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2nd QUARTER 2013 | VOL. 31 #2 3 LEADERSHIP: AFCPE Celebrates 30 Years 4 ACADEMIC: Partner Financial Literacy with Financial Aid 6 PRACTITIONER: Focusing on Mending Spending 8 The Massive Failure of 401(k) Education 10 4 Steps to Up Your Client’s Financial Know-How 13 BOOK REVIEW: Life at Home in the Twenty- First Century: 32 Families Open Their Doors 14 AFCPE News Cluttered Lives, Empty Souls Understanding and Treating Hoarding Disorder By Terrence Daryl Shulman, MD, LMSW, ACSW Continued on page 12 Unless you’ve been living on another planet, you’ve probably noticed the ever-increasing media coverage over the last few years around the “latest” disorder: hoarding. Several cable programs on hoarding have garnered big ratings and endless fascination. These TV programs tend to highlight the more extreme cases of hoarding. Hoarding is either on the rise or we’re finally starting to come to terms with it. While statistics and prevalence are still sketchy, here’s what the latest research shows: Hoarding affects about 6–15 million Americans— TIME magazine, 2010 There are over 75 U.S. National Hoarding Taskforces—TIME magazine, 2010 Personal consumption expenditures on storage unit rentals increased over 20 percent since 1980—U.S. Chamber of Commerce I became interested in studying and treating hoarding disorder several years ago when many of my counseling clients divulged their struggles with clutter and stuff—especially my clients who were compulsive shoppers or shoplifters. I also recognized several family members and friends who were packrats and, bit-by-bit, even found my office getting disorganized. Then, it occurred to me: my father had been a hoarder, too! And for every hoarder still hiding behind closed doors, more public faces of this disorder are coming out, including Micahaele Salahi, Heidi Montag and Spencer Pratt, Lisa Kudrow, Mariah Carey, Kevin Federline, Celine Dion, Marie Osmond and Paris Hilton (17 dogs might qualify as animal hoarding). Looking at the bigger picture, society has encouraged super-consumerism—hoarding often is its byproduct. When everyone bought a home before the housing bubble burst, we had to fill those homes up, didn’t we? And if there wasn’t enough room in your McMansion, have we got a storage unit for you! Or two, or three or four! One man’s hoard is another man’s collection. —Anonymous

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Page 1: Cluttered Lives, Empty Souls - AFCPEafcpe.org/assets/pdf/2013 Q2.pdf · TIME magazine, 2010 ... Published quarterly. Association for Financial Counseling and Planning Education

2nd QUARTER 2013 | VOL. 31 #2

3 LEADERSHIP: AFCPE Celebrates 30 Years

4 ACADEMIC: Partner Financial Literacy with Financial Aid

6 PRACTITIONER: Focusing on Mending Spending

8 The Massive Failure of 401(k) Education

10 4 Steps to Up Your Client’s Financial Know-How

13 BOOK REVIEW: Life at Home in the Twenty-First Century: 32 Families Open Their Doors

14 AFCPE News

Cluttered Lives, Empty SoulsUnderstanding and Treating Hoarding Disorder

By Terrence Daryl Shulman, MD, LMSW, ACSW

Continued on page 12

Unless you’ve been living on another planet,

you’ve probably noticed the ever-increasing

media coverage over the last few years

around the “latest” disorder: hoarding.

Several cable programs on hoarding have

garnered big ratings and endless fascination.

These TV programs tend to highlight the

more extreme cases of hoarding. Hoarding

is either on the rise or we’re

finally starting to come to

terms with it. While statistics

and prevalence are still

sketchy, here’s what the

latest research shows:

• Hoardingaffectsabout

6–15 million Americans—

TIME magazine, 2010

• Thereareover75U.S.

National Hoarding Taskforces—TIME

magazine, 2010

• Personalconsumptionexpenditureson

storage unit rentals increased over 20

percent since 1980—U.S. Chamber of

Commerce

I became interested in studying and

treating hoarding disorder several years

ago when many of my counseling clients

divulged their struggles with clutter and

stuff—especially my clients who were

compulsive shoppers or shoplifters. I also

recognized several family members and

friends who were packrats and, bit-by-bit,

even found my office getting disorganized.

Then, it occurred to me: my father had

been a hoarder, too! And for every hoarder

still hiding behind closed

doors, more public faces

of this disorder are coming

out, including Micahaele

Salahi, Heidi Montag

and Spencer Pratt, Lisa

Kudrow, Mariah Carey,

Kevin Federline, Celine

Dion, Marie Osmond and

ParisHilton(17dogsmight

qualify as animal hoarding).

Looking at the bigger picture, society has

encouraged super-consumerism—hoarding

often is its byproduct. When everyone

bought a home before the housing bubble

burst, we had to fill those homes up, didn’t

we? And if there wasn’t enough room in

your McMansion, have we got a storage

unit for you! Or two, or three or four!

One man’s hoard is

another man’s collection.

—Anonymous

Page 2: Cluttered Lives, Empty Souls - AFCPEafcpe.org/assets/pdf/2013 Q2.pdf · TIME magazine, 2010 ... Published quarterly. Association for Financial Counseling and Planning Education

2

Standardthe

2013 Board of Directors

Editor: Jill Anne LadouceurEmail: [email protected]

Technical Editor/Proofreader: Barbara O’Neill, CFP®, Ph.D., AFC®, CHC®

Email: [email protected]

Deadlines for The Standard are as follows: 1st Quarter—November 15 2nd Quarter—February 15 3rd Quarter—May 15 4th Quarter—August 15

The Standard (ISSN-1096). Published quarterly.

Association for Financial Counseling and Planning Education1940 Duke Street, Suite 200Alexandria, VA 22314Phone: (703) 684-4484Fax: (703) 684-4485

Co-President Barry Wilkinson, AFC®

United States Air ForceBellevue, NEEmail: Barry.l. Wilkinson@ offutt.af.mil

Co-Past PresidentRebecca Travnichek, Ph.D., AFC®

University of Missouri ExtensionSavannah, MOEmail: TravnichekR@ missouri.eduen@ comcast.net

Secretary Virginia Zuiker, Ph.D.University of MinnesotaSt. Paul, MNEmail: vzuiker@ umn.edu

TreasurerMichael Gutter, Ph.D.University of Florida Gainesville, FLEmail: [email protected]

Members-at-LargeKelli Jo Anthon, AFC®

Belvoir Federal Credit UnionWashington, D.C.Email: Anthon@ belvoirfcu.org

Maryann Barry, AFC®

Airmen and Family Readiness Center McConnell AFB, KSEmail: [email protected]

Sharon Cabeen, AFC®

TGAcworth, GAEmail: scabeen@ comcast.net

Jan Garkey, AFC®

CUNAMadison, WIEmail: jgarkey@cuna. coop

Jinhee Kim, Ph.D.University of Maryland ExtensionEmail: [email protected]

Irene Leech, Ph.D. Virginia TechBlacksburg, VAEmail: [email protected]

