The Wait is Over -- 21st Century Personal Finance Tools Have Finally Arrived!

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DebtorWise Foundation Revolutionizes Household Budgeting

Why are American households encouraged to use gross income assessment tools when their economic reality is that household expenses must be paid from net income?

With tens of millions of Americans struggling with consumer debt burdens and millions trying to save their homes from foreclosure, it is shocking that 19th Century personal finance tools remain the primary option for distressed households. Indeed, the lack of precise and realistic money management tools characterizes the personal finance education industry that is dominated by private banks, credit unions, higher education, nonprofit foundations, personal finance gurus, and especially federal and state government agencies. Even the President’s Advisory Council on Financial Capability has ignored its leadership responsibility to develop and promote more accurate and innovative approaches to personal finance in general and household budgeting in particular. Americans need and deserve so much more during this period of economic uncertainty.

The key question is why are financial institutions and even public agencies continuing to use antiquated personal finance software/methods and related budgeting/money management curricula rather than more practical approaches that address the complexity of contemporary household finances? In particular, why are American households encouraged to use gross income assessment tools when their economic reality is that household expenses must be paid from net income? Is there a reason that these personal finance tools provide the illusion of greater financial control and yet lead the average American to higher levels of consumption and ultimately consumer debt?

With this ongoing leadership crisis in the personal finance education industry, the DebtorWise Foundation is pleased to announce the release of its pathbreaking, net cash-flow budgeting/ personal finance Credit Counseling course that is based on the IRS 1040 federal tax guidelines. Rather than a “one size fits all” approach to personal finance with its inherent imprecision, the DebtorWise Foundation’s money management software/curriculum enable consumers to: (a) specify the unique economic characteristics of their household, (b) calculate their monthly net income, and (c) customize a household budget based on the financial constraints of their net cash-flow. The key features include household size/structure, tax filing status, and state and local income tax liabilities. Furthermore, the DWF budgeting software is accompanied with a state-of-the art document management/data verification system.

According to Dr. Anita Butera, Esq, Director of Bankruptcy Education, “it is striking that Americans are berated over their lack of personal finance skills. Yet, the so-called experts promote personal finance tools that are more appropriate for the age of the horse and buggy than the Ipad generation. At DebtorWise, we have harnessed the scholarly vision and academic precision of our founder—Dr. Robert D. Manning —to better serve those Americans that desperately need our practical guidance and innovative budgeting software/courses/assistance.”

As Dr. Butera explains, “Imagine trying to develop a budget based on gross income that ignores state and local taxes, itemized tax deductions, and even homeowner status. You can easily overestimate available household income to pay monthly expenses by 20% - 25%. And, try evaluating whether a mortgage modification is affordable when you don’t know the net cost of lower loan (tax deductible) interest rates. No wonder so many hard working families are confused over balancing their budget --with gross income—when they realize that they don’t have enough money to pay their bills at the end of the month! Is it surprising that so many people give up on their personal finances?” With the goal of bridging this informational deficiency, the DebtorWise Foundation is offering the first net cash-flow budgeting curriculum that is based on the IRS 1040 federal tax guidelines.

The DebtorWise Foundation is the nation’s leading innovator in online financial education courses and personal finance software. Founded by Dr. Manning, an internationally recognized consumer finance scholar, the DebtorWise Foundation is a nonprofit organization dedicated to providing affordable financial education to financially distressed and low-income households. It provides the pre-filing Credit Counseling and pre-discharge Debtor Education courses that are required by the Federal Court for filing consumer bankruptcy. Dr. Manning's most recent monograph examines Walmart's expansion into consumer financial services in the United States with a case-study of Banco Walmart de Mexico.

For more information contact:
Donna Slavin,
Director of Special Programs
(585) 270-8398

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Donna Slavin