[September 2008]

The Eastern Kentucky Asset Building Collaboration’s (EKABC) fifth annual tax preparation effort offered more to local residents than free help filling out and filing tax returns.

Officials also took the opportunity to talk to them about wealth-building and money-management education and services offered free of charge as part of the effort.

“Money management is something that’s not taught often enough,” said Jennifer Weeber. director of community programs for Hazard/Perry County Community Ministries, a key EKABC partner. “But really it does take skill and some know-how.”

The EKABC used its tax preparation locations in Pike, Perry, Bell, Johnson, Owsley, Knox, and Whitley counties as feeder systems to recruit people into financial management classes and other programs to help them learn to manage money and build wealth.

These varied by location, Weeber said, and included “Money Smart” classes at L.K.L.P. Community Action Council, a home ownership workshop at KCEOC Community Action Partnership, and individual credit counseling at the Hazard/Perry County Housing Development Alliance.

Additional assistance ranged from helping people establish bank accounts, to more involved topics like obtaining loan assistance that can put people on the path toward home or small-business ownership, Weeber said.

According to EKABC figures, the participating agencies helped 32 people open bank accounts, enrolled 157 people in a financial education class, provided credit counseling and credit reports to 314 people, and delivered home ownership counseling to 333 people.

Weeber said 12 people also opened Individual Development Accounts (IDAs). These matched-savings accounts are backed by the Kentucky Asset Success Initiative (KASI) and allow people who meet income and other guidelines to triple their savings power.

Weeber said people who open IDAs can contribute up to $2,000 and have that matched by $4,000 from the government. They must agree to use the savings for home ownership, education or a small business and be willing to participate in financial education classes.

Janie Hackney, JobSight One-Stop coordinator, said the goal of the overall effort is changing the mindset of eastern Kentucky taxpayers.

If they begin steering away from thinking only about their most immediate financial wants and needs, and instead look toward long-term, wise investments with their tax refund dollars, the program will be a success, she said.

Weeber agreed.

“The whole goal is to help folks build their wealth and become more financially stable for the long term,” Weeber said.

To learn more about the JobSight network, visit www.jobsight.org.