The power of V.I.T.A. and financial counseling

Client A.V. came to our offices to find assistance managing his finances along with assistance finding a second part time job to increase his monthly income.  A.V. also came to us with a $4000+ debt to the government. As a result his checks were even further reduced by an administrative wage garnishment.  Money is continuously tight for the A.V. household!  In discussing his finances we determined that he had made some mistakes on his tax filings.  By paying attention to his situation and listening for the clients response we began asking further questions.  Some question that came about were if he had been using the earned income tax credit and claiming his daughter on his taxes.  We found that he had been missing valuable credits which would have greatly increased his refund.  We filed corrections for his taxes and as a result he was entitled to much larger returns for the past three years.  Because of the garnishment these refunds were used by the government to pay this debt, however, now his liability has been greatly reduced by over $3000! Soon this balance can be paid and this garnishment will end, increasing the amount in his budget.  We are happy that we were able to have such an impact on the life of a client!

September Success Stories

Kim K., came to us as a referral from a good friend after recently being terminated from her most recent employer. Through the center’s services she received assistance applying for unemployment, but unfortunately was quickly denied.  Soon after her main focus was finding employment but she was not sure of where to start. She was also injured on her previous job which posed an issue for her to return to the field shed known for so long. Kim’s experience prior to program entry was in the healthcare industry but she also held a Class E driver’s license, but never truly took advance of it. For years she never needed a resume or had to apply online for jobs. So today’s job was an unexpected hurdle. However, with the assistance of employment services, resume building, job leads and access to the computers to conduct her job search. Soon after her membership she was gainfully employment full time as a local transportation driver with benefits. Kim’s success was due to her commitment to make scheduled appointments and her openness to overcome her hurdles.

Employers and Credit Checks

It is become a major topic of conversation on many job search and career sites.  People are talking about it with their friends and family members. I'm referring to the growing trend of employers using credit reports as a way of finding the "best" employees to fit their firms.  What this means and how it actually affects individuals is often poorly understood!

Who's checking and why?
Traditionally employers in very sensitive and high profile industries.  These have included the finance industry, defense firms, chemical and pharmaceutical companies.  However increasingly more firms in less sensitive industries are picking up this trend as a way of whittling through long lists of candidates.
Reviewing of credit reports are being used as an indicator of an applicants financial honesty and personal integrity.  Unfortunately, a credit report isn't always a great indicator of either, especially if negative credit items are the result of being unemployed!

Consumer protection
In all cases, an employer must get your permission to check your credit report.  The report that employers do receive is modified in a way that shields some consumer information such as account numbers, year of birth and references to your spouse.  Additionally, if a negative decision is made based on information in your credit report, the employer must send information on how an individual can get a copy of their report.  Most importantly, an employer can not access your credit report without your permission.

What you need to do:
Understanding that the reviewing of credit reports is being used as a way to help shrink the pool of potential candidates and make hiring decisions more efficient, there are ways of addressing negative items and ensuring you aren't automatically placed in the "No" Pile.

• Get a copy of your credit report from AnnualCreditReport.com: By knowing what's on your report you can identify any negative items.
• Be proactive: If you think something on your report may be keeping you from getting a job, take steps to address it with employers
• Write a letter to a potential employer detailing the life situations that caused the negative credit report item:  Highlight any steps you took to rectify the situation. 
• If the item is current or fairly recent, develop a plan on how you will improve the credit report:  Contact creditors or collection agencies to set up payment plans or negotiate payments or settlements. If you can't make payments due to your current situation, e.g. unemployment or under employment, discuss steps you will take when you are able.
• Focus on steps you are taking to ensure that your future credit performance stays positive.
• Stay away from excuses and wording that may be perceived negatively: For example, saying that I simply forgot to make my payments could show a lack of attention to detail.
• Remain positive: Talk about the changes you will make going forward and how you won't let money problems distract you from your work life.

