Approximately 50 people attended a free financial literacy seminar early this month, sponsored and presented by the Butler-Baker Alumni Project (BBAP) at the decommissioned school southeast of downtown Eatonton.
According to BBAP President Melton Smith, it marked the first of four special quarterly seminars that Jeffery Watts, president and CEO of KDB Consulting and Mentoring, will present. Smith explained the topic was selected based on the results of a survey distributed at BBAP meetings.
According to kdbconsultingandmentoring. com, Watts is a retired U.S. Army sergeant major with more than 23 years’ experience in coaching, managing and developing leaders. He was an adjunct instructor for the University of Maryland (Asian Division), and is the author of Know Better, Do Better, Be Better – The Pocket Mentor for Service Members Past, Present, and Future.
His education includes an associate of arts degree in General Studies from the University of Maryland, a bachelor of science degree in Public Management from Austin Peay State University, and a master of science degree in Management of Technology from Murray State University. Having a passion for high school basketball, Watts also is a college and high school basketball referee.
Over the course of the seminar, Watts explained different types of credit, what a credit score is and how it is determined, what creditworthiness is and what factors influence it, and later described some savings and investment techniques and strategies.
“Everything is about mindset,” Watts said during the seminar, noting mindset is as important in financial management as it is in schooling, career decisions, and even in winning a basketball game. Among other things, he illustrated that paying back the charged amount of $5,000 in minimum monthly payments of two percent with 18-percent interest would result in $13,931 of interest being paid in 553 monthly payments over a period of 46 years. According to Watts, discipline rather than consolidation is the key to getting out of debt.
“I enjoyed it. It’s a lot (to take in),” said Priscilla Farley, who learned of the seminar from her Boy Scout son, Wesley Bullard.
“I learned about credit and how to make a good credit score,” Putnam County High School senior Emily Pressley said. Pressley was volunteering at the event as a member of a high school service leadership class.
At the end of the seminar, Putnam County Vice Chairman and District 2 Board Commissioner Daniel Brown addressed younger attendees with a brief speech emphasizing the importance of making good life and credit choices in order to live a prosperous life.
Following the seminar, Watts said the three things most important to do with money is work hard for it, take care of it, and be charitable. The biggest mistake in money management, he said, is thinking money will always be available and things like impulse buying and spending more than a person can afford are common pitfalls.
He also said dealing with a partner who won’t help control spending is a difficult obstacle to overcome after someone gets serious about wanting to improve their relationship with money and debt.
“That’s tough, finances are one of the biggest things that ruin marriages,” Watts acknowledged. “You have to have a conversation with your partner to make sure y’all can manage each other’s expectations. A good conversation is the only way I know.”
The quickest way to improve a person’s credit score, he added, is to pay bills on time. Also, the creation of a realistic budget helps considerably.
“Some people confuse needs and wants,” he explained. “Sometimes our budget is based on a lot of wants versus needs. Make sure that needs such as food and shelter are always covered in your budget and realize that almost everything else is not a need.”
Another thing people should realize about money, he added, is that not only do they have to work hard to earn it, but they also need to make money work hard for them to keep it. To do that, it’s important to understand investment options and how to get the most out of them.
Watts said the best way to make a realistic budget and then stick to it, is to first develop the right mindset and understand that you alone are responsible for your own success.
BBAP holds monthly meetings on the second Saturday of every month. You can learn more about the Butler-Baker Alumni Project and its activities at facebook.com/bbstiger/.