Is Your Spending Out of Control?

I came across an article from the National Foundation for Credit Counseling that gave readers a reality check on their spending. Here is what the article shared...

10 Warning Signs to determine if spending is OUT OF CONTROL 

1. Purchases hidden from others

2. Bills paid late or ignored

3. Checking Accounts routinely overdrawn

4. Credit essential to maintain current lifestyle level

5. Unwilling to review how money is spent

6. Unaware of how much is owed

7. Items routinely purchased, and then returned

8. Shopping used as a salve for emotional stress

9. Unwilling to set financial goals

10. Afraid to check credit report and score

Prepare for Financial Success Workshop Series

Financial Literacy Movement Update

Here is the latest news on the Financial Literacy Movement here in Wai'anae.

On-Going Personal Finance Consultations
I have been meeting with clients for a FREE 90 Minute One-on-One Confidential Personal Finance Consultation for the past month. I work with the individual or family to assess their current financial situation and help them develop a plan to meet their financial goals.

Upcoming Workshops
Money Talks For Kids
I have been asked to facilitate a workshop for parents of children 0-3 years old who participate in the INPEACE Parents as Teachers Program in June. It will be a 60 minute engaging workshop that will focus on talking about money with young keiki and letting families know that it's never too early to start learning about finances.

Ready for the "Real World" Series
I will be holding a FREE workshop for the Graduates of the Class of 2013 and their families in Waianae this summer. Whether going off to college in the mainland, continuing education right here at home, or entering the workforce, the workshops will include valuable information to prepare graduates for the "real world" and set them on the right path to financial wellness and responsibility.

Future Events
I recently submitted an application for a micro-grant from Awesome Foundation O'ahu. If awarded, the monies will go towards holding a Waianae Coast Financial Literacy Fair. This will be an engaging and interactive family event that will consist of various service providers, break out sessions, guest speakers and interactive financial learning activities for children and youth. This event will be held late summer/ early fall. If I do not receive the micro-grant that I applied for, I will seek alternative funding through sponsorships and/or kickstarter.

If you are interested in any information about the above information please contact me at (808) 542-6245 or saydeepojas@gmail.com. I am also looking for volunteers and those who would like to become a part of the financial literacy movement.

What is your Financial Four?

When it comes to finances there are many topics to learn and educate yourself about. Anything from Emergency Savings, Calculating Retirement, Tax Time Planning, Creating a will, Understanding Income, and many more. When faced with all these topics to learn, it may be overwhelming. I discovered this fun and educational activity based on a variety of financial topics. Similar to a bracket system like the NCAA Final Four, the National Endowment for Financial Education and Financial Planning Association created financialfour.org.

I invite you all to complete the activity and see what financial topics are most important to you and also compare to others who have completed the activity. Here are my Final Financial Four

1. Pay Yourself First
     -Automate transfers directly into savings
     -Build savings into monthly budget

2. Tax Time Planning
    - Develop a strategy to do even better financially next year
    - Manage your tax refund to pay debt, boost savings, etc.
    - Bunch qualified tax deductions

3. Emergency Kit
    - Ensure that it is portable should an emergency or disaster occur
    - Include important financial documents and small amounts of cash

4. Understand Income
     - Know what is in your paycheck
     - Complete withholding calculator and adjust withholdings

Through this exercise, I now have a list of areas that are prioritized so that I can tackle each one to better my financial wellness. I also discovered that out of the 32 Financial Topics, I am already implementing 22 of them in my life.

I will be utilizing this exercise in personal consultations as well as group facilitated workshops and events. Have fun completing this exercise and feel free to share your Final Financial Four.

Certified Financial Education Instructor Designation

After a few months of going through training and coursework for my certification, I am proud to announce that I am a Certified Financial Education Instructor.

 

The coursework I completed provided me the knowledge, credibility, and confidence that I need to effectively teach financial literacy. As a graduate of the program, I now have the opportunity to be a featured speaker, teach classes, host financial literacy events through the National Financial Educators Council. However, what is more important to me at this time is to be a guest speaker, teach classes and host financial literacy events right here in my community of Wai'anae.

