Young people get help with finances

Financial literacy for older teens and young adults is getting a big boost through classes offered at House of Hope in Cedar Rapids.

Foundations in Personal Finance, a curriculum for high school students and young adults, is designed to provide young people with sound financial principles that will guide them into adulthood. The material was prepared by Dave Ramsey, the Nashville-based bestselling author of Financial Peace University, a course that has helped adults get their personal finances under control and become debt free.

Danette Brooks, who teaches Foundations in Personal Finance, said insights gained in the Financial Peace University classes for  adults prompted her to ask Melody Graham, founder and president of the House of Hope board of directors, to consider offering classes to a younger age group.

“I was seeing these young couples in their mid- to late-20s coming in with $65,000 of debt individually because of college and a car, and they wanted to put their wedding on a credit card,” Brooks said. “We began talking about how we could impact a population at an earlier age. Once we found out through Financial Peace University that the curriculum was available, I was willing teach it.”

Graham learned that a grant to partially offset the cost of course materials and administrative expenses was potentially available from the Community Foundation of Northeast Iowa and Veridian Credit Union. House of Hope, 1744 Second Ave. SE, applied for the grant and $3,334 was awarded by the foundation in January.

Celeste Jaquis, House of Hope development director, said the grant offsets all but a $10 fee per student. The course is open to anyone between the ages of 16 and 26.

Brooks said the class covers topics like Budgeting 101, saving, credit reports, insurance, 401(k) plans, the myths of debt and statistical information regarding the economy.

“We spend a lot of time on Budgeting 101 to help them understand how to allocate their money,” Brooks said. “It's really a zero-based budget. We say ‘Here is your income, spend all your money on paper first so you have a zero balance and every penny goes somewhere.'

“We also talk about the envelope system (to set aside money for bills, food, etc.), which worked for our great-grandparents.”

Brooks said the class also covers loans and the impact of debt and interest payments.

“We teach them that the borrower is enslaved to the lender, so they need to save for what they want rather than borrowing the money,” she said. “It's learning delayed gratification.”

Brooks said eight out of nine students enrolled in the most recent 10-week session of Foundations in Personal Finance completed the program of two-hour classes. Caitlyn Hofmaster, 22,  of Marion said the course reinforced what she already knew about handling money, but she needed a refresher.

“I'm starting my own photography business, so I thought it would be good to know hows to handle my finances wisely,” Hofmaster said. “Dave Ramsey teaches you to ‘live like no one else so that you will live like no one else in the future.' If I can really get a grip on my finances now, I'll have more money later in life and be able to share with those who are in need.”

Hofmaster said she was surprised to learn that budgeting wasn't all that difficult.

“I realized that I didn't have to be broke and poor for a week each month,” she said. “I had always been doing it in my head and I quickly realized that it doesn't work. I also realized that I couldn't just use my debit card to pay for everything.”

The next session of Foundations in Personal Finance, which starts March 27 and ends May 22, will meet from 5:30 to 7:30 p.m. on Sundays, with the exception of April 24 (Easter), May 8 (Mother's Day) and May 29 (Memorial Day).

To register, send an e-mail to  

stephanie@houseofhopecr.org or call (319) 366-4673. Registration details are available online at  

www.houseofhopecr.org under “Classes.”