Jewelry maker Rhoda Johnson said she had never used a computer and was scared to death to start her own business when she joined a government savings program for low-income families three years ago.
“My family thought I was nuts,” said Johnson, 45. “I’m the first female entrepreneur in my family.”
When school-bus driver Roberta Espinosa joined the savings program, she realized she could save some of the $200 per month she was spending to take her kids out to McDonald’s and other fast-food restaurants.
“In the beginning, I didn’t think I could (save), but once I went through the financial training, I learned you pay the bills first and whatever you have left, that’s what you can spend for the month,” Espinosa said.
Johnson and Espinosa, 34, are two of the more than 900 people in Colorado who have used the savings program administered by Mile High United Way to start businesses, buy houses and get job training or other education since 1999.
Most participants save $50 per month until they reach $1,000, when officials “match” their savings four to one, with $4,000.
Representatives from United Way, the Denver Office of Economic Development, Micro Business Development Corp. and the Bell Policy Center held a news conference Thursday to encourage state officials to kick in $1 million per year to expand the $1.7 million program across Colorado. The program is currently financed mostly from federal money, with some state and local money.
Johnson used her $5,000 to buy a computer and build a website, rhodadesigns.com, to market her chunky, high-end necklaces and earrings, which retail for $35 to $500 at two Denver galleries. She said her business operates in the black some months and in the red other months.
More than 70 percent of the program’s participants are female, since women are more likely to meet the criterion of making less than 200 percent of the federal poverty level, or $40,000 for a family of four in Denver, to join, said P. Barclay Jones, vice president of assets for family success at Mile High United Way.
Participants take budget and other money-management classes, depending on whether they’re starting businesses, buying homes or getting education.
“These things have a long-lasting ripple effect on families,” Jones said.
The petite Espinosa said she lost 30 pounds as a side benefit of eating more healthy meals with her kids at home to save money.
“My boys know how to do the dishes now,” Espinosa said. “My kids know how to appreciate things more.”
And once she put the $5,000 down on an $80,000 townhouse in Lakewood, Espinosa was able to cut her monthly housing bill as well – from more than $500 per month in rent to a $347 mortgage.
She said she’s now saving to finish a college degree in special education.
About half of the participants left the program, keeping their savings but forfeiting the generous match, according to United Way statistics. Of those who successfully completed the program, half bought houses, while about a fourth started small businesses and a fourth got some kind of additional education.
Staff writer Beth Potter can be reached at 303-820-1503 or bpotter@denverpost.com.
Where to learn more: For more information on the program, contact Mile High United Way.
Phone: 303-433-8383
Online: www.unitedwaydenver.com
