FINANCIAL EMPOWERMENT PASSPORT - Mayor's Action Challenge 500 Families Financially Fit For the Future
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F INANCIAL
E MPOWERMENT
PASSPORT
Mayor’s Action Challenge
500 Families Financially Fit For the Future
Financial
Empowerment
Mayor's Action
Challenge
Financial Affordable
Savings Income/Tax
Education Housing
Volunteer
Bank On Virginia
Virginia Saves Income Tax VIDA
Beach
Assistance
Financial Earned Income 1st Time
VIDA
Planning Day Tax Credit Homebuyer
Workforce
Workshops Virginia 529 Career Coach
Housing
START HERE:
Financial Empowerment Website: www.vbgov.com/fe
Bank On Blog: http://Bankonvb.blogspot.com
Fourth Edition – July 2014
2
Mayor’s Action Challenge
Congratulations on making the commitment to join in the
Virginia Beach Mayor’s Action Challenge for 500 Families
Financially Fit for the Future!
This initiative is designed to help you on your journey toward
greater financial control and long-term success. In order to
complete this challenge, you will be given a series of milestones
to complete. Each milestone will come with special resources
available to assist you. The degree to which you use these
resources will impact your success. Upon successfully
completing the challenge, your name will be added to the
Mayor’s list of Families Financially Fit for the Future.
IF THIS BOOK IS FOUND, PLEASE CONTACT:
NAME:____________________________________________________________
PHONE:__________________________________________________________
COACH NAME/NUMBER:___________________________________________
Your Financial Empowerment Coordinator can be reached at:
757-385-3551
3
4
Contents
Acknowledgements ......................................................................................................... 6
About this Challenge........................................................................................................ 7
My Financial Team ............................................................................................................ 8
Orientation ......................................................................................................................... 9
Financial Assessment - Beginning ................................................................................. 13
Bank On It ......................................................................................................................... 15
Crisis Mode ....................................................................................................................... 18
Money Management 1 .................................................................................................. 22
Money Management 2 .................................................................................................. 32
Credit Next Steps............................................................................................................. 40
Pay Yourself First .............................................................................................................. 42
Keep It Safe ...................................................................................................................... 44
Financial Assessment – Completion ............................................................................. 46
Next Steps ......................................................................................................................... 48
Income Resource Guide................................................................................................ 49
Tax Resource Guide........................................................................................................ 52
Money Management Resource Guide ....................................................................... 56
Credit Resource Guide .................................................................................................. 58
Affordable Housing Resource Guide ........................................................................... 60
Asset Building Resource Guide ..................................................................................... 63
Consumer Protection Resource Guide........................................................................ 67
Key Web Resources ........................................................................................................ 70
Directory of Partners ....................................................................................................... 73
5
Acknowledgements
This manual was prepared as a collaborative effort among many community
partners in the City of Virginia Beach. Each partner has contributed to this
manual’s contents. Thank you to all the providers of services who contributed to
the creation of this Financial Empowerment Passport. The services you offer and
the expertise you provide are invaluable not only to this program but to all who
need an extra bit of help on their way to financial health. We appreciate the
contributions of:
• ACS/FFSC Financial Representatives
• Catholic Charities of Eastern Virginia
• Financial Institutions of Bank On Virginia Beach
• Opportunity Inc. One-Stop Workforce Center
• United Way of South Hampton Roads
• Virginia Cooperative Extension Services
• Virginia Employment Commission
• Virginia Beach Adult Learning Center
• Virginia Beach Community Development Corporation
A special acknowledgement belongs to Robert R. Morin, the former Director of
Human Services for the City of Virginia Beach. Without his vision for advancing
the financial welfare of the citizens of Virginia Beach, this program would not be
possible. Because of his leadership, community resources were organized and
positioned to deliver needed services to the participants in the Mayor’s Action
Challenge for 500 Families Financially Fit for the Future.
Current Director of Human Services, Dannette R. Smith continues this mission to
empower Virginia Beach citizens to greater financial strength. This demonstrates
that Virginia Beach is committed to building the financial security of families
which in turn assures the financial security of the City.
Finally, a special thank you goes to L. Lori Irwin, MBA, CFP®, Financial
Empowerment Coordinator, for her financial education and financial planning
expertise to champion the work of this manual. Lori Irwin, with her experience in
financial planning and financial literacy, created the format for this manual.
Lori’s passion for making financial planning available to families of all incomes
makes her a tremendous asset for Virginia Beach.
6
About this Challenge
Welcome to the Mayor’s Action Challenge for 500 Families Financially Fit for the
Future (the Challenge). This Challenge to get financially fit is made available to
all Virginia Beach families. The marks of a family financially fit are:
Regular sustainable income
Established written goals
Emergency savings
Manageable debt obligations
Ability to obtain traditional credit
Plan to build assets for long-term sustainability
If you want to create greater opportunity for income, increased savings,
reduced debt and increased credit score, this is the challenge for you.
Classes, Coaching and Homework: Each month, you will receive new
information in lively interactive classes to help you make wise decisions with your
financial life. Coaches offer support, education and encouragement to help
you apply what you have learned to your own personal financial plan.
Homework assignments allow you to build your plan one piece at a time. The
combination of having classes, coaching and goals to accomplish each month
makes this program unique.
Completing the Challenge: Once you have completed the components of this
challenge, you can:
1. Submit your Passport to your Coach
2. Drop off or mail to:
Financial Empowerment Office
Department of Human Services
3432 Virginia Beach Blvd.,
Virginia Beach, VA 23452
3. Deliver to:
Virginia Cooperative Extension Offices
Virginia Beach Municipal Center
2449 Princess Anne Road
Building #14, 2nd Floor
Virginia Beach, VA 23456-9002
7
My Financial Team
Th e s e a re the p e o pl e w h o c a n h el p m e re ac h m y g o al s
NAME EMAIL/PHONE NUMBER
MY INSTRUCTOR(S)
MY COACH
OTHER FINANCIAL PROFESSIONALS
List your financial partners here. Include instructors, coaches and any other
organizational contacts that can help you become financially fit.