Dora Mays, Ph.D.MacDill Air Force Base Email: [email protected]

Syble SolomonLifewise/Money HabitudesWilmington, NCEmail: [email protected]

Michael Wood, AFC®

Army Installation and Management CommandSan Antonio, TXEmail: [email protected]

www.afcpe.org

President’s MessageBy Barry Wilkinson, AFC®

2013 AFCPE President

2013 Board of Directors

Co-President Barry Wilkinson, AFC®

United States Air ForceBellevue, NEEmail: Barry.l.Wilkinson@ offutt.af.mil

Co-PresidentRebecca Travnichek, Ph.D., AFC®

University of Missouri ExtensionSavannah, MOEmail: TravnichekR@ missouri.eduen@ comcast.net

Secretary Virginia Zuiker, Ph.D.University of MinnesotaSt. Paul, MNEmail: vzuiker@ umn.edu

TreasurerMichael Gutter, Ph.D.University of Florida Gainesville, FLEmail: [email protected]

Members-at-LargeKelli Jo Anthon, AFC®

Belvoir Federal Credit UnionWashington, D.C.Email: Anthon@belvoir fcu.org

Maryann Barry, AFC®

Airmen and Family Readiness Center McConnell AFB, KSEmail: [email protected]

Sharon Cabeen, AFC®

TGAcworth, GAEmail: scabeen@ comcast.net

Jan Garkey, AFC®

CUNAMadison, WIEmail: [email protected]

Jinhee Kim, Ph.D.University of Maryland ExtensionCollege Park, MDEmail: [email protected]

Irene Leech, Ph.D. Virginia TechBlacksburg, VAEmail: [email protected]

Dora Mays, Ph.D.MacDill Air Force BaseTampa, FL Email: [email protected]

Syble SolomonLifewise/Money HabitudesWilmington, NCEmail: [email protected]

Michael Wood, AFC®

Army Installation and Management CommandSan Antonio, TXEmail: [email protected]

www.afcpe.org

Editor: Jill Anne LadouceurEmail: [email protected]

Technical Editor/Proof Reader: Barbara O’Neill, CFP®, Ph.D., AFC®, CHC®

Email: [email protected]

Deadlines for The Standard are as follows: 1st Quarter—November 15 2nd Quarter—February 15 3rd Quarter—May 15 4th Quarter—August 15

The Standard (ISSN-1096). Published quarterly.

Association for Financial Counseling and Planning Education1940 Duke Street, Suite 200Alexandria, VA 22314Phone:(703)684-4484Fax:(703)684-4485

Dallas, Texas in January, the temperature

wasinthemid70’swhen28ofuscame

together for an AFCPE strategic planning

session. I related well to a groundhog, since

I entered the hotel in the late afternoon and

emerged two days later squinting from the

bright sunlight and seeing my shadow. How

enlightening it was to spend two days with

so many intellectuals from varied walks of

life coming together because of their love

and dedication to AFCPE.

We examined our foundation. We

revisited our purpose and values, and

discussed intently what is important to us.

Many associations have a “wait-and-see”

attitude. With uncertainty all around us,

hoping for things to return to the way they

were or remain the same may feel like a safe

thing to do; however, if we are to grow and

prosper then we must get in the driver’s

seat. If there ever has been a moment when

strategic thinking and planning mattered, it is

now. AFCPE has been Setting the Standard

for 30 years and I assure you that we will

have to work hard to continue that legacy.

We evaluated our products and services.

What type of association do we wish to

be and who is our customer? Are we a

professional organization that serves the

membership, or are we a certifying body

that provides a credentialing process for the

practitioner? AFCPE is all of those things

and we want to continue serving all. Now the

question is how do we continue to be relevant

and effective as a professional organization

and set the highest standards for our

credentials?

We examined the landscape. We

reviewed the risks associated with today’s

economics, politics, demographics,

and technology. We looked at how we

might transform these into opportunities

for our organization. People today are

more inclined than ever to learn through

technological advances. Social networking,

webinars, distance learning, and the

overarching economy are major driving

Standardthe

2nd QUARTER 2013

During the transition of our Executive Director, and with the Board of Directors

(BoD) focusing on strategic planning, the BoD wants to maintain continuity

within AFCPE. In order to proceed forward efficiently with a new business plan

the BoD decided to suspend officer elections for 2013 and have responsibilities

shared between the two presidents. Rebecca Travnichek (President 2012) and

Barry Wilkinson (President 2013) will share responsibilities as “Co-Presidents”

for this year with Barry moving into the Presidency in 2014. The AFCPE Board

of Directors sincerely appreciates the support the membership and staff

continually provide as our organization evolves.

Continued on page 14

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3

Leadership

Celebrating 30 Years: AFCPE’s Anniversary Is a Time for Reflection and Inspiration

By Jill Anne Ladouceur

In 2013, AFCPE

celebrates its 30th

anniversary. As

with all milestone

events, it’s a good

time for reflection,

as well as looking

toward the future.

The Standard

visited with leaders

who have shaped

the membership

association that

you have chosen

to support, and

likewise, the

organization that

supports you. What follows is a snapshot

of our rich history.

The seed was planted in 1983 by two

visionary leaders, Jerry Mason, Ph.D.,

and Tahira Hira, Ph.D. The two attended

a conference together and talked about

the need for resources to be available

and shared amongst this budding

profession. Mason recalls, “There was

a need for a professional association

with a mission to enhance the financial

counseling profession.” From there, the

first conference was developed and held

at Brigham Young University, where Mason

taught. The invitation-only conference

attracted over 60

attendees from 30

states. It was hosted

the next year by Hira’s

Iowa State University

where AFCPE was

formally launched and

bylaws were adopted.

Mason quipps, “I

was elected Past

President—funny title

for someone who was

never the president.”

One of the cornerstone

ideas was to establish

an organization

that supported all those with an interest

in financial counseling. In the early years,

AFCPE was supported primarily by

academia, soon after joined by financial

counselors, Cooperative Extension and the

military. Tom Garman, Ph.D., was involved in

the formative years and recalls, “We wanted

to create an organization where all those

who were involved in personal financial

issues could meet, feature their work, and

be treated with respect.” He continues,

“Respecting all was critical,” and still is today.

As the need for financial counseling has

continued to grow, the membership

of AFCPE has become more diverse,

welcoming those in credit unions, financial

aid offices and credit counseling, among

others. Today, AFPCE members and

certificants are geographically dispersed.

There are 643 of your colleagues located

AFCPE Mission: “AFCPE provides professional development experiences for financial educators, practitioners, and researchers to improve the economic well being of individuals and families worldwide.”

Tahira Hira, Ph.D. Jerry Mason, Ph.D.

Continued on page 11

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4

Academic

Eight Reasons Why Partnering Financial Literacy with Financial Aid Makes Sense

By Mark Mielke, MPA, CFP®

As a result of Texas legislation, Texas public

colleges and universities will be required to

offer student financial literacy training no

later than Fall 2013. Those Texas college

administrators who previously believed that

financial literacy was unnecessary are now

scurrying to establish compliant programs.

