Owning a home is the first step to security for many families. Now advisors are stepping in to make sure homeowners take the second step: understanding the financial responsibilities involved with owning a home.

The New Jersey chapter of the Financial Planning Association (FPA) is working with Habitat for Humanity to provide financial education for new homeowners, said Edward E. Bao Jr., a wealth advisor with Smallwood Wealth Management in Red Bank, N.J. FPA has held one workshop so far for Habitat for Humanity homeowners in Monmouth County, N.J., and plans to do more in th future.

The goal of the cooperative program is to prepare new Habitat for Humanity homeowners with the financial skills necessary to establish a budget, create a savings plan, manage debt and obtain insurance, FPA said. These skills will help the homeowners successfully manage their new households.

Habitat for Humanity is a global nonprofit organization that helps people build and purchase their own home with the help of volunteers and affordable mortgages.

“We hope our program will spread to other counties in New Jersey,” Bao said. “We work with FPA members who volunteer to do the workshops to increase financial literacy.

“We want to work with people in the community who may not have enough assets to go to a financial advisor,” he added.

The goals of the New Jersey FPA chapter coincide with those of Habitat for Humanity in this instance, said Nancy Doran, head of the family services committee for the Monmouth County Habiitat for Humanity.

“We do not just move people into a new house and forget about them. Many of them have never done a budget before and they may have little knowledge of how to manage credit,” Doran said. “They have never owned a house before, so we want to help them through the process.”

Habitat for Humanity also has other types of workshops such as legal advice and home maintenance.

 

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