Homeownership education is major key to financial literacy

April is Financial Literacy Month, and this week has a special focus on families. Here at Habitat, we believe families are most successful when they are financially fit!

Before purchasing their homes, Habitat partner families must meet several requirements, including participation in 22 hours of homeownership education. More than six of those hours are dedicated to financial fitness. Families learn about basic budgeting skills, how to read their credit report and how to begin planning for the future. We also spend time teaching them about the Habitat mortgage, what it means to buy a house and how that decision will affect them financially. By the end of the series, families are more likely to open a savings account and begin tracking their budget each month.

Many Habitat partner families have wonderful success stories of accomplishing great things because having a stable, safe and healthy place to call home has set them up with a strong foundation. One example is Momodu, a single father with three daughters who moved to the U.S. from Liberia in 2000. During the family’s first six years, he and his daughters had to share a two-bedroom apartment with another family. In 2006, he bought his Habitat home in Woodbury.

After completing our pre-purchase training, he was not only able to maintain his home, he also saved enough money to go back to school and earn his master’s degree. 

Before owning his home, he didn’t have enough housing stability to plan for the future. Having a home helped him plan for a better future and save money, which helped him go back to school. Since earning his advanced degree, he has received several promotions in his job and is now managing his own team and department. 

In order for Momodu to meet his goal and encourage his daughters to pursue higher education, he needed a strong understanding of budgeting, saving and credit. Financial literacy helped him be a successful homeowner, which in turn helped him reach his educational and professional goals. 

If you’d like to learn more about the programs offered by Twin Cities Habitat for Humanity, please visit us online. 

Cristen Incitti, Family Services Manager, Twin Cities Habitat for Humanity