University of Wisconsin Research Group Receives Grant to Promote Better Financial Management
By Desmond CarlislePayday Loan Writer
The Center on Business and Poverty at the University of Wisconsin-Madison received a two-year, $35,000 grant from the Helen Bader Foundation.
The UW organization researches and disseminates information that helps companies assist their low-income employees. The grant from the foundation will fund a program to teach better financial management to low-income, Milwaukee-area residents.
The Center on Business and Poverty is an initiative of the Institute for Research on Poverty. It arranges for qualified volunteers to work through companies to assist employees in filling out tax forms. Employees learn more about other financial resources as well, such as ways to deposit paychecks directly, avoiding overdraft fees, or ever having to rely on last-ditch options like fast payday loans.
"For low-income people, tax time the biggest financial day of the year. Refunds and credits often are picked up during tax season. If employees get good advice from the volunteers we bring in to do taxes at work, it can make all of the difference for low-income families," said John Hoffmire, Director of the Center on Business and Poverty.
Federal Reserve Chairman Ben Bernanke recently stated that while most Americans manage money reasonably well, low-income families have the greatest difficulty.
In Milwaukee, for example, many employees do not capitalize on programs such as the Earned Income Tax Credit, direct deposit accounts, retirement plans, or even basic savings accounts, all of which can help improve their financial stability and ensure success for their children.
"Low-income workers are better poised to gain an economic foothold when they understand the options available to them," Bader Foundation President Daniel Bader said. "The center's educational outreach will not only aid them when they are struggling, but the knowledge will be valuable as they move up the ladder and begin to build wealth."
Some employees can miss out on collecting up to 36 percent of their yearly take-home pay if they do not take advantage of tax credits.
Wisconsin is taking numerous measures to curb its growing payday loan industry. Innovative projects that promote good financial management, as well as strong relationships between families, employers and communities, are vital to making progress (and eliminating detractors such as credit card debt) in the U.S.
