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YOUR GREEN LIFE2021

BETTER BANKING & PERSONAL from the 2021 Edition of Your Green Life:

SET UP A HEALTHY FINANCIAL LIFE COVID-19’S ECONOMIC FIRST RESPONDERS SWITCH TO A GREEN

Find Green Network {GBN} certified inside and at GreenPages.org RUNNING HEAD

SET UP A HEALTHY FINANCIAL LIFE by Eleanor Greene Whether you’re one of over 32 million Reasons to Get a : create and meet their financial goals and underbanked Americans or know • Safety—in an insured bank, your manages with sustainability someone who’s trying to become finan- money is safe even if the bank is in mind. Rogers encourages folks to cially independent, not having started robbed, burns down, or goes out of put away money every month towards already can be scary. But it’s never too business, unlike kept at home. an emergency fund that they keep in a late to begin a healthy relationship Check to make sure if your bank is separate high-interest account. with money. Start with these practical FDIC-insured at fdic.gov/bankfind. “There’s something about having that tips or pass them on. • Simplicity—it’s easy to manage separate—you’re not online. You can have pay- touching it. You don’t think, ‘oh gosh Open a (Green) Bank Account. checks and tax refunds deposited I’ve got 50 grand, I’m going to go on that According to the Federal Deposit directly into an account and pay trip’—you don’t,” says Rogers. “You’re Corporation (FDIC), more bills automatically. living within your checking account and than 32.6 million Americans were • Growth–Personal savings accounts you keep the savings separate.” unbanked or underbanked in 2017, may pay interest, meaning your Rogers recommends up six meaning they did not have a bank money grows while in the bank. months of living in an emer- account or used products like payday gency fund if you’re single, and at least , pawn shop loans, or money Linda Rogers is the owner and founder three months if you’re married. orders from companies that were not of Planning Within Reach {GBN}, a Although the recommended amounts . See why and how to find a green virtual with clients may seem out of reach when you’re bank on p. 54. around the world. She helps people starting out or struggling on a limited

2 Reprinted from the 2021 Edition of Your Green Life • powered by Green America {GBN} Designates a certified member of Green America’s Green Business Network® BETTER BANKING & PERSONAL FINANCE , getting in the habit of putting something THE POWER OF COMPOUND INTEREST aside every month is a start.

Make a budget It’s freeing to know where your money is going. Begin by tracking all your income and spending for a month. Once you can see your fixed expenses (like utilities and insurance) versus variable expenses (like entertainment and gifts) you can make a plan to pay off , save for a trip, or other financial goals. Apps like Mint and EveryDollar make it easy to get started on a budget and meet goals.

Set up auto payments Set up scheduled, auto- matic payments with utili- ties, banks, and other bills to avoid late fees. Some experts say pay yourself first—meaning as soon as your paycheck comes in, move a set amount to your savings account. You can automate those transfers as well. Bills do have errors purchase, make a plan for how you’ll for as soon as you can. This from time to time, so make a habit of pay it off before you buy. No matter savings will compound over time. If your looking at yours anyway. what, always make at least the minimum employer doesn’t offer a 401(k), you can “Studies have shown that setting payment on or before the due date. enroll in a traditional or Roth IRA. up automatic payments or deductions One last tip Rogers offers is to review from your payroll that go into savings Plan for the future your benefits at work and look for a accounts and different pots of money, Planning for the future can seem health savings account (HSA). These you’re much more likely to save more. daunting; yet a little planning now can accounts are triple tax-free because they You’ll just kind of let it go,” says make a huge difference in financial allow you to put money in pretax, grow Rogers. “And that’s a good thing. You health down the road. If you have debt, tax-deferred, and take money out without want to use that ‘behavioral finance’ to Rogers recommends aggressively paying taxes as as it’s for health expenses. ✺ your benefit.” down high rate items like cards. “The only exception is if you get a Be smart with your 401(k) match at work. Like if you save Banks make money from credit cards three percent, maybe your employer will with high interest for late payments and match 100 percent of that,” says Rogers. fees. Make credit cards work for you by “Take advantage of that free money.” using them to establish and build credit, In other words, with the matching making future loans and big purchases funds, your money may be better spent easier to secure. When using a credit investing in your 401(k) rather than card, spend only what you can afford going toward paying down debt. When to pay off in full each month. If you in doubt, ask a professional advisor. do have to use a card to afford a major She also recommends starting to save

Reprinted from the 2021 edition of Your Green Life • powered by Green America 3 BETTER BANKING & PERSONAL FINANCE

Maine manufactured housing residents purchase land with CDFI financing. Photo from Opportunity Finance Network. COVID-19’S ECONOMIC FIRST-RESPONDERS Community Development Financial institutions have been crucial responders to the national need for covid-19 relief and economic justice.

by Sytonia Reid

ommunity Development Financial CInstitutions (CDFIs) are banks, credit unions, funds, and venture capital companies that are committed to investing in the prosperity of the com- munities they serve. CDFIs consider the whole person or community they work with, not just the money they have to offer. Instead, they offer economic empowering services such as funds for small businesses, low-interest loans, and programs. As the US stumbles through covid-19, reckons with the virulent reality of systemic racism, and feels the present effects of the climate crisis, CDFIs have In Kansas City, Missouri, T-Shirt King business received a PPP loan with support from a local CDFI. only become more relevant by helping Photo from Opportunity Finance Network.

