As Summit Credit Union just marked the 15-year anniversary of its groundbreaking financial education program, Project Money, BRAVA asked Summit financial coaches to share key insights from the program over the years. Summit CEO and President Kim Sponem says takeaways from Project Money aren’t just about improving money management, but achieving financial confidence, security and a better life.
The right knowledge can make a big difference when it comes to building financial confidence and security. That’s why Summit has long focused on providing easy access to financial education — including their Project Money program, with a new season just underway.
In Project Money, four teams work one-on-one with a Summit financial coach for seven months to build savings and reduce debt. Through team blogs, social posts, a media partnership with WKOW and other updates, the public follows along to learn from their life-changing new money habits and journeys and apply it to their own lives.
Summit is committed to providing support to help make financial security happen, says Sponem — especially for women, who face unique financial challenges. On average, women live longer than men but earn and save less. Fewer women work in higher-income fields and roles, and women are more likely to spend time away during earning years for caregiving. Plus, there’s the “pink tax” — a markup on products targeted to women compared to similar products for men.
This adds up, and women have up to $1.6 million less than men in retirement savings and are 43% more likely to live in poverty in retirement.
A great place to start overcoming these and other challenges, says Sponem, is learning and talking more about money and seeking guidance for an action plan. It’s possible to reduce debt and save more at the same time, as so many Project Money teams have shown with great success.
Sponem shares these tips:
- Make the most of free resources. From using a free budgeting app to taking advantage of financial learning tools available to you, knowledge boosts confidence. There are blogs, webinars, podcasts, calculators, and budgeting and goal-planning worksheets at SummitCreditUnion.com. Plus, you don’t need to be on a Project Money team to meet with a Summit financial coach for free.
- Get the help you need to reach your goals. Talk through your questions with a financial expert, learn more about all the options available to you, and get guidance on best next steps toward your goals — whether that’s how to make a budget that really works for you or ways to consolidate debt.
- Take action, even if it seems small. One action empowers you to take another, then another, to create new money habits that last and to reduce stress.
Read on for steps to feeling great about money from Summit’s experienced Project Money financial coaches — from understanding your thoughts about money and talking finances with loved ones to budgeting and building wealth.
Step 1: Identify thoughts and beliefs behind money choices.
How someone feels about money has a direct influence on decisions they make and can affect their ability to make confident choices and achieve their financial goals. That’s why it’s often the first place Project Money teams look in their work with Summit financial coaches.
Sometimes feelings about money are driven by things outside your control, like inflation or past money experiences and beliefs you were raised with. They can also be based on social pressures like spending beyond your means to fit in, or to enjoy a fleeting pick-me-up through “retail therapy” — which Jess Alicea, a senior lending advisor at Summit, says can create a sense of being financially “stuck” or a cycle of stress.
Views on money can be a blend of positive and negative, illustrated by what Alicea describes as the “well- being triangle” with three connected sides: mental/social/emotional well- being, physical wellness and financial wellness. For instance, you were thrilled to go to a concert with friends, but the extra money you spent impulsively on refreshments and souvenirs makes you anxious later.
Know your triggers. Is it harder for you to make good money decisions during certain times of year — like the holidays or the summer? Maybe the credit card comes out for fast food when everyone’s tired after the kids’ soccer game, or when you’re hanging out with certain friends.
Put checkpoints in place. Hit “pause” on a purchase — such as leaving items in your online cart for a few days before you buy. Take time to consider how a bigger purchase, like a car, fits into your budget. Also, find an accountability buddy so you have someone to help you talk through your choices and stick to spending decisions that match your goals.
Face feelings about money head on. It can be easy to avoid the feelings behind financial behaviors when you’re busy and have a lot on your plate. And the more people you have in the mix, like partners or kids, the more perspectives you’re dealing with. But it’s worth diving in because getting on the right track turns potentially negative feelings into positive ones, like confidence, excitement and freedom from stress, Alicea says.
Step 2: Get on the same page with loved ones about money.
Beyond addressing your own thoughts about money, it’s important to level set with partners, children and other loved ones on your financial situation and goals. Open, ongoing conversations about money, where everyone has a say but comes to an agreement on what they’re working toward together, have been critical for Project Money participants.
Start with identifying specific goals. Each season, Project Money teams have two big goals: To reduce debt and boost savings. But to accomplish those big goals, they start with a small, specific one, such as, “I’m going to add $50 to savings each month for a year” instead of, “I’m going to save more.”
“You need those specifics to measure success and develop your action steps,” says Aidan Hauge, a Summit branch manager. She encourages putting goals in writing — even displaying them on the fridge or putting reminder stickers on debit and credit cards — so everyone stays accountable.
Uphold an inclusive, judgment-free zone. It’s not uncommon for someone in the family to resist efforts to get in a better place financially. Be open to others’ thoughts and actions about money while also not judging your own.
For example, there’s no right or wrong to either a conservative “What if?” approach to money or a more “Live for now!” mentality, but it’s important to acknowledge both and find a comfortable common ground in your plan.
If kids need some extra encouragement to get on board, Rachel Slesarik, a senior lending advisor at Summit and a certified credit union financial counselor, suggests giving them a vote on how money is spent — like choosing between eating out today or saving that money to zipline on vacation. She also says to keep ongoing check-in conversations focused solely on facts for everyone: “Here’s what we spent, and here’s what the
bill is.”
