FLLIP Participant Stories

Bernita Harris
Individual Development Accounts Program Graduate,
Partnership Accounts for Individual Development (PAID), Champaign

When Habitat for Humanity began building Bernita Harris's new home in the fall of 2002, she realized that in order to take advantage of her new beginning, she had to take control of her finances. Habitat for Humanity introduced Harris to the Your Money & Your Life Individual Development Account program that was offered through PAID. The program combines financial education classes with a savings program that matches each dollar a student saves. A family that saves $1,000 on their own can accumulate up to $2,000 in matching funds toward their chosen savings goal--money for a house, a small business, a car, or a post-secondary education.

"I had no savings account. I did put money into the bank, but I had to work just to keep the minimum balance," said Harris. "I needed to learn how to save for my children and for me."

The class taught Harris different methods of keeping track of her spending, such as writing down the money she spends, planning a monthly budget, and paying her credit card bills systematically to enable her to save money on finance charges. These habits, along with general financial educaton, have helped Harris become more disciplined with her money.

"The class taught me that there is always room to save, even if it is only $5 or $10 a month," said Harris. "You need money to live, it's like life--you have to be disciplined to get ahead."

Harris has used what she learned in the class to open a savings account at a credit union that deducts money out of her paycheck from her job as a library clerk and deposits the money directly into her savings account. With her IDA savings, Harris was able to pay the down payment on her new home and build a half-bath. She is currently saving to purchase a car.

Lisa Pollard
Financial Education Program Graduate
Chicago Area Project, Chicago

Lisa Pollard is a 30-year-old mother of four living on the south side of Chicago. Since being on welfare in September 2002, she has found it difficult to support her children on the fixed income provided by Temporary Assistance for Needy Families. Without a savings account and not knowing how to budget her money, she was afraid her financial situation was never going to improve. She heard about Your Money & Your Life financial education classes held at Chicago Area Project through the Women in Transition program. Pollard wanted to learn how to save and budget her money and thought the class would be a good opportunity.

"With the help of my instructor, Shashi Menon, I have been able to open a checking and savings account at Shore Bank," said Pollard. "He helped me with my financial problems and made me feel secure."

In the class, she also learned how to keep track of her money by writing down the cost of her purchases. She also keeps track of her bills by keeping a written schedule of when they are due. "Now I'm smart about the money I spend," said Pollard. "Before I go shopping, I write a list of the things I need, and I estimate the cost of each. I usually spend less money than I thought, and the rest goes in the bank."

"Before the class, I didn't know how to save money. I spent too much on things that I wanted, rather than things that I needed," said Pollard. "When you don't have a lot of money, you need to budget to spend wisely."

Pollard believes that financial education can help people improve their lives. With the skills that she learned in class, Pollard has been able to reconnect phone service to her home. She also plans to have her income tax refund deposited directly into her savings account.

Mary Smith*
Individual Development Account Program Graduate
Bethany for Children & Families, Moline

Mary Smith is a working single mother of two who was forced to file for bankruptcy eight years ago. Since that time, she has fought to keep her head above water financially. Due to her situation, she was unable to remove her ex-husband's name from her mortgage loan. When Smith saw a report on the news about the Your Money & Your Life Individual Development Account (IDA) program at Bethany for Children & Families, she knew that it was her chance to become financially stable. The program combines financial education classes with a savings program that matches each dollar a student saves. A family that saves $1,000 on their own can accumulate up to $2,000 in matching funds toward their chosen savings goal--money for a house, a small business, a car, or a post-secondary education.

"In the IDA program, I learned that you can't buy all of the things you want and you can't build up a ton of credit card debt," said Smith. "You've got to save for big goals and have a nest egg for emergencies. Write down every penny that you spend to keep track of where your money goes."

Smith also learned to read the fine print on materials from credit card companies. "If people know what they are getting into with a credit card or a loan, they are more likely to make the right decision," said Smith. "No matter how desparate you are, if you know that the money you are going to borrow is only going to make your situation worse, you'll find a better way to get financial help."

Smith's new understanding of loans, combined with her IDA savings account and help from her instructor Pat O'Brien, have enabled her to obtain a loan for her home in her own name and to purchase a car.

*Mary Smith is not the student's real name. The student's name has been changed upon her request.

Nancy Rickert
Financial Education Program Graduate
Heartland Community Church, Bloomington

Nancy Rickert was diagnosed with rheumatoid arthritis in August of 2000. As a result, she was forced to quit her full-time job as a receptionist/administrative assistant. With a newborn baby at home and multiple surgeries in her future, Nancy faced additional challenges when her husband decided to leave his job of 10 years and start his own business. Time passed, and when Rickert and her family saw no disability benefits from her previous job, their financial situation began to worsen.

Rickert heard about the Your Money & Your Life class through the Illinois Department of Human Services. "I wanted to find out what I didn't know about managing money," said Rickert. "The class gave me hints and new ideas on how to save, like writing down every cent you spend."

"The problem is that people don't have money, yet they spend money," said Rickert. "There were people in my class from all different walks of life. These are lessons that everyone should learn, not just people with financial problems."

Rickert has also shared what she learned with her children. "Now my kids have paper routes. If they want something that isn't in my budget, they have to work to buy it themselves--it teaches them the value of every dime."

"My instructor, Jan Young, showed our class that creditors are willing to work with you if you're honest," said Rickert. "I've been able to lower my interest rate on a credit card by seven percent because I was honest with my creditors about my situation."

With the skills that she learned in class, Rickert has paid off one credit card.

Tim Edwards
Individual Development Account Program Graduate
Partnership for Individual Development (PAID), Champaign

When Tim Edwards saw information about the Your Money & Your Life Individual Development Account (IDA) program in his church bulletin, he couldn't pass it up. The program combines financial education classes with a savings program that matches each dollar a student saves. A family that saves $1,000 on their own can accumulate up to $2,000 in matching funds toward their chosen savings goal--money for a house, a small business, a car, or a post-secondary education.

"At the time, my family was having car problems, and we were in danger of losing our house," said Edwards, a United States Postal Service driver and father of two. "When I read about IDAs and the match money you receive for each dollar you save, I knew I could benefit from the program. Our instructor, David Gillon, stressed the importance of using a budget and disciplining yourself in how you spend your money. It's something I had heard in the past, but needed to hear again."

The class also provided Edwards with money managment tools. "Before I took the class, I never knew which bill to pay first," said Edwards. "I understand now about prioritizing bill payments and knowing what affects your credit report." Edwards used his IDA money to buy a used car for his family--a 1995 Chevrolet Lumina.

Edwards' Your Money & Your Life instructor became a family resource. "We were worried we were going to lose our house, and David worked with us to figure out a solution," said Edwards. "He connected us with a different mortgage company, and now we have a mortgage we can afford."