2016-financial-literacy-supplement by The Washington Informer

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In Memoriam Dr. Calvin W. Rolark, Sr. Wilhelmina J. Rolark THE WASHINGTON INFORMER NEWSPAPER (ISSN#0741-9414) is published weekly on each Thursday. Periodicals postage paid at Washington, D.C. and additional mailing offices. News and advertising deadline is Monday prior to publication. Announcements must be received two weeks prior to event. Copyright 2016 by The Washington Informer. All rights reserved. POSTMASTER: Send change of addresses to The Washington Informer, 3117 Martin Luther King, Jr. Ave., S.E. Washington, D.C. 20032. No part of this publication may be reproduced without written permission from the publisher. The Informer Newspaper cannot guarantee the return of photographs. Subscription rates are $45 per year, two years $60. Papers will be received not more than a week after publication. Make checks payable to: THE WASHINGTON INFORMER 3117 Martin Luther King, Jr. Ave., S.E Washington, D.C. 20032 Phone: 202 561-4100 Fax: 202 574-3785 news@washingtoninformer.com www.washingtoninformer.com

PUBLISHER Denise Rolark Barnes STAFF D. Kevin McNeir, Editor Ron Burke, Advertising/ Marketing Director Shevry Lassiter, Photo Editor Lafayette Barnes, IV, Assistant Photo Editor John E. De Freitas, Sports Photo Editor Dorothy Rowley, Online Editor ZebraDesigns.net, Design & Layout Mable Neville, Bookkeeper Mickey Thompson, Social Sightings columnist Tatiana Moten, Social Media Specialist Angie Johnson, Circulation REPORTERS Stacy Brown (Senior Writer), Will Ford (Prince George’s County Writer), D. Kevin McNeir, Lauren Poteat, Dorothy Rowley, Sarafina Wright (General Assignment Writer) PHOTOGRAPHERS John E. DeFreitas, Shevry Lassiter, Roy Lewis, Patricia Little, Travis Riddick

Financial Literacy is Important for the Expected and Unexpected Wells Fargo is again proud to be the title sponsor of the Washington Informer’s Financial Literacy supplement. Financial literacy is imperative when it comes to obtaining many things we want in life, especially those that may require financing. For example, understanding terms and processes for becoming a homeowner creates a better experience because we know Cerita Battles, SVP, Head of Wells Fargo Home what to expect and what is required Mortgage Retail Diverse Segments for mortgage approval. For many consumers there is an increased need for financial literacy in many areas, including homeownership. For example, in our third How America Views Homeownership survey that was conducted this spring, we continue to see a great desire for homeownership among consumers and a great need for knowledge about the process or requirements. About half of our African-American respondents believe that a 20% down payment is required for homeownership approval. The truth is that there are many mortgage programs available that do not require 20% down. This year the Informer has chosen Being Prepared for a Financial Crisis as the theme for this special supplement. This is important because not only do we want to plan to achieve financial goals like owning a home, we want to be prepared to sustain it and remain there for as many years as we like. As a homeowner, when you plan for the unexpected emergency, such as pipes bursting, you may be able to avoid a financial crisis. Having funds set aside for the things you don’t anticipate is key to homeownership sustainability. Being diligent about savings is vital to financial crisis planning. In Wells Fargo’s How America Buys and Borrows survey, fewer than half of African Americans who were surveyed, 46%, say if they lost their job they would be able to get by for at least a few months. This suggests a need for increased financial literacy about the importance of saving for the unexpected. Saving is essential in reaching and maintaining many of our financial goals. And for those who need assistance, plenty is available. Budgeting and financial management tools are excellent reAs a homeowner, sources to assist in creating spendwhen you plan for ing plans that include establishing the unexpected savings for those anticipated and emergency, such as unexpected expenses. For example, Hands on Banking at www.handpipes bursting, you sonbanking.com , also available in may be able to avoid a Spanish, is a free, non-commercial financial crisis. Having program that teaches people in varfunds set aside for ious stages of life about the basics of responsible money management. the things you don’t This tool and many others can anticipate is key to be found online and done at a pace homeownership comfortable for the individual. sustainability. Planning ahead with savings can help keep financial crises at bay. FL

www.washingtoninformer.com / THE WASHINGTON INFORMER FINANCIAL LITERACY SUPPLEMENT – OCTOBER 2016

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10 Must Know Facts to Help You Build and Manage Your Credit

By Don Gilbert Senior Vice President Wells Fargo Community Development Manager-Mid Atlantic Region We know a home can be more than just a home – it’s a place where memories grow and flourish. First steps, important family occasions and holidays; a haome is where we gather with the people we know and love best. A vehicle can mean a lot too. For many of us, it’s how we take our kids to school or create memories from an unforgettable road trip. These two purchases are among the largest most families will make, and many of us take advantage of credit to turn our dreams into reality. Yet, many consumers have questions about how credit works and the tangible habits that can help manage it responsibly. According to the 2016 “How America Buys and Borrows” survey by Wells Fargo and Ipsos, 64 percent of African Americans said they would grade their understanding of how credit scores work an “A” or “B.” While this is a very positive number, it also means 36 percent would grade themselves a “C,” “D” or “F.” We want to help. Because understanding credit can be the first step in achieving your financial goals, here are 10 facts that may help you get smarter about credit: 1. Monitor your credit regularly: Make sure you stay on top of your credit history. Be sure

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to check all three credit bureaus annually for free credit reports 3297401 through www.annualcreditreport. com. 5.65x10.5 2. Know your credit limits: Being close to or maxing out your4c credit limits may negatively impact your credit score. 3. Good scores = Good rates: Better credit scores may get you better credit interest rates. 4. Don’t be late: Missed payments have the largest impact on a credit score, so don’t skip payments. If you are late, don’t be 30 days late, and if you have difficulty, call your lender. 5. Know your debt-to-income (DTI) ratio: Lenders look at the amount of debt you have compared to your monthly income — it’s good to keep that under 35%. Learn more and calculate your debt-to-income ratio at www.wellsfargo.com/debtratio. 6. Start with a college or secured credit card: If you need to establish credit, a secured credit card or, if you are a college student, a college credit card may be a good way to start. 7. Pay down highest interest rates first: When trying to pay down your existing debt, pay down your highest interest debt first. 8. Live within your means: By setting a budget and living within your means, you can avoid using credit to overextend yourself. 9. Pay more than the minimum: Paying more than what’s due on your credit card helps you pay down debt faster and can improve your credit score. 10. Set up alerts: Set up email and text alerts, as well as autopay, to help ensure that you pay your bills on time and build positive credit history. In life, there’s always room for improvement and to learn new things, and it’s not much different when it comes to credit. For this reason, I encourage you to learn a little more about credit by visiting Hands on Banking® at www. handsonbanking.org. There may be no better feeling than being able to accomplish your financial goals. At Wells Fargo, we want to help you achieve those goals responsibly and help you succeed financially. FL

