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The Value of the “One-Quarter.”

By Steve Smith

Part 1 of 3

Over a 29-year career in both conventional and

financial education, one thing that has become

increasingly apparent to me is how lightly many

consumers take to paying an extra quarter – that is

paying an additional half or three-quarters of a point

when financing their homes, purchasing autos,

securing loans, and obtaining credit cards. This

nonchalant approach (that’s totally to a lending

institution’s advantage) has been very detrimental to

the overall financial health of many families.

There are a wide array of predators looking to exploit

uneducated consumers which place them in

undesirable situations. In every lower-income area in

the Metro- Atlanta area where I reside, corners are

flooded with pawn shops, payday loan stores, and title

pawn outlets.

One particular acquaintance of mine took out a title

loan of $5,000.00 on a vehicle she purchased four

months earlier after an insurance settlement. While

waiting for a subsequent annuity to cover the principle,

she paid $995.00 per month to keep the loan current.

She was paying more than 200% interest on that debt.

She ended up paying $3700.00 in interest and

penalties in less than four months. AND IT WAS

LEGALLY STIPULATED IN THE CONTRACT.

It’s no coincidence that when I venture into the middle

of upper-class neighborhoods, I rarely see these

businesses. Are lower-income areas targeted? I’ll let

you draw your conclusion. I know for sure that the

need for financial education at a young age is so

important. The MVET Way Newsletter, as well as

CEMN personal and business coaching, have become

a great resource for that education.

Part 2 will discuss decisions to consider in regards to

credit cards and mortgages

A Personal Story

By Professor Harlin, MA

Part 1 of 3

Today, I saw an old client. This person had come to pick

up the remnants of his belongings that had been left

behind during his swift transition because of a lack of

funding. The remnants where his personal belongings,

enough to fill up the back of a pickup truck, easily. The old

client showed up with a rolling green trashcan. The one

your gardener would use to put cut grass and shrubs. The

trash can was dirty, filthy dirty. The old client was packing

his belongings into this empty dirty trashcan, and it just

saddened me as I watch this old client put about a fourth

of his belongings into the trashcan and then roll it down

the street to the new place of residency. I thought of this

client's predicament.

I reflected back to an earlier time when the relationship

was much, much more. I remembered having

encouraged this old client to get a driver's license

amongst the many other attempts to help him move

forward. I knew this client had a wife and young child and

now another one on the way.

My sadness continued to grow throughout the day. Then

I realized the numerous steps that we, at the community

center, had encouraged along the eight-month journey

that led to this moment. I had to surrender to the truth that

you can give all you have to give; and still, people will

choose not to change. Now, it still makes me wonder and

ask, “What must have happened in this person's

childhood that left him lacking to this degree?”

I still have hope for this old client. It won’t be with me. It

may not even be with the old client. It may be with the old

client’s children. What I believe is there will always be

hope. There is one thing that is for certain and stands out

in my mind, the truth that there is definitely a lacking of

financial education in many of our communities. With

these thoughts in mind, I would like to share with you the

importance of financial literacy and education as a part of

any community improvement effort.