Debt Collections: A huge problem for many Americans

Study: 35 percent in US facing debt collectors: Associated Press

In the above article, its reported that more than 1/3 of all Americans are being confronted by debt collections. Not only are they having to deal with the collection calls and other practices, for many who find themselves with accounts in collection, they also find themselves with a reduction in their credit score, difficulty finding housing and employment and the potential to be required to pay high deposits for services.  In many cases, accounts falling in to collection are the result of rising costs of services, increased costs of goods, which may divert funding away from bills to other necessities, and even extreme weather conditions can make paying utility bills more difficult.  With the stagnant wage growth in America, and the rising costs of living in many cities there are several important things the the Prosperity Center staff encourages. 
We work diligently to ensure that our clients can create a budget that helps them to get their finances on track.  We also help clients work towards keeping to their budget.  Our employment coach works with clients to help them find employment that pays a liveable wage.  She also works to help clients who are employed find ways to help them find ways to increase their salary through negotiation skills advanced training and/or certifications.
In addition to this, what's needed are some policy changes.  It isn't fair to the credit profile of many Americans to spend years paying their utility bills on time and to never have that information reported (Utility bills, including cell phones and cable services, are not reported monthly on your credit report).  The only time these accounts will report is when the account falls behind and goes in to collections.  One opportunity for policy improvements involves reporting the "full file" about clients.  This way in addition to the negative impact of a collection, clients will also have an account that shows the years of on time payments, allowing viewers of the report to see how well individuals pay their obligations and helping individuals to better showcase their good payment history.

March Success Story

 

 

Reginio H., came to us after being long term unemployed and having no income for a little over six years.  Mr. Hernandez has tried other employment services in the community, but unfortunately he was still unable to find employment. Within a nine year time frame his prior work experience was in a wide range of industries and no position was the same. Upon program entry, he received intensive one-on-one coaching sessions to determine his transferable skills in order to make him marketable for employment. His sessions also included: a mock interview, resume and cover letter revisions, employment referrals and job search options. Within a few months of his participation and determination he was able to find part time employment with the possibility of full time.  As a result, he received support services offered from the Center to assist with transportation for the first month. Not only has Mr. Hernandez increased his income he will also receive paid training from his new employer.

Top 10 Ways to Save: How Will You Maximize Your Refund?

There are many ways to spend your tax refund this year. Before you hit the mall, take a few minutes to check out the Top 10 Ways to Save and do more with your tax refund. Prosperity Center Coaches can help you develop a savings plan, manage debt and expenses, and achieve your financial goals.

1. Buy a Savings Bond:

With the Tax Time Savings Bonds program you can save part of your tax refund with U.S. Savings Bonds. For as little as $50, you can buy a savings bond and start saving for your family’s future.

• Savings bonds can help you by setting aside money for emergencies, or to get closer to your goal to buy a home, pay for education or save for retirement. 
• You can buy bonds in someone else’s name to give as gifts and help your loved ones reach their dreams. 
• To buy a savings bond, check the box on the paper or online tax form and indicate the amount of the savings bond(s) you want to buy. If you are filing a paper return, use Form 8888. 
• Watch your mailbox: You will get your savings bonds in the mail 3 to 5 weeks after you receive your tax refund. 
• Learn more about buying savings bonds with your tax refund.

For FREE tax preparation services, schedule an appointment at our VITA site, or visit myfreetaxes.com/pckc

2. Pay down your debt and overdue bills:

If you have overdue bills or loans, use your tax refund to pay them. Once your debt is gone, you’ll have more spending money and you may even sleep better at night.

• Late fees and interest charges can add up quickly and they can ruin your credit. 
• Start by paying your bills, credit cards or loans that charge the highest fees and interest rates. 

If you’re feeling overwhelmed by your debt, get free help from our Financial Coach. Schedule a Program Overview today.

3. Open a savings account:

Having a bank or credit union account will help you

• have a safe place to keep your money, 
• save money by avoiding check cashing fees, 
• get into the habit of saving, 
• establish a financial history, and 
• get affordable car and home loans in the future.
  
