Iowa State University Extension

Problem:
Lack of awareness of how a family is spending money can allow a financial problem to become unmanageable and can lead to financial decisions that make matters worse.

Response:
Growing Strong Families staff members and Nest Parents in SW Iowa completed a practice set using the financial calendar. Each participant calculated the costs for seasonal/occasional expenses to make sure a portion of each paycheck was set aside and available on the due date. Spending in each budget category was compared to a budgeted amount. The practice set resulted in a negative cash flow for one month. Participants determined where funds would be found to cover the excess cash flow and suggested adjustments to correct overspending. Discussion highlighted the differences between a financial calendar (cash flow record) and a net worth statement or a checkbook ledger and why it was necessary for good financial management. It was emphasized that not keeping track of spending leads to poor choices that can create bigger problems.

Impact:
Staff members requested programs for their families in five counties. Feedback forms from families indicated that they recognized the need to record flexible spending in addition to keeping track of their major monthly bills. The main statement made by everyone was the recognition that writing down everyday spending or expenses in addition to knowing what the rent, utilities, and loan payments was necessary to track where a family’s money was going and being aware of overspending that would lead to larger problems if left unattended. In Lenox, a participant stated that she kept her financial records with a computer program, but had not been comparing the totals each month to a target amount. She plans to start paying more attention to the bottom line. Stacy Hambleton from Guthrie County stated that she planned to use the information to “write up a budget” and make other changes to keep better records. Several participants shared they would be able to, “see where all their money was going!” Goals identified included the addition of savings to a spending plan, generation of funds to reduce credit card debt, and to return to financial practices that they had followed in the past, but had recently become lax about using.

Contact:
Joyce Lash
Ringgold County Extension
101 North Polk
Mount Ayr, Iowa 50854
641-464-3333
lash@iastate.edu