Comments on: EARN: Helping Low-Wage Workers Learn to Save http://www.getrichslowly.org/blog/2008/09/03/earn-helping-low-wage-workers-learn-to-save/ personal finance that makes cents Fri, 09 Jan 2009 13:18:40 +0000 http://wordpress.org/?v=2.5.1 By: Sandra, Washington, DC. http://www.getrichslowly.org/blog/2008/09/03/earn-helping-low-wage-workers-learn-to-save/#comment-151909 Sandra, Washington, DC. Wed, 15 Oct 2008 15:53:58 +0000 http://www.getrichslowly.org/blog/?p=2029#comment-151909 Fantastic. Good for them. I get tired of people with low wages telling me they can't save because they have a low income. I can always see where they waste money. Fantastic. Good for them. I get tired of people with low wages telling me they can’t save because they have a low income. I can always see where they waste money.

]]> By: Carla http://www.getrichslowly.org/blog/2008/09/03/earn-helping-low-wage-workers-learn-to-save/#comment-148183 Carla Mon, 15 Sep 2008 21:50:29 +0000 http://www.getrichslowly.org/blog/?p=2029#comment-148183 I think this is great and wish they had something like this in Canada. We are low income ($16k a year) and last year managed to save half our income in a high interest earning account. Yes, we lived very, very frugally, although we loosened up this year. We did use some to buy a car but knowing that we have more money in savings than people we know who are earning 6-digit figures is extremely satisfying! Even more gratifying is we have no debt. It's fantastic! I think this is great and wish they had something like this in Canada. We are low income ($16k a year) and last year managed to save half our income in a high interest earning account. Yes, we lived very, very frugally, although we loosened up this year. We did use some to buy a car but knowing that we have more money in savings than people we know who are earning 6-digit figures is extremely satisfying! Even more gratifying is we have no debt. It’s fantastic!

]]> By: BW http://www.getrichslowly.org/blog/2008/09/03/earn-helping-low-wage-workers-learn-to-save/#comment-148045 BW Sun, 14 Sep 2008 15:20:00 +0000 http://www.getrichslowly.org/blog/?p=2029#comment-148045 As saving becomes more and more advantageous to the country as a whole, hopefully programs like this will become common for middle class and even high-income individuals. As saving becomes more and more advantageous to the country as a whole, hopefully programs like this will become common for middle class and even high-income individuals.

]]> By: Alex R. http://www.getrichslowly.org/blog/2008/09/03/earn-helping-low-wage-workers-learn-to-save/#comment-147710 Alex R. Thu, 11 Sep 2008 11:10:27 +0000 http://www.getrichslowly.org/blog/?p=2029#comment-147710 Prosper.com is a sort of microlending source that I've been using. You can invest in people trying to lower credit card debt, start businesses, and other similar goals with as little as $50 increments. I started with $100 and have upped it to $200. Over the last 6 months it has been my best investment. You can review credit ratings and you enlist a collecting agency in case individuals default on their loan. There is associated risk with the project, but you can look at it as a form of charity while still getting some return. I like the idea of having individuals pay a return to you for your help while totally skipping the middlemen of banks who can often confuse the process and take advantage of ignorant consumers. Prosper.com is a sort of microlending source that I’ve been using. You can invest in people trying to lower credit card debt, start businesses, and other similar goals with as little as $50 increments. I started with $100 and have upped it to $200. Over the last 6 months it has been my best investment. You can review credit ratings and you enlist a collecting agency in case individuals default on their loan. There is associated risk with the project, but you can look at it as a form of charity while still getting some return. I like the idea of having individuals pay a return to you for your help while totally skipping the middlemen of banks who can often confuse the process and take advantage of ignorant consumers.

