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During the holiday gift buying frenzy, it’s easy to feel overwhelmed and stressed about not having enough money to spend on your loved ones. However, with some careful planning and creative gift giving, you can enjoy some holiday cheer without worrying about going into debt to show you care. Below are some easy-to-follow tips that will guide you through the buying process with ease: 1. Plastic precaution Remember to be cautious with credit cards. Plan to pay off the balance at the end of the month if possible, and if not, choose the card with the lowest interest rate. If not used wisely, it could take you all year to pay off the holiday splurge. 2. Save during the season Even though it’s already December, you can still save money for shopping. If you’re in the habit of going out to lunch every day, you can bring your lunch from home a few days a week and sock away that $7 – 10. Before you know it, those lunch savings will add up to a nice sum you can spend during the holidays. 3. Coupons and sales This year retailers are offering all kinds of deals. Save the coupons and combine with special offers – but don’t be tempted by extras not on the shopping list. 4. Stay away from store credit cards Store credit cards tend to have the highest interest rates around, somewhere in the ballpark of 20% APR. Also, limites on such cards tend to be much […]

“About 1 in 5 people, or 20.3 percent of all people in Austin lived in poverty [in 2011],” according to a recent Austin American-Statesman article. Although that’s a decrease from the 20.8 percent in 2010, it’s still a significant number…nearly 32,000 people. One of the most effective solutions in fighting poverty is to educate working poor individuals and families – by supplying them with tools and support individuals can become empowered to take control of their finances. The hurdle: Providing education to 32,000 Austinites would take a large amount of resources and even more time. The solution: Using pre-existing platforms, such as a client/social worker relationship, to reach groups of the working poor provides considerable opportunities to scale. Across the country, social service providers are providing financial stability services in a way that’s culturally competent and builds off a client’s strengths. By understanding the financial values and habits of clients, practitioners are better able to address the root cause of financial insecurity. And so, last week United Way for Greater Austin launched a training, the Client-focused Financial Empowerment Seminar, which was piloted at the University of Texas’ School of Social Work. The seminar, which was a full-day training, was coordinated by UWATX’s Financial Opportunity staff and was conducted by national experts, Robin McKinney and Sara Johnson. Both McKinney and Johnson are directors of Maryland and Baltimore’s Creating Assets, Savings and Hope (C.A.S.H.) campaign, a network of organizations that promote financial stability for working families. The more than 60 participants were […]

Name: Velocity Credit Union Partner for: 2 years with Bank On Central Texas Partner with: Financial Opportunity   Our relationship: Since the launch of Bank On Central Texas (BOCT) in 2010, Velocity Credit Union has been a member of the coalition. BOCT, a program of United Way for Central Texas, aims to bank the unbanked by offering resources that link families and individuals directly with banking institutions that offer zero- or low-cost banking options. This year, Velocity has also partnered with UWATX by attending financial education workshops, called Learn Where You Earn. At the workshops Velocity staff members are available to answer questions about banking and encourage participation in direct deposit. What we’ve accomplished: BOCT opened more than 6,000 bank accounts in its first year, saving Austinites $2 million in check-cashing fees. How Velocity Credit Union makes Austin greater: “Velocity has a strong ethic of social responsibility. They are committed to helping Austinites improve their financial wellbeing, which makes them an excellent partner.” – Faith Ryan, Director, Program Coordinator, Financial Opportunity.

Name: Foundation Communities Partner for: 5+ years Partner with: Financial Opportunity   Our relationship: Since 2005 Foundation Communities has provided free tax preparation assistance for Central Texas families, enabling them to claim tax credits and refunds they’ve earned without paying high fees to commercial tax preparers. For several years, United Way for Greater Austin has helped fund Foundation Communities to specifically support their Community Tax Centers. Additionally, our Navigation Center provides eligibility screenings and referrals for the tax preparation assistance program. What we’ve accomplished: In 2012, with the help of UWATX, Foundation Communities was able to secure 11 million dollars in Earned Income Tax Credits for low-income families and individuals as well as $29 million in tax refunds. How Foundation Communities makes Austin greater: “Foundation Communities is committed to the financial wellness of Austin residents – making it possible for more Austinites to overcome barriers to economic opportunities.” – Sarah Janecka, Director, Financial Opportunity.

On June 19, United Way for Greater Austin wrapped up our first financial education workshop series with The City of Austin’s Resource Recovery department as a part the Learn Where You Earn (LWYE) financial planning series. LWYE is an initiative to partner with local employers to provide education on financial literacy and money management for their employees within the workplace. Seth Mason, with nonprofit Cornerstone Financial Education, presented information in a three workshop sequence on topics such as improving credit scores, how to read a credit report, managing debt, and creating a household budget. One participant, Robert Garcia, never made a budget before and had never looked at his credit report – nor did he understand what his credit score meant.  He now feels equipped to create a budget, has a good handle on his credit and feels empowered to plan for a buying a home.  Through LWYE he will have access to a financial coach to help him continue on his path to home ownership. Ashley Singh Sawicki, of Velocity Credit Union, also stopped by one of the workshops to discuss how direct deposit can save on check-cashing fees and answer questions about banking.  Velocity Credit Union is a member of Bank On Central Texas, a United Way run initiative to bank the unbanked. With financial education, working individuals have the opportunity to engage their hard-earned dollars into active fiscal success. Although budgeting, repairing credit, and increasing savings are among the top priorities of LWYE, individual growth and less […]

In its first year, Bank On Central Texas (BOCT) opened more than 6,000 bank accounts- saving individuals more than $2.4 million. Many Central Texans struggle daily with budgeting and meeting daily expenses. Often these individuals are wary of banks and use services provided by check cashers, pawn shops and payday lenders. Forty-seven thousand Central Texans don’t use a bank account for basic financial activities and cash checks valued at more than $160 million at check cashers with more than $4 million in check cashing fees collected. In Austin alone, a typical working, unbanked household pays between $230 and $918 to cash paychecks during the course of one year. For someone on a fixed income or living paycheck to paycheck, that can really add up. To address this issue, United Way Capital Area (UWCA) launched BOCT is a community initiative to bring together financial institutions, government, private sector and community organizations to provide more people access to better financial products and services. “Individuals who don’t have bank accounts rely on alternative, high-cost financial services,” said Annie DuPre, Financial Stability VISTA at UWCA. “There’s potential for these individuals to save hundreds of dollars a year by opening a low cost or even free account through the partnerships established by BOCT.” BOCT, which serves 10 counties, reaches out to both unbanked (those who do not have an account-checking or savings) and under-banked (those who use a combination of mainstream and alternative financial services). The majority of unbanked or under-banked individuals are in low and […]