DoverPhila Partners with Area Organizations to Offer Financial Literacy Program

DoverPhila Federal Credit Union is partnering with OhioMeansJobs Tuscarawas County and United Way of Tuscarawas County, Inc. to offer a financial literacy workshop for area residents.  “Master Your Money – Simple Tips to Improve Cash Flow” is scheduled for Thursday, August 2nd from 10:00 a.m. to 12:00 p.m. at OhioMeansJobs Tuscarawas County located at 1260 Monroe Street in New Philadelphia. 

The workshop offers easy, straightforward techniques to achieve financial goals. Topics include tackling expenses, increasing savings, and improving credit. Attendees have the option of bringing their own financial information to the workshop to create a personalized spending plan.

“Financial difficulties due to lack of employment and or other employment related issues are what many of the customers we serve face each day.  Through this collaboration with United Way of Tuscarawas County, Inc. and DoverPhila Federal Credit Union, we hope to assist area residents with tools and information to help them become financially stable and achieve financial independence,” said JoAnn Breedlove, COO of the Workforce Initiative Association and OhioMeansJobs Centers in Stark and Tuscarawas Counties. 

“The United Way of Tuscarawas County is pleased to collaborate with OhioMeansJobs Tuscarawas County and the DoverPhila Federal Credit Union,” said Robin Waltz, President of United Way of Tuscarawas County, Inc. “Bringing together organizations with common missions and goals is a win-win for the Tuscarawas County community.”

For further details, contact OhioMeansJobs Tuscarawas County at 330-364-9777. Pre-registration is suggested, but not required.

Why The Money Talk is Important

Despite financial education being one of the most important lessons to shape our adult lives, it is not something many people learn until much later in life. As a parent, you have many “talks” with your children, but too often the “Money Talk” isn’t one that happens until it is too late.  

Respondents in the Ohio Credit Union League’s 2018 consumer survey indicated they considered lessons from parents extremely important to a child’s financial literacy. However, research suggests that’s not happening.

In that same survey, 61 percent of respondents said they received most of their financial education through experience and life lessons. Only 23 percent felt they had received financial education from home and – surprisingly – only 3 percent of Ohioans received financial education in the classroom.

As a result, Ohio’s teens may not be graduating high school with financial know-how.

Each year, The National Financial Educators Council administers a 30-question financial literacy test to participants ages 10 and up in all 50 states. Teens in Ohio, ages 15 to 18, averaged 60.32 percent on the test. Nationally, students of the same age scored an average of 61.11 percent

Parents want their children to have a good handle on finances before they leave the house in their late teens or early 20s, but most aren’t sharing the necessary wisdom to make that happen.

In the 8th annual Parents, Kids and Money survey, conducted by T. Rowe Price, 69 percent of parents have some reluctance discussing financial matters with kids. And, 35 percent of parents rated talking to their children about family finances as either very or extremely uncomfortable – ranking it alongside talks about death and drugs. Partly, parents may feel too self-conscious about their financial situation to be comfortable sharing advice with their children. This survey also found parents who have declared bankruptcy are 24 percent more reluctant to discuss money with their kids. And, parents carrying more than $5,000 in credit card debt are 14 percent more likely to feel uneasy having those financial conversations. 

“Financial literacy” is an easy term to define, but a more difficult one to put into practice. Here are some tips to help you equip your children with a bright financial future:

  • Set an example. Children who consistently see their parents pay the bills on time and keep a budget are more likely to adopt those practices in their own lives. Parents who have made financial mistakes should also share the experience with their children. That knowledge can prepare kids to avoid the same mistakes with their money in the future.

  • Make savings a tangible concept. Encourage younger kids to collect spare change in a clear jar or container so they can see their savings grow. Each time the kids want a small treat, parents can offer to put the money they would have used to buy the treat into the “savings jar,” instead. Once the jar is full, children can count the money and use the funds to purchase an extra-special treat. That way, they’ll associate a sense of excitement with savings. They’ll learn that delaying gratification can lead to a greater payoff down the road. Also, be sure to stop by DoverPhila Federal Credit Union during Youth Week from April 16th through April 21st to earn extra saving bonuses on deposits made to their youth accounts.

  • Have kids learn with their own money. Kids will learn the value of a dollar better if it’s their own. Younger children who are paid a small allowance for chores they complete around the house will learn the concept of working for money. Kids can then begin to spend their own money on some of the things they want. They’ll begin to appreciate what these items actually cost and will be more open to lessons about price comparison.