“Our business plan is our ‘go to’ document.” Deundra Hundon Universal Martial Arts Academy, est. 2010 San Francisco, California

Our complimentary Business Plan Tool can help you focus on the things that will make your business thrive. Like most small business owners, the Hundons* were so busy running their business that they found it hard to organize ideas for their company’s future into a business plan. Using the Business Plan Tools from Wells Fargo, they gained valuable insight to help them focus on what to do next. It’s just one of the complimentary resources in the new Business Plan Center. To learn more, visit WellsFargoWorks.com.

THE WASHINGTON INFORMER FINANCIAL LITERACY SUPPLEMENT – OCTOBER 2016 / www.washingtoninformer.com

Want to Buy A Home? 10 Ways to Save for Your Down Payment

By Maceo Clark Branch Manager (Burtonsville, MD) Wells Fargo Home Mortgage If you dream of owning your own home but don’t think you have enough money for a down payment, take another look. You could already have enough, or you might be closer than you think. In Wells Fargo’s recent “How America Views Homeownership” survey, 23 percent of African Americans who do not currently own a home say one reason is that it’s difficult to

save enough money for a down payment. But many consumers overestimate how much they need. Nearly half (48 percent) of African American respondents believe a 20-percent down payment is required. In reality, you may have other options. Some financing programs allow qualified homebuyers to put down as little as 3 percent. A home mortgage consultant can help determine what you may qualify for. They’ll also help you understand how much you need for a down payment and other upfront costs of buying a home, and for ongoing expenses such as insurance, homeowners’ association fees, and unexpected repairs. If saving up to buy a home is your goal, how can you put more away each month to get there sooner? Here are some savings tips to consider. 1. Pay down credit card and loan debt so you save money on interest. (This may also boost your credit score and lower your debt-to-income ratio, which helps when applying for a mortgage.) To tackle this, start with the account with the highest interest rate, pay more

than the minimum, make payments every two weeks instead of monthly, and consider setting up automatic payments. 2. Track your spending habits and evaluate what you can cut. (Many helpful budgeting apps are available.) Small changes can add up to big savings – for example, bring your own coffee or lunch more often, carpool when possible, get your hair cut less frequently, or cook and watch movies at home more than going out. 3. Reconsider your gym membership. How much does it cost per month, and do you use it enough to get your money’s worth? If not, look at other ways to stay fit, like walking or running on local trails, taking advantage of free yoga in the park, or following workout videos at home. 4. Be energy-efficient. According to the Bureau of Labor Statistics, the average consumer in 2015 spent $3,885 on utilities. See how much you can shrink your energy bill. For instance, keep the air conditioning or heat lower, and turn off lights and unplug electronics when not in use. 5. Move money into a sav-

ings account once a month, before paying your other bills, so you get used to living on less. Split your paycheck direct deposit so a portion goes to your savings account and the rest goes into checking. Or, set up an automatic transfer between bank accounts, regularly sending money from checking to savings. 6. Minimize account fees. Pay attention to when a bank account incurs fees so you can avoid it when possible – for instance, maintain the daily minimum account balance, use your debit card a specified number of times during the month, or stay below a maximum number of withdrawals from a savings account. And of course, avoid overdrafts. 7. Consider using automatic bill pay options, through your financial institution or the billing entity like the utility company. Then you’ll avoid accidental late payments and the fees that come with them. Even if you’re busy and paying the bill slips your mind, it’s taken care of. 8. Maximize credit card rewards. Use a cash-rewards card for everyday purchases (as long

as you pay off the balance each month to avoid paying interest), and put the cash rewards into your down-payment fund. Or if you get points, redeem them for cash if you can. 9. If you get a raise, bonus, or tax refund, stash it away for your future home purchase instead of spending it now. 10. Make sure you’re having an appropriate amount withheld in taxes from each paycheck. If you’re getting a big tax refund each year, you’re withholding more than necessary and letting the IRS temporarily hold your money interest-free. Instead, withhold less and put those extra paycheck dollars into your down-payment savings. Use the IRS withholding calculator to figure this out: https://www.irs.gov/individuals/irs-withholding-calculator Many Americans want to be homeowners and think now is a good time to buy, according to Wells Fargo’s survey. But while saving for a down payment is often seen as a big barrier, it might not have to be. With the facts about what’s required and with a plan to save, you could be on your way to achieving your homeownership goals. FL

www.washingtoninformer.com / THE WASHINGTON INFORMER FINANCIAL LITERACY SUPPLEMENT – OCTOBER 2016

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THE WASHINGTON INFORMER FINANCIAL LITERACY SUPPLEMENT – OCTOBER 2016 / www.washingtoninformer.com

Can Healthy Habits Contribute to Financial Security? (StatePoint) When it comes to feelings about finances, working Americans are practically split down the middle, according to a recent study. Fifty-five percent of employed Americans feel they are on the right track to achieving financial well-being, while the other 45 percent feel they are not headed in the right direction, according to the 2016 Lincoln Financial Group Measuring Optimism, Outlook and Direction (M.O.O.D.) of America study. So what are those individuals on the right track doing so well? The study found five key factors -- behaviors and influencers -- in their lives that correlate to positive feelings about money. “Right trackers” differ from their counterparts who are not on the right track because: • They are more likely to have created formal financial plans -more than 70 percent of them, in fact.