4 Reprinted from the 2021 Edition of Your Green Life • powered by Green America {GBN} Designates a certified member of Green America’s Green Business Network® BETTER BANKING & PERSONAL FINANCE

Americans of all backgrounds adapt to rising unem- ployment, an under-resourced essential workforce, and Take Action small businesses at risk of closing up shop. “Out of for Community the hid- Out of the hideousness eousness of of this health emer- Investing this health gency, CDFIs were emergency, recognized as financial CDFIs were first responders Get A Better Bank recognized —Lisa Mensah, Moving money out of a big as 'financial Opportunity Finance bank and into a CDFI shifts first respond- Network support from non-green industries and ers' because operations like fossil fuels, private pris- the businesses and facilities that were shutting down ons, and sweatshops to local businesses needed support and CDFIs didn’t wait to be asked. We and community members. Visit greena- reached out first,” says Lisa Mensah, president and merica.org/get-a-better-bank to find a CEO of Opportunity Finance Network {GBN}. CDFI near you. In response to covid-19, Self-Help {GBN} has provided over 1,300 loans totaling $160 million, with 50 percent of those loans going to small Invest in a Community businesses and nonprofits that primarily serve commu- Development Loan Fund nities of color. Community development “Those loans will be used to preserve 18,000 jobs, so loans funds are typically nonprofits that we feel like they’re going to help make a big difference,” offer loans and support services to small says Deborah Momsen-Hudson, vice president and businesses, organizations, and individu- director of marketing at Self-Help. Momsen-Hudson als in low-to-moderate income commu- also serves on Green America's board of directors. nities. Most community development In Minneapolis, where the brutal killing of George loan funds focus on one or more of Floyd took these areas: micro-small business, place, CDFIs affordable housing, and community are focused service organizations. Community on re-evalu- development loans funds are uninsured, ating policy, so could face a loss. You can in addition to also find loan funds at greenamerica. providing mon- org/getabetterbank etary support to industries affected by Tell Congress to covid-19 and Properly Fund CDFIs the destruction In 2019, Congress appropri- of property. ated $250 million for the CDFI indus- Community try, which includes over 1,000 com- Reinvestment munity investing institutions. For more Fund USA, information on public policy advocacy (CRF) has pro- to strengthen CDFIs, visit the sites of vided 1,958 pay USSIF, Opportunity Finance Network, check protection A Nashville entrepreneur grew her wellness business with CDFI and others and tell Congress to allocate loans to date. financing and technical assistance. Photo from Opportunity at least $1 billion to CDFIs as part of “We know Finance Network. the HEROES Act. that we’re going Green America recommends to have losses in our portfolios and that we’ll need to investing at least one percent of one’s rebuild, but first we want to listen to our community,” investable in a community says Frank Altman, CRF’s CEO. “The entire SRI investing institutions. There are many world needs to investigate policies that are excluding to choose from. Consider how you African Americans from access to capital, and drive can make your dollars work for capital back into neighborhoods that have been economically marginalized and stripped of it multiple times.” ✺ underestimated communities.

Reprinted from the 2021 edition of Your Green Life • powered by Green America 5 BUSINESS CENTER

HOW TO Switch to a Green Bank You align your business with your green values—but what about your bank?

by Mary Meade

ou align your products and practices communities. When your small business in projects to grow the community. Ywith your values—but does your banks with these types of financial Therefore, mission-driven financial banking align with your values, too? institutions, your dollars are reinvested institutions have a vested interest in the Where you choose to bank has an into the local economy, which brings success of your small business. If your impact on people and the planet. When more customers to your door. company fails, the small bank or credit your company acquires a loan or opens “What most distinguishes CDCUs union loses, too. an account, your dollars are going to [Community Development Credit Mahon notes how the covid-19 crisis projects that the bank chooses to fund. Unions] from mainstream financial has further exposed the gaps in the Some banks specifically invest in the institutions is the support we provide to financial system. Thousands of small success of green businesses like yours— help small businesses and entrepreneurs businesses have suffered on account of and some banks will loan to drilling think through the capital they need to the pandemic, particularly minority and projects in the Arctic and will not fairly best grow their business,” says Cathie social purpose enterprises. serve diverse communities. Mahon, president and CEO of Inclusiv CDFIs across the country have Small businesses are the lifeblood {GBN}. Inclusiv, headquartered in New stepped into that gap and are meeting of the US economy, driving innovation York but serving people across the crucial, time-sensitive capital needs for and creating two-thirds of net new jobs, country, is one such CDFI committed to businesses. Inclusiv has offered relief according to the US Small Business closing gaps and removing barriers to to their community through increased Administration. Therefore, where financial opportunities for people living credit lines, deferral of loan payments, your small company banks matters. in underserved communities. has eliminated ATM fees and late Community Development Financial Unlike megabanks that prioritize payment fees, as well as expanded Institutions (CDFIs), including banks the projects of corporations—too often emergency relief loans. ✺ and credit unions, finance local projects at the of local communities— that enhance traditionally underserved many small financial institutions invest Break up with your mega-bank:

‰ Find a better bank near you with Green America’s Better Bank directory at greenamerica.org/getabetterbank. If you don’t have one in your city, reach out to one in your state—you still might be able to work with them. ‰ Open your new account. Keep your old account open while you order checks, debit cards, and deposit slips. ‰ Move your automatic deposits to your new account. Once you have sufficient funds in the account, move your automatic withdrawals and payments. ‰ Get print or electronic copies of statements and canceled checks from your megabank in case you need them later. ‰ Transfer the remaining funds from your megabank account to your new account. Close your megabank account! ‰ Tell your megabank why you’re breaking up with it. This sample letter can help: greenamerica.org/samplebreakupletter

6 Reprinted from the 2021 Edition of Your Green Life • powered by Green America {GBN} Designates a certified member of Green America’s Green Business Network®