Administrators from other states are also

exploring options for effective, cost efficient

financial literacy programs.

The obvious need to establish financial

literacy training to assist students sorely

lacking in money management skills will

be with us until students receive adequate

training before entering college. This

need for starting campus financial literacy

programs comes at an inopportune time as

colleges are facing continuous pressure to

keep budgets low. The good news is that

establishing an excellent financial literacy

program need not be expensive.

There are a number of models for

establishing college financial literacy

programs and each has its own advantages

or disadvantages for personnel costs, facility

requirements and service to students. One

model which scores well on all of these

considerations is incorporating financial

literacy counseling within the financial aid

office. Here are eight reasons why it makes

sense to consider this model for your

school’s financial literacy program:

1. Finding the Right Professionals—

One of the first challenges in

establishing an effective program is

finding knowledgeable employees

capable of communicating information

on a variety of money topics. Who

possesses a more in-depth knowledge

of college student finances than

a financial aid advisor (sometimes

called counselor or officer)? Financial

aid advisors talk with students and

parents on a daily basis and are

intimately familiar with students’ money

challenges, issues and problems.

Advisors also have a pulse on their

local economies and the devastating

impact that economic downturns

can have on the financial resources

of parents and their ability to assist

children with college expenses.

2. Aware of Student Costs—Advisors

are well-informed about their schools’

Cost of Attendance (COA) estimates

which provide a useful starting point

for student budgets. A fundamental

element in establishing a budget is

estimating expected costs. Students

can add to or subtract from COA

estimates based on their specific

circumstances after performing more

detailed projections. There is not a

competent financial aid advisor who

is not able to quickly review student

budgeted costs for housing, utilities,

food, transportation and entertainment

to determine if they are reasonable.

3. Professional Judgment Authority—

One of the best parts of being a financial

aid advisor is the authority to perform

a professional judgment (PJ) when

circumstances warrant. Few people

on campus have the power to improve

a student’s financial status as much

as an advisor who determines a PJ

is justified. There are circumstances

where a student’s Expected Financial

Contribution (EFC) may be modified to

enable Pell Grant to be increased from

$0 to $5,550, as well as to enable the

student to be eligible for other grants.

Students who go to financial literacy

offices that don’t possess the knowledge

or authority to perform PJs may only

receive counseling to reduce spending.

4. Comprehensive Financial

Counseling—Offering financial literacy

advice to students as part of financial

aid provides a “one-stop shop” that

delivers exceptional customer service.

While there is additional, distinct

knowledge that financial aid advisors

will need to obtain in order to become

valuable financial literacy counselors,

most students coming in for financial

assistance don’t make the distinction

between the two money classifications.

They just need financial help.

A student may come in with a problem

that necessitates counseling on

establishing adequate budgeting

practices, decreasing the amount

of credit card debt, and explaining

financial aid options. Financial literacy

representatives who provide assistance

with budgeting and credit card debt but

who are unable to help with financial aid

information provide less than optimum

customer service. Financial aid advisors

who discuss financial aid options but

2nd QUARTER 2013Standardthe

Continued on page 5

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5

Academic

Understanding Alternative Credit Data

ByLibby Vasselwho are unable to help with budgeting

or credit card debt issues provide a

similar sub-optimum customer service.

Trained financial aid advisors who are

able to help with all three of these

topics, as well as other issues that

may arise, are providing the first-rate

customer service students deserve.

5. Access to More Students—Financial

aid advisors are able to identify and

counsel students on financial literacy

topics who may never go to visit with

a financial literacy counselor. Financial

literacy counselors who are separate from

financial aid offices have commented to

me that they don’t have a large number

of students seeking individual counseling.

Perhaps that is because students don’t

see the value of their counseling.

Financial aid offices don’t have a

shortage of students seeking financial

assistance. Financial aid advisors who

carefully listen to the large number of

students with whom they meet can

identify financial literacy problems

and assist students in resolving these

problems. Financial aid advisors can

even require student action before

enabling them to receive their financial

aid. An example might be a student who

is required to bring in a realistic budget

or attend a credit card workshop before

a Satisfactory Academic Progress (SAP)

appeal is approved.

6. Knowledgeable About Fighting

Against Student Debt—Financial aid

advisors who possess financial literacy

knowledge are among the most valuable

members in the fight against high student

loan debt. Soaring student loan default

rates have been identified by some as

the next credit bubble. Many financial

aid offices have programs to lower

student loan default rates for students

at their schools. Increasing financial

literacy knowledge will help advisors

in educating students about keeping

their student loans as low as possible

and establishing successful repayment

strategies. In talking with financial literacy

representatives not part of financial aid,

many don’t know their specific school’s

student loan default rate, and some had

no idea that the default rate is measured.

All financial literacy representatives need

to be part of an active campus team with

the goal of keeping default rates as low

as possible.

7. Skilled Advisors—With the sound

money and counseling foundation

most financial aid advisors possess,

increasing their financial literacy

knowledge should not be expensive.

Advisors are skilled in working with tax

returns when completing verifications

as well as adroitly making numerous

calculations when completing

aggregate loan determinations and PJs.

Advisors usually are able to easily learn

financial literacy information to allow

them to provide counseling and present

workshops. In addition, there is a large

amount of workshop information on

many financial literacy topics that is free

to anyone who asks. Some organizations

allowing use of their workshop slides

and handouts ask that their logo remain

on the slides, along with the school logo

of the presenter. Others, such as the

Money Wise Aggie, freely provide use of

their independently developed slides and

handouts with no restrictions. Almost

all financial literacy programs want to

share their information so that students

from all schools can receive useful

financial literacy training. With the sharing

attitude of schools with active financial

literacy programs, there is no reason that

schools initiating workshops will have to

start from scratch.

8. Low or No Increase in Personnel

Costs—Since schools using this model

are training financial aid advisors for their

financial literacy programs, there are

normally little or no increases in personnel

and facility costs. Certainly the costs of

training advisors already on the payroll

would be less than hiring new staff and

finding building space for them.

The eight reasons for integrating financial

literacy into the financial aid office provide

a logical option for schools seeking to

establish robust financial literacy programs

at a reasonable price.

Mark Mielke, MPA, CFP®, is an advisor and

Money Wise Aggie Coordinator, Scholarships &

Financial Aid at Texas A&M University. He can

be reached at (979) 458-5325 or visit https://

moneywise.tamu.edu for more information.

“This need for starting campus financial literacy programs comes at an inopportune

time as colleges are facing continuous pressure to keep budgets low.”

Partner Financial LiteracyContinued from page 4

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6

You and your clients are frustrated!

Encouraging them to save more often

seems to be met with resistance, anger and

hopelessness. Saving seems so unrealistic

when your client is living from paycheck to

paycheck. Where will they get the money to

save? The answer: spend differently.