We are here to help. Contact the Financial Empowerment Program any time
you need to connect to resources:
Lori Irwin, MBA, CFP® 757-385-3551 email: bankonvb@vbgov.com
8
Orientation
Date of Class ___________________ Instructor Initials/Code___________
My class meets every _________ ____________________ of each month
at _____________________ (Time)
HOMEWORK:
Completion ASSIGNMENT
Complete “My Future” Worksheet: p. 12
Join Virginia Saves: Establish Savings Goal
Obtain Credit Report from www.annualcreditreport.com
Complete Financial Assessment: pp. 13 -14
Visit Bank On Blog and answer: What dates are all the Bank On
Classes for the coming month scheduled (List Below)
(http://bankonvb.blogspot.com): p. 11
Read Income Resource Guide: pp. 49- 51
Read Homework Notes: below
Reconcile Bank Statement
Make contact with your coach
Need help? Call 385-3551 or email: bankonvb@vbgov.com.
Homework Notes:
For the first few months of the Challenge, we will be establishing financial goals
and collecting the information that will help us establish a working monthly plan
for managing expenses.
My Future: allows you to document some big goals you would like to accomplish
during the Challenge. Later you will take some of these big goals and develop
them so that they are actionable with timelines for accomplishment. For now, it
is important to have written goals to help us remember what we hope to
accomplish. It will help us to stay motivated through the Challenge.
9
To accelerate your progress, consider developing a Dream Book (pictures of
your goals) to help you visualize success. Having a visual can help us articulate
what success looks like.
Virginia Saves: will help keep savings as a goal throughout the program. Virginia
Saves and America Saves send out periodic e-wealth coach emails and texts if
you choose to receive them. Your savings is maintained at any financial
institution you choose, and your person information is never shared with third
parties. Studies show that in writing a savings goal you are more likely to take
positive action toward achieving that goal. Virginia Saves also can be found on
the web www.virginiasaves.org; at their blog: http://virginiasaves.blogspot.com;
on Facebook www.facebook.com/virginiasaves and Twitter @_VAsaver_.
Annual Credit Report: Knowing what the financial institutions know about you is
the first step in taking control of your financial future.
www.annualcreditreport.com allows you to access your credit report from the
three credit bureaus. Only one is needed for this first homework assignment.
Midway through the Challenge, we will access another report. At the end, you
will access a final credit report. By spacing them through the Challenge, you
can monitor if improvements are made and stay alert to the potential for
identity theft.
Financial Assessment: A periodic financial assessment is at the heart of any
financial plan. The success of this challenge is rooted in improving critical
financial stability measures such as income, savings, debt reduction and credit
score. By doing a detailed assessment early, you have the greatest opportunity
for demonstrating improvements.
Bank On Blog: http://bankonvb.blogspot.com The calendar of classes is at the
bottom of the blog to help you connect to other classes should you have a
scheduling difficulty with your class. If you miss a class, just look on the calendar
for the next time this material is presented. At the blog, you can sign up to
receive updates to your email as announcements and events are posted. Look
around: in addition to some great articles, the lessons are all freely available for
reprint as well as your homework assignments. You can access this Passport
electronically and find worksheets and forms you can use as you get started.
Social Media: You can also follow Bank On on Facebook
www.facebook.com/bankonvb and Twitter @bank_on to stay up to date.
10Reconcile Bank Statement: Only you know the true balance in your financial
accounts - your bank only knows what has been presented to them for
payment. Some transactions can take weeks or even months before they clear.
By reconciling your statement each month, you ensure that you always know
how much you have. Americans spend more than $24 Billion on overdraft fees
each year. Most of this expense is a result of not maintaining good records. For
an easy to use form, check out the resource section of the Bank On Blog or look
on the back of your bank statement.
Bank On Coach: Coaching is where the real magic happens in Bank On Virginia
Beach. The Coach is your ally in helping you stay on track, encouraged and
focused throughout the Challenge. In between each class, you should plan to
meet with your Coach. Getting connected early will assure you the greatest
potential for success. Many Financial Institutions offer coaching, but Bank On
Virginia Beach has volunteer coaches who offer their time to the program to
help you build a financial plan that will help you achieve your goals.
Next Month’s Classes:
DATE LESSON DATE LESSON
11My Future
12DATE:
Financial Assessment - Beginning
INCOME PER MONTH INCOME PER MONTH
Salary 1 Pensions/Retirement
Salary 2 TANF/SNAP
Commissions Child Support
Social Security Other
TOTAL MONTHLY INCOME $
ASSETS VALUE ASSETS VALUE
Savings Automobile(s)
Checking Home
Investments Personal Property
Retirement Other
TOTAL ASSETS $
LIABILITIES PAYMENT TOTAL OWED INTEREST RATE
Credit Card 1
Credit Card 2
Credit Card 3
CAR LOAN 1
CAR LOAN 2
MORTGAGE1
MORTGAGE2
TAX DEBT
STUDENT LOAN 1
STUDENT LOAN 2
PERSONAL LOAN
MEDICAL1
MEDICAL2
TOTAL LIABILITIES $
Credit Report can be obtained at www.annualcreditreport.com or 877-322-8228
13CREDIT SCORE
Free credit scores can be obtained through www.creditkarma.com
or www.creditsesame.com
ALTERNATIVE FINANCIAL SERVICES
Number of times
Used payday/title lender in last 12 months
Number of times
Used check cashing in last 12 months
Financed car or furniture “on location” in last
12 months □ YES or □ NO
Used rent-to-own in last 12 months □ YES or □ NO
Received advanced refund for taxes last
year □ YES or □ NO
14Bank On It
Date of Class ___________________ Instructor Initials/Code___________
HOMEWORK
Completion ASSIGNMENT
Complete Temptations List below
Complete When are Bills Due Worksheet: p. 17
Review Annual Credit Report with coach and begin process for
correcting any identified error
Read Tax Resource Guide: pp. 52-55
Read Homework Notes: p. 16
Reconcile Bank Statement
Coach Make contact with your coach
Initials/Date
Need help? Call 385-3551 or email: bankonvb@vbgov.com.
TEMPTATIONS LIST
My Temptations Ways to Reduce/Avoid
15Homework Notes:
Temptations List: By knowing where you are prone to go off track, you can
establish a plan to avoid that danger. Everyone has temptations of one sort or
another. Identifying temptations and ways to avoid or reduce those
temptations can help you develop strategies for seeing your financial goals
achieved.
