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Participants Will Be Able To: Confidently plan your personal finances for the month of May in the context of the global pandemic Rank the importance of your financial obligations Identify steps to take control of your financial situation
Ashley Copeland is host of Stacks and the City, a podcast that teaches the investment basics. Ashley: • • Has a self-made six-figure net worth • Is a KIPP ENC Alum (Pride of 2009) Owns two properties in the DMV area Trades in the stock market LOVES teaching about ways people of ALL economic backgrounds can invest
Agenda • Resources for Fully-Waged Professionals • Resources for Under-Waged Professionals • How to Plan the Month of May Overview • How to Prioritize Your Spending • Role Play • Questions & Answers
But first… a quick poll (all polls are anonymous)
Quick Definitions Fully-Waged Professionals • Continuing to earn a steady paycheck • Earning similar (or more) money as before the pandemic started Under-Waged Professionals • Have lost your job as a result of the pandemic (unemployed or furloughed) • Currently employed at a job earning a lower wage than before the pandemic • Generating unpredictable or nonexistent income
If you’re a Fully-Waged Professional Reduce the amount of money owed (this will be explained) STAY LIQUID
If you’re an Under-Waged If you’re. Professional… an Under-Waged Professional Apply for Unemployment This normally takes a few weeks to kick in, so apply right now if you haven’t already 4 Check on the status of your stimulus check If not received 2 File for Food Stamps and access any other resources for food (food banks, etc. ) 5 STAY LIQUID 3 If you have any specific questions, reach out to council members in your area 1
What Does ‘Staying Liquid’ Mean? • The amount of cash you have readily available to spend • Due to the uncertainty of the pandemic and our financial situations, it is essential to have as much cash ready to spend as possible
LET’S PLAN OUR MONTH The name of this game is to keep as much money in your bank account as possible. We don’t know how long this is going to last and how many resources the government/private entities will make available.
Planning and Prioritizing in May Fixed Expenses • • • Mortgage/Rent Phone Car Note Internet Credit Card Savings $1000 $100 $250 $70 $100 $25 Total Fixed Expenses $1545 Variable Expenses • • • Food Clothing Gas/Travel Entertainment Anticipated* Total Variable Expenses: $250 $0 $40 $100 $490 Total Fixed $1545 + Total Variable $490 = Total Expenses: $2045 *Anticipated Expenses: • Want to order Uber Eats at least three times • Want to order on Amazon Anticipated Income: $3000 - Total Expenses: $2045 Leftover Money: $955 Wish List: • Chanel Classic Flap: $6000 • Burberry Kensington Trench: $2000 • Fund Money for Roth IRA: $1000
Most Important Resources (Bills That Affect Your Credit) Bill Type Mortgage Rent Resources Available • • • Student Loans Credit Cards • • You are not required to make payments until August 1 st You will not get evicted Federal loan interest rates will be reduced to 0% Stop making payments between March and September 30, 2020 What You Need to Do • Call your bank • Communicate with your landlord as far in advance as possible Pay as much in rent as you can • • Some companies are offering deferral • in payment • This should automatically be reflected on your account Contact your credit card company Negotiate to reduce interest rates
Also Important Resources (Bills That Don’t Affect Your Credit) Bill Type Resources Available What You Need to Do Car Insurance • Discounts available; some up to 15% • Call and inform of hardship Phone Bill/Utilities/ Cable • Skip payments without accruing late penalties • Services will stay on • Call and inform of hardship
LET’S ROLE PLAY BASED ON REAL LIFE SCENARIOS Scenario #1: After doing your budget checklist, you find that you may not be able to pay rent on time. You have a talk with your landlord/property manager.
What You Need To Know: • Inform your landlord as soon as you realize you are unable to make your payment (preferably before the rent due date) • Inform your landlord what you’re able to pay • Make every effort to pay what you can as soon as you can and keep your landlord looped • Know your rights. They vary from locality but tenet evictions aren’t happening nationwide as a result of COVID-19
LET’S ROLE PLAY BASED ON REAL LIFE SCENARIOS Scenario #2: You’re looking for ways to save money on your credit card bills.
What You Need To Know: • Credit card companies are willing to negotiate with you if you ask • Asking for a lower interest rate will lower your credit card payment monthly • If they say no, ask to speak to a manager or supervisor, or another representative • You can “qualify” for lower interest rates if • You have a strong payment history • Or you haven’t made payments and inform that you are working on making consistent payments • You simply ask!
Keep In Touch and Stay Tuned for the Rest of the Series! • Follow @kippalum for series updates • Follow @stacksnthecity for ongoing money tips and advice
We also encourage you to check out resources on the KIPP Website
And we will send these resources by email after the event 1. KIPP Managing Your Finances Resource Document (includes English and Spanish versions with links to unemployment resources, leave benefits, and more) 2. Budgeting Documents (provided in Word and Excel)
And now… another quick poll (all polls are anonymous)
Questions?
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