When you make spending a separate subject

matter and provide new techniques, you

enable people to be better consumers so

they get more value for their dollar. Once

they take control of their spending they are

ready to save. Taking control of everyday

spending decisions is the key. Research tells

us that having more money isn’t necessarily

the answer. Typically when people have more

money but don’t mend their spending, they

continue to have the same money challenges!

How can you help them focus on spending

to get the most mileage from the money

they do have? Try these eight ideas to

promote successful spending strategies.

1. Find options for impulsive or convenience spendingConvenience is cited as a main reason for

impulsive spending. People surveyed say it

prompts spending without much forethought

or research regarding whether or not the

purchase is necessary or a good value.

Anything that seems to make life easier

falls into this category, for example, eating

out or buying prepared or fast food. Other

examples of convenience purchases include

going over their cell phone limit for calls and

text messages, shopping at convenience

marts or expensive nearby stores instead of

at lower priced supermarket or department

stores, or using any ATM instead of their

own bank’s resulting in extra charges. How

can you help your clients explore new ways

to plan their routes, time, meals or record

keeping so they don’t have to sacrifice

convenience to save money?

2. Identify when people are more vulnerable to impulsive spending When people are feeling tired, hungry, angry,

lonely or fearful they are vulnerable to making

choices they will later regret. Help people

recognize those feelings and encourage

them to avoid spending or making financial

decisions at those times when possible.

Tips that could make a difference are: eat

something before shopping, have a shopping

list and stick to it, shop less frequently (and

without children) and shop at a different time

of day or different day of the week when

there are fewer stressors. Also, once your

clients recognize these feelings, they can

train themselves to stop before going to the

register, then go through their cart to remove

items by asking themselves these questions:

• How much time will I have to work to pay

for this item? Is it worth it?

Focus on Mending Spending to Increase Savings

By Paul Richard

2nd QUARTER 2013Standardthe Practitioner

Continued on page 7

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7

• What are three other things I could do/

buy with that money? Would that have

more value for me?

• Will I think this was a good choice when I

look back in a month?

It could also be helpful to not purchase

anything unplanned that costs above a

certain amount of money (maybe $50?)

without waiting a day, week or month.

3. Differentiate between quality and brand namesMarketing, peer pressure, status and the

fleeting moment of feeling good are often

the cause for buying more expensive items

when comparable items are available for

less. For some people that means replacing

their perfectly serviceable items with the

latest model at a higher cost. Technology is

the biggest culprit here as people are buying

expensive new cell phones, tablets and

computers and then spending more on brand-

name accessories for them. Other examples

include buying bottled water and designer

drinks, automatically having cars serviced at

the dealership, buying flowers and plants at a

florist, buying brand name clothing and only

shopping in the “right” stores.

4. Provide comparison shopping educationOne of the easiest steps to increase

the value of every dollar spent is to do

comparison shopping before spending.

Besides teaching how to research big-

ticket items and ask the right questions,

suggest a separate shopping trip just to

get information without buying anything.

That means the person does not carry

credit cards or a checkbook and is only

comparing prices, value, repair history,

warranties, etc. This not only helps educate

the buyer to make the best choice, it also

eliminates the possibility of a persuasive

salesperson influencing a quick (and

potentially bad) decision.

5. Increase awareness of marketing strategiesHelp people recognize common marketing

strategies that are very successful. For

example, salespeople and advertisements

will break down an expensive item into “ten

easy payments of only ....,” so the total

cost plus interest is never mentioned. Ads

that appeal to making your life easier will

distract the customer from considering

the price. Common phrases are shop at

home,ouragentsareavailable24/7,and

delivered to your door. Be aware of ads

and salespeople who provide incentives

if you immediately commit to purchase

something. Common phrases are special

gifts for the first ten callers, discounted

price if purchased today, and 15 percent

discount on all your items if you apply for

this credit card today.

Other common marketing strategies

in grocery stores are: placing the least

expensive brands on the bottom or top

shelves and the most expensive items at

eye level; placing items at the end of aisles;

and placing individual pieces of produce

by the pound in the front of the store and

produce packaged in multiple pound bags

at a discounted rate further back.

6. Share good spending practicesGreat practices to establish are to wait

for sales, use coupons, take advantage

of group buying, use rebates and be

aware of what are the best months to buy

certain products. Another important habit

is to save up to buy something instead

of buying on credit. If you’re working with

groups, participants generally are more

open to interactive discussions when other

members of the group share their personal

suggestions, experiences and successes.

7.Providehands-onlearningInformation is more dynamic when there

are opportunities for practical applications.

Do group shopping trips for comparison-

shopping with people sharing their

findings at the end. Work on spending

projects, play games that include financial

choices, role play different scenarios

and work out the real cost of buying on

credit. Discussions and activities are more

motivating, engaging and reinforcing than

lectures and PowerPoint presentations.

8. Get beyond dollars and centsConsider self-evaluation tools that will help

consumers understand themselves better and

how that influences their spending patterns.

• What money messages did they learn or

inherit growing up?

• Does how they spend their money reflect

their values?

• What is their money personality?

• How does their spending affect their

relationships?

Poor spending habits and choices result

in about 80 percent of American adults

feeling they cannot save enough, build net

worth or attain a good credit score. Helping

consumers spend wisely can make the

difference! While a single class on spending

issues can be helpful, focusing on spending

throughout a more comprehensive program

lasting weeks or months will have a greater

chance of fostering positive changes in a

person’s life.

Paul Richard is executive director of the Institute

of Consumer Financial Education, (ICFE) a

nonprofit, educational foundation, established

in 1982. He is a bankruptcy reform advocate,

author of books/articles, educator, savings

advocate, and public speaker. He can be

reached at [email protected].

Practitioner

Mending SpendingContinued from page 6

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8

2nd QUARTER 2013Standardthe

The Massive Failure of 401(k) Education

By Dennis Ackley

Lots of hard work and great intentions have

gone into the retirement aspects of personal

financial education. Yet sadly, 401(k)

education is the largest failure ever of adult

education. What does the failure look like?

At best, $400 a month. That’s the

expected lifetime income when all 401(k)

and IRA accounts are combined in typical

households headed by employees age

55–641. The median total balance in those

households is $120,000. Using the 4

percent a year lifetime withdrawal guideline

that many financial planners follow,2 it

amounts to $400 a month ($120,000 ×

4-percent ÷12 months). Looking at 401(k)

accounts alone, it’s around $200 a month

for life for typical employees age 55–64

(using the 4 percent guideline). Their median

401(k) balance is about

$62,000.3

Most of the content

and techniques used

in today’s 401(k)

education came from

1980s mutual fund

sales presentations.

They were designed

for financially aware

people who were

interested in mutual

funds to supplement

their traditional pension

plans. Does that sound

like today’s typical

company employee?

