Black America Saves is proud to support America Saves Week.

In celebration of saving, BAS is releasing four public service announcements regarding saving – free for all to use. Listen to your local station for BAS PSAs!

Today’s PSA:

(download mp3)

In tough times it’s even more important to have recipes that can take $10 and stretch it to feed a family of four. In the upcoming weeks, we’re happy to share with you a collection of recipes guaranteed to please the palette for $10 or under!

If you have a saving’s recipe you’d like to have featured, please send it to recipes@mynettemanagement.com.

Dear Saver,
With economic markets in turmoil, I’m fielding a lot of questions about whether and how to buy a car. People are wondering if it’s a good time to buy, whether they can get a good deal, and if they should take the plunge even as we hear more and more about the troubled financial industry.

Some of these questions – like how badly you need that new ride – are questions that only you can answer. But, I can help with some of these questions. Take a look at the following guidelines before you set out to buy.

• Carefully consider whether you need that new car. If you already own a serviceable vehicle, continuing to drive it for another year or two will probably save you money – even when factoring in maintenance and repair costs. Do the math and compare what you’d spend on a new car to the cost of maintaining your current one. Then, ask yourself if that new vehicle is really worth it, or whether you’d be better off saving and investing the money you would otherwise spend.
• Start saving for your down payment as early as possible. The more you can put down, the less you’ll borrow and repay in interest. If you are planning to borrow money, check your credit report for free at www.annualcreditreport.com and work to fix any errors or improve the report before you apply for loans.
• Do your homework before you start shopping. Research standard prices on new and used cars at Kelley Blue Book, Edmunds.com and at the National Automobile Dealers Association website. Factor in costs like insurance, gas, maintenance and taxes. Think about how you will use a new car, and make sure you’re not buying ‘more car’ than you need.
• Shop around for a loan before you start visiting dealerships. Call your bank or local credit union, and see who can offer you the best loan. Look for loans with the lowest possible interest rate (under 7% is best, avoid higher than 10%), and arrange to repay your loan over the shortest period possible.
• Look for special deals when you begin shopping. Dealerships and manufacturers are likely to be offering rebates or sales right now, as auto sales are slumping. However, be wary of any special deal that requires you to get a high-interest loan through the dealership finance office.
• If you’re buying a used car, it’s very important to have a mechanic look at the vehicle before you make an offer. Also ask the owner or dealer to provide maintenance and repair receipts, so you can see how recently and frequently the vehicle was serviced.
• Negotiate with dealers, and remember to stick to your bottom line of what you can afford. Take time to think about any offers, and don’t be pressured into spending more than you planned.

Follow these tips, and you’ll be well on your way to making a smart car purchase. My final piece of advice is to make sure to save and invest the money left over in your budget after this purchase, if you spent less than planned. Buying a car is one of the largest consumer purchases for most families (second only to buying a home), and if you’ve made smart choices about this purchase you’ll have more money available for long term savings and asset-building.

Best,

Suzanne Mayo
Director, Black America Saves

The Office of the Director Howard University Armour J. Blackburn Center and Black America Saves are hosting a reception commemorating America Saves Week 2009:

When:  February 26, 2009
Time: 4:30 p.m. – 6:00 p.m.
Where: The Armour J. Blackburn University Center Gallery
Admission: Free
RSVP: via email to rmcleod-reeves@howard.edu or via phone at 202-806-5689

Today more than ever students attending Historically Black Colleges and Universities are faced with mounting students loans and future years of turbulent economic times.  The aftermath of the bailout requires that students, faculty and universities face this problem with action and vigor.  The problem is overwhelming, but with a financial action plan that includes careful planning, systemic financial advice and sacrifice from all parties involved, our students can pull themselves out of years of debt and increase their wealth, despite mounting student loans.

A simple action plan is needed.  Students with mounting student loans should be required at the collegiate level to participate in service programs and projects that provide three (3) basic tenants:

1. Service and commitment to community;
2. Development of character and good work ethics; and
3. Involvement from college students who represent 10% of those in the world who are educated.

Service provides for leaders the foundation that equips them with the overall knowledge to answer to a higher calling.  Every leader who balances work, family and commitment will say that the success that they attain is tied to a higher calling on their life.  That calling is why they become successful allowing them to reach out and do what they were born to do rather than to just make money.  Their success and accomplishments are often the result of enjoying the work and thus creating a place in the marketplace that is designed by them in their service, while working.  If we can train the next leaders at HBCUs to move from making a living to providing a service, we will compete the global marketplace with sincere, educated leaders who have passion, vision and wealth.  Their wealth will be measured far more than in dollars but by their commitment.

President Barack Obama and First Lady Michelle Obama have reached out to have a National Call for Service modeling the movement of Former Secretary Colin Powell with America’s Promise in the late 1990s.  This call for service gives HBUCs and opportunity to bridge the gap between higher education and our failing communities that are devastated by drugs, unemployment and lack of resources.  A common bond with HBCUs, community leaders and clergy can foster a new beginning by using Spring Break and Intersession between school semesters and summer sessions to foster this new National Call For Service.  Each student will be required each academic year to use a break to provide service to the community at large while fostering a need to give back.  For one week of service each student will receive 1 hour credit for at least 40 hours of work during the break and 10% reduction in their student loans for each break that they participate in.  With this plan, freshman student could reduce their student loans by 80%- 90% iif they so choose to participate for the entire four years while in college on average.  The amount would on-going and monitored and recorded by the Department of Education and the student’s academic institution. If a student decides after graduation to come into the federal sector or state government as a public servant, the amount should be altered to be reduced to a 1% interest rate for this student.