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• They are forward-looking in general, with nearly 100 percent saying they are focused on the future. Also, 90 percent of those in the “right track” camp say they feel in control of their lives. • They exercise more. Those with positive feelings about money tend to be active. About 80 percent of this group exercises at least once a week, and typically more often. Compare that with those who are not on the right track -- just 60 percent of that segment works out on a consistent basis. Physical health can correlate to financial health. • They’re more likely to feel good about themselves. Financial health and emotional health go hand-in-hand, too. Those on the right track are more likely than their counterparts to say they are optimistic because they feel good about themselves and their relationships with family and friends. They’re also positive about their careers and their relationships

with coworkers. • They take advantage of workplace benefits. Indeed, the more benefits you enroll in through the workplace, the better you will feel financially, suggests the study. Beyond health insurance and retirement savings, “right-trackers” are enrolling in insurance plans to cover dental and vision care, as well as life insurance and disability insurance (which can help replace a portion of your paycheck while you recover from an injury or illness). They’re also taking advantage of other nonmedical benefits that can help boost financial security, such as accident insurance and critical illness insurance, which can help cover expenses that medical insurance does not, like high deductibles, or day-to-day expenses such as food or mortgage payments. The future is unknown, but certain insurance coverages offered at work can help safeguard you against a broad scope of un-

Financial Group on Facebook, Twitter or LinkedIn. Feeling good about your finances is about the big picture, not just your bank account. From a healthy lifestyle to a positive attitude, taking a cue from those who are on the “right track” may help you get your footing on the path

October is Financial Planning Month: Easy Tips to Stick to a Budget

Looking to buy your first home?

(StatePoint) It can be easy to let your finances fall by the wayside when juggling work, family, school and other priorities. October is Financial Planning Month and a perfect time to make sure you are prepared for the future. To help, the discount experts at Dollar General are offering some useful tips to assist you in staying on budget and avoiding financial stress. Pack Your Own Lunch To help stick to your budget, skip pricey restaurants. Instead, save money and spend the evening cooking with your family. For affordable and simple ideas for cooking favorite dishes, consult resources like Dollar General Easy Meal recipes at dollargeneral.com/easymeals.

We’ll see you through. As the area’s number-one community bank, we know mortgage lending like we know the neighborhoods of DC, Northern Virginia, and Suburban Maryland. And we’ll take the time to get to know you, so we can find the loan option that’s right for you. Give us a call—it’s a local number.

Remember to Treat Yourself Just because you’re sticking to a financial plan doesn’t mean you can’t treat yourself. Budget time and money to indulge in your favorite activities like a night at the movies, seeing your favorite sports team in action, or going bowling. Take Advantage of Coupons Coupons are a great way to save money and stretch your budget. Retailers like Dollar General offer online digital coupons that can be downloaded on a desktop computer or by using a smartphone. You can sign up by visiting dollargeneral.com/coupons and can receive additional savings during seasonal “Fast Way to Save” promotions, where exclusive coupons are available only to Dollar General digital coupon subscribers. Stay Positive Don’t get bogged down by the stress of financial planning. Instead, focus on positive steps you can take to achieve your goals. Spend more time with your family cooking. Work toward your next job promotion. Ace your next exam. Even if you’re busy, make the time for planning a budget. It may feel like work now, but feeling financially secure will offer you peace of mind. FL

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www.washingtoninformer.com / THE WASHINGTON INFORMER FINANCIAL LITERACY SUPPLEMENT – OCTOBER 2016

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Claim Your Financial Power – Now

By Hermond Palmer President & CEO Palmer Solutions LLC What they say is true: Knowledge is power; but that power is useful only if we acquire it, nurture it and use it. We have all heard the adage, “If you give a man a fish, you feed him for a day; but if you teach him how to fish, you’ll feed him for a lifetime.” What if fish, in this case, was knowledge? Not just any knowledge, but knowledge about managing your money to make it work for you. What if you made it your priority to acquire that knowledge, and share it with your children? Think how powerful that would be; how bright their futures could be. What if you shared this knowledge at the beginning of their careers when they could benefit from having it the most? Many people get caught up with the idea of making a lot of money to achieve their financial goals. While a high income is appealing, what you do with the money you earn matters the most. Consider the list of high-profile, high-income athletes and entertainers who were once multi-millionaires but because they didn’t know how to manage their millions, lost it all. Folk in our community need to deliberately decide to act and take control of their and their children’s financial futures. Don’t allow yourself to be intimidated by what you don’t understand. Instead get excited by the prospect of learning something new – something that will empower you and yours for the rest of your lives. Surprise yourself with the confidence you will develop as you first learn to crawl, then walk, then run to wealth accumulation and financial independence. People do this every day. Why shouldn’t you? Need inspiration? Consider Ms. Oseola McCarty – a minimum-wage earner from Hattiesburg, Mississippi who became the University of Southern Mississippi’s most famous benefactor. A career washerwoman who dropped out of school, she worked her trade until arthritis forced her to quit in 1994.

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To her credit Ms. McCarthy did not focus on what she didn’t have. Instead she focused on what she did have – income. With that income she put together a plan that, when combined with discipline and commitment, enabled her to achieve her goals. Just like Ms. McCarty, you can achieve your financial goals. Here are a couple of suggestions to help you get started: 1. Keep a daily spending log of all of your purchases for at least a month to track where you spend your money. This will help you to identify possible saving opportunities you can use for future investing. 2. From your spending log, separate your purchases into two categories: wants and needs. Wants are discretionary purchases you make that are not necessary for your survival. Needs are purchases you have to make in order to survive. Understand the difference and make better choices. 3. Read! Educate yourself by going online or to the library to read magazine articles on investing for beginners. 4. Commit to saving for retirement. Allocate at least 5 percent to 10 percent of your gross income to an option in your employer’s 401k plan. If you feel this is too much, at least commit an amount that is equal to the maximum your employer will match. Your employer’s match is an immediate return on your investment. If you do not have access to a 401k plan, select a qualified retirement option that is appropriate to your situation. 5. Whenever you receive a raise be sure to allocate at least 1 percent of that new money to your retirement account. People frequently complain they don’t have the money to save. However, in this scenario, you are dealing with new money you haven’t received previously; therefore, you shouldn’t miss it. 6. Set goals and track your results. As you see yourself making progress you will be more likely to remain committed to achieving your long-term goal. I once heard it said that power isn’t something that’s given, it’s something you take. I’m asking you to put aside any fear you may have and claim your financial power now. FL

“A high income is appealing, what you do with the money you earn matters the most.”

Hermond Palmer is an experienced executive who has established himself as an out-of-the-box strategic thinker and whose innovative solutions deliver exceptional business results. He is a graduate of the Wharton Business School who has worked for such organizations as the Pepsi-Cola Company and American Express.