  • Get kids familiar with banking. Parents can make a trip to their financial institution an exciting event for younger kids. Let them in on the process – maybe even let them press the buttons on the ATM or help to fill out a deposit slip. They’ll feel included in adult chores and won’t feel intimidated by banking later in life.

  • Get help. DoverPhila offers Banzai, an award-winning, web based financial literacy game, for free to its community. The credit union also offers other programs and events geared towards fostering financial literacy in kids, teens, and adults; as well as a financial counselor.

 For more information about financial literacy call the credit union at 330-364-8874.

DoverPhila Offering Award-Winning Financial Literacy Program for Free

Area residents are getting a free education in how to manage their money. DoverPhila Federal Credit Union is working with Banzai, a national award-winning financial literacy program, to make the curriculum available to the community and 10 schools in Tuscarawas County, completely free.

"Banzai is a web-based financial literacy program. Kids have their own bank accounts, and they work through assignments that are based on real life," Morgan Vandagriff, co-founder of Banzai, said. "But because DoverPhila is sponsoring it, local schools get it for free. More than ever, it's important that kids develop sound financial skills to prepare them for the real world. DoverPhila realizes that, and they're doing something about it."

Banzai is an interactive, online program supplemented by printed workbooks which aligns with state curriculum requirements for personal finance education. It has become the largest program of its kind, servicing more than 35,000 teachers and available in all 50 states.

“We’ve offered time, money, industry experience, and a variety of credit union resources to help our schools teach personal finance in the classroom,” Shana Simmons, Director of Marketing & Member Services, said. “Students using the program are exposed to real-life scenarios where they learn to pay bills and balance a budget – but it’s not always easy. Students must learn to manage unexpected expenses such as parking tickets, interest charges, and overdraft fees. The educational program also introduces students to auto loans, bank statements, entertainment costs, savings, and more.”

“Too often students get out of school and they just aren't ready for the financial roller coasters life can give us,” Vandagriff said. “Banzai teaches students to navigate those twists and turns and come out on top. We're excited to work with DoverPhila to improve financial literacy in local schools.

Those interested in using the Banzai program can click here for more information.

New Year, New You, New Budget

Just like swearing off chocolate and carbs, sticking to a household budget is a New Year’s resolution easier made than accomplished. In fact, according to the National Foundation for Credit Counseling’s 2017 Consumer Financial Literacy Survey, last year only two in five U.S. adults said they had a budget and kept close track of their spending throughout the year.

Everybody knows it’s important to track personal finances and maintain your financial health. So, why do Americans have such a difficult time sustaining a budget?

It likely doesn’t have much to do with a lack of money. According to the U.S. Bureau of Labor Statistics, the average household in America makes $74,664, well above the $18,871 national poverty line for a family of three. It’s also unlikely that consumers are too busy to keep up with their budgets. Some budgeting apps like Wally and Mint, can track spending and income with minimal attention from the user.

Financial planning and psychology experts believe the real reason people struggle with budgeting is psychological. According to an article in the Journal of Consumer Psychology, humans only have a finite amount of willpower. We can only restrict ourselves so long before we indulge. Just like dieting, people tend to see budgeting as restrictive; therefore, struggle to preserve the motivation to stick with it.

As you ramp-up your drive for 2018, here are some tips to help you exercise good budgeting habits and overcome a craving to spend.

  • Don’t mindlessly spend: If you don’t feel you have enough money, you could be spending money unnecessarily. Search the corners of your budget for empty spending that isn’t serving you. Many financial blogs offer creative tips to help with this. Check out Lauren Greutman’s list of 13 Things You Should Never Pay For.
  • Make time: If you don’t feel you have enough time to track spending, try finding a simple solution – like an app. Phone apps such as Wally and Mint track spending and income for you. They require minimum attention and time.
  • Start small: It takes weeks to form a new habit, and the same thing applies to tracking your income and expenses. In the beginning, keep it simple. If your spending plan is too complicated or restrictive, you will not stick to it.
  • Budget with a friend: If you don’t feel confident, get some help! Apps, financial blogs, and spreadsheets might help if you’re a little stuck in your budgeting process. But if you don’t even know where to start, consider seeking help from a trusted family member or a financial expert. Your local credit union is dedicated to financial literacy and can offer help and advice for your unique budget.

To learn more about how a credit union can help you be financially fit, visit www.aSmarterChoice.org and find a credit union in your area.