My plans are also to bridge my Masters degree with this certification and provide consulting services to organizations to create financial literacy programs within their organization or assess and strengthen existing programs within their organizations. I will also continue to conduct workshops in the community and provide one-on-one personal finance consultations.

If you or anyone you know would benefit from my services as a Financial Education Instructor please feel free to contact me at saydeepojas@gmail.com.

Pinching Pennies: Gas and Transportation

Pinching Pennies, Bargain Hunting, Scaling Back, Downsizing. These are all terms that refer back to saving money. A little bit of cost savings here and there can go a long way.

Gasoline prices are always pretty high here in Hawaii. Currently the average gas price is $4.22 per gallon and goes as high as $4.35 per gallon. If you are a warehouse member (Costco or Sam's) the prices are around $4.09 per gallon.

When it comes to saving on gas there are a few ways to cut costs:

1. Buy Cheaper Gas - If you plan ahead you can save quite a bit of money on gas. Pay attention to your gas gauge and don't wait until the light goes on to put gas. For me, I plan to put gas at Kapolei Costco when I have to go out of Wai'anae and run errand in Kapolei or town. That way I don't have to make a special trip just to put gas and I don't get stuck spending more by having to put gas at the Wai'anae gas stations.



For Example:

     My pilot has a 20 gallon capacity. If I fill up in Wai'anae at the average cost per gallon...

     $4.22 per gallon x 20 gallons = $84.40 for a full tank

     If I plan it right, and put gas at Costco...

     $4.09 per gallon x 20 gallons = $81.80

     The savings of $2.60 per full tank may not seem that much, but if you fill up once a week that translates to $135.20 savings a year.

2. Drive Less - If you are like me, I'm not a big fan of public transportation, I like to go where I want, when I want. I don't want to feel confined to a bus schedule. This doesn't mean that I can't save a buck or two on transportation. Planning trips into town to make sure you get all your errands done in a specific area that you are travelling to can results in cost savings.

For Example:

     Sam takes Ku to school 2-3 times a week (because we carpool). That is about 46 miles round trip from our house. If Sam drops him off and comes home, then has to go back to pick him up that is 92 miles in one day.

     Each mile driven costs us:

     $81.80 per full tank / 400 miles per full tank = $0.20 per mile

     Two Round Trips to Waiau Elementary and back costs us:

     92 miles x $.20 per mile = $18.40 per day (not including other stops and detours along the way)

    A better solution to save monies is for Sam to stay in the Pearl City area and work from a Starbucks or run errands in town instead of driving all the way back home. Cutting down the travel to one round trip would save us $9.20 a day.

     Throughout the school year this would save us:

     90 days (approx. travel days to take Ku to school) x $9.20 savings
     = $828.00 savings per school year by reducing travel to one round trip

Because we carpool we save additional monies on gas and transportation...

     90 days (approx. travel days that carpool takes Ku to school) x $9.20 per round trip
     = $828.00 savings per school year from carpooling

Other ways to save on gasoline costs:
 - Buy a better fuel efficient car (hybrid or electric)
 - Carpool
 - Bus or Bike to Work

Long Lines at the Grocery Store on the 5th

May day is lei day in Hawai'i. For many the first of the month is a breath of fresh air, a chance to start new at the beginning of the month. For me it's a reminder that I need to do my grocery shopping in the next 2 days in order to beat the crowded parking lots and aisles and long lines. I always wondered why the grocery store was always so packed when it came to the 5th of the month, until I realized that the 5th is the day when welfare recipients receive their benefits via their EBT cards.

Then the question dawned on me, why do these families fill up their wagons to the brim so early in the month? Do they not know how to budget their food stamps to last them throughout the month? After talking to a few friends of mine who previously received food stamp benefits, there are more than one reasons why the grocery stores are so crowded on the 5th.

