Saving plan helps family buy a home

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Winnipeg Free Press, Monday Novenmber 3, 2008
Reproduced with permission.
Photo: Mike Aporius/Winnipeg Free Press

When Alma Pinpin first heard about a program that would not only teach her to save money, but also give her money, she thought it sounded to good to be true.

Alma and Vince Pinpin, with son Chale, 4, in their Pilgrim Avenue house, bought with their savings and SEED money.

However, two years later, Pinpin is sitting in the kitchen of her family's first home, and $3,000 of the down payment came from completing that very same program,

Pinpin is referring to an asset-building program that she participated in through SEED Winnipeg. The program is part of a city-wide Asset Builders Partnership with the United Way and 11 other agency partners. Its aim is to teach people in low-income situations to save, budget and manage money, and eventually purchase a big-ticket item, whether it be a home, a bed, or a pair of reading glasses.

The incentive for participating in the program is not only learning the skills, but also the three-to-one contribution they receive from the United Way and its agency partners to match what they themselves have managed to save.

Pinpin and her family moved to Winnipeg from the Philippines a few years ago. Her husband, who worked in marketing in the Philippines, found it hard to find a good-paying job in Winnipeg, and was going to have to upgrade his skills.

As a result, Pinpin and her family found themselves in an unfortunate situation resulting in low income, an apartment that, due to previous smoking tenants, triggered her son's asthma, and an inability to get ahead.

"This program really helped," Pinpin said. "Without this program, we'd still be in our apartment."

There are two types of asset-building programs available in Winnipeg. A six-month program is offered in which participants are expected to save a total of $250 over the course of the six-month period.

If participants achieve that goal, they receive an additional $750.

The other is a two-year program in which participants are expected to save $1,000 over two years -- reach that goal and they receive an additional $3,000 towards their predetermined purchase.

Pinpin was part of the two-year program. By paying close attention to the budgeting skills and tips taught to the participants, she managed to save $1,000 in one year.

"They really taught us a lot of things," Pinpin said. "I think the No. 1 thing that I always remember is if you can pay in cash instead of using credit cards, do it."

Participants are also taught how to set priorities and to focus on goals.

Linda Brazier-Lamoureux, director of community investment at the United Way, thinks that money management is one of the hardest skills to learn. That's why she thinks this program can make a difference and help people in low-income situations.

"We believe profoundly that we have to find creative approaches to eliminating poverty," said Brazier-Lamoureux. "(In this program) people end up helping themselves." In the 2008-2009 year, about 200 Winnipeggers will have the opportunity to take part in the program.