Debt Reduction, Money Management Program - “Kansas Saves” is Launched 10/29/03

MANHATTAN, Kan. – Trying to reduce debt can be a little like trying to nail jelly to a tree, said Marilyn Toellner, Kansas State University Research and Extension agent in Sedgwick County, Kan.

While Toellner is enthusiastic about a new educational program, “Kansas Saves: Financial Management for Life,” a large part of her current efforts focus on helping people reduce -- and eliminate -- debt while they learn about money management.

Some of those she has counseled have credit card debt from consumer spending. Others have experienced a job loss or layoff and placed basic living expenses on a credit card, she said.

Wait to Spend

MANHATTAN, Kan. – One key to money management is learning to wait before spending, said Kate Clark Archer, who spoke about money management.

Archer, who helped underwrite the cost of the conference, is a former Extension specialist, who returned to Kansas to help kick off “Kansas Saves: Financial Management for Life."

Archer, shared what she considered a key part of her successful financial management strategies:

“One of the most valuable lessons I have learned in life is to wait. I had to wait to go to school and wait to join 4-H. And, if I needed – or wanted – something, I had to wait so that I could save the money I needed to buy it,” Archer said.

“Very soon after marriage, my husband and I learned that if we didn’t spend every cent we earned, we’d have the money to take advantage of opportunities as they came along,” she said.

One family she helped recently faced a minimum credit card payment of about $125. Interest on the balance, plus a $35 late charge, exceeded the minimum monthly payment.

“It can take a long time to reduce debt,” said Toellner, who quickly added: “Learning how to manage your money to meet your needs (now and in the future) is worth working for.”

She and other Extension agents from around the state participated in a two-day “Kansas Saves” training session in Manhattan Oct. 28-29 on the new money management program initiated by Esther Maddux, Extension’s state financial management specialist.

“Learning to manage your money can make what you have go farther; but there’s more. Successful money managers have fewer financial stresses and also build financial security for the future,” Maddux said.

The “Kansas Saves” program will be open to any Kansas resident. Depending on the county, the training involves seminars and a workbook, the “Personal Financial Toolkit” that will provide guidance on how to reduce and stay out of debt, and how to build savings.

To develop and launch the program, she sought the help of Donna Purchase, national project coordinator for the Fannie Mae Foundation.

Purchase, who is based in Washington, D.C., made the trip to Manhattan to help launch the financial educational effort.

“We’re becoming a nation of working poor. A high school or college diploma doesn’t necessarily mean that someone knows how to write a check, balance a checkbook or make change. Financial literacy is an essential life skill,” said Purchase, who praised Extension’s effort in launching the educational campaign.

Kansas Securities Commissioner, Chris Biggs, who participated in a panel discussion, said that the educational effort could help people learn to make good decisions.

While the securities office is charged with legal issues pertaining to securities, investor education also is a priority, he said.

That effort currently is directed by Angela Cichocki, who works in Biggs’ office as the investor education director.

“Extension’s statewide network makes it a great fit for the new financial education effort,” said Cichocki, who is a former county Extension agent.

Kansas State Treasurer, Lynn Jenkins, who also spoke at the kickoff session, said financial management should begin at an early age. Her enthusiasm for money management would seem to work well with her interest in people. She said she envisions a money management camp for kids and that “we’re never too old to learn.” The “Kansas Saves” program includes money management strategies for all ages and income levels, Maddux said.

For more information and how to enroll in “Kansas Saves: Financial Management for Life,” contact the local K-State Research and Extension office.

For information on other educational Extension programs, visit Extension’s Web site at: http://www.oznet.ksu.edu

K-State Research and Extension is a short name for the Kansas State University Agricultural Experiment Station and Cooperative Extension Service, a program designed to generate and distribute useful knowledge for the well-being of Kansans. Supported by county, state, federal and private funds, the program has county Extension offices, experiment fields, area Extension offices and regional research centers statewide. Its headquarters is on the K-State campus, Manhattan.