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Understanding and Managing Your Finances

Classes, Activities and Consultations

The following classes prepare first-time homebuyers for understanding and managing your finances.  Each applicant is required to complete eight hours of financial classes and activities.  Five of the eight hours of required classes will be spent on the first three topics.  Applicants can choose the topics they wish to learn more about for the last three hours of their requirement from additional topics listed below.  

 

Required Classes, Activities and Consultations

Determining What You can Afford

Outcomes:  At the end of this set of activities, you will have

  • Identified your monthly expenses
  • Understood why 30% of your income is the most you should be paying for housing (mortgage, taxes, insurance)
  • Identified what you can afford for monthly housing costs
  • Learned what price range of houses you can afford

Required Assignment: Submit the completed CFPB Define Affordable worksheet

How You Meet this Requirement:

  • Complete the CFPB Define Affordable worksheet and review with KAH mentor
  • Consult with a lender the house cost you can afford and add that information to your Define Affordable worksheet with the lender’s name.

Understanding and Improving Your Credit Score

Outcomes:  At the end of this set of activities, you will have

  • Learned how your credit score is calculated
  • Learned what credit score you need to secure a loan
  • Understood the importance of good credit
  • Identified your credit scores from the major three reporting companies
  • Identified any debt or issues on your credit report and a game plan for resolving them
  • Identified strategies to help you improve your credit score

Required Assignment: Submit to KAH your credit report with three credit scores with your detailed game plan including actions and a timeline for improving your score. 

How You Meet this Requirement:

  • Read: Credit Score FAQ’s
  • Read: Credit Score by Julia Kagan
  • View Amanda Wallace’s video about understanding and improving your credit score
  • Consult with a lender to review your credit reports and listen to his/her advice on how to improve your score
  • Write up you game plan for improving your credit scores

Creating Your Family Budget

Outcomes: At the end of this set of activities, you will have

  • Tracked your weekly expenses
  • Identified your monthly expenses and income
  • Identified your once a year expenses (insurance, taxes, annual maintenance)
  • Identified areas to decrease spending
  • Created a balanced budget
  • Understood why having a budget assists you in making financial decisions

Required Assignment: Submission of Make a Budget worksheet and consultation with KAH representative to discuss your budget

How You Meet this Requirement:

  • Take a budgeting class:
  • Complete the Make a Budget worksheet

Additional Topics
Applicants must submit the required assignments (coming soon) for at least three of these topics .

Using Credit Cards
Getting Started with Banking

Managing Your Debt

Making Good Loans

Renting Versus Owning

Investing in Savings

Teaching your Kids How to Manage Money