Corps Finances: Spend Readjustment Allowance Wisely

$6K seems like a lot of money when you’ve been earning $1K —per year.

Peace Corps Volunteers take home about $6,000 at the end of their term — broken into two payments. You may travel with that money, and take an around-the-world kind of flight path home. You earned the money and you deserve to have fun with it if you want.

But if you are coming straight back to the States, haven’t gotten a job lined up, and want to use the money more strategically, consider:

  1. The cost of an apartment in the place where you’d like to live.  Triple the monthly rent to estimate how much you’ll have to plunk down for deposit, plus first and last months’s rent — that’s typically what you’ll owe your landlord when you sign the lease if you are going to live alone. If you don’t have a car (and I don’t recommend buying one till you have to, to save money), remember that rent prices tend to be higher on bus and subway lines. (If your rent is $700, plan to use $2100 to get yourself into an apartment. That’s a third of your readjustment allowance—just for the keys to the apartment. Then $700/month thereafter.)
  2. Also consider monthly utilities — which will depend partly on your tastes and the time of year. ($100/month.)
  3. New clothes. The clothes you took with you into Peace Corps may be pretty threadbare by now (and you may have abandoned them overseas). If you disagree, please ask a trusted friend to give you their opinion — sometimes a person can wear an item too long to notice the holes and nubs themselves. Invest in some good interview outfits (think plain and conservative so you can wear them in a variety settings depending on how you accessorize). You may feel rich — but it’s best not to overspend. If you have clothes in storage see if they still fit — it may be more cost effective to have some items “taken in” rather that buy all-new. Although, some basic fashion trends may have changed in the past two years. ($200, if you buy a few good pieces from discount and consignment stores.)
  4. Groceries and transportation costs for the duration of your job search. How much do you spend each month on groceries? Eating out? (You may need to do it once or twice to remember.) If you have a car, how much will you spend for a tune up initially, and gas? If you don’t have a car, how much will you spend on mass transit? ($500 during the first month.)
  5. Finally, think about the things you need to make your job search possible: a cell phone? A laptop? If you have to buy these things, include them in your budget. ($1300, plus monthly internet and phone charges, about $100/month.)
  6. Need new glasses and/or contact lenses? ($200)
  7. Paying for Corps Care—Peace Corps’ health insurance extension? It’s free your first month, and $140 thereafter.
  8. Student loans — deferring was fun while it lasted. (You will also find joy in paying the loan off, but that is for another blog post.) ($300/month)

Taken together, you’ve spent $4600 — just for your first month home and a few essentials. After you’ve taken care of the priorities, save as much as you can: you just don’t know how long the job search may last.

As you can tell, you don’t have a lot of room for shopping sprees, but at least you won’t have to go into debt. If you think that spending for extras on a credit card is a better answer — oh, you’ll be able to pay it off just as soon as you get that job — remember that we are (officially) in a recession, unemployment is high, and you may not want to play Russian roulette with your credit health. Spend what you can pay off right away and you’ll be in good shape.

For ideas about living on the cheap, check out my post on financial management for corps members. Also check out the book Idealist.org and the National Endowment for Financial Education (NEFE) partnered on: Making a Difference: A Guide to Personal Profit in a Nonprofit World.

This blog post has been adapted from a section of the forthcoming Service Corps Companion to the Idealist.org Guide to Nonprofit Careers, due out this coming spring from Idealist.org.

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Quitting Early? The Corps Member’s Dilemma

A corps member wonders about leaving the service corps early.

Hi Amy,

My host site has offered me a full-time job.  I am trying to decide whether I want to just quit my national service term now and take the job, or ask the host organization wait until my term is up in February.  The dilemma, of course, is my education award.  Do you know if AmeriCorps ever pro-rates the educational award?  Are there any options that you might know of?

Of course, it might also be more profitable to take the job now, because I could probably make the amount of the educational award in a few months.

Thanks so much!

Signed,

Torn

Dear Torn,

Congratulations!  I am really glad that your host organization recognizes your hard work and talent.

Yikes, this is a tough question. There is little chance you would get any of your educational award. (Maybe if you were leaving because of a life-threatening illness in your family.)

I also think it would reflect negatively on your host organization to hire a corps member who isn’t finished with their term yet. Your organization would jeopardize getting new participants by hiring you on. I was hired by my boss at Idealist.org about three months before my AmeriCorps*VISTA Leader term ended – and he waited for me! I took his willingness to wait as a sign of respect for me and for AmeriCorps*VISTA.

I think asking your host organization to wait is the best option. In the long run you’ll feel more of a sense of accomplishment, and you won’t let down community partners who are expecting you to serve out your term.  If you ever need to apply to host corps members yourself, or you want to participate in the activities of your alumni group, you’ll be able to hold your head high.

If you decided to wait, and your organization agreed, maybe you could change your work plan enough to tackle some of the new job tasks, if they are related to the grant proposal submitted originally to fund your current service position.

On the other hand if you are facing more than just the typical economic hardship (i.e. if you are ruining your credit record or running up irreparable debt), the choice is also clear that you should accept the job offer. Also if your organization isn’t willing to wait for you, that might be another reason to seriously consider leaving your service year early – though again, it will not reflect well on the organization.

Regardless of what you decide, you can interpret the early job offer as a clear sign that you’ll readily find quality work when you do finish your term!

Most likely, once you start earning a regular salary you won’t feel like you missed out by waiting. If you started a salaried job tomorrow, you’d have little chance of socking away $4725 (the amount of your educational award) by February.

Good luck whatever you decide….

Amy

This blog post has been adapted from a section of the forthcoming Service Corps Companion to the Idealist.org Guide to Nonprofit Careers, due out this coming spring from Idealist.org.