THE WASHINGTON INFORMER FINANCIAL LITERACY SUPPLEMENT – OCTOBER 2016 / www.washingtoninformer.com

Dealing with Financial Crisis

By Hermond Palmer President & CEO Palmer Solutions LLC So life is good! You have a good job, money in the bank, good health and every day seems like the lyrics to that song – “Summertime and the living is easy.” But what happens when the season changes, and what was once easy is now difficult and seems impossible? You never want to invite tragedy into your life but what happens when it comes uninvited? At some point, we are all likely to face financial crisis: an unexpected expense, a layoff, illness, or injury. To overcome such a crisis, you must be forward thinking and disciplined in managing your money. Therefore, an important part of any affective financial plan includes the preparation of contingency strategies for when things go awry. One way to deal with a financial crisis is to take precautions to protect yourself and your loved ones before tragedy strikes.

SOME “TO-DOs” BEFORE A CRISIS

Establish a Budget: Live beneath your mean, and create several savings accounts for potential life-altering events: • Emergency Fund: Savings in case of a financial crisis, like losing a job, a debilitating illness, or a major expense. • College Fund: Money set aside to help pay for college costs. • Retirement Fund: People mistakenly believe they cannot afford to save for retire-

ment. The truth is you cannot afford not to save for retirement. Retirement cannot be financed – you can’t take out a loan to pay for it. When the time comes, you either have enough or you don’t. To avoid this dilemma save at least 5 percent to 10 percent of your gross income in a qualified retirement account. Prepare with Insurance: Many financial crises are the result of an injury resulting in disability. A disability is an injury or illness that prevents one from working and earning an income. Everyone is at risk of injury, and as a result, is exposed to the risk of not being able to earn an income. If you became disabled – unable to work for two or three months – would you have enough savings to pay your living expenses? Worse, what if the ultimate tragedy were to strike resulting in the death of the primary or secondary breadwinner of the household? How would the family maintain its standard of living? To guard against such mishaps, consider insurance policies as a baseline defense: • Health-care Insurance: Covers the cost of medical and surgical expenses. • Short-term Disability: Helps protect the recipient’s income if the individual becomes disabled. These benefits replace a percentage of the recipient’s salary while out of work for a short period of time. • Long-term Disability: Protects from loss of income in the event an individual is unable to work due to illness, injury, or accident for an extended period of time. • Life Insurance: A sum of money paid to protect against financial loss due to the death of an insured. Establish a War Council: That group of smart, rational, trustworthy friends who will keep you centered and focused on solving your issues, encourage you and uplift you with their presence, support and humor.

“TO-DO’S” DURING A CRISIS

• Take Action: Do not procrastinate, attack your prob-

lem. Be honest about what you are facing and create a plan that affectively confronts the challenge. • A sk for Help: Remember your War Council? Now is the time to reach out to them to ask for help. If they can’t help maybe they know someone who can, but they can’t start if you don’t ask.

TAKE CARE OF YOURSELF:

• Eat Right: A poor diet can cause health issues. Why complicate a financial crisis with a potential health crisis? Eat well-balanced, nutritious meals. A healthy body supports a healthy mind and both are critical when dealing with a financial crisis. • Exercise Regularly: Relieve stress by getting your body in motion and elevating your heart rate. This has the potential to improve your energy level and mood. Other noteworthy benefits include increased relaxation, better

One way to deal with a

financial crisis is to take

precautions to protect

yourself and your loved

ones before tragedy strikes.

sleep and strong immune function. • Get Rest: Rest helps your body repair and renew itself. You always want to be in the best physical shape possible, especially when dealing with a crisis. Make sure you make your physical well-being a priority. Taking control of a financial crisis requires preparation and discipline in managing your money. Approach managing your financial situation with your desired outcome in mind. You will be able to better control your situation and it will empower you to weather any storm. FL Hermond Palmer is an experienced executive who has established himself as an out-of-thebox strategic thinker and whose innovative solutions deliver exceptional business results. He is a graduate of the Wharton Business School and has worked for such organizations as the Pepsi-Cola Company and American Express.

www.washingtoninformer.com / THE WASHINGTON INFORMER FINANCIAL LITERACY SUPPLEMENT – OCTOBER 2016

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Financial Crisis Planning Lessons Learned from the Great Recession

By Iris Cooper (www.justaskiris.com)

Why we must force our offspring to become financially literate. “We have become 99 percent money mad. The method of living at home modestly and within our income, laying a little aside for the proverbial rainy day (which is due to come), can almost be listed among the lost arts.” George Washington Carver

THE GREAT RECESSION

Eight years ago the world, as we knew it, began to crumble. Everything we knew to be enduring became fragile, weak and vulnerable. The economic conditions were atrocious, so lest we forget, please review the facts: • The nation lost over 7.5 million jobs, some due to closure or layoffs, and others due to offshore outsourcing. Reported unemployment reached 13.5 percent, as unreported joblessness swelled to over 20 percent in urban communities. • The automobile and manufacturing industry came close to demise. • Nonprofits, providing critical services to the needy, shut their doors when donations waned. • Financial institutions collapsed when unethical and/or illegal investments (derivatives, mortgages, swaps, etc.) dissolved. • Banks stopped lending to consumer and commercial borrowers and began to file liens or foreclose on for profit and non-

profit organizations, as well as churches. • Personal retirement or education investments dwindled when the stock market plummeted. • Home values tanked as a result of foreclosures and the depressed real estate industry. Terms like “negative equity” and “underwater mortgages” prevented creditworthy borrowers from refinancing for better terms. • Completed foreclosures reached over 4 million from 20072011 with approximately 8.2 million initiated. • Government bailouts salvaged the remains of “too big to fail” corporations. • The price of commodities (oil, food) skyrocketed in the midst of a global economic downturn due to limited international trade. • Consumer confidence in the economy and the government was undetectable in many communities. • Communities suffered when businesses and other institutions closed, fostering crime and despair.

