If Only I Had Enough Money To...
UNIVERSITY PARK, Pa. -- Sound familiar? You might be interested in "Money 2000," a free financial management program offered through Penn State's College of Agricultural Sciences.
"Most people don't think about where they're spending their money," says Marilyn Furry, associate professor of extension education. "But money flows in and out of our wallets and bank accounts whether we pay attention to it or not."
Over 60 percent of Americans live from paycheck to paycheck, Furry says. "During the past 25 years, consumer borrowing has jumped by 52 percent while savings have shrunk by 23 percent. This may be the major reason many Americans find themselves in a financial pinch. Families with both high and low incomes are overspending, undersaving and overextending."
Financial management has become more complicated, Furry says. "We have phenomenal choices, whether we're talking about credit, banking, saving, investment or insurance. There are credit cards, debit cards and gift cards. You get many options just when opening a checking account. And if you choose to put money in stocks, the choices are overwhelming."
Money 2000 provides suggestions to cut household expenses, organize financial and personal records, cut credit costs, share financial tasks with other household members, establish a spending plan, calculate net worth and maximize returns on savings and investments.
"Money 2000 is a self-directed financial management program," Furry adds. "You don't have to disclose financial information. You simply set two or more target goals -- one on how much you want to save, and one on how much you want to reduce debt -- by the end of the year 2000. For instance, you might choose to save $2,000 towards a car, cut credit card debt by $2000 or cut medical costs by $2,000. You can select any dollar amount. What counts is actively working towards the goal."
When consumers enroll, they receive the publication that describes the program, record-keeping sheets, a quarterly newsletter and the opportunity to attend workshops and classes. "An extension agent will contact you about every six months to check on your progress," Furry says. "Specific workshops may focus on retirement, mutual funds or other topics, depending on people's interests and the community's resources."
Furry encourages the whole family to participate. "Today, more teenagers are shopping for the family. Many families also are run by single parents, or have both adults working. We're eating out more and purchasing more convenience items, and we don't have as much time to investigate options. In these past few years of prosperity, people also are using discretionary income for their 'wants' rather than their 'needs.' Families especially need help when they can't agree on how to manage money."
If you're uncertain of your financial health, Furry suggests you look for the following "trouble signs." Do you:
- spend more than 20 percent of your monthly disposable income on debt (excluding mortgages)?
- use credit cards, cash advances or checking account credit lines to cover monthly living expenses?
- pay the minimum on credit card bills, rather than the full balance?
- request increases on your credit limit because you need it?
- miss credit payments?
- borrow and add an additional amount to a loan that is not paid off?
- contemplate debt consolidation?
- use credit cards for things you used to pay cash for?
- worry about making monthly payments?
- sometimes skip paying one bill to pay another, or write post-dated checks?
Money 2000 is a coordinated effort of all extension systems in the Northeast to encourage people to reduce debt and save. After Dec. 31, 2000, cooperative extension will provide an advanced program -- Money 2000 and Beyond. For more information or to register, contact your county Penn State Cooperative Extension office.
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EDITORS: For more information, contact Marilyn Furry at 814-863-7428.
Contacts: Kim Dionis KDionis@psu.edu 814-863-2703 814-865-1068 fax