Financial Counseling can make a difference!

A Personal Investment in North Charleston

by Elizabeth Duffrin

One spring morning in 2005, Dorothea Bernique, an accredited financial counselor in South Carolina, was seated across her desk from a well-dressed, middle-aged client, an African American woman who had just come into a sum of money. As Bernique gently questioned the client about her plans for the money, the woman suddenly leaned in and whispered, “Miss Dorothea, what is investing?” Bernique had long been troubled by the lack of financial knowledge among the working poor in the North Charleston area. But the vulnerability in that simple question overwhelmed her. “Someone could have really taken advantage of her,” Bernique says. “I thought, ‘This is it. I need to go all out and do what is in my heart.'”

Increasing HOPE

Within three months, she quit her well-paying job at an insurance company and launched a nonprofit offering free financial workshops to low-income residents. Ten years later, her nonprofit, Increasing HOPE (Helping Others Prosper Economically), offers a “one-stop shop” for financial services to low-income residents in three South Carolina counties. With the firm belief that quality financial education could improve lives, Bernique located her office in North Charleston, the area of greatest need. The City of North Charleston had always been primarily a working class community. When the 1,500 acre Naval Base and Shipyard closed in 1996 taking with it more than 22,000 jobs, the city fell on hard times. Today, almost a quarter of the 100,000 residents live in poverty. An elevated highway divides North Charleston from the more affluent City of Charleston.

For years on her own time, Bernique had offered free financial coaching to low-income workers through a national ministry. She knew the need for financial education was there, but in 2005, the money to support it was not. Bernique appealed to banks and foundations but could not get their attention. “I was told that financial education wasn’t a poverty issue and didn’t relate to it,” she recalls. To get started, she used the FDIC’s online Money Smart curriculum and borrowed space for workshops from nonprofits and churches. She launched a local radio show on personal finances, passed out flyers at community events and networked. “It was a lot of word-of-mouth,” she says, “a whole lot of pounding the pavement.” Within a year, Bernique settled into her own office, hired staff and expanded her financial curriculum. Her workshops drew maids, janitors, hotel clerks, cashiers and waiters as well as higher-income earners who bounced checks. She trained women moving out of transitional housing through the YWCA and new homeowners through Habitat for Humanity.

Changing people’s relationship with money 

Attendees expressed “almost overwhelming appreciation for the information,” she found. In follow-up phone calls, nearly all agreed they had learned how to budget. But sticking to those budgets proved a bigger challenge — less than 30% reported doing so.  It was only after reading a book by a couple of financial psychologists that she hit on a solution. Now, she helps clients uncover their beliefs about money and reflect on the experiences that shaped those ideas and led to financial trouble.  Bernique recalls one woman in her early 20s who realized that her family was in debt because she expected her husband to provide for all her wants, just like her older siblings had when she was a child. A middle-aged man realized that because his own mother could “stretch a dollar until it screamed,” he was unreasonably expecting his own wife to take charge of the family’s money management when he was better suited to the job. Without such insights, “it didn’t matter what we taught them about a budget,” she insists. “We had to change the mindset before we could change the behavior.” The new approach doubled the success rate. More than half of clients reported sticking to their budgets. Budgeting workshops were only one piece of what Bernique envisioned in her one-stop-shop for financial information.

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Georgia lags in foreclosure help

Georgia lags in foreclosure help

State says it will meet goal of aiding at-risk homeowners.

By Dan Chapman dchapman@ajc.com 

   Georgia, given $340 million in federal money three years ago to help at-risk homeowners, has spent only a quarter of the money, according to a newly released Inspector General’s report critical of the state’s efforts to ease the foreclosure crisis.   Only Indiana and Alabama have dispensed proportionately less.   About 5,900 Georgians fewer than one-third the number initially estimated have received assistance intended to save homes and neighborhoods.

   “It’s very concerning that we’re more than half way through the program and the funds will have go back to the Treasury if not used by 2017,” said Kristen Tullos, an attorney with Atlanta Legal Aid Society, which assists homeowners facing foreclosure. “We are not on track at this point.”   But the state Department of Community Affairs, which administers the so-called “hardest hit fund,” said this week that Georgia will meet its foreclosure target.  “We’ve turned the corner, and we’re definitely on track to spend all the funds by Dec. 31, 2017,” said Brenda McGee, the program’s director. The Great Recession killed hundreds of thousands of Georgia jobs and left homeowners unable to pay mortgages. Nearly a quarter million metro Atlanta households plunged into foreclosure since 2006. neighborhoods primarily across the region’s southern tier, as well as in Gwinnett County, deteriorated as vandalism, blight and weeds took root. 2010 was the foreclosure nadir across metro Atlanta with 93,000 foreclosure notices.   As the economy improved, and unemployment dropped, foreclosures plummeted. Metro Atlanta should see fewer than 20,000 foreclosures this year as the region returns to pre-recession levels of housing distress. But the scars to communities and homeowners — remain. And Georgia maintains the nation’s highest unemployment rate.

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