Lateshia Woodley and Alex Kelly of Ellenwood, Georgia, have come a long way. The young couple–he's 35 and she's 33–started out as teen parents. Woodley was just 15 years old when she gave birth to their son, Alex IV. But the couple has done exceptionally well keeping their family intact while pursuing higher learning and improving their financial situation. The duo values education and hard work, and it shows. Married now for 13 years, Kelly, who worked as a regional manager for RaceTrac Petroleum, first helped to put his wife through school, which allowed her to earn several degrees: associate degrees in medical assisting, paralegal studies, and administrative management, all from Clayton State University. She also holds a bachelor's in business management, and master's and doctoral degrees in counseling psychology. Now Woodley is returning the favor, covering the family's household bills while her husband attends school full time to earn an M.B.A. from Troy University. Kelly expects to complete the program by next year. With her recent promotion as a school improvement specialist for Atlanta Public Schools, Woodley earns an annual salary of $76,000 plus $14,000 (net after expenses) from her private practice. Although they have a net worth of just $2,785, their emergency and retirement savings are pretty positive. Their emergency cash reserve equals seven months' worth of living expenses, or $52,000. Woodley has a traditional pension plan with Atlanta Public Schools; at her current salary, if she were to retire at age 60 she would be eligible to receive a pension of $15,200 per year. Kelly has accumulated a little more than $100,000 in a rollover IRA and traditional IRA. The family's healthy reserves can be attributed to Kelly's stellar saving and investing habits; over the years, whenever he received a raise or promotion he would squirrel away the increase. Woodley, however, is a spendthrift who tends to give away money to any young person in need. (Continued on next page) "I am addicted to three things: school, travel, and helping others,†says Woodley, who has written a book on the subject of overcoming the emotional implications of teen pregnancy. Woodley's money habits were so poor that, until recently, her husband hid money in accounts about which she knew little or had no access to, because "he is afraid that I will give it all away,†she says. Like many couples who have money-style differences–one's a saver, one's a spender–Woodley and Kelly may never fully resolve the issue. But they can talk about it, start to work toward compromise, and sit down to create rules both can live by. Money management experts say true respect for each other's financial needs can only be achieved through direct and honest communication. It is important for Woodley and Kelly to be of one accord, especially now that the family is facing the major challenge of negative cash flow. On a monthly basis, $2,377 more is going out than is coming in–once the family's day-to-day living expenses are added, plus the mortgages on the three homes the couple owns and other debt obligations, including Woodley's $15,856 in credit card balances. More college expenses are right around the corner, too: 18-year-old Alex heads to college in the fall. Alexis, who is 12, will be college bound in four years since she is now a freshman in high school. After being homeschooled she was skipped two grades. Then there's $500 a month in child support for a daughter Kelly has from another relationship. They also have legal custody of 5-year-old Araya until she's 18 years old. The couple has a lofty goal of giving each child a total of $40,000 (or $10,000 per year) toward his or her college education. In the meantime, Woodley is carrying $140,439 in student loans while the projected debt load for Kelly's M.B.A. is an estimated $28,000. A plus is that more than 55% of Woodley's loans are in deferment. But once the loan payment comes due, her monthly disbursement will increase from $272 to $400. (Continued on next page) The Advice Black Enterprise drafted a blueprint to help the family get on the right track and balance their finances with two people (father and son) in college come this fall. - Reduce monthly obligations. For starters, they must get their negative cash flow down to a reasonable level immediately. "They can use money from their checking and savings accounts to reduce about $15,853 in credit card debt,†says Joseph C. Ellis II, senior vice president, wealth management for Wells Fargo & Co. in Minneapolis.  "This will reduce their monthly obligations by about $785 per month, bringing their monthly cash flow to a negative $1,592.†Moreover, the couple should look to reduce living expenses by taking advantage of a family share plan to reduce landline and cellular phone costs–currently $450 total monthly–and combine their auto and homeowners insurance with one carrier to get a multiple policy discount rate. They can use the savings to go toward reducing their negative cash flow. - Rent the second home. They own three homes: a primary residence (valued at $65,000 with a $107,000 mortgage and $964 monthly payment); the first home they ever purchased together, which is empty (valued at $50,000 with a $70,000 mortgage and monthly payment of about $625); and a rental property in their Alabama hometown (valued at $61,000 they owe $38,000 on the home and a $120 monthly payment). The couple is meeting their tax obligations, mortgage payments, and insurance on all three properties, but they aren't netting any additional income and since they are also underwater, Ellis suggests renting the vacant home. If a tenant can cover the mortgage payment, that would further reduce their negative cash flow to $967 per month. (Continued on next page) - Develop a donor-advised fund. Woodley sometimes spends up to $400 a month on community support. Many of the students she works with live below the poverty line, so she feels obligated to help them with money for college application fees, ACT exams, and the like. That comes to about $100. In addition she supplements the needs of a teen mother she knows. Despite her passion for community outreach, she needs to eliminate these two expenses for now, which would further decrease their negative cash flow to $567. Once the couple begins to have discretionary income suggests Ellis, they should budget for charitable donations and then create a charitable giving program using a donor-advised fund through a public charity such as Associated Black Charities or a commercial sponsor such as Fidelity Charitable Gift Fund. Contributions are tax-deductible and invested by the sponsor to earn interest until grants are distributed to the chosen causes. - Finance college educations. Take the $2,000 contest winnings and open a 529 college savings plan for the two youngest children ($1,000 each). The couple should meet with a professional on a regular basis to address issues with overspending, budgeting, and for ongoing goal assessment.