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.

Financial Literacy Trivia: Credit

Subject: Credit
If used properly Credit can be your friend. If not used properly Credit can consume your life. Test your Credit knowledge, see if you can answer these 3 questions.

1. Name the three main credit bureaus

2. True or False?
    You should only check your credit when you want to apply for a loan.

3. Which of the following is NOT a way to maintain excellent credit.
    a. Pay your bills on time
    b. Space out new credit
    c. Do not run your credit often
    d. Make only the minimum payments

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Answers:

1. Experian, Equifax and Transunion 

A credit bureau collects and stores credit information on consumers. Each has its own records and individual scores.

2. False

Check your credit once a year. If you have been a victim of identity theft, it is recommended to check your credit every 6 months.

3. (d) Make only the minimum payments

To maintain excellent credit it is important to actively use your credit and pay everything off in full every month.

Financial Literacy Trivia: Budget

There are many misconceptions when it comes to the topic of Budgets and budgeting. See if you can answer these 3 questions.

Subject: Budget

1. Good money management involves having enough money to cover all your __ __ __ __ __, while purchasing __ __ __ __ __ only when you have extra money to do so.

2. True or False?
A budget is only for those who are poor.

3. Which of the following are benefits to budgeting?
a. Control
b. Organization
c. More Money
d. Opportunities
e. All of the Above

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Answers:

1. NEEDS / WANTS 

NEED: Something you must have for survival -- something you cannot live without. i.e Food, Clothing, and Shelter

WANT: Something you would like to have -- something not absolutely necessary for your survival, but that you would enjoy having. i.e. iPods, designer clothes, vacations, Xboxes

2. False

A budget is simply a plan for how to handle your money, a roadmap to give you the money to live the lifestyle you want. 

3. (e) All of the Above

Control - Knowing exactly how much money you have at any given point, put your in the financial driver's seat. 

Organization: Keeping your finances in order is vital, and having a financial plan keeps you organized. 

More Money: Working within a budget will leave you with more money every month. 

Opportunities: Sticking with your budget will open up many financial windows of opportunity. 

Financial Literacy Trivia: Saving

Test your financial knowledge with these trivia questions.

Subject: Saving

1. If your monthly expenses equal $1,000, What is the recommended amount to have in your Emergency Fund? 

2. True or False? 
    A Certificate of Deposit (CD) is an example of a savings product. 

3. Which of the following is NOT a way to save more money? 
    a. Earn more money
    b. Take out a loan
    c. Cut down expenses

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Answers: 

1. $3,000 - $6,000. 

Emergency Funds should equal three to six months of living expenses. 

2. True

A CD is a federally insured savings product that earn interest. You promise to keep you money in for a certain amount of time. Penalties typically apply to early withdrawal. 

3. (a) Take out a loan