Hiccups

by Lauren P.

I remember when I was scheduled for my very first client session; I made sure I had pens, pencils, erasers, scratch paper, reference documents and was well versed in everything I had been taught in training. I arrived about half a day early, scanned through the office supplies, and watched the door patiently—only to be no-showed. Being prepared for that, I lost my jitters, and was able to carry my enthusiasm over to my second scheduled appointment about a week later. This one was legit.

She’s a kind woman with a difficult story: her husband is disabled, her son is deaf, she works a full-time job while taking on the role of primary care-giver, and is drowning in debt. After reviewing her situation on that first day, we decided that taking care of one of her Pay Day Loans would be the best way to start. We took the necessary steps to enter her into a program that protected her from the outrageous interest rates that pollute Pay Day Loans, and she would make reasonable payments from then on (Editor’s note: this client has almost paid back her Fresh Start Loan in full!).

Great, I thought – go me! I totally helped this woman out. Well, in our second meeting, I realized it’s not that easy. Yes we tackled a large, money-sucking monster, but that wasn’t the only issue she faced. She was also having a hard time paying her energy bill. Riding the euphoric wave from our last success, I approached this challenge with the same optimism. We would review her financials, create a budget, and methodically pay off her energy bill. Right? Not right.

After extensively reviewing her income, expenses, debts, and cash flow, neither of us could see a solution. Over the course of our hour together, we discussed possible cut-backs, forms of additional income, and what realistic options we could find. But no matter where we looked, there didn’t seem to be a fix that would fit her family’s situation. At the end of our meeting, I knew I had failed her; we hadn’t come up with an answer. She left with an energy bill that, on paper, was not going to get paid.

Editor's caption: the paradox of coaching!

Despite my lack of solution-generating ability during that meeting, she scheduled another one with me. When we sat down, I asked about the energy bill and how things had turned out. She relayed that it had been paid in full by a local church that often reaches out to people who are struggling. Wow. I would have argued with a psychic that her bill wasn’t getting paid, but I was so happy to see that she was a resourceful woman. It reminded me that we were in a partnership, and when one of us struggled, the other could buckle down and pull through. Well anyway, great – another hurdle jumped! Now how to pay the energy bill for this month? (Deflation).

This woman and I have met over six times, and I have become fully invested in her successes. I realized quickly that success will be measured from week to week, because I know that once we tackle a problem, there is another one right behind it. Financial debt is not a game. It’s not easy. It’s not trivial. It consumes your thoughts, influences your quality of life, and takes years to remedy. Meeting with this woman and others has taught me an extremely valuable and rewarding lesson: nothing is fixed with just one patch. While it’s important to celebrate small successes, you can’t lose sight of the ultimate goal. Persistence can move mountains.

The Love of Money

by Matt D.

I realize that I’m in a unique position as a volunteer of the Child Support for College program, but my most rewarding moments with clients have been opening college savings accounts for single mothers.

The first time I met with a client who was inclined to open an account for her child, I was quite conflicted.  I know the importance of a college education, but rationally and numerically, I thought it best to place emphasis on other priorities – like paying off debt and establishing emergency funds. She did have a job but was squeaking by. Just to make a small opening deposit would have been tough on her budget. Not to mention that in my professional practice, I advise prioritizing retirement over college education (there are no loans, grants, or scholarships for retirement). And besides, I knew that Mom’s $100 might only buy one textbook when it came time to use it.

 (Editor’s note: Every dollar counts! According to a recent study, “A low- and moderate-income child who has school savings of $1 to $499 prior to reaching college age is over three times more likely to enroll in college and four times more likely to graduate from college than a child with no savings account.”1).

When she kept pushing for the account, I didn’t exactly stand in her way, but I voiced my reservations. I told her about the plans that were available to her, but also mentioned the possibility of putting this money elsewhere, where it might make a bigger impact down the line. But Mom remained steadfastly committed to a college account, and while the numbers still never convinced me, seeing the commitment she had to giving her daughter a head-start was an eye-opener. Giving her daughter this account, no matter what the amount, meant a lot to her. She didn’t want her daughter to squeak by, but to get the education that Mom hadn’t been able to get.

With my first client, I learned that value isn’t only numerical.  The money might not have been the key to her daughter’s success, but there is an emotional component that often matters just as much, and in this case, more than the numbers.  These moms were eager to do something, anything, to set aside college funds for their children.  So, they did, and I was able to help them.  As I met with more of these single mothers, I changed from being hesitant (even discouraging) to open such accounts to eager. Each of them left the office with smiles on their faces and true senses of satisfaction.  These mothers had given children gifts for their future – small in number, but huge in significance.

1. Elliott, W., Song, Hyun-a, & Nam, I. (2013). Small-dollar children’s saving accounts and children’s college outcomes by income level. Children and Youth Services Review, 35 (3), p. 560-571.

Excerpts from the contest: honorable mentions!

While they weren’t our grand winners, some of our coaches brought up moments that were worth sharing. Here are some excerpts from coaches’ blog entries that seemed to be representative of the experiences we see as coaches. Take a look at what your fellow coaches had to say!

Here, a coach gets to the heart of the matter:
Rob S.
“Money does not solve the problem or even create the problem. Money is simply a tool used during our day-to-day lives...As a coach, it is important to share the tools we have available, but it is just important to spend the time listening and coaching or clients on personal habits that impact their financial solution. Habits and ideals must change for lasting financial success.”

Here, a mini-story about habit change:
Elsa D.
“Chloe spent over $150 dollars at Wal-Mart in 1-wk on things she admitted she didn’t really need: snacks so her son won’t cry while shopping, things for her fingernails, on and on. We were on the right track, because Chloe was acknowledging her bad habits. Similarly, the husband went to a check-cashing store every payday because he wanted to see the money he earned. This led to a long explanation about the money he was not seeing, the money he would save if he opened a checking and savings account. I suggested that he deposit his paycheck into a checking account, and save the amount that he'd been spending at the check-casher. For both of them, it did not take a lot of extra effort, but simpsimple, habit-forming tasks that would allow them to save.”

And here, a coach realizes the power of empowerment:
Larry G.

“I was almost finished with the first session, but we hadn’t accomplished enough. Yes, we knew the items on her credit report, and yes, she had an idea of how to get started, but I could still see that this information hadn’t connected with her yet. I wanted to explain to her how important would be down the road when she decided they were stable enough to buy that new car, or go back to school, or even buy a home. But instead of telling her these things that she already knew, I asked her what she intended to do about it.”

Stay tuned for more coaching blog fun!