Wisconsin Saves hosts MoneyWi$e roundtable

Wisconsin Saves coordinator, Stacy Zielinski, of the Wisconsin Women’s Business Initiative Corporation (WWBIC), brought together over 30 community agency representatives for a full day of MoneyWi$e financial literacy training at the organization’s Milwaukee office. WWBIC welcomed the community groups and MoneyWi$e trainers Sol Carbonell and Nelson Santiago with a continental breakfast catered by WWBIC’s small business clients and the organization’s social venture, Coffee with a Conscience.

Participants were trained on the MoneyWi$e banking basics, credit, savings and bankruptcy modules. During one of the interactive activities the non-profit representatives formed small groups to brainstorm ways to help specific populations overcome barriers to savings. One of the groups created a savings slogan for single mothers in the form of a lively song. While the group sang its savings tune, other participants provided the background beat with their clapping hands. Another of the groups created a savings action plan that addressed the particular challenges faced by displaced gay, lesbian, and transgender youth.

“Paying excessive fees to predatory payday lenders also prevents consumers from building wealth and traps them into a never-ending cycle of high-cost debt,” Carbonell told participants. She provided the groups with a national overview of the payday lending issue, how various states have addressed it by passing pro-consumer legislation. She warned however, that in comparison to the rest of the country, Wisconsin consumers have it the worst when it comes to losing potential savings to the payday lending industry. She noted that in recent years more than $85 million in payday day loan fees have been paid each year by Wisconsinites. The situation could get worse, explained Carbonell, if area organizations don’t come together to advocate on behalf of the community.

During a discussion on credit, Santiago reminded participants that even consumers who like to pay cash for much of what they buy will have to keep the an eye on their credit histories. He pointed out that people with poor credit histories can have trouble finding jobs and can pay a lot more in insurance premiums. Santiago also guided the community representatives through a series of hypothetical profiles designed to encourage discussion about what’s important for good credit management.

Participants debated, at times heatedly, whether the fictional characters should take on new debt. Although there were not always clearly right or wrong answers to the exercise, community representatives agreed that the MoneyWi$e activities could be used to help consumers make better choices when using credit.