Purdue News
Purdue News
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March 3, 2000 Extension saves dollars through money educationWEST LAFAYETTE, Ind. – About 120 Hoosiers are $775 better off on average this year than last, thanks to a Purdue University Extension program called Money 2000plu$. In 1999, 126 people throughout Indiana enrolled in the financial management program. What they learned helped them save $70,000 and reduce their debts by $28,000. The combined savings and reduced debt per person averages more than $775. Carol Turner, Purdue Extension educator in Vigo County, said the program can benefit Hoosiers anywhere in the state. "We have expanded the program and hope more people take advantage of it this year," she said. Purdue Extension has a toll-free number available for anyone interested in enrolling. Call 888-EXT-INFO (888-398-4636) and ask for information about Money 2000plu$. Turner explained that the program is a success because people work largely on their own. That's important because they can keep their personal, financial information private. But Alice Alderson of Terre Haute isn't quiet about how the program is helping her save for retirement and for her children's college education. "As a single mother, I'm constantly concerned about having enough money for myself as well as for my children," Alderson said. "It's a very worthwhile program, and I would encourage anyone to take advantage of it." People enroll by paying a $10 subscription fee and setting goals for saving money or reducing debts. They receive a bimonthly newsletter, fact sheets and worksheets in the mail. Every six months, participants are asked to evaluate their progress. The semiannual reminders help keep them focused on their goals. From those reports, Purdue Extension educators evaluate how the program is assisting subscribers in meeting their financial goals. To promote Money 2000plu$, Purdue Extension educators are participating in the Indiana Bankers Association Megaconference 2000, March 7 and 8 at the Indiana Convention Center in Indianapolis. They want to convince bankers to promote the program to their customers. This year, Purdue Extension educators have added a new tool, called Power Pay, which helps people with major credit card debt determine the best payment plan for them. The program will run through December 2002, with a goal of helping each enrolled citizen save a total of $2,000 by then. "The need for enhanced financial management skills is evident today," Turner said. "Between 1985 and 1996, Indiana's personal bankruptcy rates doubled. Young adults are graduating from college with debt loads in excess of $800 per month." In addition, the U.S. savings rate is 4.9 percent, far below the rates in similarly developed countries. "We are a debtor nation," said Alma Owen, Purdue Extension specialist in consumer and family sciences. She said the program helps make Indiana communities financially stronger. "Few people think about the fact that a lot of every interest dollar on debt leaves Indiana," Owen said. "Even when a credit card has the name of your university on it, the card is likely serviced on the East Coast or in a state that has favorable credit card laws. What you pay in interest goes there, to support that state's programs. By reducing credit card debt and putting money in local banks, you have more money in your community to be invested in each others' houses, businesses and community services." Annetta Jones, Purdue Extension educator in LaPorte County, explains that the program helps people save money or pay off debts in several ways. "They get information that helps them understand how to watch FACE="Times">where money goes, establish and reach goals, manage credit, and other money-related tips," said Jones. Turner adds: "Money management is a problem for thousands of Hoosiers. We are excited to bring to Indiana an Extension program that has been successful in other states. We invite all citizens who want to sharpen their money-management skills to join in." Sources: Carol Turner, (812) 462-3371 Alma Owen, (765) 494-8304, almaowen@purdue.edu Annetta Jones, (219) 326-6808 ext. 271 Writer: Steve Cain, (765) 494-8410; cain@aes.purdue.edu Purdue News Service: (765) 494-2096; purduenews@purdue.edu
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