]]> By: Rachel http://www.getrichslowly.org/blog/2008/09/03/earn-helping-low-wage-workers-learn-to-save/#comment-147192 Rachel Sun, 07 Sep 2008 01:35:56 +0000 http://www.getrichslowly.org/blog/?p=2029#comment-147192 Last October, my husband and I were able to buy our first home in large part thanks to a matched-savings IDA administrated through the Portland Housing Center. Going through that program certainly changed our saving habits, we now have an emergency fund in a high-interest savings account and are contributing to a retirement savings account. They also helped us to interpret and fix up our credit reports. This also ties in to the previous article--the PHC is an incredible resource for first-time homebuyers. They have homebuying and financial fitness classes, offer referral lists of realtors, lenders, inspectors, etc. who are used to working with first-time, middle to lower income homebuyers and who won't hoodwink you into taking on more loan than you can handle. In fact we were a little discouraged when we went to the Homebuying 101 class to learn just how little we could afford. :) Ultimately this was a good thing, we are now the proud owners of our first home and although it is smaller than what we initially imagined, we love it and it is within our means. This is a really, really wonderful organization and we will always be grateful to them. Actually they are still helpful, my husband recently went to a class on basic home maintenance, taught by our home inspector. In my opinion they would make a great topic for an article! Last October, my husband and I were able to buy our first home in large part thanks to a matched-savings IDA administrated through the Portland Housing Center. Going through that program certainly changed our saving habits, we now have an emergency fund in a high-interest savings account and are contributing to a retirement savings account. They also helped us to interpret and fix up our credit reports.

This also ties in to the previous article–the PHC is an incredible resource for first-time homebuyers. They have homebuying and financial fitness classes, offer referral lists of realtors, lenders, inspectors, etc. who are used to working with first-time, middle to lower income homebuyers and who won’t hoodwink you into taking on more loan than you can handle. In fact we were a little discouraged when we went to the Homebuying 101 class to learn just how little we could afford. :) Ultimately this was a good thing, we are now the proud owners of our first home and although it is smaller than what we initially imagined, we love it and it is within our means. This is a really, really wonderful organization and we will always be grateful to them. Actually they are still helpful, my husband recently went to a class on basic home maintenance, taught by our home inspector. In my opinion they would make a great topic for an article!

]]> By: Ryan http://www.getrichslowly.org/blog/2008/09/03/earn-helping-low-wage-workers-learn-to-save/#comment-147176 Ryan Sat, 06 Sep 2008 22:31:58 +0000 http://www.getrichslowly.org/blog/?p=2029#comment-147176 I'm a businessman in living in the Philippines and wish something like this would be available to ordinary Filipino workers or even taught in companies. In Manila the minimum wage would be around 6 USD a day. Enough probably to feed their family but many of them for some reason tend to spend it on gambling or mobile phones (a favorite status symbol here). If these people can save to purchase relatively expensive mobile phones then they can save money. I’m a businessman in living in the Philippines and wish something like this would be available to ordinary Filipino workers or even taught in companies. In Manila the minimum wage would be around 6 USD a day. Enough probably to feed their family but many of them for some reason tend to spend it on gambling or mobile phones (a favorite status symbol here). If these people can save to purchase relatively expensive mobile phones then they can save money.

]]> By: J.D. http://www.getrichslowly.org/blog/2008/09/03/earn-helping-low-wage-workers-learn-to-save/#comment-147112 J.D. Sat, 06 Sep 2008 07:07:20 +0000 http://www.getrichslowly.org/blog/?p=2029#comment-147112 Terry, I tried to clarify the wording a little. You're right -- it was confusing (and maybe still is). Basically, I believe participants are required to take eight hours of classes about general financial topics, and then six hours of classes about their specific goal. Does that make sense? Terry, I tried to clarify the wording a little. You’re right — it was confusing (and maybe still is). Basically, I believe participants are required to take eight hours of classes about general financial topics, and then six hours of classes about their specific goal. Does that make sense?

]]> By: Terry http://www.getrichslowly.org/blog/2008/09/03/earn-helping-low-wage-workers-learn-to-save/#comment-147111 Terry Sat, 06 Sep 2008 05:53:31 +0000 http://www.getrichslowly.org/blog/?p=2029#comment-147111 Spend six hours learning about their specific savings goal. What on earth does THAT mean? Spend six hours learning about their specific savings goal.

