$105,000 Grant Goes to MoneyWorks

<b>Clare Stentsrom and Judith Volkmann</b>

Clare Stentsrom and Judith Volkmann
September 8, 2008

BMCC has received a $105,000 grant — $30,000 from The Bank of New York Mellon Corporation Foundation, and $75,000 from The Mellon-managed George Link, Jr. Foundation — that will allow the continuation of the successful student financial literacy program, MoneyWorks.

Now in its third full year, MoneyWorks consists of 12 sessions a year — six per semester — that cover topics such as budgeting, credit scores, taxes, real estate and mortgages, wills, living trusts, investing, and more. The comprehensive curriculum was designed by the most senior financial planners at The Financial Planning Association of New York (FPANY).

“We give people the information they need to make sound financial decisions for the rest of their lives,” said Clare Stentsrom, who has led MoneyWorks as the past president of FPANY, and as a certified financial planner with Bourne Stenstrom Lent Asset Management, Inc. “We’re so grateful for this amazing grant, because it will allow us to continue teaching people how to keep as much of the money they make as they can.”

Teaching the Basics to Financial Success

Stentstrom shared the thought that young, college-aged people should start taking strides toward long term success now. The place to start, she said, is understanding what it costs you to live by analyzing your spending habits, and setting goals. Hence the name of this year’s first session: “Goals & Spending: How to Afford Your Dreams.”

“First you need to know how much money you make, and how much you spend — and remember, those $2 coffees every morning add up,” Stentstrom said. “Then, the goal can be as simple as buying a suit for an interview, or as complex as setting a date for retirement. The important thing is actually setting a goal, which gives you incentive to save.”

Stenstrom also warned of credit cards. Most have high interest rates, so if you do go the credit card route, make sure to make your monthly payments and keep your outstanding balance low, she said. The last thing young people want to do is start relying on credit cards, thinking they are using money they have instead of realizing what credit cards truly are: venues for loans, she added.

“Admittedly, some credit cards are great,” Sentstrom said, mentioning no-interest deals that retail stores often offer. However, she warned: “It would be better if you saved the money and then bought that big-screen TV with that no-interest credit card, than if you finance it and plan to pay for it with money you don’t already have. It’s much safer.”

Some other tips Stentstrom shared: see how much you really spend by adding up a week’s worth of receipts; have separate accounts for separate goals, such as one for vacation, and one for that new TV; and have an emergency fund filled with six months worth of living expenses.

MoneyWorks Ambassadors

At the heart of the MoneyWorks program are 37 BMCC students who serve as financial ambassadors, attending all of the seminar sessions, partaking in community service, and participating in a mentorship program.

The mentorship program pairs the students with professionals in the business communities for the entire academic year, providing them access to meetings, social and working lunches, and conferences. As their understanding of financial matters develops, ambassadors gradually develop their own financial plan, in consultation with their mentor.

“Being coupled with a mentor allows a student to get used to speaking with a professional in the business world, giving them the confidence they need when they interview for jobs,” said Judith Volkmann, a private attorney and certified financial planner who works alongside Stentsrom on MoneyWorks, delivering the lesson on wills and trusts. “When students begin to feel more comfortable and relaxed in the business setting, it leads to a greater chance of success.”

Volkmann also said that the mentors offer guidance on issues ranging from academic concerns, to understanding the business world, to setting goals, and polishing one’s resume.

“Another purpose of the mentors — outside of just the practical knowledge the experience provides — is to give the students a sounding board to talk about their classes, their careers, their next step. The advice the ambassador gets from his/her mentor is priceless,” Volkmann said.

Seeing Success

Most BMCC students manage a multitude of financial responsibilities — employment, family and childcare — while attending and paying for school. Eighty three percent come from households with incomes of $35,000 or less. Considering these students’ many financial concerns, their lack of financial knowledge will often negatively impact upon their educational commitments, making programs like MoneyWorks all the more useful.

Fortunately, students are taking advantage of MoneyWorks. Since its inception, attendance continues to grow, with an average of 110 students per session. Moreover, those in attendance aren’t just there physically, but mentally too, said Stenstrom.

“I can see that the people attending aren’t just sitting there like it’s some regular old class — they are soaking it all in,” she said. “It’s exciting to watch.”

The first session of the year, “Goals & Spending: How to Afford Your Dreams,” will be held Wednesday, Sept. 10, at 2 p.m. in room N402. There is no cost to attend, but reservations are required. To reserve your seat, and for further information, e-mail: moneyworks@bmcc.cuny.edu.

All MoneyWorks programs will take place at Borough of Manhattan Community College, 199 Chambers Street, New York City.

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