Fall 2002

Making your money work
By Nancy Alexander

Making your money work

Vernon Paddy (left) and his daughters Savanna and Britney are living the American dream. A Purdue Extension money management course helped Paddy save enough to buy a home.

At first glance, Vernon Paddy and Mary Alice Harcourt appear to have little in common.

Paddy lives in an urban neighborhood in Indianapolis. Because he is a Jamaican citizen, the single father of two daughters is ineligible for such assistance as Medicaid and reduced school lunches. But by working hard and carefully managing his money, Paddy has overcome daunting obstacles to become a proud homeowner.

Harcourt and her husband of 50-plus years live on 35 acres east of Greencastle, Ind., which they farm part time. He is retired from IBM; she is a retired nurse and past president of the Extension Homemakers in Putnam County. The Harcourts have raised four sons, for whom they recently established a family trust.

Despite first appearances, Paddy and Harcourt do have a shared experience. Both directly benefited from courses in basic financial management offered through Purdue Extension Consumer and Family Sciences—a fact that illustrates both the diversity and the adaptability of such programs across the state.

The goal of Purdue Extension’s family resource management specialty is to help Indiana families gain knowledge and skills that lead to economic security. A variety of programs focus on such wide-ranging topics as money management, managing credit, insuring against loss, saving for financial security through life, retirement and estate planning, and using time, energy and non-money resources wisely to reach personal goals.

As family resource management specialists on the Purdue campus, Janet Bechman and Elizabeth Kiss are Purdue Extension’s liaisons to up to 30 county educators who specialize in family resource management. Purdue is linked to Extension programs across the nation, so information is continually updated and expanded to meet new needs. "Part of our job is to help the county educators see trends that are coming," Bechman says.

Recent media coverage has brought family finances to the fore. But consumers are often unsure how to choose among the skyrocketing number of financial products and services available to them. "There is so much information that people are overwhelmed," Bechman says. "That’s the biggest challenge."

Many consumers also identify with media coverage of the "sandwich generation"—baby boomers caught in the financial squeeze of simultaneously sending children to college and caring for aging parents. "Part of it is that people are living longer and spending more time in retirement," Bechman explains. "They are turning to their families when the money runs out."

Another topic prompting people to pay attention to their finances is the stock market’s volatility. Long-time employees are dismayed at how little control they have over their company-sponsored pension plans. On the bright side, Bechman points out, the current economic climate motivates consumers to learn about and assume more responsibility for their own money.

To help them, Purdue Extension focuses on the basics. A recurrent theme throughout the programs is "the difference between a dream and a goal is a plan."

The county educators have a great deal of autonomy on how to best address the particular needs of their counties. Most not only provide direct education to consumers, but also train volunteers or partner with organizations to get accurate information out to consumers. Purdue provides the research and resources to back them up with materials that help consumers understand basic terms and concepts, such as the advantages of a mutual fund versus a savings account. County educators do not sell specific products or services; rather, they provide the tools that people need to make well-informed decisions.

Making your money work