THE REACTION

We were ill-equipped for the rainy day in 2008 that escalated into the worst financial firestorm since the Great Depression. What were the lessons learned from this experience that we can pass along to our offspring? If only we had known about and applied basic financial concepts. If only we had recognized that the economy is a complicated, powerful puzzle and that the “trickle down” impact of

the Great Recession would leave the worst for the least. Black people did what they had to do: moved in with relatives, filed bankruptcy, liquidated investment accounts, accepted government assistance, downsized, dropped out of school, rode bicycles and everyone prayed that the storm would soon be over. The economic model that we relied upon was broken; we worried but persevered. “In 2009, for every dollar of wealth the average white household had, Black households only had two cents.” Algernon Austin, Economic Policy Institute Program on Race, Ethnicity and the Economy

THE REMEDY

So, what should we do to prepare for the next economic calamity? History admonishes us that an economic crisis will happen again, perhaps not in the boomers’ lifetime, but certainly possible in the Generation X, Y, or the Millennials existence. What can we do to help them manage through a period of economic loss, regardless of the cause? We can provide them with knowledge and financial survival skills. Financial literacy means understanding financial matters and business terminology. Financial literacy, taught before adulthood, can help our youth make sound decisions about their economic future. We, as elders, all too often shield our children from the financial struggles and juggles

IRIS COOPER’s career includes leadership positions in financial

services, economic development, community service, entrepreneurship, communication, government and education. She is the owner of “JustAskIris!” – an entrepreneurial coaching firm. Iris is a founder of Glory Foods, Inc., a multi-million dollar food marketing company. Iris is recognized nationally as an expert in business strategy and branding, having coached many startups to sustainability. Her newest venture is Finish Your Gloryfied Business Plan Now! -- a workshop to foster entrepreneurial success. Iris is the former director of the Ohio Division of Entrepreneurship and Small Business, where she led the state from 29th worst place for small businesses in 2007 to the 9th best in the nation, and 1st in the Midwest in four years. In 2015 Iris introduced the 2nd version of “When the Devil is Beating His Wife: A Christian Perspective on Domestic Violence and Recovery,” co-authored with Melanie Houston and available on Amazon and alabasterboxmedia.com. Iris is a featured writer and speaker on business topics and an adjunct professor at Franklin University. She is an active member of Alpha Kappa Alpha Sorority, Inc., the National Coalition of 100 Black Women, the Indiana University Alumni Association and WELD. In 2016, she obtained her DBA from Walden University, majoring in entrepreneurship.

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we execute daily, leaving them to believe we are in solid financial shape. We don’t explain why we delay purchases, work second jobs, or borrow from others because we are don’t want them to worry or reveal our ignorance. Historically, our public education system didn’t include financial literacy, so we learned how to manage money the hard-knocks method; we borrowed from Peter to pay Paul, refinanced our homes for cash or to consolidate debt and liquidated retirement assets to survive when we lost our jobs. When we had cash, we purchased expensive cars and took lavish trips that we couldn’t afford. We survived but arose with 500 credit scores, requiring us to rebuild our credit profile if we wanted to return to the acquisition game. Some of us are still waiting for the storm to end. Financial literacy should include a basic understanding of the following concepts: assets, liabilities and net worth; budgeting for effective cash flow; interest income and expense; annual percentage rate (APR); truth-in-lending statement; banking services; basic investments (stocks, bonds, IRAs); real estate terms (mortgage, equity, deed, etc.); loans and credit cards; credit reporting and credit scores; supply and demand; insurance and risk; estate planning, entrepreneurship and websites and resources for financial assistance. In some states, like Ohio, the law requires that financial literacy

THE WASHINGTON INFORMER FINANCIAL LITERACY SUPPLEMENT – OCTOBER 2016 / www.washingtoninformer.com

be included in high school social study classes. However, curriculum for elementary and middle schools remains under review. The school’s financial literacy training can provide an introduction to money management but parents and grandparents must infuse reality into the above concepts. For example, having a part-time job or chores with an allowance helps to introduce the relationship between income and budgeting. Share the household budget with your preteen so they can understand why and how financial decisions are made. Review a credit report with them and decipher the data. Take them with you when you shop for a car or other assets so they can listen to the negotiation and discuss the outcome afterwards. Encourage your high school and college students to take a business course as an elective or start a small business. Candid communication about money management, along with regular practice of critical thinking skills, are crucial for the financial security of our offspring and the ideal time to start those lessons is today. “Give a man a fish and he will eat for a day. Teach him to fish and he will never go hungry.” Chinese proverb NOTE: Regarding your estate, be certain your adult offspring have a copy of your will or trust, insurance policies and other financial information in preparation for another inevitable life event. FL

Know Your Consumer Rights Under the Fair Debt Collection Practices Act By Charlene Crowell An old adage teaches that one man’s pain is another’s gain. That adage is a truism when it comes to the debt collection industry and the estimated 77 million people who have past-due debts. For the near $14 billion debt collection industry, it really doesn’t matter whether the source of debts are from medical providers, student loans, credit cards or other financial services. Often, these pursuits include inaccurate or incomplete information, as well as debts beyond an applicable statutory limitation. In recent years, the industry began cramming local court dockets to secure default judgments that would legally allow payroll checks, bank accounts and other financial assets to be accessed or seized. In many instances, affected consumers were unaware of legal proceedings until after garnishments or other punitive actions had been taken. Consumers faced with these or other aggressive tactics need to know an important federal law

protects them from harassment and further, stipulates exactly what constitutes illegal practices. The Fair Debt Collection Practices Act (FDCPA), enacted in 1978, details the ‘rules of the road’ on collections. In many ways, FDCPA functions as a ‘bill of rights’ for consumers dealing with debt collectors including how to dispute incomplete or inaccurate information. Another key consumer provision: penalties for those found to violate the law. Among the specific protections FDCPA provides, debt collectors cannot: • Use ‘any false, deceptive, or misleading representation or means in connection with the collection of any debt; • Harass or threaten consumers with arrest; or • Contact consumers before 8:00 a.m. or after 9:00 p.m. Earlier this year, the Urban Institute (UI), a DC-based nonprofit organization specializing in urban and social policy, analyzed data and recent studies related to delinquent debt that was not yet in collections.

It revealed disturbing debt collection patterns among Blacks and Latinos: 1. Black and Latino neighborhoods were more likely to have debt in collections and in greater dollar amounts than those affecting White populations; 2. Debt collection was more prevalent in areas with high unemployment, lower household incomes and lower educational achievement; and 3. Where higher rates of mortgage delinquency, underwater mortgage and foreclosure rates appeared. Last year the Center for Responsible Lending (CRL) released a report on debt collection that recommended state reforms to supplement federal laws. At a minimum, CRL called for state protections to set standards for adequate information and documentation to collect a debt, and require documentation on it before obtaining a judgment against a consumer. “The debt collection and debt buying practices highlighted in recent state and federal regulator actions demonstrate the harms individuals often face in the debt collection market,” said Lisa Stifler, Deputy Director of State Policy at CRL. “Every consumer should be free from abusive and harassing debt collection. Decisive actions at both the state and federal levels combined with aggressive enforcement will together hold debt collectors accountable for their wrongdoing.” Also in 2015, the Federal Trade Commission (FTC) facilitated the first-ever coordinated debt collection initiative and involved federal, state and local officials. Named Operation Collection Protection, 70 partners brought 130 actions against illegal debt collection. Additionally, in the same year the Consumer Financial Protection Bureau (CFPB) returned $360 million to consumers wronged by unlawful debt collection practices and collected over $79 million in fines. “At the CFPB, we envision a debt collection market that is fair, transparent, and law-abiding,” noted Richard Cordray, Director of the Consumer Financial Protection Bureau.” FL Charlene Crowell is the communications deputy director for the Center for Responsible Lending. She can be reached at Charlene.crowell@responsiblelending.org

www.washingtoninformer.com / THE WASHINGTON INFORMER FINANCIAL LITERACY SUPPLEMENT – OCTOBER 2016

