S. Farwell St., Ste. 1800, P.O. Box 222, Eau Claire, 54702-0222 • (715) 832-5151 • www. freundlaw.com Offering bankruptcy, debt relief, and debt collection services for individuals, farmers, and businesses throughout Western and Northern Wisconsin.

Claire • (715) 514-2526 • info@hallfinancialgroup.com • www.hallfinancial.com.

Western Dairyland Financial Literacy 418 Wisconsin St., Eau Claire 715-836-7511, toll free at 800782-1063 • FinancialLiteracy@WesternDairyland.org • www.WesternDairyland.org/flip.phtml Providing group workshops and one-on-one mentoring in budgeting, basic banking, managing credit, avoiding money traps, fighting debt, and more. One-on-one mentoring available, from a one-time meeting or a program that lasts several months. Financial Counseling is available at no cost with no income restrictions.

well St., Eau Claire • (715) 834-9111 • www.mainstcapital.com.

FINANCIAL PLANNING This list features just local financial planning services. If we forgot your service, let us know!

Affinity Asset Management 2164 Eastridge Ctr.,

Eau Claire • (715) 835-5044 • affinityassetmanagement. com.

Allied Beacon Partners 800 Wisconsin St., Eau Claire • (715) 737-9067 • w ww.beaconpartners.com.

Ameriprise 475 Chippewa Mall Dr., Chippewa Falls

• (715) 723-6678 // 1235 Menomonie St., Eau Claire • (715) 514-3429 // 2919 Mall Dr., Eau Claire • (715) 838-3400 • www.ameripriseadvisors.com.

Keystone Financial 4410 Golf Terr., Eau Claire • (715) 835-6022 • keystonecv.com.

Mainstreet Capital Management 601 S. FarMcKinley Money LLC PO Box 1418, Eau Claire, 54702-1418 • (715) 835-2732, or toll free at (800) 9540740 • www.mckinleymoney.com.

Northwoods Investment Center 1109 W Ma-

cArthur Ave., (715) 832-8340.

RAI Stone Group 3504 Oakwood Mall Dr., Eau Claire • (715) 598-4340 • www.raistonegroup.com.

Raymond James Financial 718 Bay St., Chippewa Falls • (715) 720-9605 • www.raymondjames.com.

Seeman Tax & Financial LLC 535 Fairfax St., Altoona • (715) 835-1156 • www.seemanfinancial.com.

Terry Krumenauer Financial Group 2889 County Highway I, Chippewa Falls • (715) 720-4900.

Wealth Enhancement Inc. 2125 Brackett Ave., Eau Claire • (715) 835-3595 • DanMarx@WealthEnhancementInc.com • www.wealthenhancementinc.com.

Wealth Management Group 103 N Bridge St #255, Chippewa Falls • (715) 861-7200.

VolumeOne.org 39 Oct. 16, 2014