Success Story

Certified Financial Counseling Program- SE Area

Problem:
Limited financial counseling resources are available in rural areas of SE Iowa for individuals and families in need of these services. Faced with debt, lack of budgeting skills, medical bills, or other financial challenges, it is important to have unbiased, research-based financial counseling and education accessible to those living in rural communities.

Response:
Nine volunteers, through participation in ISU's financial counseling certification program, are providing financial counseling and educational classes throughout rural counties in the SE area, including two who are bilingual in Spanish and English. A replacement counselor is completing coursework. Funding for this project was made possible from the SAMSHA grant "Iowa State University Extension to Families for Rural Outreach." Each financial counselor completes hands-on counseling and teaching through a 40 hour counseling process internship. In exchange for payment of the costs of certification, each counselor provides an additional 30 hours of financial counseling and teaching.

Impact:
Four counselors have completed their internship hours for a total of 160 hours of counseling and group financial presentations. Two of the counselors have also completed their 30 hours of additional service. The other five counselors are making significant progress on their internship. Financial presentations have been made to groups such as women, church groups, NEST, Head Start parents, and public housing residents. The counselors have provided one-on-one counseling with individuals and families on issues such as budgeting, debt management, opening a checking account, insurance planning, using community resources, purchasing a home, financial challenges from health problems, etc. A total of 93 people have been reached by the counselors through counseling services and 430 through 39 group presentations. The High School Financial Planning Program series was taught to 15 students who have a Hispanic background. The other bilingual counselor has counseled with several Hispanic individuals and families. She has also answered financial questions through a Spanish radio program. One counselor provided five hours of financial education with her staff who have, in turn, used the information with 10 individuals through 13 hours of economic counseling. Since July 2004, clients receiving assistance with utilities, back rent, etc. are required to participate in three financial counseling sessions. A money management course taught by the counselor was videotaped and is used on a continuing basis with those receiving homeowner rehabilitation funds.

Some of the actions of counselees taken as a result of financial counseling include:

Through the services of one counselor, a counselee made the following significant financial changes: bought a low cost car which gets much better mileage and is paid for, dropped two monthly insurances that were duplication of other insurance, reduced house payment, changed high cost cell phone plan, reviewed cost of medications and applied for help through drug companies, and is keeping better track of expenses--had cut lots of the little stuff here and there.