May 22, 2020 - Kathy O'Dell

On this "Best of" episode, we interview Kathy O'Dell, CEO of Women's Economic Ventures. Our first story focuses on micro-lending, showing us that a little bit of trust can go a long, long way. The road out of poverty is often very long and often very circuitous. It is not a sprint, it is a marathon where each step can have life changing consequences.  And, at a time when the average American does not even have an extra $400 to cover an emergency-like an unexpected medical cost or a car repair - a lot of us live much closer to financial ruin than we are willing to admit-- especially during this pandemic. One tool to counteract poverty is micro-lending. A micro loan is a loan under $1000 that has little collateral or requirements, and is then invested into the local community. With little risk and high potential to help, micro-lending is a solution we need!

Our next story on this show talks about how allowance can help teach children good money habits. The value and purchasing power of money is an important lesson, but it’s not a lesson that many people get growing up. Part of why micro-lending banks are successful is because they also help teach their recipients about making and spending money. With all the focus on teaching towards standardized tests, money management is not something children are taught in school, and my experience is that most adults never learn it anywhere even after school.  Budgeting, saving money, and having an individual bank account are all great opportunities to learn something about how money can work in your life. In addition to an allowance, children also need coaching and support from their guardians to develop financial literacy and independence.