There was no sinister

motive. It was just easy

and inexpensive for the mutual fund industry

to change the name of the sales materials to

“401(k) education.” But it was:

• Not pilot tested

• Not modeled after successful voluntary

retirement ed programs

• Not designed using adult-education

principles

• Not based on competencies employees

need to begin using 401(k)s successfully

• Not equipped with successful testing tools

In 30 years, about the only change is that

some content is now delivered via websites,

emails and Twitter.

Test it yourself. Ask 401(k) education

providers, “What specific skills and

knowledge must beginning 401(k) participants

have to be successful? And how do you

measure the results of your education to

ensure employees know what to do and

how to do it?” Unfortunately, many providers

don’t have the answers. So how can they

determine what should be in or out of a basic

401(k) curriculum?

No well-run organization would allow

drill-press trainers to teach new operators

without a clear description of the required

competencies and without success

measures. Why is that allowed in educating

new 401(k) operators?

Cruelest ConsequenceAsk some employees how much money

they would need in an account to afford the

retirement they want. Most will have no idea.

Yet, it will be the most expensive “purchase”

most people will ever make. (Back in the

day, we were told it was a house—we were

told wrong.)

Research shows only four in ten employees

say they’ve tried to calculate how much

they’ll need in retirement. Even about half

the workers age 50–65 don’t know.4 This

is tantamount to intending to start a new

career and having no idea how much it will

pay or where the money will come from.

Why is the realistic cost of retirement a

mystery? It could be because the 1980s

mutual fund presentations didn’t address it,

so it’s still not covered in 401(k) education.

The retirement industry has had an odd

practice of “benchmarking” retirement plan

Continued on page 9

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9

features—not plan outcomes. Today, fewer

than 5 percent of plan sponsors focus on

retirement income as a success measure of

their 401(k) retirement plans.5 If retirement

income is not the main purpose of a

retirement plan, what is?

No Target, No SuccessEvery beginning 401(k) user needs a

personally meaningful, realistic target account

balance. Research shows that employees

who know how much they need are not

discouraged. In fact, they save more.6 It’s

illogical to expect employees to reach a

target that is unknown to them or they have

not personally set … especially one that

requires substantial financial contributions.

Here’s a simple approach. Imagine you are

age 65 today and it’s your last day of full-time

work. You have $100,000 and you expect

to spend it over 25 years to age 90. And

say you’ve put it in bank CDs (a favorite of

retirees), and the CD and inflation rates are

the same. If you divide $100,000 by 25 years,

how much is that each year? Is it really only

about $4,000 worth of buying power a year—

$333 a month—before the account runs out?

Is this realistic? Is it meaningful? Coincidentally,

this example reinforces the 4 percent guideline

that a $100,000 account provides around

$4,000 in buying power a year.

Questions Fuel MotivationMost 401(k) education delivery is based on

the old sales presentation model of having

an expert tell employees what to do. But for

people who are not yet motivated to learn

about retirement—i.e., most young adults—

telling isn’t teaching.

Clay Christensen, a widely admired

Harvard professor, paints a vivid image of

how adults learn. “Questions are places

in your mind where answers fit. If you

haven’t asked the question, the answer has

nowhere to go. You have to want to know

the answer.” Telling unmotivated adults to

save and giving them advice they haven’t

sought are wasted efforts.7

Rather than tell employees what to do, an

effective 401(k) education program should

help them imagine their future lives and

dreams. The curriculum could be designed

to get employees to ask themselves, “On

top of income from Social Security, personal

assets and part-time work, how many

$100,000 accounts would I need to support

the retirement lifestyle I want?”

Shouldn’t employees discover in their 20s

—and not in their 60s—that every $1,000

a month will take around three $100,000

accounts? Not knowing the cost from the

start of their careers steals the time they

need to accumulate the account balances

they’ll want. Starting early and making

substantial contributions are essential for

success using 401(k)s.

Helping young employees discover a

realistic idea of the cost is just the start.

It’s intended to turn them into motivated

learners who will want to learn much more

and obtain sophisticated advice from

financial professionals. Getting a good

start early in their careers is something

employees need, but most do not get.

Nudging to SuccessSome prominent behavioral economists

have a well-intended theory of nudging

employees through automatic enrollment

and escalating contributions so employees

will accumulate several hundred thousand

dollars for retirement. That’s fine as long as

it’s done along with education so employees

know, among other things, the realistic cost

of the retirement they want.

To believe automatic provisions will work

without effective education, you must also

believe that employees will never take the

401(k) money out when they change jobs,

buy a house or encounter a hardship. And,

they will never reduce their contribution

rate, even though they have no idea

how much the retirement they’ll want will

cost. What are the chances of all that

happening?

If organizations want employees to be

successful using voluntary retirement

plans—401(k)s,403(b)s,and457s—they

must make sure employees know how to

use the plans to provide the retirement

income they want. American workers

deserve a retirement education that works

… or retirement plans that don’t require

knowledgeable users.

Dennis Ackley is an advocate for clarity and

accountability in 401(k) education—helping

workers gain the basic knowledge needed to

begin achieving the financial future they want.

Early in his career, Dennis spent six years in

educational research and instructional design.

For the next 30 years, he worked in retirement

administration and communication consulting.

For more of his ideas regarding retirement

education, see his speeches and articles at

dennisackley.com.

© Copyright 2012 Dennis Ackley

Endnotes1. 2010 Survey of Consumer Finances,

Federal Reserve System, June 2012.

2. Revisiting the ‘4% Spending Rule,’ The Vanguard Group, August 2012.

3. How America Saves 2012, The Vanguard Group, June 2012.

4. Financial Literacy and Retirement Planning in the United States, Lusardi and Mitchell, February 2011, Netspar.

5. Looking Into the Stars, Plansponsor Magazine, November 2012.

6. The 2011 Retirement Confidence Survey, ebri.org, Issue Brief, March 2011.

7. Asking for Help: Survey and Experimental Evidence of Financial Advice and Behavior Change, Hung and Yoong, RAND Corporation, January 2010.

401(k) EducationContinued from page 8

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10

Standardthe

Financial Literacy is an important factor

for consumers to improve their basic

understanding on how to handle money

and to make smart decisions concerning

their personal finances. Having a basic

understanding of how to better manage

money and the opportunity to enhance that

knowledge can save your clients hundreds

of dollars each month and thousands

of dollars per year. A basic definition of

financial literacy is the ability to understand

how money works.

Regardless of your clients’ age, they should

take a few minutes a day to improve their

basic financial management skills to become

better educated on consumer matters,

improve their awareness of bottom line

figures before signing documents, and

most importantly, to implement preventive

measures to help them avoid the pitfalls of

predatory practices. Note that predatory

practices are not just known for high-interest

loans from predatory lending, rent-to-own or

take-it-home (no down payment necessary)

establishments, but insurance fraud and

investment scams are also known for

predatory practices and are on the uprise.

Many experts agree that financial literacy

empowers your clients to make smart

financial decisions. Here are three areas that

can improve your clients’ financial well-being.