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The Five Deadly Questions You Must Answer Before Starting a Business stances. Some firms suffer a fatal heart attack; the owner is liable for an accident on his site and assets are liquidated when the insurance company refuses to pay. Other firms shuffle along for several years, ignoring new technology and changing market conditions. Customers quietly switch to the fancy, tech-savvy competitor and death by old age creeps in. Death from loneliness is particularly poignant; the owner is weary and wants to retire but nobody wants the business, including family members. The owner shuts down and the legacy vanishes into yesterday. However, when a business opens without the answers to the five questions below, the owner is a murderer. With reasonable answers to these queries, more firms might have a chance of survival. By Iris Ann Cooper (www.justaskiris.com) Small businesses die daily, with most failing within the first five years, regardless of the circum-

1. Who is going to operate the business and do they have the skills to be an entrepreneur? Entrepreneurs take risks in exchange for freedom to make their own decisions and chart their own course. Success depends on the

owner’s education and experience, commitment, human capital and vision. Education and experience provide problem-solving tools to mitigate the damages of an unexpected economic shift, or the entrance of a threatening competitor in the market. Social capital, or personal support network, can offer assistance when the owner is away, or provide an introduction to a prospect for a future business opportunity. Success requires a strong work ethic and a fight-towin attitude. 2. What kind of business and what is the business model? A business model must reflect the strengths and weaknesses of the owner. Hairdressers thrive on creativity and customer service. A carryout offers a brief encounter at the cash register and requires an owner that can juggle many tasks at once. The business models are dissimilar; hairdressers make money from lengthy services and products from patrons that expect perfection, whereas carryout owners make profit on every item in the

store, with a goal of a quick transaction from a large bag of expensive goodies. Starting an enterprise requires long hours and hard labor; an owner with passion, resilience, knowledge and respect for the model enhances sustainability. 3. Why are you starting a business? Desperation and innovation are opposites when starting a business. If desperation appears from unemployment, the ideal entrepreneurial tool kit may not be available. Self-employment is a reliable goto action when personal survival is the goal; a business plan is not necessary to paint houses in the spring and summer, or sell cookies on the weekends. If the goal is to open a restaurant to reap financial rewards from a popular family recipe, there will be a great deal of time and preparation needed before the ribbon cutting ceremony. 4. When will the business open? What are the chances of survival during a recession, or when the

owner is still working full time? What about seasonal risks when starting an enterprise? Timing is critical and seldom are the conditions perfect for launching a business. When the market is ripe, the owner may not have the resources to begin. A comprehensive business plan includes the path to financial stability, and identifies the resources, challenges and remedies before the launch. Starting before systems are created, social capital is on board, funding secured and marketing commences presents risks to the operation and the brand. 5. Where will you operate the business? Certain kinds of home-based businesses require zoning approval. If you operate online, few assets are needed except a desk, chair, utilities and a computer. Some businesses depend on foot traffic or ample parking. Other enterprises thrive next door to competitors. Each situation is different and analysis helps to pinpoint the ideal location, features and amenities. FL

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THE WASHINGTON INFORMER FINANCIAL LITERACY SUPPLEMENT – OCTOBER 2016 / www.washingtoninformer.com

Insurance Coverage for Your Autos LIABILITY COVERAGE

By Ron Wilson CPCU, CLU, CIC Insurance Learning and Marketing Consultant You’ve purchased a new vehicle and as the new car smell overwhelms you, the salesperson has to verify your insurance coverage. This represents one of your best opportunities to create a coverage plan designed to meet your specific needs.

Designed to reduce or eliminate the possibility of financial ruin (including the loss of future earnings) as a result of an auto accident caused by you. Coverage is typically offered in combined or split limits of financial protection. A combined limit of coverage (e.g., a $300,000 limit) will afford you up to that dollar amount for bodily injury and property damage you cause to another party. A split limit of coverage option (e.g. $100,000/ $300,000/ $50,000) will cap the amount of coverage by category divided on an individual, group and property damage. For example, with this limit of coverage the maximum amount available if you were to injure one person would be $100,000. If you injured more than one personal the maximum available limit would be $300,000. Should you have damaged another person’s car or other property,

you would have a maximum of $50,000 of liability coverage available to fix the damages.

PERSONAL INJURY PROTECTION

Often called “no-fault” insurance, this coverage provides medical, hospital, lost income and disability payments resulting from an auto accident, no matter who is at fault. Also applies if you are struck by a vehicle while traveling as a pedestrian.

MEDICAL COVERAGE

Provides protection for reasonably incurred medical, surgical and dental treatments. Common types of expenses paid include, but are not limited to: ambulance services, drugs, nursing care, x-rays, prosthetics and funeral expenses.

UNINSURED/ UNDERINSURED MOTORIST COVERAGE

The Insurance Research Council estimates that 12.6 percent of U.S. drivers were operating their vehicles without liability coverage. Some states require a minimum amount of uninsured/underinsured motorist coverage. This amount of coverage is often insufficient to cover the losses which can be sustained in an automobile loss.

COLLISION COVERAGE

Provides coverage to repair and or replace your vehicle in the event you are responsible for crashing into a car or another object.

COMPREHENSIVE COVERAGE

Provides coverage to repair you vehicle for a loss that is caused by other than a collision loss. Potential comprehensive losses include but are not limited to: flood damage, fire loss, vandalism, falling objects and contact with a deer or other animal.

NEW CAR/AGREED VALUE COVERAGE

Coverage is designed to put you into a comparable new model, or pay you a pre-determined or “agreed amount” of coverage in the event of your vehicle’s total loss in an accident.

RENTAL REIMBURSEMENT

Homeownership is important. We’re here to help first-time homebuyers navigate the mortgage process and make buying a home affordable, even if you have: • Little money for a downpayment • Little or “less-than-perfect” credit history • A recent job change To get started, call 1-888-253-0993 or visit mtb.com/mortgage.