The first is what I suspected, lack of budgeting skills. Some families spend all their food stamps at the beginning of the month and their pantry's are bare come the end of the month that they need to re-stock as soon as their EBT cards are reloaded. My solution to this issue is to provide budgeting classes to those who receive welfare benefits.

The average Food Stamp benefit per person in the state of Hawaii is around $215.00. That means a family of 4 will on average receive $860.00 in benefits. In this example, if a family spends most of their food stamps at the beginning of the month, then they are spending over $500 on one shopping trip. The question of food storage and nutritional choices also comes to mind, but that is a whole different blog topic.

The lack of proper budgeting skills also raises the question about the habits that some families are forming because of their food stamp benefits. If I was GIVEN (not earned)  in excess of $500 a month to feed my family of three, I would have a field day at the grocery store, I wouldn't have to shop the sales or plan my shopping trip to the penny. I would pretty much be able to walk around the store grab what looks good and probably still walk out with a decent balance on my EBT card. Since there is no time limit on receiving Food Stamp benefits, this practice at the grocery store becomes habit. So when I no longer qualify for welfare benefits, I am forced to pay for my groceries with the money I earn. Chances are I won't have $500 in discretionary income to spend on groceries each month, but the habits that I have formed over time because of the lack of budgeting skills will hinder me from making smart choices at the grocery store and make it difficult for me to feed my family. This example does not apply to all families who receive food stamps, but I do know that this problem exists.

Another reason why the grocery store is overcrowded at the beginning of the month is because of the illegal activity of selling excess food stamp balances to others in exchange for cash. For example, I have worked with a family of 4, a mother, father and 2 young children under the age of 5 who receives $989.00 a month in food stamps. This family also receives WIC and is expecting their 3rd child in a few months. This family does use the entire $989.00 to feed their family, therefore they are left with an excess balance of $300 to $500. Because this is a similar situation for many families, some families resort to selling that excess balance in exchange for cash to be able to spend the money on other things that they would not be able to purchase with their EBT card.

In my opinion, the welfare benefits system needs to be revisited. I understand the positive benefits of the welfare system for those who really need it and do not abuse the system. However, I am very aware of what really goes on with some welfare recipients. To me many are GIVEN these benefits which are meant to help them become self sustainable, but in turn only causes the cycle of poverty to continue.

Yet, another reason why I am an advocate for Financial Literacy and Education. Other states require welfare recipients to take budgeting and basic personal finance classes in order to receive their benefits, my goal is to bring this requirement to the State of Hawaii. I know that it will take time, but I know that it will only benefit the people of our state and rise many people out of the depths of poverty.

*Disclaimer: This blog is my opinion and is no way written with the intention of offending anyone.

Financial Literacy Movement Update

National Financial Literacy Month is now over, however my commitment to the Financial Literacy Movement is still going strong. Last week I was invited to participate in a Hawaiian Resource Night and set-up a table to share Financial Education. I utilized the opportunity to gather data via a survey, share financial education through a trivia game, and also offer attendees a FREE confidential one-on-one Personal Finance Consultation. The event lasted 2 hours and there was non-stop traffic coming by my table. I was able to educate people in a fun way through the trivia game and was able to answer a few on the spot questions in regards to savings products, credit scores, etc. There were about 80 people in attendance and I was able to gather 30 surveys and had 11 people register for their free consultation. The next few weeks I will be meeting with those that took advantage of the consultations and I look forward to helping these individuals who are ready to take control of their finances.

As I continue this journey I have many smaller plans in the works that encompass a Financial Literacy Movement. These smaller projects include a Financial Education Fair and Community Event for the Wai'anae Coast, a pilot program for third and/or fourth graders introducing them to the concept of responsible personal finance, as well as continue to hold workshops through the organizations that invite me to share financial education with their clients.

I want to mahalo everyone for their continued support and I am looking forward to what the future holds for me as well as those who I am able to kokua.