New UF/IFAS program will help families make smart financial decisions

April 15, 2010

GAINESVILLE, Fla. — A new University of Florida program will help struggling families get free one-on-one help with their household finances.

Earlier this week, the first group of 10 county extension agents went through a two-day session that prepared them to train volunteers for the Florida Master Money Mentor program.

It will mimic the Institute of Food and Agricultural Sciences’ Master Gardener program, which trains volunteers in a wide variety of gardening topics and then empowers them to help the public with gardening-related dilemmas.

“We’re not calling this the master budgeteer program, but that’s really kind of what we’re doing,” said Michael Gutter, an assistant professor in family financial management. “We’re thrilled about being able to do this, because so many families need this help.”

In its first three decades, the state’s master gardeners logged more than 5 million volunteer hours, saving taxpayers millions of dollars.

The new program’s goal is to train volunteers who will be already known to families — a caring social worker, or someone from their church, for example – so those who need help won’t be intimidated by the person offering it.

Bank of America Florida gave $100,000 for the program, said bank President Mike Fields, because one of the company’s priorities is providing access to financial literacy programs in underserved and rural communities.

“We are pleased this grant aligns with the state of Florida’s priority to build its financial strength and expand the financial education efforts of the Florida Cooperative Extension Service offices to more rural communities,” Fields said.

The program will target low- to moderate-income families — especially those behind in mortgage payments or struggling to get beyond a paycheck-to-paycheck existence.

The Master Money Mentor program will give families a one-on-one adviser who will go beyond just doling out conceptual advice, Gutter said. Volunteer mentors must make a long-term commitment to the families they work with. Organizers expect to have mentors paired up with families starting this summer and into fall.

Families will learn to track where their money is spent, pinpoint where they can trim, make a plan to pay down any outstanding debt and learn how best to invest for goals, such as sending a child to college.

But the mentors — who aren’t licensed in securities — will stop short of giving investment advice, he said. They will, however, steer families to information that will help guide them, and explain anything that’s confusing.

While every family’s financial picture will be different, Gutter says he expects money mentors to help in three important areas: assisting families as they make spending and savings plans, helping them analyze their credit behavior and limit debt, and pushing families to be proactive with lenders when problems arise.

Getting a sense of control is critical for families who don’t have a lot of money, Gutter said.

“The harder today is, the more important it is to know tomorrow is going to be better,” he said.