What on earth does THAT mean?

]]> By: Matt http://www.getrichslowly.org/blog/2008/09/03/earn-helping-low-wage-workers-learn-to-save/#comment-146955 Matt Thu, 04 Sep 2008 19:01:30 +0000 http://www.getrichslowly.org/blog/?p=2029#comment-146955 Thanks for that link, Peg. I have seen these kinds of programs popping up all over. In fact, I heard on the news that one high school in Indianapolis opened a faux bank to teach kids about saving, investing, and avoiding overdraft fees. Thanks for that link, Peg.

I have seen these kinds of programs popping up all over. In fact, I heard on the news that one high school in Indianapolis opened a faux bank to teach kids about saving, investing, and avoiding overdraft fees.

]]> By: Kim http://www.getrichslowly.org/blog/2008/09/03/earn-helping-low-wage-workers-learn-to-save/#comment-146951 Kim Thu, 04 Sep 2008 17:57:32 +0000 http://www.getrichslowly.org/blog/?p=2029#comment-146951 Deb, You might see if there is a Financial Peace University program offered through a local church in your MIL's town. Deb,

You might see if there is a Financial Peace University program offered through a local church in your MIL’s town.

]]> By: Peg http://www.getrichslowly.org/blog/2008/09/03/earn-helping-low-wage-workers-learn-to-save/#comment-146944 Peg Thu, 04 Sep 2008 17:01:24 +0000 http://www.getrichslowly.org/blog/?p=2029#comment-146944 The IRS offers a tax credit of up to $2000 for low-income taxpayers who put money into a retirement account (IRA or 401k). Last year my son, whose income was about $12,000, got a refund of about $700, because he contributes to a 401k. Without this credit he would have owed about $250 to the IRS. http://www.investopedia.com/articles/retirement/04/031704.asp The IRS offers a tax credit of up to $2000 for low-income taxpayers who put money into a retirement account (IRA or 401k). Last year my son, whose income was about $12,000, got a refund of about $700, because he contributes to a 401k. Without this credit he would have owed about $250 to the IRS.

http://www.investopedia.com/articles/retirement/04/031704.asp

]]> By: Jess http://www.getrichslowly.org/blog/2008/09/03/earn-helping-low-wage-workers-learn-to-save/#comment-146939 Jess Thu, 04 Sep 2008 16:06:16 +0000 http://www.getrichslowly.org/blog/?p=2029#comment-146939 I really, really think that this is a great program and I was glad to be able to offer my support! I really, really think that this is a great program and I was glad to be able to offer my support!

]]> By: Deb http://www.getrichslowly.org/blog/2008/09/03/earn-helping-low-wage-workers-learn-to-save/#comment-146928 Deb Thu, 04 Sep 2008 14:59:48 +0000 http://www.getrichslowly.org/blog/?p=2029#comment-146928 If anyone knows of a program in upstate NY (north of Albany), please share it! My mother-in-law is in desperate need of a program like this. If anyone knows of a program in upstate NY (north of Albany), please share it! My mother-in-law is in desperate need of a program like this.

]]> By: Geoff http://www.getrichslowly.org/blog/2008/09/03/earn-helping-low-wage-workers-learn-to-save/#comment-146893 Geoff Thu, 04 Sep 2008 09:21:21 +0000 http://www.getrichslowly.org/blog/?p=2029#comment-146893 This is a great idea. With such an appalling savings in the U.S there needs to be more programs like this. Saving needs to be promoted as exciting and appealing to counter the advertising and cultural juggernaut that pushes rampant spending. This is a great idea. With such an appalling savings in the U.S there needs to be more programs like this. Saving needs to be promoted as exciting and appealing to counter the advertising and cultural juggernaut that pushes rampant spending.