  

4. Create an emergency fund:

Deposit your tax refund into your savings account to save for a rainy day. Or better yet, open a separate savings account or money market account at your bank or credit union. That way you can avoid using your emergency account on a regular basis and your money will be there when you need it. You should try to save the amount of money you would need to pay your regular expenses for one to three months in your emergency fund.

5. Save for retirement

You are never too young to start saving for retirement. You’ll need more than what you’ll get from Social Security to retire. Use your tax refund to add to your retirement account or find out how to open a retirement account if you don’t have one already.

6. Save for education

B.B. King once said, “The beautiful thing about learning is that no one can take it away from you.” Give your child—or yourself—the chance to go to school and have a better future. Put your money in a college savings fund so your money can grow safely and tax-free. Or use your tax refund to get a GED so you can get a better job.

7. Repair your home

If you own a home, you know it’s hard to set aside money to fix it up. With more cash in your pocket, you can make needed repairs to your home, whether it’s replacing a broken appliance, fixing a leaky roof or adding insulation to save you money on heating and cooling costs.

8. Start a Business

Your tax refund can be a great way to jumpstart a small business. Visit our partners at KCSourceLink to learn about resources available to you to help start your own business.

9. Take advantage of the Supplemental Nutrition Assistance Program (SNAP)

Food Stamps, now called the Supplemental Nutrition Assistance Program (SNAP) is a government program that gives households money to buy food.

Programs vary but in many states, if you receive SSI or SSDI, you may qualify to get SNAP benefits as well. Plus, if you’re applying for or receiving SSI, you may also be able to get SNAP information and an application at your local Social Security office. Those who qualify get an Electronic Benefit Transfer order EBT card that can be used like a debit card at many grocery stores, gas stations, and farmers’ markets.

Schedule a Program Overview, then meet with our Income Supports Specialist to find out if you qualify SNAP.

10. Take advantage WIC: Nutrition for Women, Infants and Children

WIC is a federal nutritious food and education program for women, infants and children — specifically, pregnant moms and kids under five. Programs vary state to state but the average monthly benefit is forty dollars!

Keep in mind that just because you get WIC benefits doesn’t mean others won’t. All who qualify, benefit! Plus, if you receive SSI, you may qualify to get WIC benefits as well. WIC benefits include nutritious food or coupons to buy things like milk, juice, eggs, cheese, cereal, and formula. And, access to free health services like prenatal care, immunizations, nutrition advice, and parenting education. Find out if you or your children qualify for WIC today by visiting

Schedule a Program Overview, then meet with our Income Supports Specialist to find out Missouri and Kansas requirements for WIC.

April is Money Smart Month in Kansas City. Join The Prosperity Center, Rockhurst University and Catholic Charities for Free Film Screenings. We will discuss financial education and personal finance literacy topics including:

• Banking
• Budgeting
• Money management
• Saving and investing
• Financial planning
• Credit
• Debt management
• Financial decision making
• Financial fraud and scams
• and more!

The Pursuit of Happyness (2006) starring Will Smith
Friday, April 11 from 7:00pm-10:00pm 

Lucky (2010) an HBO documentary

Friday, April 25 from 7:00pm-10:00pm

Please email us to register. 

Free IRS-Certified Tax Preparation

The Prosperity Center is an IRS Volunteer Income Tax Assistance (VITA) site offering FREE tax preparation for individuals and families with gross annual household income of $52,000 or less.

Our site is located in the Rockhurst Community Center at 54th Street and Troost Ave from 8:00am to 12:00pm on Saturdays during this tax season.

Registration is required for volunteer assistance, but you can self-file your federal returns and state returns for free at www.MyFreeTaxes.com/PCKC.

Register on our website or call to schedule an appointment.

What to bring:

• Social Security card for each family member or Individual Taxpayer Identification Number (ITIN) assignment letter
• Valid photo ID
• W-2 forms from all jobs worked in 2013
• All 1099 forms for other income, if any
• Total paid for child care, provider name, address and tax ID
• Any other tax-related documents for 2013
• Proof of bank account and routing numbers for direct deposit of refund 
• A copy of your 2012 tax return (if available)
• All adults on return must be present to sign

Prosperity Center Tax Volunteers can help your refund grow by depositing it into your savings account, retirement account or US Savings Bonds. Let us help you file your taxes and plan for your future financial goals!

