Supportive Banking The Access Project: A New Concept To Support Recovery A Next Step to Financial Health and Wellness

1. Supportive BankingThe Access Project:A New Concept To Support RecoveryA Next Step to Financial Health and Wellness Presentation to NJPRA October 27, 2011 by Peter Stahl, CSPNJ, Director Tom Pyle, PsychOdysseyServices, Inc., Board Member (in formation)

2. Outline • Financial Wellness: Road to Recovery Nirvana • Financial Reality: Poverty as Barrier to Recovery • Making Progress: CSP’s Financial Services Experience • Next Steps: A New Psych Rehab Concept?

3. Psych Rehab: A Continuing Evolution…

4. Research: Wealth  Wellbeing • Health, mental health, personal finance are interconnected (O’Neill, Sorhaindo, et al., 2005) • Impulse and compulsive buying linked to negative psychology (Silvera, Lavack & Kroop, 2008; Baumeister, 2002; Verplanken, et al., 2005) • Overspending and rising debt increase stress, reduces health (Drentea & Lavraka, 2000; Kim, Garman & Sorhaindo, 2003) • Debt reduction and credit repair improve physical health (Bagwell, 2000; O’Neill, et al., 2005) • Asset accumulation brings psychological and social benefit (Dynner & Paxton, 2001) • Asset ownership boosts confidence and expectations (hope) (Yadama and Sherraden, 1996)

5. SAMHSA’s 8 Dimensions of Wellness

6. What Road to Recovery Nirvana?

7. What Road to Recovery Nirvana? Community Integration

8. Integration? Those with SMI… • 32% live below poverty line (Erickson and Lee, 2008) • 72% are unemployed (Erickson and Lee, 2008) • 46% of the homeless • 9% have college degrees (Erickson and Lee, 2008) • Earn $27,500 AHI (vs. $50,007) (ACS, 2007; NIMH, 2008) • Pay > 50% of AHI for housing (Sperling, et al., 2005) • Largest group on SSI/SSD

9. The Continuing Crisis… Those with SMI are often… • Ultra-poor • Homeless • In jail • In debt • Without credit • Unemployed • Unbanked

10. Poverty Blocks Road To Recovery • No economic safety net • No financial services • Insufficient housing • Inadequate insurance • No financial literacy • Benefits endangered by… working!

11. Barriers to Financial Recovery • Misinformation • Work leads to loss of benefits… • Asset limits don’t allow me… • I can’t afford to save… • Fear • The economy is bad… • I can’t afford a home/car… • Emotional issues about money…

12. Removing The Barriers… • Financial literacy training • Matched savings incentives • Setting savings goals • Personal finance advising

13. Financial Education: CSPNJ At Work • Financial stability: Gaining personal control over income and expense • Financial security: Setting goals for saving • Financial empowerment: Using products and services effectively • Financial independence: Providing money management and savings products, i.e. IDAs • Financial success: Credit repair; debt reduction; asset accumulation through savings

14. FinEd Lessons Learned • Gear towards the individual • Teach… • Budgeting • Money management • Debt reduction • Credit repair • Long term goal planning • Support until self-efficacy attained • Also address emotional stresses about finance

15. FinEd Lessons Learned, ctd. • Include FinEd in all wellness curricula • Teach stewardship for money • Address all aspects of finance • Encourage savings in every budget • Start with small savings accounts • Engage an IDA program • Focus on assets and QOL, not debt repayment • Use microloans instead of benevolence

16. And Then We Got To Thinking… How to support financial independence, that final barrier to… Community Integration?

17. Psych Rehab Practices... • Supportive Housing… • Supportive Education… • Supportive Employment…

18. A New Psych Rehab Practice?... • Supportive Housing… • Supportive Education… • Supportive Employment… • Supportive Banking

19. Our Supportive Banking Concept… The first federally chartered Credit Union of, by, and for individuals with psychiatric disabilities (and their families, friends, providers, and supporters). A Membership Association ofindividuals with psychiatric disabilities and their supporters to promote financial literacy and build the Credit Union. (in formation)

20. Our Supportive Banking Concept… www.supportivebanking.com

21. Possible Features: Some Product Ideas… Literacy Association • Courses • Seminars • Workshops • Individual training • Personal advisory • Credit repair • Consulting Credit Union • Savings Accounts • IDAs • Tax Prep and EITC’s • Microloans • Other loans • Low or no fee transactional services

22. Challenges • Current economic recession • Low interest rate environment • “Leveraging” participation • Deposit and loan growth • Operating capital • (Not NCUA approval…)

23. Opportunities • Real business • Of, by, and for consumers • Means for meaningful support • Accountability and responsibility • Employment • Skills development • Financial independence

24. Status • Board formed • Company (501c3) established • Research underway • Industry • Markets • Competition • Products and services • Funding • Business plan being drafted • Application to NCUA being prepared

25. Next Step: Pledges! To Get Approval, Access Needs… • Members ( ~ 1000, to pledge deposits) • Deposit pledges ( ~ $100,000) • Consumer leaders ( ~ 100) Note: Pledges, not yet money Note: All deposits Federally insured

26. The 100 | 1000 | 100,000 Plan • 100 Leading Consumers (“The Centurions”) • 1000 Individual Members(including corporations) • $100,000 Total Deposits Pledged

27. The 100 | 1000 | 100,000 Plan

28. How You Can Help • Join Access Financial Literacy Association ($1.00) • Sign a deposit pledge card ($5 minimum) • Fill out our questionnaire • Tell your clients • Recruit your family • Involve your agencies • Network us to others • Share your ideas

29. Join Our Project! For further information… Visit CSPNJ’s table for brochures and ways to support Contact: Peter Stahl, Director, Access Project t. 732-780-1175 x 27 | e. pstahl@cspnj.org (in formation) 29