]]> By: Jack http://www.getrichslowly.org/blog/2008/09/03/earn-helping-low-wage-workers-learn-to-save/#comment-146885 Jack Thu, 04 Sep 2008 05:11:46 +0000 http://www.getrichslowly.org/blog/?p=2029#comment-146885 I hope that programs like this continue to flourish, so that Americans regardless of socioeconomic status can learn the virtues of how to effectively manage their finances. I think Dave Ramsey is doing a great job in this area, hopefully this is just the beginning. I hope that programs like this continue to flourish, so that Americans regardless of socioeconomic status can learn the virtues of how to effectively manage their finances. I think Dave Ramsey is doing a great job in this area, hopefully this is just the beginning.

]]> By: Christopher L. http://www.getrichslowly.org/blog/2008/09/03/earn-helping-low-wage-workers-learn-to-save/#comment-146884 Christopher L. Thu, 04 Sep 2008 05:02:20 +0000 http://www.getrichslowly.org/blog/?p=2029#comment-146884 This is a fantastic idea. As a conservative, I am routinely accused of being "against the poor" because of my opposition to most welfare programs. What a lot of people fail to recognize is that most liberals and conservatives are good hearted and well intentioned people, but who strongly disagree on what methods would be most effective to achieve a goal that everybody wants: to raise people out of poverty. In my opinion, this program sounds like it does a great job of equipping people with skills they can use throughout their lives. This is a fantastic idea. As a conservative, I am routinely accused of being “against the poor” because of my opposition to most welfare programs. What a lot of people fail to recognize is that most liberals and conservatives are good hearted and well intentioned people, but who strongly disagree on what methods would be most effective to achieve a goal that everybody wants: to raise people out of poverty. In my opinion, this program sounds like it does a great job of equipping people with skills they can use throughout their lives.

]]> By: Jane http://www.getrichslowly.org/blog/2008/09/03/earn-helping-low-wage-workers-learn-to-save/#comment-146883 Jane Thu, 04 Sep 2008 04:43:01 +0000 http://www.getrichslowly.org/blog/?p=2029#comment-146883 This sounds like Saver Plus, a program run in Australia by the Brotherhood of St Laurence and ANZ bank: http://www.anz.com/aus/aboutanz/Community/Programs/Saver.asp This sounds like Saver Plus, a program run in Australia by the Brotherhood of St Laurence and ANZ bank:

http://www.anz.com/aus/aboutanz/Community/Programs/Saver.asp

]]> By: Ryan @ Smarter Wealth http://www.getrichslowly.org/blog/2008/09/03/earn-helping-low-wage-workers-learn-to-save/#comment-146877 Ryan @ Smarter Wealth Thu, 04 Sep 2008 03:08:17 +0000 http://www.getrichslowly.org/blog/?p=2029#comment-146877 This program sounds really good and really helpful. I think one of the greatest things to break people out of poverty is education. If you can educate someone how to make more money then they will have more to save. Entrepreneurialism drives the country though there are not that many entrepreneurs. If people learnt how to make more money this would serve the same purpose. This program sounds really good and really helpful. I think one of the greatest things to break people out of poverty is education. If you can educate someone how to make more money then they will have more to save.
Entrepreneurialism drives the country though there are not that many entrepreneurs. If people learnt how to make more money this would serve the same purpose.

]]> By: commonsense http://www.getrichslowly.org/blog/2008/09/03/earn-helping-low-wage-workers-learn-to-save/#comment-146855 commonsense Wed, 03 Sep 2008 22:12:14 +0000 http://www.getrichslowly.org/blog/?p=2029#comment-146855 www.chrismartenson.com/crashcourse 'nuff said. http://www.chrismartenson.com/crashcourse

’nuff said.

]]> By: Rob http://www.getrichslowly.org/blog/2008/09/03/earn-helping-low-wage-workers-learn-to-save/#comment-146854 Rob Wed, 03 Sep 2008 22:10:20 +0000 http://www.getrichslowly.org/blog/?p=2029#comment-146854 I fully support any program that helps people who help themselves. I just donated to EARN and plan to do more in the future. I fully support any program that helps people who help themselves. I just donated to EARN and plan to do more in the future.

