Asking your advice /opinion

[dossin1]

I volunteer with a community service agency and they asked me to give some presentations on personal finance to some clients. These are people coming out of prison, off welfare, substance abuse. They want to get them off to a good start. The presentation would be 1-2 hours. What would you talk about first? Keeping track of expenses, making a budget, open bank account? I don't want to overwhelm them, but don't want to talk down to them either. For some it will be getting their first real paychecks and they are motivated to get off to a good start.

Thanks for your help

[tinapbeana]

Originally Posted by dossin1

I volunteer with a community service agency and they asked me to give some presentations on personal finance to some clients. These are people coming out of prison, off welfare, substance abuse. They want to get them off to a good start. The presentation would be 1-2 hours. What would you talk about first? Keeping track of expenses, making a budget, open bank account? I don't want to overwhelm them, but don't want to talk down to them either. For some it will be getting their first real paychecks and they are motivated to get off to a good start.

Thanks for your help

i'd start with very basic information to begin with, and maybe have some packets available with more advanced info. here's what i consider 'basic' based on the description you've given:

- food: how to save when shopping, couponing, rebating, not eating out
- making the distinction between a want and a need.
- combination budget and envelope system: write down what has to be paid and when (rent, utilities), write down when you get paid. figure out how much from each paycheck has to go into the envelope so that rent & utilities are paid *on time*. create a food/entertainment budget with what's left.

[HalMd]

How not to get hooked into consumer debt.

[poundwise]

I think you are going to need to break it down to basics:

Understanding your paycheck (stub)
Basic budgeting
Recording transactions and balancing a checkbook
Comparative shopping (being a wise consumer)
Understanding credit

[poundwise]

You could also visit:

http://www.practicalmoneyskills.com

Note: "Free Teaching Resources" on left-hand column

[shengmei]

A nice little pie chart comparing the costs of food per year versus the costs of drinking a 6-pack a day, or smoking a pack of cigarettes a day, or buying a $10 lottery ticket a day, or visiting several pornography websites a month.

It is amazing how much your vices can cost you.

[tinapbeana]

Originally Posted by shengmei

A nice little pie chart comparing the costs of food per year versus the costs of drinking a 6-pack a day, or smoking a pack of cigarettes a day, or buying a $10 lottery ticket a day, or visiting several pornography websites a month.

It is amazing how much your vices can cost you.

i dunno, i think it might be a bit offensive to walk in assuming the folks you're talking to smoke, drink, play lotto, and buy porn all the time

but i like the idea: maybe have them volunteer to name things they do or indulge in, then work out what it costs them over the course of a month, or a year. don't forget to add sales tax!

[poundwise]

There are porn web sites?

[greedy4chips]

Strictly for humor...

Teach them how to negotiate with hookers, bum cigs instead of buy them, drink 40 oz beers vs 12 oz bottles, become a bookie, etc.

You got to talk their lingo!

Seriously,
Poundwise gave the best outline yet. Just give them basic strategies for making a dollar go further. Let them know they will mess up and need money from time to time, but here is what not to do (besides theft) no payday loans, no cc debt, etc.

[tinapbeana]

Originally Posted by greedy4chips

Seriously, Poundwise gave the best outline yet. Just give them basic strategies for making a dollar go further. Let them know they will mess up and need money from time to time, but here is what not to do (besides theft) no payday loans, no cc debt, etc.

don't forget: no car title loans!! don't know if they're around everywhere, but here in SC it can take you years to pay off a $600 note b/c the agreement states the borrowed amount has to be paid in FULL, the payments the person makes every month are INTEREST ONLY!!!

this again might be where it's helpful to have folks share (if willing) mistakes they have made with their money.

[PRICEPLUS]

Poundwise is spot on in his assessment of what should be taught.

[scfr]

I too like poundwise's advise, and I would add something about payday loan services, about how much they really cost and to avoid them like the plague! The population you are going to be speaking with may be just the sort that those "companies" (or loan sharks) like to target.

[dossin1]

Thanks everyone, especially Poundwise. I will put this info to good use. I know the secret of good advice is not in the giving but in the taking (and using!), but I hope this will make a difference.