Tax Season Volunteer Opportunities

The Prosperity Center has a number of volunteer opportunities this tax season. As an IRS Volunteer Income Tax Assistance (VITA) Site, we offer free tax help to individuals and families with incomes under $52,000. Volunteers of all skill levels are welcome. Contact us to sign up.

VOLUNTEERS NEEDED:

Site Coordinator
Manage all facets of a VITA site, including managing volunteers, setting up the Site, transmitting returns, contacting clients concerning rejected returns, retransmitting corrected returns, and collecting and submitting data. The Site Coordinator must be comfortable using a computer and have the ability to use Microsoft Windows-type programs. In general, advanced-level tax certification is required.

Financial Specialist 
Help Prosperity Center clients understand the value of transactional and/or savings accounts. The Financial Specialist may open accounts for clients who choose to establish one of these relationships. Computer and Internet experience is required for this position. A background in financial education or financial services is helpful.

Greeter 
Act as the initial contact to the taxpayer, helping coordinate traffic flow and ensuring that the taxpayer qualifies for free tax assistance. The Greeter has each client sign in and provides information sheets to be completed. No income tax knowledge is necessary for this position.

Information Assistant 
Gather appropriate documentation for the Tax Preparer, reviews the client information sheets for completion, and provides appropriate data as noted on information sheets. No income tax knowledge is necessary for this position.

Interpreter 
Facilitate bilingual communications between the clients and the tax preparer. No income tax knowledge is necessary for this position.

Quality Control Reviewer 
Check each return for accuracy and completeness before it is transmitted. The Quality Control Reviewer completes and initials a checklist for each return. Advanced-level tax certification is required.

Tax Preparer 
Review client documentation, interview the client, and prepare the client’s personal federal, state, and local income tax returns on a computer. You must be comfortable using a computer. Basic-level tax certification is required.

Tax Coach 
Help taxpayers who choose to prepare their own returns under the assisted self-preparation model. The Tax Coach must be comfortable using a computer and have the ability to use Internet tax programs. It is recommended that you be familiar with completing your own tax returns. Basic-level tax certification is required.

2014 Community Workshops and Tax Prep

We are kicking off the new year with new community workshops. The Prosperity Center is also a VITA tax preparation site, providing free income tax filing assistance for households with income of $52,000 or less.

Workshops are free and open to everyone, but registration is required. Contact us to register and get started toward your 2014 goals!

Prosperity Center for Financial Opportunity

2014 Community Workshops

EMPLOYMENT, EDUCATION & FINANCIAL COACHING

ABC's of Personal Finance	January 25th	10:00 am
Filing Your FAFSA	February 11th	4:00 pm
Living on a Fixed Income	March 11th	4:00 pm
LinkedIn Networking	April 8th	12:00 pm
Choose to Save	May 17th	10:00 am
Online Job Applications	May 31st	10:00 am

TAX PREPARATION

February 15th	8:00 am-Noon
February 22nd	8:00 am-Noon
March 15th	8:00 am-Noon
March 29th	8:00 am-Noon
April 12th	8:00 am-Noon

November Success Story

Congratulations to Prosperity Center client Kent on his full-time position that will offer benefits and a competitive salary in a field of his interest! Well educated and experienced, he came to the Prosperity Center discouraged after being laid off 5 years ago, working odd jobs and freelancing to make ends meet. Employment Coaches helped him improve his resume, cover letter, LinkedIn profile and practice his interview skills, while Financial Coaching and Income Supports access helped his family live on a budget. Just over a month after he became a client, Kent was offered a position through a source referred to the Prosperity Center. He shared his gratitude in an email:

“I cannot thank you enough for the benefits there has been working to get to this point with Tiffany and Kourtney. The resume worked and it is clear that without your passing my resume to them, I would not even know about the job and I wouldn’t be in this new opportunity. Thank you so much for your help and confidence in recommending me for the position. I can’t tell you how great it feels to be doing something again that is in my core skill set.”