1. Credit Score Impact—Your clients

should know their credit score. It can save

thousands of dollars in getting the best

annual percentage rate (APR) for consumer

loans. For example: If Consumer A has a

currentcreditscoreof720points,Consumer

A could possible qualify for $15,000 auto

loan at an APR of 6 percent. If Consumer

B has a current credit score of 620 points,

Consumer B could possibly qualify for an

APR of 18 percent or higher. Please see the

charts above to illustrate the computations.

Consumer B would pay $5,454.56 more

in interest payments for the same time

frame of the loan without any additional late

charges or penalty assessment fees. This

consumer lesson illustrates that a higher

credit score will yield lower interest rates,

therefore your client saves money.

2. Track Expenses—Maintaining a monthly

budget and tracking monthly expenditures

are not as difficult as perceived. Your clients

can start by tracking their daily expenses. It

should be no surprise that small purchases

on weekdays could add up to more than

one large purchase on a weekend. Most

large purchases are planned, but small

purchases are often taken for granted. A

snapshot for comparison is illustrated in the

chart on page 11. Compare that to a large

purchase of an iPad Mini at $329.

3. Legislation/Agency that Protects

Consumers—In July 2010, the United

States Congress passed into law the Dodd-

Frank Wall Street Reform and Consumer

Protection Act. The Dodd-Frank Act

implemented significant changes to financial

regulation in the United States to implement

preventive measures for unfair practices in

the financial industry.

Another piece of legislation that consumers

should be aware of is the Credit Card Act of

2009. In brief, the Credit Card Act of 2009

required financial institutions (card issuers)

to provide a notification to consumers for

4 Steps to Up Your Client’s Financial Know-How

By Eugene A. Woods, AFC®

Standardthe

2nd QUARTER 2013

Continued on page 11

Consumer A Loan Information (Credit Score 720 points)

Amount Financed $ 15,000.00

Total Amount Paid $17,399.52

APR (%) 6%

Total Interest $ 2,399.52

Length (years) 5

Paid/Borrowed 1.16

Consumer B Loan Information (Credit Score 620 points)

Amount Financed $ 15,000.00

Total Amount Paid $ 22,854.08

APR (%) 18%

Total Interest $7,854.08

Length (years) 5

Paid/Borrowed 1.52

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11

major changes such as an increase in the

APR. Consumers would be allowed to “Opt

– In” or “Opt – Out” of the changes and

agreement of the new terms and conditions.

An important federal agency for consumers

to become more aware of is the Consumer

Financial Protection Bureau (CFPB). One

of the primary responsibilities of the CFPB

is to provide guidance for regulating the

rights of consumers with regards to financial

products and services in the United States.

4. Take Control—Reversing the bad habits

of learned financial behavior is simply a

matter of taking control of the monthly

budget. Tracking when and where your

clients’ daily and monthly expenditures occur

help to stay in charge. Being conscious

of the amount of money spent provides

the safety net and precautions from over

spending. Using a credit or debit card is too

easy to swipe. Spending actual currency

(cash) can make it difficult or very unpleasant

to spend. A budget may not be written down

on paper or maintained with the use of an

excel spreadsheet, but it is important to

realize budget procedures are implemented

every time income or a daily transaction for

purchases or services occurs.

Small steps in the right direction will

improve your clients’ well being, overall

morale, and move them toward financial

success. Have your clients review their

credit report at least once a year and take

the time to learn about their consumer

rights before making a large purchase for

a car or home or applying for a consumer

loan. Have them track their daily and

monthly expenditures to stay in line with

their overall goals. Keep the ball in your

clients’ court to help them stay in control.

Eugene A. Woods, AFC®, is Personal Financial

Counselor, ACS/Financial Readiness Specialist. He

can be reached at [email protected] or

[email protected].

in every state within the United States.

Therearealso72membersandcertificants

located in Armed Forces Europe and Armed

Forces Asia area, as well as 82 members

and certificants in Canada, and there is one

member in Hong Kong.

In the 1980’s, AFCPE leadership recognized

the need for a professional journal that

addressed the specialized content needs of

financial counseling and planning education.

Sherman Hanna launched the journal,

now known as The Journal of Financial

Counseling and Planning, and remained

editor until 2002.

Later in the 1980s, a certification

committee was established which was

chaired by Mary Stephenson. In 1992

Mason was called on again to spearhead

the creation of a certication program

working from a spare bedroom in his

home. Ike Templeton, ACS Financial

Readiness program manager in Community

and Family Support Center’s Family

Programs directorate was instrumental

in gaining the support of the U.S. Army.

Mason remembers, “The reader needs to

understand that this committee had no

money. However, Ike Templeton said he

would get the U.S. Army to make advance

payments to buy courses to launch the

program. Thanks to the Army’s rescue,

we had a little support to launch AFCPE’s

certification programs.”

In 2001, AFCPE established the vision,

“AFCPE provides professional development

experiences for financial educators,

practitioners, and researchers to improve

the economic well being of individuals and

families worldwide.” The vision of AFCPE

leaders is to be internationally recognized

for these efforts, including its certification

programs, research journal, newsletter and

annual conference.

In 2003, at our 20th anniversary celebration,

Karrol Kitt , Ph.D., and the late Celia

Hayhoe, Ph.D., remarked that, “The pie-

in-the sky vision for the future includes a

new profession of financial counselors with

AFCPE as its steward.” I think Celia would

be very pleased to know that vision wasn’t

pie-in-the-sky at all—it is reality.

Thank you to the many, many leaders who

have shaped the financial counseling and

planning education field. Your hard work

has left a lasting imprint and benefited the

lives of consumers worldwide. Your work

makes a difference.

Up Your Client’s Know-HowContinued from page 10

AFCPE 30th AnniversaryContinued from page 3

Small Purchases Add Up

Small Purchase Frequency Amount Spent

$5.62 (Breakfast) + $9.35 (Lunch) 5 x per week $74.85

$5.62 (Breakfast) + $9.35 (Lunch) 20 x per month $299.40

Compared to iPad Mini $329.00

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12

the

2nd QUARTER 2013

HoardingContinued from page 1

Standard

But what, actually, is hoarding? Compulsive

hoarding (a.k.a. pathological hoarding or

disposophobia) is a hard condition to pin

down. The latest edition of the American

Psychiatric Association’s Diagnostic and

Statistical Manual of Mental Disorders (Volume

5) will separate hoarding and obsessive-

compulsive disorder. Hoarding disorder will be

defined as ‘persistent difficulty discarding or

parting with possessions, regardless of their

actual value. Certain defining features have

been identified by researchers in dealing with

chronic hoarders. These criteria include:

• Theacquisitionofandfailuretodiscarda

large number of possessions that appear

to be useless or of limited value

• Livingspacessufficientlyclutteredso

as to preclude activities for which those

spaces were designed

• Significantdistressorimpairmentin

function by hoarding

• Reluctanceorinabilitytoreturnborrowed

items. As boundaries blur, impulsive

tendencies could sometimes lead to

stealing or kleptomania

There are different degrees of hoarding—

from Level I to Level V—and there are

different things that people hoard, including:

• Newlypurchaseditems

• Useditems(fromgaragesales,flea

markets, discount stores)

• Freebiesandjunk(pickedoutofgarbage,

the side of the road, etc…)

• Food

• Animals

• Newspapers,magazines,bills,and/or

other papers

• Scrapsorpartsforartisticorutilitarian

projects

• Intangibles(email,DVRrecordings,etc.)

