Financial Empowerment Sessions: Building Credit and Budgeting Basics

In celebration of Financial Literacy Month, we are collaborating with Guardian Life to offer our community four financial literacy sessions. The sessions allow participants to get more familiar with financial concepts, share their cultural experiences and financial know-how, and receive advice and practical tips regarding the U.S. financial system. We held the first two sessions in March and our next two sessions on Retirement Planning and Investing Basics will take place on April 20 and 22.

Digna Figueroa, Guardian Life’s Director of Agency Growth and Development and a financial expert passionate about coaching, facilitated the first session on Consumer Credit. Terry Scipio, Financial Advisor, facilitated the second session on Budgeting & Cash Flow Management.

“What about small payments? I have a monthly mobile plan. Is it going to affect my credit history if I pay late or I forget to pay it?” asked one participant. “Every debt that you have, and you don’t pay, affects your credit score,” answered Digna.

Terry stressed the importance of getting to know the US financial culture first to efficiently manage finances. Here, “we have a consumer mentality,” and “debt is almost a necessity,” he said. He explained budgeting basics and short-handed ideas about how to bring new money “into the house” by providing fundamental concepts’ definitions such as net-worth, asset, and liability.

Participants were welcome to ask questions about their personal financial issues and received personalized suggestions during both sessions. Facilitators used accessible language and examples to make sure everyone could follow the discussion.

Budgeting Basics

At the same time, many participants were already familiar with the subject of budgeting. “For my whole life, I have managed my finances by myself,” said one of them. “I tried to manage my finances since I was a little girl; that is why I studied economics,” said another.

When Mereyem, one of NWNY’s Program Associates, asked participants what they would like to achieve by gaining more financial literacy, they expressed their interest in knowing more about how the US financial system works. For many immigrant women, adapting to the US financial system is hard as it is often very different from what they are used to. For example, “in this country, building credit is very important,” said Deysi, “while in other countries, debt is seen as something to avoid.” 

Building Credit

One of the most important takeaways from these sessions is that it is important to build credit in the US while aiming to reduce debt at the same time. Digna agreed that “if you have credit, and pay it on time, that is going to open a new life in the US.” But as a Latina woman, she could personally relate to many women’s concerns and experiences.

“What suggestions do you have for people who don’t have any credit history yet?” asked a participant. After providing some tips for choosing the right credit card to begin with, Digna suggested that participants follow a very simple principle: “If you want to buy something, use your credit card, but make sure you know what money you are going to pay it back with at the end of the month.”

Both Digna and Terry made it clear that the path toward financial stability depends on not only our knowledge of economics and finance, but the opportunity to influence our finances is directly linked to how we make, spend, and save money. Facilitators had an encouraging and positive effect on participants to feel empowered to make good financial decisions. “I will be more organized. I’m very scared of getting into debt, but it is good to know how to spend and save; I will definitely try to do that better,” a participant said.

Another committed to tracking her savings and making a plan. “This session is very timely because I start working next month and having this information before hand is useful,” she said.

With Financial Literacy Month upon us, we are reminded how important it is to take care of our financial well-being, which is strongly connected to our physical and mental health too. Financial uncertainty affects every aspect of our lives. This month we commit to remembering that sharpening our tools to navigate through budgeting, expenses, and income also allows us to strengthen our confidence in navigating the uncertainties that are part of our everyday life and environment.