When Are Bills Due?: This is an initial map for when cash goes in and when cash
flows out each month. By completing this assignment, you can visualize the
points of the month when cash is low and begin working with your coach to
develop a plan to minimize shortages. Consider moving due dates where
possible to even out the demands on cash flow.
Correct Errors on Annual Credit Report: Credit Bureaus only report the
information they have been given by creditors. They have no way of validating
the debt to ensure that the information is correct. Creditors must be able to
prove (validate) that you owe them. If you identify any debts that you are not
sure you owe, use the template letter available at the Bank On Blog or one that
your coach recommends.
Reconcile Bank Statement: For an easy to use form, check out the resource
section of the Bank On Blog or look on the back of your bank statement.
Make Contact with your Coach: That’s where the magic happens. If you don’t
already have an appointment, call them to schedule. If you need help finding
a coach, contact the Financial Empowerment Coordinator at 757-385-3551.
16When Are Bills Due?
MONTH: ___________________________
List when your income comes and when your bills are due each month. Also list
how much you expect to receive/pay.
Sun Mon Tues Wed Thurs Fri Sat
Adapted from Virginia Cooperative Extension www.ext.vt.edu
17Crisis Mode
Date of Class ___________________ Instructor Initials/Code___________
HOMEWORK
Completion ASSIGNMENT
Complete Spending Diary: p. 19
Complete Records Organization Checklist: p. 20
Create Grab and Go book of vital documents listed in Records
Organization Checklist
Practice completing Smart Goals worksheet: p. 21
Read Homework Notes below
Reconcile Bank Statement
Coach Make contact with your coach
Initials/Date
Need help? Call 385-3551 or email: bankonvb@vbgov.com.
Homework Notes:
Spending Diary: By collecting detailed information on your spending, you are
gathering the data you will need to establish a spending plan that addresses
your lifestyle and values. Documenting your feelings will help identify areas
where your emotions drive your spending choices.
Records Organization Checklist: This important papers checklist allows you to
organize your vital records. The Grab and Go book can be a notebook or a file
where important records are kept so that if you ever need to evacuate in an
emergency, you are ready.
SMART Goals: Translate the goals from the “My Future” Worksheet into SMART
Goals that are specific, measurable, actionable, realistic and time-bound.
SMART Goals help create an action plan for achieving your dreams.
Reconcile Bank Statement: For an easy to use form, check out the resource
section of the Bank On Blog or look on the back of your bank statement.
Make Contact with your Coach: That’s where the magic happens. If you need
help, contact the Financial Empowerment Coordinator at 757-385-3551.
18SPENDING DIARY:
DAY SPENDING TODAY I FEEL
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
19Records to Have on Hand in an Emergency
Insurance Records
Auto Insurance Policy
Home Owners/Renters Insurance Policy
Pictures of Interior and exterior of home to document assets and their
condition
Life Insurance Policies
Don’t forget policies sponsored by employers
Insurance Appraisals
Identification Records
Birth Certificates
Marriage Certificates
Social Security Identification
Passports
Military ID
Bank and Savings Records
Brokerage Statement
Bank Statement
Savings Statements
Savings Bonds Locations
Location of Stocks and other Marketable Items
Retirement Account Summary
Loan Documents
Agreements
Rental Agreement
Official Legal Papers
Automobile Records
Title /Registration Documents
Estate Records
Wills
Powers of Attorney
Medical Directives
Trust Documents
Military Records
DD214 /Discharge Documentation
VA Benefit
20S.M.A.R.T. Goals
Specific: State exactly what is to be done
Measurable: Include how the goal can be measured
Actionable: Determine steps to reach the goal
Realistic: Do not set goals for something unrealistic
Time-Bound: State when the goal will be met
Goal: I want to buy a new car
vs.
SMART goal:
Specific Measurable Actionable Realistic Time-bound
I want to save I need to save I will save $200 I usually waste I want to have
money for a $5,000 for the from every the money on the $5,000
down down paycheck piddly stuff so I saved in two
payment on a payment can easily set years
new car aside $200
each payday
NOW YOU:
Specific Measurable Actionable Realistic Time-bound
21Money Management 1
Date of Class ___________________ Instructor Initials/Code___________
HOMEWORK
Completion ASSIGNMENT
Create a basic Spending Plan: p. 24
Track spending by category: p. 25
Complete Periodic Expense Planner: p. 26
Expand on your SMART goals by completing My Life Goals: pp.
27-29
Prioritize your SMART goals: p.30
Complete Strategies to Accelerate Progress: p. 31
Read Money Management Resource Guide: pp. 56- 57
Read Homework Notes below
Reconcile Bank Statement
Coach Make contact with your coach
Initials/Date
Need help? Call 385-3551 or email: bankonvb@vbgov.com.
Homework Notes:
Spending Plan: A Spending Plan is different than merely tracking expenses. You
determine where your money should be allocated before it is spent. A spending
plan looks forward into the future and anticipates needs and wants before they
occur.
Spending by Category: Continue tracking your expenses, but now divide them
into categories to see how much you are actually spending each month by
category.
Periodic Expense Planner: Periodic expenses can bust your budget. The more
you can anticipate them and plan for them, the more likely your budget will
work for you long term. Identify the total cost and the divide it into a monthly
payment to know how much you need to put aside for the periodic expenses.
22My Life Goals: Establish goals for income, credit, debt reduction, savings,
retirement and more. We all have multiple goals in life. The more they are
formed as a SMART goal, the more likely we will see them come to pass. Our life
goals are the reason that we work so hard to control current spending; we are
building a stronger future.
Prioritize Goals: Among your goals, what should take top priority? When there
are choices to be made, your top goal is addressed first while other goals
become secondary. To reach all your goals, creative thinking may be required.
Can you make your dreams happen? We believe you can.
Strategies to Accelerate Progress: Think of quick things you can do to
accelerate your progress toward your goals:
1. Get more money
2. Cut some expense
3. Get rid of some debt.
Reconcile Bank Statement: You have the knowledge of your balances. Make
sure your statement is correct.
Meet with Coach: Are you starting to see the magic happen? If you need to
regroup and get restarted, call us at 757-385-3551.