Hoarding can lead to many negative

consequences, including loss of money,

loss of time, loss of relationships, shame/

embarrassment/isolation, arguments with

loved ones, germs/disease, accidents/

injuries, loss of freedom/loss of movement,

and, increased mental illness, especially

depression, anxiety and obsessive-compulsive

disorder, and legal consequences.

Why Do People Hoard?While pioneers and experts in the field of

hoarding are still unlocking the puzzle of what

causes hoarding, it’s believed that hoarding

has both genetic and socialized components

(nature and nurture). Hoarding has been

related to obsessive-compulsive disorder

and anxiety disorder, but it is distinct in itself.

Theories about what causes hoarding include:

• Gettingahighfromaccumulatingand

feel pain/anxiety when discarding

• Reactiontochange,trauma,loss,

stress—lack of control over little things

• Socialanxiety/phobia,isolation/

protection

• Shakysenseofselfandover-

identification with objects

• Problemswithattention/organization

• Problemsprocessinginformation/

categorizing

• Problemsmakingdecisions

• Problemswithmemory(toomuch/toolittle)

• Attemptstoexperiencesafety,security,

control

Hoarding is a difficult and highly

emotionally-charged problem. If you

suspect your client is in trouble, it is best to

refer them to a specailist.

Terrence Daryl Shulman, JD, LMSW, ACSW,

CAADC, CPC is the Founder/Director of The

Shulman Center for Compulsive Theft, Spending

& Hoarding in Franklin/Southfield, Michigan.

He has authored four books, including the

recently published Cluttered Lives, Empty Souls:

Compulsive Stealing, Spending & Hoarding

(2011, Infinity Publishing, see www.clutteredlives.

com). He offers specialized counseling and

consulting in person, by phone and via Skype.

He can be reached at (248) 358-8508 or

[email protected]. His

websites include www.theshulmancenter.com

and www.hoardingtherapy.com.

Tips for Your Clients Who Hoard

If you or someone you know may have

a hoarding problem, take The Shulman

Center 20-Question assessment available

at www.hoardersanonymous.org.

• Admityouhaveaproblemandneed

help

• Seekprofessional,specialized

counseling/therapy

• Readbooks/watchTVprogramson

this subject

• Visitthewebsiteswww.hoarding

therapy.com and www.hoarders

anonymous.org

• Seesupportgroups(Messies

Anonymous, Clutterers Anonymous)

• Hireaprofessionalorganizer

• Setatimertocleanacertainamount

of time per day

• Ifyouaretryingtohelpahoarder,

don’t move or throw out their

possessions

• Seekhelpcategorizingthings:trash,

keepers, recycling, gifts, for sale

• Maintainorderandcleanliness

through ongoing support/

accountability

We are hoarding

potentials so great

they are just about

unimaginable.—

Jack Schwartz

“Beauty is Nature’s coin, must not

be hoarded, must be current.”

—John Milton

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Book Review

Life at Home in the Twenty-First Century: 32 Families Open Their Doors

Written by Jeanne E. Arnold, Anthony P. Graesch, Enzo Ragazzini, and Elinor Ochs

Reviewed by Barbara O’Neill, Ph.D., CFP®, Rutgers University

As Book Review Editor for the Journal

of Financial Counseling and Planning, I

frequently receive marketing materials for

new books. When I received a publisher’s

summary of Life at Home in the Twenty-First

Century: 32 Families Open Their Doors,

the topic intrigued me. The book “presents

a visual ethnography of middle-class

households” in southern California. The

authors, archeologists and anthropologists

from UCLA and a world renowned

photographer, used a multi-year systematic

observation and interview process with a

diverse sample of two-earner families with

children to present “an unvarnished view of

the home lives of contemporary families and

their material possessions” (p. 3).

Part research summary and part coffee table

book,this171-pagehardcoverpublication

contains hundreds of photos of the contents

of the subjects’ homes. According to the

authors, while the sample of 32 households

seems small, the collection of detailed

information about their everyday interactions

and behavior and “material assemblages

for dozens of houses” is very rare. The

researchers spent a week in the homes of

each of the 32 households between late

2001 and early 2005, took pictures of their

possessions, and observed and recorded

the activities of every family member.

While not a personal finance book per se,

Life at Home in the Twenty-First Century

provides valuable insights into American’s

time-use and spending habits. It is

organized into nine chapters covering topics

such as material saturation; vanishing leisure

time; food preparation patterns; kitchen,

bathroom, and master bedroom use; and

subjects’ personalization of their homes

and use of electronic devices. Financial

practitioners who teach about needs versus

wants, materialism, and the concepts of

“enough” and “affluenza” will especially

find this book useful. Following are some

interesting facts and findings:

Materialism has significant costs beyond

overspending and depletion of family

paychecks. Many families amass more

possessions than their houses can hold.

This can result in psychological stress

associated with clutter and disarray, not to

mention financial anxiety due to mounting

debt. Many two-income families report not

having time to organize their possessions

and create order.

U.S. families have trouble getting rid of

possessions and struggle to cope with

stored clutter. Cars have been banished

from75percentofgaragestomakeway

for accumulated “stuff.” The U.S. has

3.1 percent of the world’s children and

“buys more than 40 percent of total toys

consumed globally.” (p. 36).

U.S. families exhibit a strong propensity to

stockpile food with long shelf lives and bulk-

rate prices. This minimizes the number of

times they need to shop for food. About 25

percent of evening meals involve no home

labor and are obtained through carry out,

delivery, or restaurants.

A striking observation was that sampled

households rarely engaged in outdoor

leisurely activities and rarely use furnished

outdoor spaces despite California’s mild

climate. Over two-thirds of parents’

activities were non-interactive and indoors.

A gender gap in leisure time was “quite

pronounced in the father’s favor.” Kitchens

were found to be “command centers”

where families maintained an average of

5.2 activity calendars to keep track of

members’ schedules.

The Los Angeles study documented

a number of downsides resulting from

material affluence including comfort lost if

possessions overly crowd a home, waning

leisure time, and reduced social interaction

at mealtimes. The book does not offer

any prescriptive solutions, however. Its

purpose is simply to describe behavioral

and material characteristics of early 21st

century families.