Talk through the priority. Managing money with a partner or family can mean varying opinions on what action step is most important at any given time. Maybe it’s tackling the easiest win to keep you motivated and focused, like eliminating the smallest debt first. But sometimes, Hauge says, it’s first eliminating that emotional drag of a decision you wish you could change. “That may be the credit card with the highest balance or interest rate, but it could be something entirely different,” says Hauge. “Identifying what changes will have the biggest impact is different for everyone.”
Step 3: Take action for your goals.
Once individual or family goals are in place, it’s time to make them happen — and that starts with creating a budget that works for everyone. This requires first knowing exactly how much money your household brings in each month after taxes, 401(k) contributions and other deductions, then carefully tracking where your money goes each month.
James Schmidt, a Summit branch manager, suggests printing out your account statements and highlighting each item as a “want” or “need” in two different colors.
“I’ve seen this process be eye-opening for Project Money teams in a really positive way,” says Schmidt.
Depending on how often you’re paid, your budget could be weekly, biweekly or monthly. Schmidt says to look for opportunities to de-stress, like switching some payment dates so all your bills don’t hit in your first pay period of the month. He also suggests using a budget worksheet for guidance, like the ones on Summit’s website, and a personal financial management tool to stay on track with spending.
Be sure to include emergency fund savings in your budget to cover the unexpected and use the funds when an actual emergency happens. That’s what they’re there for — to help you avoid relying on high-interest credit cards or payday loans that can leave you in a cycle of debt. And budget for the “fun” stuff, too, like a vacation, kitchen remodel or tickets to a show.
“It’s okay to have non-negotiable items,” says Schmidt. “Just build that into your budget and recognize you’ll have to cut somewhere else to make it work.”
Takarra Hightire, an assistant branch manager at Summit, adds to have a plan for paying back emergency funds you take out and suggests treating savings like a bill to give it the importance it deserves.
But savings are only part of the story. Hightire says healthy money habits require you to balance saving with reducing debt. She and Schmidt share these tips for success:
- Be open to all possible options. Depending on your situation, a home equity loan, loan consolidation or refinance, credit card balance transfer, or a new quote on your home or auto insurance could improve your debt and savings picture. Talk with an expert about your options and get guidance on what’s right for you.
- Set up automatic transfers into savings. See if you can create different sub-accounts to save for specific
goals. Even if you can’t save a lot each paycheck, any amount is a win — small amounts add up over time and you’ll get in the habit of saving regularly. - Revisit your budget. Big life changes, like a marriage, job change, new baby or retirement, are all great times to make sure your budget still meets your needs.
Step 4: Build wealth for even greater financial security.
Once you’ve taken steps to get in a stronger, more confident place with your money, you’ve laid the groundwork for pursuing other goals that empower you further with more wealth and security. Think about how reducing your debt or building your savings would give you more funds to work with to achieve your goals. An example might be going back to school to retool your career that in turn can open the door to a higher- paying position or field.
Ayobami Sanni, a Summit business services lender, knows the power of a career change after her bachelor’s degree and Master of Business Administration helped her move from branch manager to commercial lender. She loves helping start-ups find the support they need.
Sanni says an upfront conversation about options can be especially valuable for women entrepreneurs because they’re more likely than men to tap into retirement and personal savings, versus seeking help with a loan to fund their business. Another unique challenge for women can be family-related responsibilities that mean less time and fewer resources to launch a business, Sanni says, but a network of support is key.
“We can help you review your budget and business plan, which is important to show that you understand your market and how you’ll generate income and return on investment,” she says. “We can also guide you on lending and other resources for your needs.”
Sanni likes the “one-by-one” approach, too: Find one person with information or contacts to share, then ask them to refer you to another resource. Also, look for ways to carve out time to work on your business — like swapping childcare with a friend.
Not everyone’s goals include owning a business, and Sanni points out there are other smart ways to build your wealth and long-term security.
- Buying a home. Owning your home is one of the biggest wealth-growing steps you can take. As you build equity — the difference between what your home is worth and what you owe — you’ll have funds to improve your home ( a smart way to add value), pay off debt or invest.
- Investing. As you’re accumulating money in your savings account or emergency fund, consider looking for ways you can earn more for the money you’ve saved with higher- yielding options that fit your risk comfort level.
Sanni suggests setting up a chat with a Summit Mortgage Loan Officer, even if you’re just starting to think about buying a home, or scheduling a free consultation with a Summit Financial Advisor. Going over your questions and options help you make homebuying and investing decisions you’re confident in. She also encourages taking advantage of Summit’s free online resources, including live and on-demand webinars.
SUMMIT’S HERE TO HELP
Taking control of your finances and creating smart money habits leads to a more stress-free life and a can-do approach to achieving financial goals.
Tap into ongoing financial education and inspiration today by following the life-changing journeys of Project Money Season 16 teams at SummitCreditUnion.com!
And remember, Summit’s here to help you create a financial plan to pay down debt and boost savings, plus make your home, business, investing or any financial goal easier to reach. It’s part of their focus on providing guidance and resources to help everyone in our community build wealth and financial security, and to close the retirement savings gap for women.
Learn more at SummitCreditUnion.com.
Learn more about relationships and money with Summit Credit Union here.
