Workshop Helps Families Learn Money Management

Melissa Hampton used her 2004 School for Resident Leaders (SRL) mini-grant to address a problem common among people who use shelters: keeping families together.

Hampton, who lives in transitional housing, believes a major reason people seek housing in shelters is because they lack money management skills. So she decided to use her SRL grant to hold a financial management workshop for residents at her shelter.

Margaret Henningsen of Legacy Bank agreed to conduct the workshop, which offered information on budgeting, saving money and purchasing a home.

The workshop also included advice on opening and using checking accounts, and covered the pitfalls of relying on check cashing stores.

Earned Income Tax Credit Campaign

In 2002, $10 million in state and federal Earned Income Tax Credits (EITC) were claimed within Making Connections.  The average EITC credit was $1,957.  More residents are qualified for EITC tax credits than are using them.   Only 38.6% of those estimated to be eligible filed claims – nearly 3,000 households.  An estimated $21 million more was unclaimed. (The Making Connections Survey confirms that the trend continued in 2003, with only 40% of those eligible filing for EITC.)

 46% of residents filing taxes used “Refund Anticipation Loans” in 2002.  For the average size EITC credit residents pay 4% for a 10 day loan – an annualized interest rate of 161%.