Asset Development and Financial Literacy

1. Asset Development and Financial Literacy Asset Development and Financial Literacy For Individuals with Disabilities, their Families and Support Network (Use “Notes View” to view instructor narrative.)

2. Asset Development and Financial Literacy “Few people have ever spent their way out of poverty. Those who escape do so through saving and investing for the long-term.” Michael Sherraden Center for Social Development Sherraden, M. (2005). Inclusion in Asset Building.

3. Economic Profile: People with Disabilities • According to the U.S. Census, there are • 50 million people in the U.S. living with a disability. • More than 34% of adults with disabilities live in households with total income of $15,000 or less. • 30% of working age adults with disabilities do not have a checking or savings account. Unbanked. • Only 10% of people with disabilities own homes compared to 71% of those without disabilities. • Less likely to have retirement accounts or own a home. • More likely to be asset poor. Sources: The White House, Executive Summary: Fulfilling America's Promise to Americans with Disabilities. (http://www.whitehouse.gov/news/freedominitiative/freedominitiative.html.) April 2001 and National Disability Institute

4. Asset Development and Financial Literacy If you support individuals who are working and are beginning to develop goals such as: • Buying a home, • Starting a business, • Taking educational or vocational courses, Then you are working with someone who will benefit from Asset Development and Financial Literacy. Information on who to contact will be provided later in the presentation.

5. Work Incentive Planning Agency(WIPA) • For SSA recipients working or looking for work. • Purpose is to provide recipients the information they need to evaluate how earnings may effect their benefits. • To request a review, call the Social Security Work Incentive Planning and Assistance Program (WIPA) in your part of the state. Indiana Works Southern 1 800-206-6610 or 1 800-757-5834 Northern 1 866-646-8161 (+Indianapolis) • Agency will contact the recipient and develop a written report on the impact of work on the SSA recipient benefits and make recommendations

6. Federal and State Benefit Programs There are several federal and state benefit programs to considered when someone is working. • Social Security Disability Insurance (Title II) • Supplemental Security Income (Title XVI) • Medicaid • Medicare • HUD • Food Stamps • TANF

7. Asset Development and Financial Literacy What is Financial Literacy?

8. Financial Literacy http://www.youtube.com/watch?v=23zghpS9034

9. What is Financial Literacy? Financial Literacy is defined as: “having the knowledge, skills and confidence to make responsible financial decisions”. (Task Force on Financial Literacy, 2010) http://en.wikipedia.org/wiki/Financial_literacy

10. Financial Literacy is a broad field that includes: Guardianship & Representative payee status Self -direction Mentoring, coaching Working & Earning Community integration A S S E T Opportunity to work & participate Asset Development -Home -Business -Voc/Ed Benefits Management -BIN -SSDI, SSI -Medicaid , Medicare HUD TANF, Food Stamps Etc… Stability Freedom, choice Savings, IDA’s, HUD, Trusts, IRA, etc…

11. Asset Development and Financial Literacy What is an Asset?

12. Asset Development and Financial Literacy What is Asset Development?

13. What is Asset Development? Asset development is: “Saving money and making investments that increase in value over time”. “As individuals develop assets, they and their families will be more able to move out of poverty and remain out of poverty”. Task Force on Financial Literacy, 2010 http://www.disability.gov/community_life/independent_living/asset_development

14. Difference: Assets vs Income • Assets are the accumulation of value or aggregation of wealth. The focus is on longer term stability. • Income is the flow of money to an individual household that meet daily living expenses. The focus is on short term needs.

15. What is Asset Development? • Asset Development is buying a home, investing in a business, learning a new skill or putting aside money in a savings account for emergencies. • Assets provide long term benefits. • Assets are usually economic resources: Assets are anything that can be turned into cash(minus the debt owed). • Assets can also be human resources: Skills or education can be considered assets.

16. Asset Development and Financial Literacy Financial Literacy is a large body of information about finances. One of the parts is Asset Development. Asset Development

17. Did you know that having assets? • Increases your chances to stay where you live • Helps you think positively about your future • Enables you to stick to a career choice • Helps you get better terms from the bank • Provides a foundation for risk taking • Increases your ability to make choices • Improves the wellbeing of children • Increases community connections • Increases political participation (Sherraden, 2005).

18. Programs to Help Develop Assets • Social Security • Social Security Work Incentives • Plans for Achieve in Self-Support (PASS) • Property Essential to Self-Support (PESS) • Internal Revenue Service • EITC (Earned Income Tax Credits) • VITA (Volunteers in Tax Assistance) • Indiana Housing and Community Development Authority • Individual Development Accounts (IDA’s) • Trust funds • Private Trusts • ARC Master Trust

19. Historical programs that have helped people with assets • Homestead Acts (not good for everyone) • G.I. Bills • Home interest mortgage deduction • Tax shelters for retirement savings • Individual Tax deductions • Business Tax deductions • Trusts

20. Asset Development and Financial Literacy Thinking Differently Asset Development and Financial Literacy helps by: • Linking individuals with financial literacy resources • Linking with asset development programs • Integrate asset development and financial literacy in person centered planning meetings for greater self sufficiency and financial independence You can help by: • Thinking beyond employment goals • Talking about Asset Development and Financial Literacy concepts to other friends and families • Providing different kinds of supports

21. Asset Development and Financial Literacy “Never believe that a few caring people can't change the world.” Margaret Mead

22. Information Websites • Indiana Institute on Disability and Community-Benefits Management http://www.iidc.indiana.edu/index.php?pageId=18 • National Disability Institute http://www.realeconomicimpact.org/ • Virginia Commonwealth University http://www.vcu-ntc.org/resources/cwicmanual.cfm • Social Security http://www.ssa.gov/disabilityresearch/wi/detailedinfo.htm • Southern Indiana WIPA http://www.iidc.indiana.edu/disabilitybenefitsandwork/workincentivescoordinators.htm

23. Who to contact about Asset Development and Financial Literacy Trainings • Contact your local Indiana United Way (317) 923-2377 • Contact your local Community Action Program (CAP) (317) 638.4232 or 1.800.382.9895 • Contact the local Purdue Extension office (765) 494-8491 • Contact the Indiana Housing and Community Development Authority (800) 872-0371

24. ResourcesFederal and State Asset Development Programs • Social Security Administration Assets For Independence http://www.acf.hhs.gov/programs/ocs/afi/assets.html • Individual Development Accounts (IDA’s) Indiana Housing and Community Development Authority http://www.in.gov/ihcda/ Self Sufficiency Programs Housing and Urban Development (HUD) local offices Development http://www.hud.gov/local/index.cfm?topic=offices&state=in

25. References • Assets. (2010). In Merriam-Webster Online Dictionary. Retrieved March 17, 2010, from http://www.merriam-webster.com/dictionary/assets • Sherraden, M. (2005). Inclusion in Asset Building. Testimony for Hearing on ”Building Assets for Low- Income Families” Subcommittee on Social Security and Family Policy Senate Finance Committee and Social Security, testimony, President’s Commission to Strengthen Social Security, April 28, 2005. • Disability Studies Quarterly, Vol. 26, No 1 Winter” Copyright 2006 by the Society for Disability Studies • Making your Money Work, Purdue Extension Services. Purdue: West Lafayette, Indiana • Task Force on Financial Literacy http://www.financialliteracyincanada.com/eng/about-financial-literacy/definition.php