23Spending Plan
(For an interactive budget visit Bank On Blog under Resources)
INCOME
INCOME PER MONTH WITHHOLDINGS PER MONTH
Salary 1 Federal Tax
Salary 2 State Tax
Social Security Social Security/Medicare
Child Support Other
Other Other
Total Income Total Withholdings
NET SPENDABLE INCOME (Total Income – Total Withholdings) =
EXPENSES
EXPENSE PER MONTH EXPENSE PER MONTH
SAVINGS GROCERIES
Emergency ENTERTAINMENT
Retirement Eating Out
Other Vacation
HOUSING Movies/Events
Mortgage/Rent Trips
Property Tax INSURANCE
Insurance Life
Electric/Gas Disability
Water/Sewer CLOTHING
Phone MEDICAL
Internet Insurance
Cable Doctor/Dentist
Maintenance Prescriptions
TRANSPORTATION Copays
Loan Payment MISCELLANEOUS
Insurance Postage
Gas/oil Allowances
Maintenance Gifts
Other Personal Care
DEBTS Other
Credit Card 1 Other
Credit Card 2 EDUCATION
Loan 1 CHILD CARE
Loan 2 CHARITY
Other
TOTAL EXPENSES
LEFTOVER (Net Income – Total Expenses) =
24Actual Spending by Category
Week 1 Week 2 Week 3 Week 4 Total
Gross Income
Federal Taxes
State Taxes
FICA/FUTA
Net Income
Savings
Housing
Auto
Debt
Groceries
Entertainment
Insurance
Clothing
Medical
Miscellaneous
Investments
Education/Childcare
Charitable
25Periodic Expenses Frequency Total Monthly
(Qtr, Annual, etc) Amount Amount
Property Tax
Home Insurance
Auto Insurance
Life Insurance
Medical Insurance
Furniture and
Appliances
Home Repairs
Landscaping
Memberships and
Dues
Holidays
Subscriptions
Vacations
Gifts
Weddings
Tuition and Books
Car Maintenance
and Repairs
Back to School
Supplies
Clothing
26My Life Goals
Achieving your life’s desires begins with having written goals. These goals may
be financial or could describe the lifestyle you want to attain. Goals should be
specific, measurable, actionable, realistic, and have a completion time.
Together with your coach, you will break goals into action steps to keep you
focused on the actions that lead to success.
GOAL DESCRIPTION
My Sample Goal: Have $300 Saved in Emergency Fund
Complete by: 10/31/2015
Total/Monthly Cost: $300 total/$25 per month
Action Steps: Save $25 each payday using automatic deposit
Reduce spending on entertainment to increase savings
Education
Goal #1
Complete by:
Total/Monthly Cost:
Action Steps:
Employment
Goal #2
Complete by:
Total/Monthly Cost:
Action Steps:
Income
Goal #3
Complete by:
Total/Monthly Cost:
Action Steps:
27Debt
Goal #4
Complete by:
Total/Monthly Cost:
Action Steps:
Credit
Goal #5
Complete by:
Total/Monthly Cost:
Action Steps:
Savings
Goal #6
Complete by:
Total/Monthly Cost:
Action Steps:
Retirement
Goal #7
Complete by:
Total/Monthly Cost:
Action Steps:
Investing
Goal #8
Complete by:
Total/Monthly Cost:
Action Steps:
28My Own Goal
Goal #9
Complete by:
Total Cost/Monthly Cost:
Action Steps
29Prioritizing Goals
My Top Three Short-Term Goals: To be completed in less than one year
PRIORITY GOAL AMOUNT TO BUDGET
MONTHLY
Number 1 Priority
Number 2 Priority
Number 3 Priority
My Top Three Long-Term Goals: To be completed in more than one year
PRIORITY GOAL AMOUNT TO BUDGET
MONTHLY
Number 1 Priority
Number 2 Priority
Number 3 Priority
30Strategies to Accelerate My Progress:
Consider your goals listed in the prior pages. What are actions you
can take now to help accelerate your progress in achieving your
goal?
INCREASE INCOME RELATED GOAL
1.
2.
3.
DECREASE LIVING EXPENSES RELATED GOAL
1.
2.
3.
DECREASE INDEBTEDNESS RELATED GOAL
1.
2.
3.
31Money Management 2
Date of Class ___________________ Instructor Initials/Code___________
HOMEWORK
Completion ASSIGNMENT
Continue to track spending by category and compare budget
with actual spending: p. 34
Use Decision Tree to identify what expenses can be controlled
and what expenses are uncontrollable: p. 35
Complete Percentage Budget Comparison Worksheet using
guideline budgets in lesson participant guide: p. 36
Adjust your Spending Plan to reduce expenses or increase funds
earmarked for savings and debt reduction: p. 37
Have a family meeting to discuss financial priorities and ways you
can work together to curb costs
Read Homework Notes below
Reconcile Bank Statement
Coach Make contact with your coach
Initials/Date
Need help? Call 385-3551 or email: bankonvb@vbgov.com.
Homework Notes:
Spending by Category: Continue tracking your expenses, but now divide them
into categories for your spending plan.
Budget vs. Actual Expenses: This is the time for reality. Did your actual spending
mirror your budget? Were there unexpected expenses last month that need to
be adjusted in your budget? Few budgets will be exact because we have
variable expenses, but did your spending line up with what you had hoped?
Decision Tree: Don’t waste time focusing on the things you can’t control. Use
this decision tree to help you identify one or two budget categories that you
can control and focus on those.
32Percentage Budget Comparison: You determine your spending plan, but when
you are trying to get a realistic budget working, referring to guidelines can help
you focus on categories of spending that can be adjusted to give you more
breathing room in your budget.
Spending Plan Adjustment: Based on what you learned through the last few
months of actual expenses, does your budget need to be adjusted? Few get it
perfect the first time. It may take several months of adjusting to come to a plan
that works for you. A good spending plan will incorporate your savings for
emergency, goals, periodic expenses, long term savings like retirement and
debt reduction.
Family Meeting: Developing a new plan for your finances will be easier if all the
family is on board. Schedule a meeting and share with all family members the
decisions that you are making and discuss ways the whole family can get
involved in managing expenses.
Reconcile Bank Statement: You have the knowledge of your account balances.
Make sure your statement is correct.
Meet with Coach: Are you starting to see the magic happen? If you need to
regroup and get restarted, call us at 757-385-3551.
