Because couples share their personal and financial lives, they must take steps toward building credit together. Before doing so, it is necessary to determine how much debt and the sources of debt that a couple has accumulated. Experts urge people to write down everything they owe, listing debts with the highest interest rates first. Then, a couple
Because credit history is important to obtaining credit, knowledge of each partners’ credit scores is critical. A FICO score (named for the Fair Isaac Corporation that created it) is a mainstream credit score that determines the interest rate on credit cards, car loans, home mortgages, as well as one’s ability to obtain a cell phone or get an
The different forms of savings or credit account ownership are individual, authorized user, cosigner, and joint types. Spouses most often have joint accounts, allowing two named borrowers on an account. In this case, the credit history of both borrowers is used to determine eligibility and both are responsible for the debt accrued. Figure 3 ad
There are different types of credit to meet different short-term and long-term needs, such as credit cards and loans. Credit cards allow cardholders to make purchases on credit and then they receive a monthly bill, which they can choose to pay in full each month or pay less, allowing a revolving credit to form. This means that credit card companie
This section discusses three financial and three relationship issues that are important to success in finances and in love. From a financial perspective, knowledge of the types of credit, joint vs. separate accounts, and credit scores will help couples build credit together. In turn, financial missteps can be avoided by understanding how to handle
Many Americans frequently see or hear about how credit can increase family funds or solve money problems, whether by opening a new credit card through an application received in the mail or in advertisements about how people who have credit troubles can access new lines of credit. While talking about credit has become an everyday phenomenon in the
Changes in the housing and credit markets during the past year have led to increased recognition that developing comprehensive family-based money and credit strategies is critical in the short-term to weather financial storms, but also for long-term financial health of the children. Financial stability strongly interacts with family relationships.
This is the second of two briefs that examine the interplay between education and skills-building programming for lower income individuals and families in the areas of marriage and relationships, financial literacy, and asset development. It explores how communication, marriage and divorce, money management, credit and debt, children and child s
1 . Jenkins, N., Stanley, S.M., Bailey, W.C., & Markman, H.J. (2002). You Paid How Much for That?: How to Win at Money Without Losing at Love . San Francisco, CA: Jossey-Bass. 2 . Dynamics of Economic Well-Being: Movements in the U.S. Income Distribution, 1996-1999. U.S. Census Bureau. Current Population Reports, Household
This brief was intended to demystify financial education and marriage and relationship skills education for educators who may be more familiar with one area than another. A second objective was to highlight the common ground between financial and marriage educators in terms of increasing family stability for low-income families. Specific practices
Joining expertise through collaboration can sometimes be as simple as getting family and financial practitioners together to come up with a top-10 list that communicates the joint message about healthy families and finances (Figure 6.) For example, programs can choose healthy financial practices that are relevant to the population they serve or ad
Current marriage and financial stability efforts have been developed at the community level by providers who are often located within the same social service agency, focus on the importance of family stability, and have developed referral networks with outside agencies that could be strengthened through dialogue. A number of community-based organi
Financial and marriage educators share the following goals for their participants in their work with couples and families, but have different tools at their disposal for attaining these goals (see Figure 5).
Foundations for Strong Families 101. Making the Case: Common Ground between the Marriage and Financial Fields
Research suggests that those that have healthy and stable relationships are more likely to have healthy stable finances and vice versa. Stability in one area seems to reinforce stability in the other, and familial and financial stability share a common foundation.
Federally funded healthy marriage, relationship skills, fatherhood, and asset building programs are located across the United States. The map below displays all of the healthy marriage and family-strengthening programs that have Healthy Marriage or Responsible Fatherhood grants (purple triangles) as well as the Assets for Independence (AFI) grante
While financial education is focused on knowledge and skill development, asset building goes further, seeking to build wealth for low-income and economically vulnerable individuals and families. While these two areas can and do intersect, as with asset building programs that include financial education requirements, they are separate fields.
Financial education programs seek to equip individuals with the information, knowledge, and skills to manage their household finances and navigate the financial services marketplace. Financial literacy skills taught in these programs include money management, goal setting, budgeting, and retirement planning. Investment and savings, bank products a
Marriage and family-strengthening programs seek to develop participants’ relationship skills (e.g. communication, problem solving) in order to develop and sustain healthy relationships, marriages and families.
Family and finances are key sources of strength and self-sufficiency that interact in the lives of most Americans. However, many face ongoing problems and stress because of family and financial instability, especially in these uncertain times. Families in low-income communities may face greater difficulties in accessing resources to build strong f