Thanks to his motivation and dedication to his family, Kent was able to overcome the barriers of long-term unemployment. We are proud to have him as a client and look forward to hearing about the steps he is taking in his new career.

Don’t Let Black Friday Lead to the January Blues

Our friends at Apprisen compiled some cautionary advise about overspending during the holidays. Read their tips below. For more assistance managing debt, developing a spending plan, monitoring and improving your credit, and planning for the future, call (816) 501-4239 to schedule a Program Overview.

Don’t Let Black Friday Lead to the January Blues

Ramifications of overspending are too costly to ignore 

Americans can be generous – to a fault - and never is that character trait more evident than during the holiday shopping season.  

At this time of year, millions of people put their financial common sense on the shelf, tucking it away into a winter hibernation of sorts, thereby making it much easier to take part in the once per year phenomenon known as Black Friday, the mother of all shopping days. The problem with this practice is that financial reality is just around the corner, never failing to emerge in January as a mailbox full of credit card statements.

With avid shoppers counting down the days until the Black Friday bonanza, Apprisen offers the following 10 reminders of the ramifications of overspending:

• Adding new debt on top of old is never a good idea, yet many people will enter the 2013 holiday shopping season still paying for 2012 purchases. When debt is carried over from month-to-month, cardholders lose the benefit of a grace period, the time during which a person can pay the monthly credit card bill before interest begins to accrue.  When debt is revolved, new purchases begin to incur interest immediately.
• Paying interest on the interest occurs when debt is carried over from month-to-month. When a debt is not paid in full by the due date, interest is added to the balance. This amount adds up over time, creating an impediment to becoming debt free. 
• Late fees and over-limit fees can cause balances to grow to an unmanageable level. Issuers may charge a late fee of $25 with the first late payment, and with 45 days notice, increase the Annual Percentage Rate (APR) to a higher interest rate on new purchases. However, consumers who make late payments more than once in a six-month period may be assessed a higher late fee with the penalty APR also applied to existing balances.  
• An inability to pay as agreed could result in negative notations on a person’s credit report, with late or missed payments remaining on the report for seven years. Further, the all-important credit scores are based on information in the credit report. Along with other factors and depending on the extent of the delinquency, the drop could be by as much as 100 points.   
• Less credit will be available on existing cards. Credit cards have a spending limit beyond which the user cannot charge without penalty. Since no one knows what tomorrow holds, over-utilizing open lines of credit can leave a person without a credit safety net for future purchases, unplanned expenses or emergencies.   
• Diminished access to new or additional credit can be the result of irresponsibly handling existing credit.  Issuers are less likely to extend more credit to a person who cannot manage current debt obligations.  If credit is granted, it will likely be at a higher interest rate.  
• Beyond credit cards, decisions involving Insurance, renting an apartment, establishing utility or cell phone services, or finding employment can be affected by a person’s ability to manage debt.  
• Servicing a large amount of debt can diminish the amount of money available for other necessary components of financial stability such as saving or investing.  
• Bills not paid on time can have very serious consequences including collection efforts, lawsuits, judgments and wage garnishment. Each of these can have a long-term negative impact on a person’s daily life as well as future borrowing power.
• Overspending can force a person into making desperate choices such as resorting to pay-day loans, pawn shops, bankruptcy or debt settlement.

Now is the time for financial awareness, not after the damage is done. Consumers need to ask themselves if taking on unmanageable debt this holiday season is worth putting their financial well-being at risk.

October Success Story

Say congratulations to Prosperity Center Member, Brian! Just 2 weeks after attending his Program Overview, he was hired for a full-time position that offers overtime and benefits. Brian came to us with extensive experience in his industry but underemployed, discouraged and working various part-time jobs to supplement his income. Still not able to make ends meet, Brian came to the Prosperity Center asking for advice and career guidance. He immediately embraced our resources and attended one-on-one counseling sessions. He received intensive resume revision advice and job search options that are applicable to his skill sets. Our staff also conducted a benefits screening and brainstormed on creative ways to prepare for new employment opportunities. Brian’s enthusiasm drove him to search for jobs through our computer resource room in between his shifts. Very shortly after he came to us, he was called on an interview and received an offer the very next day. We are proud to have Brian as a client and wish him the best on his new job!