33Spending by Category
Budgeted Actual Actual
Percentage
(expense/net
income)
Gross Income
Taxes & Withholdings
Net Income
Savings
Housing
Auto
Debt
Groceries
Entertainment
Insurance
Clothing
Medical
Miscellaneous
Investments
Education/Childcare
Charitable
34Financial Decision Tree
Use this decision tree to help you identify the budget items that you can control
within your spending plan. Go through your budget and list each item as a
“controllable” or a “not controllable” item. Then go through the controllable
items and prioritize which ones are easiest to control and will create the greatest
benefit to your budget.
CONTROLLABLE ITEMS NOT CONTROLLABLE ITEMS
35Percentage Budget Comparison
Budget Item % Net Income % Budget Difference
Recommended
Savings
Housing
Auto
Insurance
Debt
Groceries
Entertainment
Insurance
Clothing
Medical
Miscellaneous
Investments
Education
Childcare
Charitable
36Spending Plan
(For an interactive budget visit Bank On Blog under Resources)
INCOME
INCOME PER MONTH WITHHOLDINGS PER MONTH
Salary 1 Federal Tax
Salary 2 State Tax
Social Security Social Security/Medicare
Child Support Other
Other Other
Total Income Total Withholdings
NET SPENDABLE INCOME (Total Income – Total Withholdings) =
EXPENSES
EXPENSE PER MONTH EXPENSE PER MONTH
SAVINGS GROCERIES
Emergency ENTERTAINMENT
Retirement Eating Out
Other Vacation
HOUSING Movies/Events
Mortgage/Rent Trips
Property Tax INSURANCE
Insurance Life
Electric/Gas Disability
Water/Sewer CLOTHING
Phone MEDICAL
Internet Insurance
Cable Doctor/Dentist
Maintenance Prescriptions
TRANSPORTATION Copays
Loan Payment MISCELLANEOUS
Insurance Postage
Gas/oil Allowances
Maintenance Gifts
Other Personal Care
DEBTS Other
Credit Card 1 Other
Credit Card 2 EDUCATION
Loan 1 CHILD CARE
Loan 2 CHARITY
Other
TOTAL EXPENSES
LEFTOVER (Net Income – Total Expenses) =
37Credit the Basics
Date of Class ___________________ Instructor Initials/Code___________
HOMEWORK
Completion ASSIGNMENT
Check credit score, evaluate progress
Obtain second report from www.annualcreditreport.com and
review
Develop a debt snowball at www.powerpay.org
Pay all monthly bills in full and on time
Create a plan for windfalls. What priorities will you fund with
extra money? Savings? Debt Reduction?
Evaluate savings progress with coach
Read Credit Resource Guide: pp. 58 - 59
Read Homework Notes below
Reconcile Bank Statement
Coach Make contact with your coach
Initials/Date
Need help? Call 385-3551 or email: bankonvb@vbgov.com
Homework Notes:
Check Credit Score: Growing your credit score is one of the goals of the Mayor’s
Action Challenge. Credit Karma has some great educational tools to help you
identify ways you can increase this score most effectively. It takes time to see
significant change, but hopefully you are on your way.
Credit Report: By obtaining a different credit report throughout the year, you
can monitor your own credit for identity theft. If you had errors that required
correction when you first reviewed your credit report, are you seeing the errors
corrected? Is there new information on this report that was not addressed in the
first report you obtained?
38Debt Snowball: A debt snowball is a strategy for accelerating debt reduction.
After one debt is paid, roll that payment onto the next to see your debt
balances decrease quickly. www.powerpay.org is a free tool that allows you to
see how long you will continue in debt under your current repayment and how
much faster you can be out of debt by snowballing the debts.
Pay Bills on Time and in Full: Faithful payment of your monthly obligations is the
fastest and most effective way to raise your credit score. Implementing the
spending plan that you created in prior months should allow you sufficient
resources to pay on time and in full. If you are having trouble, talk with your
coach.
Plan for Windfalls: It is tempting to live high on extra money that comes to us, but
having a prior plan for extra money can actually help accelerate our progress
toward our financial goals. You determine how you will use your funds, but prior
planning will help you stay on track when the extra money does come along.
Evaluate Savings Progress: Mayor’s Action Challenge seeks for you to have at
least $300 in emergency savings to protect against unexpected expenses. Are
you seeing your savings grow? If you are off track with savings, now is a great
time to make a correction to ensure your success.
Reconcile Bank Statement: You have the knowledge of your account balances.
Make sure your statement is correct.
Meet with Coach: Your coach can help you stay focused and encouraged as
you make your way to your financial goals. If you need to regroup and get
restarted, call us at 757-385-3551.
39Credit Next Steps
Date of Class ___________________ Instructor Initials/Code___________
HOMEWORK
Completion ASSIGNMENT
Review Affordable Housing Resource Guide: pp. 60 - 62
Obtain a copy of your ChexSystems Report from
www.consumerdebit.com
Consider registering with www.donotcall.gov Registration is
effective for 5 years
Discuss with your coach potential threats to your credit and how
you can address them
Continue budgeting so that you can have three months of living
on a budget prior to the end of the Challenge
Continue saving so that you can have three months of savings
growth and at least $300 of an emergency fund by the end of
the Challenge
Read Homework Notes below
Reconcile Bank Statement
Coach Make contact with your coach
Initials/Date
Need help? Call 385-3551 or email: bankonvb@vbgov.com.
Homework Notes:
ChexSystems: ChexSystems is the database that financial institutions use to
determine your practices in managing checking and savings products. This
report is available annually to all consumers. With this report, you will know what
your financial institution knows about you.
Do Not Call: Do Not Call cuts down on telephone solicitations that seek to divert
your spending plans, and also may try to obtain personal financial information
that can be used against you. As a wise consumer, you are the one to make
the call to a provider when you need a product or service. They shouldn’t have
to call you.
40Credit Threats: In addition to paying in full and on time, you may want to explore
the other potential threats to your credit with your coach. What are actions you
can take to guard your identity and to keep your credit moving in a positive
direction?
Continue Budgeting: Mayor’s Action Challenge requires living on a budget for at
least three months to demonstrate your financial fitness.
Continue Saving: An emergency fund of at least $300 will protect you against
unexpected expenses. This is a requirement for the Challenge. How are you
doing? Are you able to put aside money each month? The goal is to grow that
savings for at least three months during the Challenge.
Reconcile Bank Statement: You have the knowledge of your account balances.