Coverage to rent another vehicle or arrange other temporary transportation as a result of an auto accident. Coverage is typically provided on a flat rate (e.g. $50 a day) for a limited period of time, or until your vehicle is repaired.

RENTAL CAR COVERAGE

Standard insurance companies provide limited coverage in the event you rent and damage a rental car. Typically, comprehensive and collision coverage damage to a rental car is covered as long as you purchased these coverages for your leased or owned vehicles. Most auto policies do not cover the loss of revenue which can occur if a rental car company cannot rent a vehicle you damaged. This gap can be covered in one of three ways:

1. Purchase this coverage option through your auto carrier. 2. Rent the vehicle with a credit card, which provides this service a benefit to card members. 3. Purchase the collision damage waiver coverage from the rental car company at the time of rental

TOWING COVERAGE AND ROADSIDE ASSISTANCE

Inexpensive coverage options offered by insurance carriers and automobile service companies such as AAA and most automobile manufactures. Available to provide roadside assistance, such as jump starts, gasoline and towing coverage in the event of an automobile breakdown or accident.

INSURANCE COMPANY FINANCIAL STRENGTH

Your objectives for insurance should be to maximize your protection, at the best price, with a carrier who has the financial ability to pay claims. You can review a carrier’s ability to pay claims by reviewing their financial strength as evaluated by independent financial rating firms such as A.M. Best, Fitch, Standard and Poor’s and Moody’s. Carrier ratings can be found on the referenced firms’ websites.

AUTOMOBILE INSURANCE PRICING

Here are several key factors which can determine your insurance premiums: • Driver age and experience • Accident and violation history • Driving usage (e.g. pleasure, commuting distance to work, or business usage) • Type of vehicle coverage limits • Deducible utilization (higher deducible, lower premium cost) • Student grades (better students have been shown to be better drivers) • Vehicle garaging/parking location • Credit history A small investment in protecting your family before being overcome by new car smell will allow your entire household to sleep better at night. FL

Washington Informer: 5.65” x 6.1”

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Providing Pathways to Financial Freedom in the District of Columbia

By Stephen C. Taylor Commissioner District of Columbia Department of Insurance, Securities and Banking As the chief financial services regulator of the District of Columbia, my primary responsibility is to make sure that residents have choices in financial services in the District, and that they are treated fairly by the companies and individuals that provide those services. However, making sure financial services companies play by the rules is only half of my job – my agency is also focused on helping District residents make the best and most informed financial choices. For fiscal year 2017, my agency, the District of Columbia Department of Insurance, Securities and Banking, known as “DISB,” has begun a series of initiatives focused on helping District residents and businesses become better stewards of their money, assets and financial future. We are going to accomplish this in a number of ways including: one, supporting financial empowerment through access to banking services; second, facilitating access to capital for local businesses; and third, providing financial education for District residents.

SUPPORTING FINANCIAL EMPOWERMENT THROUGH ACCESS TO BANKING SERVICES

Thirty-six percent of the District’s population are either unbanked – that means they have no bank or credit union account – or underbanked, meaning they have an account, but it does not meet their needs and they still use alternative financial services, such as check cashing, money orders, payday loans, rent-to-own, or pawn shops.

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In the District, it is estimated that those without bank accounts spend roughly $800/year in check cashing and money order fees. That means many District residents and households are spending their hard earned money just to access it. Through its Bank on DC program, DISB provides access to safe and affordable financial services products with low minimum balance requirements, and no or low-cost monthly fees. DISB will be in your community with more information about Bank on DC in the coming months. In the meantime, you can find out how to open a Bank on DC account at bankondc.org.

opening a checking account, money management). • Serve as a co-host, with federal financial regulatory agencies and local non-profit organizations, to produce the ongoing Economic Inclusion series about economic issues affecting individuals, families, communities and businesses to produce strategies and recommendations to contribute significantly to a more inclusive, equitable District economy. • Provide financial education appropriate to our senior population

with an emphasis on preventing elder financial abuse and fraud, as well as collaborate with the DC Elder Abuse Prevention Committee and its programs on reaching seniors, disabled and other vulnerable populations in fraud prevention meetings across the city.

LOOK FOR DISB IN YOUR COMMUNITY

Throughout fiscal year 2017, look for DISB in your commu-

nity where we will be bringing these resources to you through DISB’s Financial Services Clinics, Coffee & Capital events and Financial Fraud Prevention Presentations. Check http://disb.dc.gov/ events for upcoming events or request us to come to your community at http://disb. dc.gov/service/request-speaker-disb FL

FACILITATING ACCESS TO CAPITAL FOR LOCAL BUSINESSES

Small businesses are the economic engine of the District. In fact, nine out of 10 employers in the District are small businesses. However, access to capital is one of the biggest barriers to start-ups and growth for District entrepreneurs and small businesses. To address this problem, DISB created the District of Columbia Business Capital Programs “DC BizCAP” which connects public and private sources of capital to local businesses by using innovative alternatives to commercial financing. To date, DC BizCAP has provided $7 million in collateral support to leverage $17 million in loans by local financial institutions and $635,000 in matching investments to support the capital needs of local small businesses. Small businesses and entrepreneurs are encouraged to join us on November 3 for DISB’s Coffee & Capital at the R.I.S.E. Demonstration Center. To learn more about DC BizCAP, visit disb.dc.gov/ smallbusinfo.

PROVIDING FINANCIAL EDUCATION FOR DISTRICT RESIDENTS

DISB will continue its financial education and public engagement programs to improve the financial fitness of District residents. DISB plans to continue the following activities: • Make presentations on financial fraud and prevention, savings, life and health insurance, investor protection, the District’s foreclosure mediation program, access to capital for District businesses, and basic financial education (e.g. savings,

YOU ARE INVITED

Join DISB to learn about how you can finance or expand your District small business. On November 3, make plans to have your morning coffee with DISB while also hearing about innovative alternatives to financing for District entrepreneurs and small businesses. WHEN: Thursday, November 3, 9:00 a.m. - 11:00 a.m. WHERE: R.I.S.E. Demonstration Center 2730 Martin Luther King, Jr. Avenue, SE RSVP: For more information and to register, visit disb.dc.gov.

DISB’s Coffee & Capital is hosted by the District of Columbia Department of Insurance, Securities and Banking (DISB). Visit DISB online at disb.dc.gov.