The first step to success through the Prosperity Center is making an appointment for a Program Overview, held every Tuesday and Thursday at Noon and 5:00pm. Schedule on our website or call 816 501 4239.

                                  UPDATE:                                 

Brian came to our office two days after this post to update us on the new job and share some very kind words,

“In 30 days the Prosperity Center corrected problems

that I’ve struggled for 3 years to solve. In a true group effort,

you came together and helped me change the things in my life

that I was unable to change on my own.”

We are very thankful for our clients' dedication to making positive changes in their lives and are thrilled to be a part of their success!

How Tax Code Drives Inequality and What You Can Do About It

The Corporation for Enterprise Development (CFED), a national organization advocating policy that empowers low-income and moderate-income families, is hosting an upcoming webinar on How the Federal Tax Code is Driving Inequality and What You Can Do About It. The webinar will discuss how tax code provisions that incentivize certain actions - like buying a home, saving for education, or contributing to retirement accounts - disproportionately benefit households with higher income, reduce government revenues, and limit benefits for low- and moderate-income households. Since tax code reform is being discussed in Congress, it is crucial for tax practitioners and advocates to be informed and call for an inclusive and equitable tax code.

The webinar takes place on Thursday, November 7 at 9am CST and is hosted by the Asset Funders Network, PolicyLink, CFED, Center for Global Policy Solutions, Center for Social Development, ColorOfChange, Greenlining Institute, Insight Center for Community Economic Development, Institute on Assets and Social Policy, Institute for Women’s Policy Research, National CAPACD, National Urban League, National Council of La Raza, New America Foundation, Oklahoma Native Assets Coalition, PICO National Network, and the UCLA Asian American Studies Center.

Visit the CFED's website to register:
https://cc.readytalk.com/cc/s/registrations/new?cid=pbvh9kk6lszx

Dislocated Worker Assistance

The Prosperity Center's Employment Counseling Program assists dislocated workers through Workforce Investment Act (WIA) training programs and services. If you have faced a substantial layoff or lost your job due to a permanent plant closure or organizational downsizing, we can help you apply for Government Funded Tuition Reimbursement. Call our Employment Coach at the number below or visit the Prosperity Center website to schedule a Program Overview.

New Workshop Wednesday Series

We are pleased to announce our new Fall Workshop Wednesday Series. Workshop Wednesdays are for Prosperity Center Clients who have completed a Program Overview. Our group workshops are held at the Rockhurst University Community Center at 54th and Troost, Kansas City, MO 64110.

Topics include: Budgeting Strategies, Job Search Options and Creating a Plan, Managing Your Credit Profile, the Affordable Care Act and the Healthcare Marketplace, Emotional Intelligence in the Workplace, Shopping Deals and Creative Gift Ideas, Interview and Resume Preparation, Strategies for Job Retention and Success, and Financial Planning for the New Year.

Email us for more information or to sign up.

Welcome to the Prosperity Center for Financial Opportunity's blog! As the first LISC Financial Opportunity Center in Kansas City, our staff is excited to offer employment coaching, financial coaching and income support access to our neighbors in the Urban Core and to the Greater Metro Area community. All of our services are free, open to any adult 18-years or older and we impose no restrictions on geography or income. Working with LISC, Rockhurst University, Catholic Charities, the Full Employment Council and United Way, we opened on June 14th, 2013 on Rockhurst University's campus. In just a few short months, we have already seen several of our clients obtain employment, advance their careers and improve their finances.

If you or someone you know needs assistance finding a job, managing debt and expenses, or navigating the complex enrollment processes for supplemental income, sign up for a Program Overview on our website.

Stay tuned to our blog and follow us on Twitter @ProsperityCtrKC and Facebook to find out about future events and client outcomes.