Make sure your statement is correct.
Meet with Coach: Is your coach helping you on your way to financial fitness?
Tell them thank you for all of their help. If you need to regroup and get
restarted, call us at 757-385-3551.
41Pay Yourself First
Date of Class ___________________ Instructor Initials/Code___________
HOMEWORK
Completion ASSIGNMENT
Review Asset Building Resource Guide: pp. 63-66
Visit www.choosetosave.org/ballpark and estimate monthly
savings needed for your retirement goals
If you are not already participating in a retirement plan, consider
reaching out to your employer to participate or establish a
retirement account with your bank or credit union.
Check your progress toward the emergency savings goal of
$300. Only two more classes to go
Discuss with your coach the amount of savings you should set
aside to meet insurance deductibles
Visit www.optoutprescreen.com and register to avoid mail
solicitations.
Read Homework Notes below
Reconcile Bank Statement
Coach Make contact with your coach
Initials/Date
Need help? Call 385-3551 or email: bankonvb@vbgov.com.
Homework Notes:
Choose to Save: Choose to Save offers a webtool to help you estimate how
much you should be setting aside each month to meet your retirement needs. If
you are not already saving for retirement, there is no time like the present to get
started.
Savings Assessment: How are you doing? Are you on track?
Insurance Deductibles: Frequently, people increase deductibles to lower the
cost of monthly premiums; but if that deductible is not saved when disaster
42strikes, you could find yourself in a true crisis. Evaluate the amount of deductible
vs. premium that you can really afford to protect your assets from a disaster.
Continue Budgeting: The Challenge requires living on a budget for at least three
months to demonstrate your financial fitness.
OptOutPrescreen: Credit bureaus make money selling your name and personal
information to potential solicitors. You can take your name off their lists by
registering at www.optoutprescreen.com
Reconcile Bank Statement: You have the knowledge of your account balances.
Make sure your statement is correct.
Meet with Coach: Is your coach helping you on your way to financial fitness?
Tell them thank you for all of their help. If you need to regroup and get
restarted, call us at 757-385-3551.
43Keep It Safe
Date of Class ___________________ Instructor Initials/Code___________
HOMEWORK
Completion ASSIGNMENT
Review Consumer Protection Guide: pp. 67 - 69
Complete Advanced Medical Directive
Complete Will
Review insurance needs and coverage:
Auto/Home/Life/Disability
Obtain your third Annual Credit Report and review for accuracy
Complete Financial Assessment – Final: pp. 46 -47
Read Homework Notes below
Reconcile Bank Statement
Coach Make contact with your coach
Initials/Date
Need help? Call 385-3551 or email: bankonvb@vbgov.com
Homework Notes:
Advanced Medical Directive: This document allows you to maintain control over
your healthcare choices when you cannot speak for yourself. You choose who
will speak on your behalf and what measures you want taken to sustain you in a
crisis. Once completed, ensure that your designated representative and your
doctor have a copy. The Bank On blog http://bankonvb.blogspot.com has links
to the Advanced Medical Directive and the Will under the resources section.
Will: Having a Will allows you to speak even from the grave. You designate how
your assets will be distributed; but most importantly for families with children, the
will designates who will be the guardian for your children if tragedy strikes.
Insurance Coverage: We all need insurance to protect in the event of crisis, but
take the time to review your policies and know what is covered and what is not.
Do you have the appropriate amount of coverage? Can you get a lower
44premium by shopping around? Talk with your coach about your insurance
protections.
Annual Credit Report: Review the third credit report for accuracy. If you were
correcting errors, you should start to see improvements in the report by now.
Financial Assessment: This assessment will allow you to demonstrate that you
have indeed accomplished the goals of the Mayor’s Action Challenge:
• Increase Income Opportunity
• Improve Savings (at least $300 for emergencies)
• Reduce Debt
• Enhance Credit Score
• Establish Protections for Assets
Complete the final assessment and be prepared to turn in your passport for the
Challenge at your Next Steps class.
Reconcile Bank Statement: You have the knowledge of your account balances.
Make sure your statement is correct.
Meet with Coach: Thank your coach for his/her support during this Challenge.
Coaches offer their assistance outside their regular work demands, so their
investment is truly a vital community resource. Let them know they are
appreciated.
45DATE:
Financial Assessment – Completion
INCOME PER MONTH INCOME PER MONTH
Salary 1 Pensions/Retirement
Salary 2 TANF/SNAP
Commissions Child Support
Social Security Other
TOTAL MONTHLY INCOME $
ASSETS VALUE ASSETS VALUE
Savings Automobile(s)
Checking Home
Investments Personal Property
Retirement Other
TOTAL ASSETS $
LIABILITIES PAYMENT TOTAL OWED INTEREST RATE
Credit Card 1
Credit Card 2
Credit Card 3
CAR LOAN 1
CAR LOAN 2
MORTGAGE1
MORTGAGE2
TAX DEBT
STUDENT LOAN 1
STUDENT LOAN 2
PERSONAL LOAN
MEDICAL1
MEDICAL2
TOTAL LIABILITIES $
46Credit Report can be obtained at www.annualcreditreport.com or 877-322-8228
CREDIT SCORE
Free credit scores can be obtained through www.creditkarma.com
or www.creditsesame.com
ALTERNATIVE FINANCIAL SERVICES
Number of times
Used payday/title lender in last 12 months
Number of times
Used check cashing in last 12 months
Financed car or furniture “on location” in last
12 months □ YES or □ NO
Used rent-to-own in last 12 months □ YES or □ NO
Received advanced refund for taxes last
year □ YES or □ NO
47Next Steps
Date of Class ___________________ Instructor Initials/Code___________
HOMEWORK
Completion ASSIGNMENT
I have increased savings 3 months.
I have $300 or more of emergency savings.
I have increased credit score.
I have reduced debt.
I have reconciled Bank Statement.
I have plans to attend Bank On Graduation.
48Income Resource Guide
Our ability to have sustainable income to meet our monthly expenses is vital to
establishing financial security. For greatest income opportunity, growing
knowledge and skills through education and work experience are crucial.
Higher levels of education are associated with
greater income. The amount of education and
career training you have directly increases your
ability to obtain higher income opportunities. Locally,
there are several partners positioned to help you
complete the challenge of obtaining full time
employment with health benefits with advancement
opportunities.