]]> By: Do-Gooder http://www.getrichslowly.org/blog/2008/09/03/earn-helping-low-wage-workers-learn-to-save/#comment-146853 Do-Gooder Wed, 03 Sep 2008 22:05:54 +0000 http://www.getrichslowly.org/blog/?p=2029#comment-146853 What EARN does is actually known as Individual Development Accounts (IDA) all over the country! United Way, for example, supports many local non-profits in Washington state by funding matched-savings programs that require participants to improve their financial literacy skills while building up their savings. The money participants save is generally used towards either of three different goals: - education - buying a home - starting a business Anybody who wants to support similar programs could contact United Way or search out their local CAB (community action block grant) non-profit and inquire about their IDA program. What EARN does is actually known as Individual Development Accounts (IDA) all over the country! United Way, for example, supports many local non-profits in Washington state by funding matched-savings programs that require participants to improve their financial literacy skills while building up their savings.
The money participants save is generally used towards either of three different goals:
- education
- buying a home
- starting a business

Anybody who wants to support similar programs could contact United Way or search out their local CAB (community action block grant) non-profit and inquire about their IDA program.

]]> By: Solomon@ThingsI'mGratefulFor http://www.getrichslowly.org/blog/2008/09/03/earn-helping-low-wage-workers-learn-to-save/#comment-146847 Solomon@ThingsI'mGratefulFor Wed, 03 Sep 2008 21:23:38 +0000 http://www.getrichslowly.org/blog/?p=2029#comment-146847 That is a fantastic idea. That is a fantastic idea.

]]> By: WiseMoneyMatters http://www.getrichslowly.org/blog/2008/09/03/earn-helping-low-wage-workers-learn-to-save/#comment-146846 WiseMoneyMatters Wed, 03 Sep 2008 21:16:18 +0000 http://www.getrichslowly.org/blog/?p=2029#comment-146846 This is great. Anything to teach people the principles of financial management. I actually earn very little compared to the average American, but I manage to put away savings each month. You don't have to have a high income in order to create a good deal of savings. You just have to have the right tools and determination to do it. This is great. Anything to teach people the principles of financial management.

I actually earn very little compared to the average American, but I manage to put away savings each month. You don’t have to have a high income in order to create a good deal of savings. You just have to have the right tools and determination to do it.

]]> By: A. Dawn http://www.getrichslowly.org/blog/2008/09/03/earn-helping-low-wage-workers-learn-to-save/#comment-146837 A. Dawn Wed, 03 Sep 2008 20:32:23 +0000 http://www.getrichslowly.org/blog/?p=2029#comment-146837 I have not come across program like this in Canada. We have RESP (Registered Education Savings Plan), CLB (Canada Learning Bond) etc which pay up to a certain amount for children’s education purposes. RESP pays 20% on the first $2,500 (or less) contributions made annually. CLB pays up to $2,000 for each eligible child born after January 2004. I am not aware of any adult program like EARN in Canada. It's a great program to have. A. Dawn www.adawnjournal.com I have not come across program like this in Canada. We have RESP (Registered Education Savings Plan), CLB (Canada Learning Bond) etc which pay up to a certain amount for children’s education purposes. RESP pays 20% on the first $2,500 (or less) contributions made annually. CLB pays up to $2,000 for each eligible child born after January 2004. I am not aware of any adult program like EARN in Canada. It’s a great program to have.
A. Dawn
http://www.adawnjournal.com

]]> By: deepali http://www.getrichslowly.org/blog/2008/09/03/earn-helping-low-wage-workers-learn-to-save/#comment-146835 deepali Wed, 03 Sep 2008 20:13:47 +0000 http://www.getrichslowly.org/blog/?p=2029#comment-146835 This is great. I used to volunteer for Operation Hope's "banking on our future" program, teaching financial literacy. It was really inspiring. This is great. I used to volunteer for Operation Hope’s “banking on our future” program, teaching financial literacy. It was really inspiring.

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