Life at Home in the Twenty-First Century

is a fast, insightful read. The photographs,

as expected, are “ordinary” and reveal

the clutter present in many homes. The

time lag between final data collection in

2005 and the book’s publication in 2012

was not explained. Perhaps it simply

took the authors that long to categorize

and interpret the data. In the meantime,

new products to buy (e.g., big screen

televisions) and ways to spend time (e.g.,

Twitter) have come along that are not

reflected in the book’s content.

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Standardthe

Notes from the Executive DirectorBy Rebecca Wiggins | AFCPE Executive Director

2nd QUARTER 2013

Evolutionary InnovationThe New Year brings much more than

empty resolutions. It provides an opportunity

to reflect, recharge and recommit. As

we prepare to celebrate AFCPE®’s 30th

Anniversary this fall, it seems fitting to look

back on an organization that is rich in history

and built on a foundation of research,

expertise and vision. This is our springboard

for the future.

Over the years, AFCPE has matured into

a well-respected leading authority in the

field of financial counseling and education

through its rigorous certification programs,

quality publications, relevant educational

offerings and engaging conference sessions.

But, to properly support our mission and

meet the needs of the changing landscape,

we must continue forward on a path of

evolutionary innovation.

In order to effectively prepare for the

important journey ahead, a group convened

in January for an intensive strategic planning

retreat. The 28 participants consisted of

founding members of AFCPE, previous and

current Board members, representatives

for AFCPE constituencies, AFCPE staff and

thought-leaders in the field. The experience

created a collaborative vision for the future

of the financial counseling field and shared

passion for a strategic direction for AFCPE

that honors the past, recognizes the present

and shapes the future for our organization

and the field.

This strategic planning retreat was just the

beginning of a dynamic process that will

allow us to respond to the changing trends

and needs of the financial counseling field

in a collaborative way. Throughout the

coming months, we will seek your input and

feedback on new ideas and initiatives as

we seek to enhance AFCPE and remain a

leader in this field.

Ways to Get InvolvedCommunities of Practice. AFCPE

would like to feature the work you

and your colleagues are doing across

constituencies or in your regions, to impact

your communities. Please provide a brief

synopsis to [email protected].

AFCPE Vision for the Future. Help us

shape the future of this organization!

• Share some ideas on the two or three

most important challenges you face in

your profession.

• What programs/services could we

provide that would enhance your

knowledge and skills?

• Was there a recent learning opportunity

that you thought was wonderful, and if

so, why?

• What are some topics that you would like

to discuss with your colleagues?

Your input is extremely important to us and

will help inform program planning. Please

email [email protected] with your ideas.

President’s MessageContinued from page 3

factors in the way associations need

to conduct business today. We should

have an “AFCPE App” on every smart

phone! AFCPE should be the first hit on

Google for financial counseling. Every

bank, credit union, school, university,

social services agency, and employee

assistance program should know our

name. Our certifications should be as

common as Coca Cola to those who

seek a financial counselor/educator.

Celebrating our 30th Anniversary

this year is recognition of AFCPE

and the strides we have made over

the years. We also celebrate the

design of our strategic map which

will guide us into the future. We will

maximize the potential of AFCPE by

streamlining processes, eliminating

useless and costly practices, taking

advantage of today’s technology,

and insuring that we are using every

social network and marketing avenue

to our advantage. However, most

importantly, we will maintain open

communication, continually evaluate

the needs of our customer, use the

latest and greatest technology, and

always think strategically. There is an

old saying around the military, “either

lead, follow, or get out of the way” We

choose to lead.

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15

Congratulations New Certificants

AFCPE Accredited Financial Counselor®

Graduates (11/19/12 – 2/25/13)

Thank you to this issue’s contributors:

Dennis Ackley

Michael Mielke, MPA,CFP®

Dean Obenauer, MPA, AFC®

Barbara O’Neill, Ph.D.,CFP®

Paul Richard

Terrance Daryl Shulman, MD,

LMSW, ACSW

Rebecca Wiggins

Barry Wilkinson, AFC®

Eugene A. Woods, AFC®

Bone, Silke

Edey, Lorraine

England, Nicole

Froelich, Mary

Gette, Gayle

Grimes, Rachel

Hafley, Victoria

Miller, Mark

Roth, Julie

Stueve, Cherie

Tomaneng, Jeffrey

Young, Shinae

AFCPE Accredited Credit Counselor®

Graduates (11/19/12 – 2/25/13)

Chairez, Maritza

Munster, Richard

AFCPE Accredited Financial Counsellor®

Canada Graduates (11/19/12 – 2/25/13)

Westenberger, Nova

Whittle, Delima

Are You in the Conversation?

www.afcpe.org/blog

Why Community Is So Important in this Profession

By Dean Obenauer, MPA, AFC®

Just for the heck of it, I googled the Webster

definition of community and highlighted

some key words that describe AFCPE:

• A unified body of individuals

• People with common interests

• An interacting population of various

kinds of individuals in a common

location

• A group linked by a common policy

• A body of persons having a common

history or common social, professional,

economic, or political interests

AFCPE is all about working together to

provide the best financial resources for

those we serve. The AFCPE conference

in St. Louis last November opened with a

“Communities of Practice” session. This

was a great opportunity for participants

to take another look at why we are in this

business to serve, and the access we

have to a tremendous wealth of expertise

through our shared membership in AFCPE.

The general session was immediately

followed by regional breakout sessions,

which provided another opportunity for

participants to come together in a more

informal setting. The breakouts started with

a fun and informative ice breaker activity,

which was well received. For many, it was

a first time meeting with colleagues from

their own backyard. Engaging, thought

provoking conversation, exchange of

contact information, and lots of smiles were

common observations.

The breakouts provided a backdrop to

continue meeting, networking, sharing

ideas and collaborating throughout

the entire conference. Feedback from

participants showed that this was a

worthwhile activity.

The breakouts were indeed a bonding

event, but we need to keep the momentum

going through local, state, and regional

involvement. Simply put, AFCPE needs

you! Are you willing to volunteer to start

a listserv, blog, online activity, news brief,

or any type of communication activity?

Please contact Rebecca Wiggins,

executive director, at [email protected]

with your great ideas today!

Dean Obenauer, MPA, AFC®, is Assistant

Director of Financial Aid for Financial Literacy

at Creighton University. He can be reached at

[email protected].

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Association for Financial Counseling and Planning Education1940 Duke Street, Suite 200Alexandria, VA 22314

We believe…

Everyone has financial desires that affect their lives

every day.

Better financial decisions lead to a better quality of

life.

People can make better decisions when they are

supported by a trained professional.

Academics, research, and practical experience

inform professional financial counselors and

educators.

Setting the standard for performance and a forum

for learning will provide a consistently higher level of

service.

Purpose…

To advance the profession of Personal Finance

by promoting and supporting the field of personal

financial counseling and education.

Mark Your Calendar for the 2013 Annual ConferenceNovember 20–22, 2013

Hyatt Regency Greenville, SC

www.afcpe.org/conference/

Presorted Std.US Postage

PAIDColumbus OhioPermit No 2609