Even if you are currently employed, having a solid resume and skills that are in
demand can help you accelerate career opportunities and grow your income.
This will also provide a “Plan B” should unexpected cuts affect your
employment.
Virginia Beach Public Library – Share Network Access Point (SNAP) Call: (757)
385-4321 or email: library@vbgov.com
Library staff can get you help performing skills assessments, writing resumes,
preparing you for job interviews, providing free computer training and
connecting you to funding opportunities to attend school.
Virginia Beach Public Library – Career Coach Call: 757-385-0150
Career Coaching is available at Meyera E. Oberndorf Central Library by
appointment. This coaching provides personalized assistance to help you get
noticed in the job market and expose yourself to jobs that may not be listed in
ads.
Virginia Beach Adult Learning Center Call: (757) 648-6050
http://www.alc.vbschools.com
The Adult Learning Center equips adults with skills that are in demand by
providing learning opportunities which enable you to compete in any economic
environment. Expand your career opportunities through certificate programs
available at the Adult Learning Center.
The Adult Learning Center provides Adult Basic Education/GED® classes and
community education classes to enhance our students’ quality of life.
49Educational Opportunity Center: Call 757-683-2312 or visit: 861 Glenrock Road,
Suite 135, Norfolk, VA 23501
The Educational Opportunity Center assists you in identifying your job interests
and skill levels as well as offers education and career planning. Services are free
to the public. We can help you gain the skills needed for success in today’s
workplace.
Opportunity Inc. Visit: 861 Glenrock Road, Suite 100, Norfolk, VA 23502 or call:
757-461-7537, www.opp-inc.org
Opportunity Inc. One-Stop Workforce Center offers job search, job related
training and professional certifications for individuals. Unemployed individuals
should work with both Opportunity Inc. One-Stop Workforce Center and Virginia
Employment Commission to improve their marketability for gaining employment.
Virginia Employment Commission (VEC) 5145 East Virginia Beach Boulevard,
Norfolk, 23502 Call: (757) 455-3960/3911 or email Norfolk@vec.virginia.gov
Job search assistance is available to all (employed or unemployed) individuals,
and recruiting and referral services are accessible to employers. The VEC
Workforce Center hosts seminars and workshops to help job seekers with skills
such as resume writing, interviewing, developing job search strategies and
networking. Services available to job seekers include job referral and
placement, referral to training, and job search skill building activities.
The VEC’s Unemployment Insurance Service help alleviate hardship for the
unemployed by providing income support to those workers who are
unemployed through no fault of their own and promoting re-employment and
economic stability.
Virginia Individual Development Account (VIDA): Fast track your success with
VIDA. VIDA offers matched savings of $2 for every $1 saved toward education,
home ownership and small business development. Income limits apply and you
must be actively employed and saving regularly. To learn more, contact
Brendan Vigorito of Money Management International
(Brendan.vigorito@moneymanagement.org (866) 702-4172 or Willard Pretlow of
STOP Organization wpretlow@stopinc.org (757) 858-1371.
50Go the Extra Mile
While these actions are not required for the Mayor’s Action
Challenge, they may help you accelerate your opportunity for
success. Use this list to check off actions you have taken to enhance
your results.
Complete/Establish Check Completion
GED/High School
Associates Degree
Four-year degree
Skills/Interest Assessment
Job Search Strategies
Interview Strategies
Resume Review
Employment Success Skills Class
Virginia Individual Development Account (VIDA)
for Small Business or Education
51Tax Resource Guide
You could be eligible to get more money
back from the IRS-as much as
$6,143! According to the IRS website
www.irs.gov, if you earned less than $52,427
from wages, self-employment or farming last
year, you may qualify for a refundable tax
credit called the Earned Income Tax Credit,
or EITC. But to receive the credit, you must
file a federal income tax return.
The credit has been making the lives of
workers a little easier for more than 38 years. Yet it remains little known, possibly
because people move into and out of eligibility as their financial, marital and
parental statuses change. IRS estimates only four of five eligible workers claim
and receive their EITC.
EITC Online Assistant
The online EITC Assistant at www.irs.gov can help you find out if you are eligible
for this credit or download the EITC finder app to your phone for free.
Get Free Help to File
If you have household income of less than $53,000, free help preparing your
return and claiming EITC is available at volunteer income tax assistance sites.
Virginia Beach has a variety of volunteer tax preparation sites including the
AARP sites which are also trained to help you gain access to the EITC. All
volunteer tax preparation sites will electronically file your return for free.
South Hampton Roads EITC Coalition: Manages the Volunteer Income Tax
Assistance sites located throughout South Hampton Roads. All volunteers are IRS
trained and certified. To see a list of all the locations visit www.shreitc.com
AARP Tax Aide: Manages the Tax Credits for the Elderly sites throughout South
Hampton Roads. They can prepare simple tax returns for people of any age
and any income level. All volunteers are IRS trained and certified.
Meyera E. Orberndorf Central Library and Princess Anne Library: Host free tax
preparation with AARP which also prepares returns for low to moderate income
families. AARP Tax Aide does not have income limitations on tax preparation.
52Walk-in /
Phone
Name Address Appointment Date/Time
Number
Only
Department Of
Fridays during
Human Services – 3432 Virginia Walk-ins and
385-3551 February
Assisted Self- Beach Blvd appointments
9:00 – 4:00 PM
preparation site
Commissioner of 2401 Mon - Fri
Revenue - Virginia Courthouse 385-4483 Walk-In Only 8:00am -
Beach Drive 5:00pm
Philippine Cultural 4857 Baxter Every Other
490-7600 Walk-In Only
Center Road weekend
1700 College
Tidewater Crescent Appointment
822-7416
Community College Room 235 - Only
ATC
A list of all available free tax sites can be found at www.irs.gov
Refunds Unclaimed
According to the IRS, rural and non-traditional families -- such as grandparents
raising grandchildren -- childless workers, and non-English speaking taxpayers
are among those who most frequently overlook the credit. If you were eligible in
prior years, you can file an amended return to claim your rightful tax credits and
get your refund.
