Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: TUESDAY, March 3, 1992 TAG: 9203030379
SECTION: CURRENT PAGE: NRV-1 EDITION: NEW RIVER VALLEY
SOURCE: JUDY SCHWAB CORRESPONDENT
DATELINE: LENGTH: Long
You can't beat the price.
A lot of this help is free.
Irene Leech, extension specialist and assistant professor at Tech, said lots of people are having economic trouble these days, especially with credit.
"Credit-card debt just eats lots of families up," she said. Although spending less does nothing to strengthen the national economy, it's the only way families can escape the money pit they have already dug, Leech pointed out.
Leech's job is to help people manage their money and meet their financial goals. One way she does this is through the Women's Financial Information Program, starting on the Tech campus today.
"People really increase their self-confidence in managing their money," Leech said.
The program isn't just for women, she said. It got that name because women often find themselves, because of divorce or widowhood, suddenly thrust into financial management with little experience.
The program lasts eight weeks and meets once a week for 1 1/2 to 2 hours at night. A small-group workshop follows a one-hour lecture.
To sign up, call your Cooperative Extension Service office. More than 3,000 people have taken the course in its three years of existence.
There are signs of economic trouble all over the place, Leech said. People are eating out less, and some are contributing less money to charitable causes.
Oddly enough, when employees at Tech were offered a means of contributing money for laid-off workers, a good part of the money came from people with the lowest-paying jobs, Leech said.
Middle-income individuals and families are being hit hard by this recession and are seeking relief. Leech couldn't pinpoint a middle-income level, but the federal government says the poverty level for a family of four is around $12,000, she said.
While other societies may not need to be prompted to save for the future, Leech said Americans have the lowest savings rate in the world. Everyone should have three to six months salary socked away in an emergency fund, but almost nobody does, Leech said.
Leech stresses goal-setting for personal economic stability. Figure out what you want to accomplish financially, then design a budget to achieve those goals.
To establish a budget, you first need to determine where your money is going. No doubt you'll find out you need to give something up to obtain the goals you set.
"You need to see a budget as a tool, not a straitjacket," Leech said.
The program isn't just for low- or middle-income people or those in financial trouble. It's a good way to learn about money management before you have money to invest, she said.
Planning for retirement is an example. Leech said everyone needs to answer the question, "Who's responsible for me?" If you do not intend to rely on government assistance should you ever need long-term care, then financial planning is in order.
To find out more about the Women's Financial Information Program and to obtain Extension Service publications, call your Cooperative Extension Office.
Lelia Mayton of the Montgomery County Extension Office does individual budgeting and planning sessions free of charge. Call for an appointment 382-5790.
TIPS FOR STAYING OUT OF ECONOMIC TROUBLE:
Leave your money, credit cards and checkbook at home when you shop. Make it difficult to make a purchase until you've shopped for the best buy.
Rent rather than buy expensive items you rarely need - rug shampooer, garden tractor, video camera.
Compare prices before buying most things, from clothing and food to checking accounts.
Eat in more often and out less often, and prepare foods from scratch. Scratch is cheaper than heat-and-eat products.
Buy generic drugs - both off-the-shelf and prescription. Your pharmacist can verify the ingredients are the same in the more-expensive name brands and house brands.
Shop at used-merchandise shops, discount stores, and factory outlets, but be sure prices are really lower than retail.
Plan grocery shopping to avoid many trips to the store. This not only saves fuel and car wear, but cuts down on impulse buying.
Never shop for groceries when you're hungry.
Some extension publications available on personal economics: "Cutting Costs," "Automobile Insurance: How Much Coverage Do I Need?" "Getting Out of Debt," "How To Make Your Money Go Further."
For serious penny-pinching, send a postcard requesting a free copy of The Tightwad Gazette, P.O. Box 3570, Leeds, Maine 04263. This is a kitchen-table enterprise run by a couple who have proven their ability to stretch dollars. They're out to live cheaply but well and give "tightwaddery" a good name.
by CNB