Volunteer Income Tax Assistance: A Community Coalition for Financial Education and Asset Building

Free tax programs, such as Volunteer Income Tax Assistance (VITA), allow recipients of the earned income tax credit (EITC) to have their returns filed for free. VITA and other free tax programs are nationwide. However, each program is distinct, and the services provided by these programs differ. This article discusses a successful and unique community collaboration that can be used by Cooperative Extension professionals nationwide to assist consumers with tax preparation, introduce new paths for providing consumers with financial education, and open the door to involving consumers in additional financial management programming

On the importance of being finished

The publication of an increasing number of draft genome sequences presents problems that will only be resolved by improved search tools and by complete finishing of the sequences - and their deposition in publicly accessible databases

Promoting Savings at Tax Time through a Video-Based Solution-Focused Brief Coaching Intervention

Solution-focused brief coaching, based on solution-focused brief therapy, is a well-established practice model and is used widely to help individuals progress toward desired outcomes in a variety of settings. This papers presents the findings of a pilot study that examined the impact of a video-based solution-focused brief coaching intervention delivered in conjunction with income tax preparation services at a Volunteer Income Tax Assistance location (n = 212). Individuals receiving tax preparation assistance were randomly assigned to one of four treatment groups: 1) control group; 2) video-based solution-focused brief coaching; 3) discount card incentive; 4) both the video-based solution-focused brief coaching and the discount card incentive. Results of the study indicate that the video-based solution-focused brief coaching intervention increased both the frequency and amount of self-reported savings at tax time. Results also indicate that financial therapy based interventions may be scalable through the use of technology

The Effects of Mortgage Debt on Assets and Total Resources Among Near-Retirement Households

The purpose of this study was to investigate the long-term relation between household leverage through the use of mortgages, and changes in household wealth using the theoretical framework of the life cycle income hypothesis. The results of this study are relevant to current positions regarding household leverage via mortgages. This study used the 1992 through 2002 waves of the Health and Retirement Study. The characteristics of leveraged and unleveraged households were compared in 1992 and 2002 as were changes during that period. The relation between household leverage and changes in assets and total resources over the period was modeled using robust regression analysis. Based on the results of independent 1 tests and chi-square tests, there were statistically significant differences between leveraged and unleveraged The general difference between the two groups was that greater proportions of leveraged households were working in 1992 and 2002 than unleveraged households. This observation was supported by differences in household income, work status trends, age of household head, total resources, and changes in total resources. Unleveraged households had statistically significantly higher assets than leveraged households; however, there was no statistically significant difference in the change in assets between the two groups. households. Retained or incurred mortgage debt during the study period, relative to not having mortgage debt, had a consistent negative effect on changes in assets and total resources. The initial leverage ratio and square of the initial leverage ratio were not statistically significant in either of the estimated regression models. The effect of eliminating mortgage debt, relative to not having mortgage debt, on changes in assets and total resources was not statistically different from zero. From the standpoint of maximizing resources, maintaining mortgage debt did not appear to be the best altemative for most households. However, for high-income and more risk-tolerant households, mortgage debt was beneficial and enhanced increases in assets and total resources. While the use of mortgage debt for investment capital had the potential to increase total resources, households may have derived greater satisfaction from using the mortgage proceeds for consumption, given their preferences and expectations. Implications for consumers, financial professionals, educators, and tax policymakers were drawn from the results of the study

A User-Friendly Evaluation Resource Kit for Extension Agents Delivering Financial Education Programs

Inadequate evaluation tools and limited evaluation capacity prevent many Extension agents from effectively assessing program impact. A user-friendly and reliable resource kit is now available to help agents evaluate their financial education programs. This resource kit has an online evaluation manual and a database. The manual is available to help educators understand basic evaluation concepts and learn how to use the database. The database is available to help agents design customized evaluation instruments based on their specific program needs. A reliable evaluation instrument can be created within about 10 minutes

Helping Undergraduates Discover The Value Of A Dollar Through Self-Monitoring

Many college undergraduates lack basic financial management knowledge and skills while bearing ever increasing debt burdens upon graduation. In order to encourage students to become aware of their spending patterns and weigh those patterns against personal values, a self-monitoring project was implemented as a class activity. The resulting effect on financial behavior was examined. Analysis of participants’ self-reflection papers revealed that awareness of spending behaviors increased universally among participants, and a significant proportion of students spontaneously modified spending behaviors to more closely conform to personal values. Participants consistently reported the importance of a spending management tool in modifying spending behavior

Individual wealth accumulation: Why does dining together as a family matter?

This study uses data from the Panel Study of Income Dynamics to examine whether self-regulation, proxied by regularly dining together with family, is associated with better financial preparedness and greater wealth accumulation across time among households. Findings reveal that individuals who had sufficient self-regulation to regularly eat meals together with their family, increased wealth at a faster rate than others between 1994 and 2004. Moreover, those who exhibited self-regulation by frequently spending mealtime with their family showed greater preference for investment portfolio diversification. Consistent with other studies, results indicate that wealth accumulation increased with age, income, and educational attainment

Individual wealth accumulation: Why does dining together as a family matter?

This study uses data from the Panel Study of Income Dynamics to examine whether self-regulation, proxied by regularly dining together with family, is associated with better financial preparedness and greater wealth accumulation across time among households. Findings reveal that individuals who had sufficient self-regulation to regularly eat meals together with their family, increased wealth at a faster rate than others between 1994 and 2004. Moreover, those who exhibited self-regulation by frequently spending mealtime with their family showed greater preference for investment portfolio diversification. Consistent with other studies, results indicate that wealth accumulation increased with age, income, and educational attainment

Aiding Vertical Guidance Understanding

A two-part study was conducted to evaluate modern flight deck automation and interfaces. In the first part, a survey was performed to validate the existence of automation surprises with current pilots. Results indicated that pilots were often surprised by the behavior of the automation. There were several surprises that were reported more frequently than others. An experimental study was then performed to evaluate (1) the reduction of automation surprises through training specifically for the vertical guidance logic, and (2) a new display that describes the flight guidance in terms of aircraft behaviors instead of control modes. The study was performed in a simulator that was used to run a complete flight with actual airline pilots. Three groups were used to evaluate the guidance display and training. In the training, condition, participants went through a training program for vertical guidance before flying the simulation. In the display condition, participants ran through the same training program and then flew the experimental scenario with the new Guidance-Flight Mode Annunciator (G-FMA). Results showed improved pilot performance when given training specifically for the vertical guidance logic and greater improvements when given the training and the new G-FMA. Using actual behavior of the avionics to design pilot training and FMA is feasible, and when the automated vertical guidance mode of the Flight Management System is engaged, the display of the guidance mode and targets yields improved pilot performance