THE WASHINGTON INFORMER FINANCIAL LITERACY SUPPLEMENT – OCTOBER 2016 / www.washingtoninformer.com

A Letter of Appreciation to All Who Decided to Open Accounts in Black Banks: This Might Prove to Be a Game-Changer By Michael Grant President/CEO National Bankers Association As president of the National Bankers Association, whose members include many of the Black-owned banks that re-

ceived and are still receiving an unprecedented level of support from all over America, I would like to extend heartfelt gratitude by simply saying: Thank you! While efforts to get the Black community to utilize Black-owned banks is not new

(Black banks have served the community since Reconstruction), what has been happening over the last two months is nothing less than phenomenal. The outpouring of support, triggered by the clarion call of rapper Killer Mike and answered by such superstars as Usher, TI, Solange and others, caught the banks by surprise a very pleasant surprise. Black people moving millions of dollars into Blackowned banks within such a short period of time might ultimately prove to be a game-changer! The catalyst for this mobilization of people and purses was born of frustration but the timing of this effort at self-empowerment could not have been more perfect. After decades of celebrating the colossal achievements of the Civil Rights Movement, the thought leaders in Black communities across America are beginning to reach a consensus: Black America will never be able to enjoy the full privileges of first class citizenship in this country until it had secured the ultimate badge of liberty in America: financial freedom! So many of the social ills that continue to plague large swaths of America’s Black communities can be summoned up in one phrase: financial dependence. High unemployment rates, underperforming businesses, crime, inadequate education and job training opportunities, low aim and an all-pervasive nihilism - especially among many Black youths - is defining far too many Black neighborhoods in our country. Then along came this bank black movement. The idea of using one’s dollars to improve the overall condition of the community has been resurrected. And, to be sure, opening accounts in Black banks is a great first step. But what should follow? Next, the Black bankers have a responsibility to teach banking 101 to the masses. You see, placing millions of dollars in the bank as deposits creates the need to support those accounts with

investment capital. It takes both core deposits as well as capital in order for the bank to increase lending which is where real economic development takes place. When banks’ capital ratios meet regulatory requirements, they have more capacity to provide home equity loans, small business loans, mortgage lending, personal lines of credit and so forth. The bank is also the community institution that can leverage a million dollar investment eight or nine times. The bank’s increased lending capacity is how we begin growing the collective wealth of the community. For example, the more home equity loans are used to create new businesses or to expand existing ones, the more jobs (and job training) these businesses can provide. It has been estimated that if the Black community would spend one-tenth of its disposable income with Black businesses, one million new jobs could be created. So much of our economic destiny is in our own hands! Since statistics show that a qualified Black borrower has a higher probability of getting his or her loan approved at a Black bank, doing business with these banks - as a first choice - is a no brainer. The more we circulate our dollars within our own community, the more opportunities we create and the more wealth we can accumulate that can be transferred to future generations. Contrary to the anticipated push back of the naysayers, the “bank Black” movement is not a boycott of other banks; it is simply an intelligent strategy at diversifying one’s dollars and investing in oneself. The black banks are genuinely grateful for the trust that you, the consumers, have placed in them. Now, in order to sustain these new banking relationships, bankers and consumers must begin forging a new bond, born of mutual respect and a genuine desire to build what Dr. Martin Luther King, Jr. would call “The beloved community.” Great days ahead! FL

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The Power of Entrepreneurship – An Alternative Route to Financial Literacy

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ways we can gain and use to create and build generational wealth – not just earning through regular employment. So, if you currently know how much you have in the bank, you are poor. Therefore, by definition financial literacy education and empowerment should include entrepreneurship mindset exposure that could in the real sense of the word bring about knowing how money works because now you are involved in creating it. No one breaks the bondage of an economic vicious cycle without first understanding the multi facets of money language of which entrepreneurship is one. FL

dren will embrace the concept, talk about money and hopefully engage in it to further enhance their financial literacy knowledge and the power to create and build wealth and in the process become socially financially responsible citizens. The Power of Entrepreneurship as an alternative route to financial literacy is one way we can use to fight financial ignorance that leads to systemic mental and financial stress and poverty. The good news is that there is no one without a God-given gift. The question is how can we teach ourselves how to leverage it? Embracing an entrepreneurship mindset and doing something about it are

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What is financial literacy? “Financial literacy is the ability to understand how money works in the world: how someone manages to earn or make it, how that person manages it, how he/ she invests it (turn it into more) and how that person donates it to help others.” – Wikipedia, the free encyclopedia. There is more to financial literacy than knowing how to balance your checkbook, count your money, pay yourself first, save a 6-month emergency fund, save for retirement, pay down your credit cards, refinance your mortgage, calculate taxation on your money, etc. I would like to point out that for me the concept of financial literacy has evolved to include acquiring an entrepreneurship

ey works. It is virtually impossible to understand how money works without constructively engaging in the process. I believe that this is the main reason why black communities tend to flounder in this field. This is partly the reason for WETATi Entrepreneurship Competition 2016-17 which was started by WETATi in partnership with the University of Maryland College Park, Prince George’s Community College Center for Entrepreneurial Development and Howard University. The goal of this competition is for the concept of entrepreneurship to become a daily and cool conversation so that very early on our chil-

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mindset to gain financial power through engaging in entrepreneurial pursuits where one uses his or her talents and skills to build wealth. In turn, one’s financial knowledge is vastly enhanced where the basic principles of financial literacy no longer sound foreign to a whole generation. I personally knew nothing about financial literacy until I became an entrepreneur thereby forcing me to understand it, and I am still a student of the concept. Nowadays, financial literacy has become a loose word where people just use it offhandedly and it has come to sound cliché when it really means a lot and can have dire consequences to those who don’t understand it and don’t realize that it can mean life and death to one’s financial future. I believe that one way to ameliorate this problem is to encourage next generation students and millennials who are largely drowning in debt to begin to examine the pros and cons of becoming an entrepreneur. Times are changing and our children are graduating in record numbers often with no job prospects. I am a firm believer that the majority of people, if guided, can successfully start small businesses which in turn will give them financial literacy by engagement, help them leverage, and more importantly cause them to begin to understand how mon-

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She’s reviewing her budget. And smiling. What a difference Hands on Banking® can make. From setting aside savings for a rainy day to putting away money for a vacation in the sun, a budget can help you discover opportunities to save and help your money grow. The interactive Hands on Banking program offers tools to help you better manage your money and take the steps toward reaching your financial goals. Learn more about managing your finances at handsonbanking.org.

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