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Financial management-money in the bank
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Many American families give 110 percent when it comes to their finances, but they ought to give a lot less.
“About 40 percent of families are living on 110 percent of their income,” according to Annetta Jones, a Purdue Extension educator in Porter County. “They are probably drawing that additional 10 percent from savings or credit. They’re running up debt and won’t be able to put money into savings.”
 A team of Purdue Extension family resource management educators hopes to help cash-strapped families find ways to cut spending and increase savings through a program they’ve developed. After two years of testing, Where Does Your Money Go? was launched statewide in February. This fall, the development team will present the program to National Extension Association of Family and Consumer Sciences members for possible rollout across the country.
Where Does Your Money Go? addresses both short-term and long-term financial issues. “The program helps consumers track their spending and create spending plans so that they are more able to meet their future financial goals,” Jones says.
One activity shows participants how small regular purchases can sink a spending plan. “Take soda pop, for instance,” Jones says. “If you spend 50 cents every day on a soda, that adds up to $182.50 over the course of a year. Participants were surprised to find that they were spending so much money on little expenses and planned to make changes that would save them money.”
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