EITC and other Public Benefits
Refunds received from Earned Income Tax Credit (EITC or EIC), Child Tax Credit
(CTC) or any other tax credit are not considered income for any federal or
federally funded public benefit program. Also, under the Tax Relief,
Unemployment Insurance Reauthorization and Job Creation Act of 2010, your
credit or other tax refund is not counted as a resource for at least 12 months
from when your receive it. If you save your refund, federal or federally funded
agencies will not use it to determine your eligibility or the amount of your benefit.
It is always best to check with your local benefit coordinator to find out if your
benefits fall under this provision.
53Child Tax Credit
A taxpayer who has a dependent child under age 17 probably qualifies for the
child tax credit. This credit, which can be as much as $1,000 per eligible child, is
in addition to the regular $3,500 exemption claimed for each dependent.
Credit for Child and Dependent Care Expenses
An individual who pays for someone to care for a child so he or she can work or
look for work probably qualifies for the child and dependent care credit.
Normally, the child must be the taxpayer’s dependent and under age 13.
Though often referred to as the child care credit, this credit is also available to
those who pay someone to care for a spouse or dependent, regardless of age,
unable to care for him- or herself.
Education Credits
The Hope credit targets the first two years of post-secondary education, and an
eligible student must be enrolled at least half time.
A taxpayer can also choose the lifetime learning credit, even if he/she is only
taking one course.
Saver’s Credit
The saver’s credit is designed to help low- and moderate-income workers save
for retirement. Eligible savers can receive 50% of their contributions up to $1,000
on their tax return.
Adjusting your W-4 (submit to your human resources office)
If you owed taxes at the end of the year, you may want to consider reducing
the number of exemptions on your W-4 form. This will reduce your paycheck
and reserve more money to pay taxes.
If you received a large refund, you may want to consider increasing the number
of exemptions to increase your paycheck and have more money available for
your monthly budget.
54Go the Extra Mile
While these actions are not required for the Mayor’s Action
Challenge, they may help you accelerate your opportunity for
success. Use this list to check off actions you have taken to enhance
your results.
Action Check Completion
Organize documentation to use in tax preparation (W-2,
1099, receipts, mileage, etc)
Use free tax preparation (if qualified)
Obtain Earned Income Credit (if qualified)
Complete your own taxes
Adjust W-4 form if necessary
Use refund to pay bills/reduce debt
Use refund to fund emergency savings
Use refund for other savings
Become Volunteer Tax Preparer
55Money Management Resource Guide
Tracking your spending is a great exercise to find
those spending leaks within your budget. Often
written budgets don’t match our actual spending
behaviors. Tracking spending allows us to identify
where the discrepancies arise and to make
decisions about where adjustments should take
place.
Prioritizing Spending Choices: Knowing what you
can control is the first step in taking ownership of
your financial future! Becoming financially fit
begins with managing the income you earn.
Identifying and prioritizing needs and wants within your monthly expenses will
help you squeeze out the maximum benefit for your dollars. The goals you wrote
early in the Challenge should help guide you in prioritizing spending.
Know Your Balance:
Your checkbook register is an important money management tool. By
reconciling your checking account, you will always know how much you have
at any given time. In your register, you will record checks written, ATM or debit
card transactions and automatic payments from your account as well as any
deposits coming into your account. Check with your local financial institution
for counseling resources they may have.
Overdraft and Non-Sufficient Funds Fees cost Americans more than $24 Billion
each year. Knowing your balance at any time protects you against these costly
fees.
Listed below are some tools and partners who can help you achieve this
challenge:
Bank On Coaches: As a participant in Bank On, you have access to personal
coaching to help you get control of your cash flow and build a budget that can
keep you from paying unnecessary bank fees. You keep more money in your
pockets while improving your credit score at the same time.
Bank On Blog: A resource for asking questions, getting worksheets and materials
and staying informed of the latest news for Bank On. Visit
http://bankonvb.blogspot.com for more information.
Catholic Charities of Eastern Virginia: 5361-A Virginia Beach Blvd., Virginia
Beach,VA 23462 Call: 757-484-0703, www.cceva.org
56Offers free, comprehensive, individualized one-on-one financial counseling
sessions that help clients set financial goals, develop spending plans, rehabilitate
credit, increase savings, and reduce debt.
Virginia Beach Public Libraries: (757) 385-4321 Libraries can be a source for free
family fun as you look to reduce your monthly expenses. Check out their
selection of movies and games as well as great books to provide hours of
entertainment. In addition, the library is host to many community events each
year, so check out their calendar of events.
Go the Extra Mile
While these actions are not required for the Mayor’s Action
Challenge, they may help you accelerate your opportunity for
success. Use this list to check off actions you have taken to enhance
your results.
Action Check Completion
Utilize Budget for 6 months
Utilize Budget for 9 months
Utilize Budget for 12 months
Avoid Bank Overdraft fees for 3 months
Avoid Bank Overdraft fees for 6 months
Avoid Bank Overdraft fees for 9 months
Avoid Bank Overdraft fees for 12 months
57Credit Resource Guide
Your credit affects many areas of your life. For example,
your credit score can affect your ability to purchase
goods and services on credit or to get a loan. Poor credit
not only impacts your access to loans and credit, but can
even hinder your access to employment or housing.
Also, your insurance premiums for your automobile and
life insurance can increase with poor credit. For active
duty military, poor credit can also impact your security
clearance.
Dangers of Easy Credit:
Easy credit can be costly. Beware of credit offered with
“no credit-check” or “bad credit OK”. Annual Percentage Rates (APR) on such
offers can exceed 300% and can result in a decrease in available funds for you
to meet other monthly obligations. Alternative financial products cannot only
be costly, but may keep you trapped in debt and force you into a financial
crisis.
Debt Repayment:
If you have debts and are having a difficult time making your monthly
payments, you have some no cost and low–cost options to help you take
control of your debt repayment. Credit counselors from partners listed below
can help you to develop a Debt Management Plan (DMP). In addition, many
credit unions offer DMP programs that can make your debt reduction goal more
achievable.
Benefits of Good Credit:
Having good credit can create greater opportunity for you. A good credit
score can:
• Reduce premiums on insurance
• Improve opportunities for employment
• Reduce the interest and fees paid for loans and credit cards
• Increase amounts you can borrow from traditional financial partners
Partners who can help you evaluate your credit history and take steps to
improve your credit score and reduce your debts:
Local Credit Unions: Many local credit unions offer credit counseling services to
their members at no cost.
58You can also read