This model is being used a few institutions of higher education currently but needs to piloted at HBCUs in 2009-2010.  It is proposed that this would increase public private partnership opportunities and broaden the pool of public servants in the federal sector.

Dr. Cornell West has stated, “In order to serve the people, you must love the people.”  If we are to truly develop global leaders for our changing world, we must use service as the tenant for African-American leaders who are ready to serve the people.

The future looks dim now with our turbulent economic times, but the future is bright for our youth and those who sit in the seats of our Historically Black Colleges must not be burdened with debt that will keep them from reaching their goals in life and providing the service of which they are preparing for each day in our institutions of higher education.  Our forefathers fought for the day when we would see brighter days….well they are here and we all must continue to fight for our students and youth as they go about the  business of preparing the world that awaits them,  We must not strapped them with the national debt, soaring student loans and mounting social problems.  We must prepare them to the leaders they all are striving so hard each day to be each of HBCUs.

In celebration of America Saves Week, Feb. 26- March 2, 2009, we are challenging all African Americans to join us in  starting a savings or adding to your existing savings or investments accounts this week.  You don’t have to be rich, you just have to have a plan.   Join thousands of persons across America in helping our families build wealth,
NOT Debt!.

The savings tip for the day is:  Save all your loose change.  Each family member this month should put extra change aside during this tough economic times.  We know how to make it rough times, but we can make it if all just focus on responsible spending and savings in 2009.

For more information, go to www.americasaves.org.

“You Don’t Have to be Rich, Just Have a Plan”

“When my money got low, the number of friends I had did too,” said Actor and Activist Clyde Jones, who recently starred in A Good Man is Hard to Find. Jones shared his personal story, an amazing adventure, where he went from living a life of luxury to being “flat broke.” He captivated the audience of 75 high schoolers, college students, and adults, describing low points and his remarkable awakening to the importance of saving, at an educational forum held at Antioch Baptist Church during the Democratic National Convention in Denver. The forum, held on August 26, 2008, marked the official recognition of the establishment of Black America Saves, a national coalition within America Saves.

The forum dovetailed “The Issues That Unite Us,” a town hall meeting sponsored by the Black Caucus Institute, where students listened to prominent members of the US Congress including, Charles Rangel (D-NY), chairperson of the Ways and Means Committee, Maxine Walters (D-CA), James Clyburn (D-SC) and Shelia Jackson Lee (D-TX). Students posed with movies stars who also attended the town hall meeting. Later, students were joined by George Barany, from America Saves, as he outlined important steps to building wealth. The all-day event was supported by America Saves, ColoradoSaves, and TCF Bank. Students were given an overview of banking services and received important tips on how to save while still in school, purchase an automobile, and use credit wisely.

Mable Banks, 72 year old member of ColoradoSaves, advised students to “start early and stick to it.” Following are excerpts from Banks’ moving speech.

“It has always been a dream for me to be financially free. When ColoradoSaves gave me the opportunity to work with a financial planner, it was a dream come true. I want to thank Susan O’Grady, my financial planner, for helping me get my financial affairs in order. I have become more disciplined with my spending. Now, I only buy what I need and what I can afford.

“Susan helped me to create a budget and learn how to live within it. That is the most difficult part of any financial plan. The actual creation of the budget is easy, but staying within it, is a challenge. Susan kept me on track and headed to the right direction. She says budgeting is about making the right choices. When the urge to spend pops into my mind, I pull out my ColoradoSaves membership card and ask myself:

• Do you need it or just want it?
• Is it in my spending plan?
• And will I later regret making this purchase later?

“It is very important to develop the saving habit early, even as early as a high school or college student, and to carry the habit throughout our lives. When you travel the path of saving early, you accumulate more wealth, and open possibilities that otherwise would never be available.”

After sharing her personal financial goals and discussing the $25 gift certificate ColoradoSaves had awarded her, Mable asked students to recite the pledge with her.

I pledge:

• To spend less than I earn;
• To avoid long-term, high-interest debt;
• To invest in a home, college education, or another appreciating assets; and
• To prepare for retirement.

The afternoon concluded by awarding Tori Flores, of Manuel High School and Mercedes Dowell, of Montbella High School with iPods, complements of TCF Bank. Musu Sirleaf, of Hinckley High School won a $500 college scholarship, compliments of College Invest, another key partner of ColoradoSaves.

Suzanne Mayo has been appointed the National Coordinator for Black America Saves. Over the course of her tenure, Ms. Mayo plans to re-energize the Black America Saves campaign and transform the face of saving for African-Americans.

To start saving, Ms. Mayo is please to provide the following 14 suggestions for saving:

1. Reward yourself with little things.
2. Expect GREAT things.
3. Have a place in your home to pay bills.
4. Set financial goals.
5. Change the way you think about budgets.
6. Set goals for budgeting that are realistic:  Be specific, make them measurable, and make them reasonable.
7. Have five financial plans: a 12 month plan, a 6 month plan, a 3 month plan, a long term plan, and a short term plan.
8. Always PAY YOURSELF FIRST!
9. Start and always deposit into an Emergency Spending Account
10. Start saving today, no matter how small the amount.  Be consistent in saving for the future.  THE FUTURE IS RIGHT AROUND THE CORNER!
11. Don’t pay down your debt when you get extra cash. Pay ½ and save the other.  In the long run, you will win by always having something in YOUR savings account.
12. When you get a windfall of cash, ALWAYS Pay Yourself First!
13. Always ask questions about your savings accounts from financial institutions.  Remember, it is your money and you deserve to know how your money is being spent and invested.
14. The more you invest, the more you earn.  It seems crazy, but it works.  Remember, Uncle Sam is always ready to keep your money, but it is better if you keep and invest it in YOU.