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January is National Mentoring Month

Be The Change, Mentor a Child

From Change/Wire:

“ServiceNation is partnering with the Harvard School of Public Health, and Mentor, to promote one of the most rewarding, important, activities we can all do to help build a better future: mentoring. We are doing it because January is National Mentoring Month, and here’s how you can get involved. Thanks to the brilliant Jay Winsten at Harvard, the ad [to the left] will run in Newsweek and other publications. The fact that we got clearance from President-elect Obama to use him in the ad caught the attention of the New York Times, here. We are hoping to be able to run a video ad, too. Stay tuned. And while you do, go ahead and sign up for some mentoring!”

Search volunteer mentoring opportunities on Idealist.org.

Follow BeTheChangeInc on Twitter.

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Michelle: the Public Allies Connection

Biography of Michelle Obama offers insights into her work with Public Allies.picture-161

Liza Mundy has recently published her biography of the future first lady called Michelle: A Biography.

USA Today excerpted the book earlier this month. Below are some pieces of that excerpt, regarding both Obamas’s work with the national service corps Public Allies.

If Michelle was helpful to Barack, the converse was also true. In the early 1990s, Barack was on the founding board of Public Allies, a new nonprofit whose mission was to train young people to work in the nonprofit sector, with the hope of producing a fresh generation of public service leaders. The Chicago branch needed an executive director, and Obama suggested Michelle. In 1993, she was hired. Barack resigned from the board before she took over. …

According to Julian Posada, her deputy director at Public Allies, Michelle was as hardworking as her husband. Public Allies would soon become part of the Clinton administration’s AmeriCorps program, and she was determined that the Chicago branch would succeed and excel, which it did. Among other things, she was a zealous money raiser, and left the organization, three years after starting, with cash in the bank. “There was an intensity to her that — you know, this has got to work, this is a big vision, this isn’t easy,” recalls Posada. “Michelle’s intensity was like: we have to deliver.” He was impressed with her sleeves-up attitude. “I’m sure she came from a lot more infrastructure. There was no sense that this was a plush law firm, that’s all gone. It’s like, ‘Who’s going to lick envelopes today?’ Nothing was beneath her.”

One of the first orders of business was recruiting “allies,” young people who picture-17would spend ten months working in homeless shelters, city offices, public policy institutes, and other venues for public service. Allies were recruited from campuses and projects alike. Michelle knocked on doors in Cabrini Green, a notoriously rough public housing project, but also phoned friends to ask if they knew any public-spirited undergrads at Northwestern. “We would get kids from a very very lily-white campus to come sit down with inner-city kids, black, Hispanic, Asian,” says Posada. In addition to recruiting and managing allies, she had to raise funds from Chicago’s well-established foundations, competing with more established charities. As such, she had to be in touch with the old-money world of private philanthropy and the no money world of housing projects, moving easily between almost every world that existed in Chicago. …

Many allies found Michelle inspiring. “You kind of know when you’re in the presence of somebody who is really terrific,” says Jobi Petersen, who was in the first class of Chicago Allies. “I owed a lot to her. She’s really fair, she’s calm, she’s smart, and she’s balanced and she’s funny, she doesn’t take any crap. I get a little bit angry when I hear the thing about her being negative. She is the least negative person I’ve ever met. She is a can-do person.” Peterson remembers a time when “one of the allies was despairing about how difficult things were, or the world wasn’t bending their way, and [Michelle] would come back and say, ‘You know what, today you have to get up and do something you don’t love doing. If it’s helping people, it’s worth it.’ She had a way of making you feel you could do anything. Humor, personal style, warmth, she can be strong and tough and not come across as nega-tive. She’s got timing. She can pass you one look and you’d laugh.”

Public Allies has enjoyed the spotlight since the election due to its history with the Obamas in Chicago. Paul Schmitz, the program’s C.E.O., serves on the Technology, Innovation and Government Reform working group for President-Elect Obama’s transition team.

Public Allies is a 10-month service and leadership program that serves in 15 cities across the United States.  Corps members — called “Allies” — serve with nonprofits and universities to “create, improve and expand services that address diverse issues, including youth development, education, public health, economic development and the environment.”

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Emerging: Financial Services Corps

Recognizing the broad need for financial education among low and middle income earners, the New America Foundation proposes a Financial Services Corps.

Proposed in March, the New America Foundation‘s Melissa Koide published a policy paper describing the need for a new domestic corps of financial advisors and educators to help regular families sort through the morass of complex issues involved in personal financial management.

According to Koide’s proposal:

The creation of a Financial Services Corps (FSC) would help these households address their personal finances and plan for their future by:

  • enlisting financial experts and advisors to deliver personalized financial counseling and planning to low to middle income households;
  • providing the tools, resources, support to local, regional, and workplace based initiatives to ensure these families are effectively reached;
  • collecting and analyze data to understand the short-, medium-, and long-term financial education, counseling, and planning needs of these households; and
  • exploring new strategies and approaches to financial education and advice through an innovations fund.

The Corps could be modeled after the Legal Services Corporation — the Congressionally-mandated entity that oversees legal aid organizations. In that model, “the FSC would provide the infrastructure, resources, and support to engage and connect financial experts with low and middle income households and communities.”

In a New York Times piece today, M.P. Dunleavy reports that the Corps was inspired by Peace Corps.

If the concept interests you, or someone you know, also check out the separate Financial Services Volunteer Corps (established in 1990). The program sends skilled volunteers overseas for one or two weeks to educate people in “emerging market countries” about financial systems. The program is a partner of Volunteers for Prosperity.

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