News Release

June 28, 2010

Contact: Erin Angell Collins, 202-220-6317, ecollins@nw.org
Danielle Adams, 202-220-7092, dadams@nw.org

NeighborWorks America Urges Families to Declare Their Financial Independence

Washington, D.C. – This Independence Day, NeighborWorks America urges consumers nationwide to become financially ‘fit’ and declare their financial independence in 2010.  In order to build a solid financial foundation for families and be better prepared for homeownership in the current market, NeighborWorks America and its network of local nonprofits offer free financial education courses that teach residents better money management skills which will help decrease debt, increase resources, and make affordable homeownership more achievable.

“Our financial fitness program is designed to make families aware of common financial pitfalls and how to avoid them,” said Ken Wade, CEO of NeighborWorks America.  “Financial education is critical for not only consumers, but for their communities.  With our program, consumers, regardless of income, are able to build assets while promoting a stronger and more stable neighborhood.”

Not only does financial education help consumers learn money management and planning skills needed to make the most of their income, savings and assets, it can also help them become more aware of common challenges, including loan modification scams and predatory lending practices, and how to avoid them.

To help more families kick-start their efforts to asserting financial independence this Fourth of July, NeighborWorks America offers several useful tips:

• Set realistic financial goals.  What is it you want to achieve?  Evaluate your progress to meeting your goals on a regular basis.
• Create a budget and track every expense for an entire month.  This can help you identify areas where you can trim spending.
• Reserve for the future and start a savings plan.  Think of this as creating a financial reserve for your family in the event of an emergency or other incident you hadn’t planned for, or if you are interested in becoming a homeowner, the savings plan can help you save for a down payment on a home.
• Pay your bills on time.  Late payments have a negative effect on your credit score and your wallet, thanks to late payment fees.
• If you face a financial crisis such as foreclosure or become victim to loan modification scam, consult a nonprofit, HUD-approved counseling organization that offers foreclosure counseling.  To find a nonprofit HUD-approved housing counseling agency in your community, visit www.findaforeclosurecounselor.org.
• Consider taking a financial fitness course at one of the more than 85 NeighborWorks affiliates to develop sound money-management skills.  Most of the classes are free or are offered at a low-cost.  Courses help homeowners learn how to plan financially, set financial goals, manage income and expenditures, and plan for retirement and more.   
• If you want to go back to school or start your own business but don’t have the funds, consider opening up an Individual Development Account (IDA).  IDAs are designed to help individuals who want to purchase a house, receive job training, further their education, or start up a business.  Accounts are offered by community development organizations and are funded by public and private sectors.

About NeighborWorks America

NeighborWorks America creates opportunities for people to improve their lives and strengthen their communities by providing access to homeownership and to safe and affordable rental housing. Since 1991, we have assisted nearly 1.2 million low- to moderate-income families with their housing needs. Much of our success is achieved through our support of the NeighborWorks network ― more than 235 community development organizations working in more than 4,400 urban, suburban and rural communities in all 50 states, the District of Columbia and Puerto Rico. In the last five years, NeighborWorks organizations have generated more than $15 billion in reinvestment in these communities. NeighborWorks America is the nation’s leading trainer of community development and affordable housing professionals.