Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: MONDAY, December 26, 1994 TAG: 9412270017
SECTION: VIRGINIA PAGE: C1 EDITION: METRO
SOURCE: BETSY BIESENBACH STAFF WRITER
DATELINE: LENGTH: Medium
People receiving Aid to Families with Dependent Children and food stamps barely have enough to feed and house themselves, said RAM's director, Julie Hollingsworth. There are no corners to cut in their finances.
But there are some working-poor families who come to RAM for emergency assistance who can benefit from financial planning. Most of these are sent to the Consumer Credit Counseling Center, which helps set up budgets and plans for paying creditors.
Since September, however, three of RAM's clients have been meeting with David Cissel, a certified financial planner, to learn how to handle their money better.
Most people who consult with Cissel pay $65 an hour, but he is donating several hours a week to RAM.
The brand-new program was Cissel's idea. A former Peace Corps volunteer and one-time insurance underwriter, Cissel was looking for a way to use his skills to help other people.
"I heard some good things about RAM," he said, so he met with Hollingsworth and offered his services.
Clients are referred to him during the regular screening process. Because they must meet with him on a weekly basis, the people selected for the program have to be motivated to work at budgeting their money, Cissel said.
During his first meeting with clients, Cissel gets to know them and their situations. Not knowing how to handle money is not just a problem of the poor, he said. Wealthy people often are deep in debt, too.
The first rule of financial planning, he said, is "you can't spend more than you have coming in."
Many people often mistakenly think that taking out a loan will solve their problems, when it really just makes things worse.
The biggest difference between working with people at RAM and with his regular clients is that most of those who come to see him at his business are working to put something away for retirement. RAM clients are usually trying to pay off debts; most often, medical bills.
Cissel helps his clients set up priorities and think about the things for which they want to save. He then helps them work up a budget so they can see where their money is going. Saving money can be as simple as not eating out as much, using coupons at a grocery store or cutting telephone and utility bills.
It sounds simple, but a lot of people "haven't had that kind of guidance," he said.
The program is too new to have seen any results, but so far, the clients have been "pretty good at following advice," Cissel said.
For him, the project has brought personal satisfaction, he said. "I want to have a positive influence in the community."
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by CNB