Asset Development Basics Asset Development Webinar Series – Part I February,

Objectives Learn about assets and asset development and why they are important to people with disabilities Discuss ways to save and build assets through financial literacy and education How the DPN fits in – Role of the Navigator – Using Asset Development 30-Second Trainings 2

What do we know about people with disabilities and poverty: Disability Poverty Statistics In the year 2007, an estimated 28.6% of men and women with a work limitation, aged in America lived in families with incomes below the poverty line. In other words, 4,140,000 out of 14,474,000 (or about one in 4) Bjelland, M.J., Erickson, W. A., Lee, C. G. (2008, November 8). Disability Statistics from the Current Population Survey (CPS). Ithaca, NY: Cornell University Rehabilitation Research and Training Center on Disability Demographics and Statistics (StatsRRTC). Retrieved November 17, 2008 from 3

What do we know about people with disabilities and poverty? According to a NOD report, in 1996: 1 out of every 3 adults with a disability lived in very low-income households as opposed to 1 out of every 8 non-disabled adults. – In 2007, the median income of households that included any working-age people with disabilities was $38,400 compared to $61,000 of households that did not include any working age people with disabilities, representing a $22,600 difference. According to the 1996 NOD report, even when people with disabilities were employed, they earned substantially less than their non-disabled peers, roughly 72¢ to the dollar – In 2007, working-age people with disabilities were almost three times as likely to be living in poverty compared to people working without a disability. Source: National Organization on Disability (NOD) Harris Surveys. Available at: and 2007 Disability Status Report ( 4

What do we know about people with disabilities and poverty? (cont.) Lack of money is a serious problem among 68% of people with disabilities: – 39% of people with disabilities say that the lack of financial resources is the most serious problem they face. (NOD/Harris Survey 2000 and 2004) Public assistance represents 59% of the total income of people with significant disabilities and only 8% of the total income of people who have no disability. (Harris Survey 2002) 5

Disability and Poverty 80% of persons with disabilities have no net assets. Whether it is access to: – A quality education – Effective transition from school to work – Needed transportation, housing, technology or long-term supports Enduring poverty and lack of economic empowerment will: – Diminish choices and quality of life within communities, and – Singularly diminish freedom, opportunity, and self- determination 6

Assets and Asset Development What are they? Why are they important? 7

What are Assets? Money you have in the bank Cash on hand Securities (shares) (retirement accounts, other investments) Property you own Owner equity in a home or business Furniture and appliances Miscellaneous items (jewelry, cars, etc.) Whatever is owed to you Education level and work experience 8

What is Asset Development? Asset Development is a series of strategies that has the potential to: – help people with disabilities improve their economic status, – expand opportunities for community participation, and – positively impact the quality of life experience. 9

Why is Income Preservation and Asset Development Important? To a person with a disability, saving money and developing assets will produce choices that directly impact their quality of life, especially regarding: – mental and physical health, – positive self-concept and level of community participation, and – expectations and status with other community stakeholders. 10

Asset Development Myths ….and the Facts 11

Change Public Attitudes – Three Myths People with disabilities are unable to work. - Work produces income which is the first step towards saving and building assets. People with disabilities have all their needs met by their special programs. – People with disabilities want to reduce their reliance on government benefits and have more freedom and independence. People with disabilities can’t be expected to save and build assets. – People with disabilities want a better economic future. They are starting businesses and becoming homeowners. 12

Tools for DPNs to Use A series of 20 Asset Development 30- Second Trainings have been developed: – Targeted to individuals with disabilities – Send them out via your own, One-Stop staff & partner listservs – Use 30-Second Trainings to promote & reinforce information related to workshops, trainings & REI Tour activities – Secondary Benefit: The advanced trainings will be helpful for your staff & partners… 13

Series of 20 Asset Development 30- Second Trainings (Basic & Advanced) 1. What is a Savings Account? 2. What is an effective way to save money? 3. What is a Credit History? 4. What are the 3 C’s? 5. How is a Credit Card different than a Debit Card? 6. What is a Checking Account? 7. What does it mean to balance a checkbook? 8. What is a Budget? 9. How do I create a Budget? 10. What is Asset Development? 11. I have a lot of debt. What should I do? 12. What is the Earned Income Tax Credit? 13. True or False: You have to file your federal income taxes to receive the Earned Income Tax Credit (EITC)? 14. What is the Volunteer Income Tax Assistance (VITA) Program? 15. How can I use my tax refund to start building assets? 16. What is an IDA? 17. Will an IDA affect my SSI & Medicaid? 18. What is Financial Literacy? 19. Is there a financial literacy curriculum that can be offered in the One-Stop? 20. What is the Real Economic Impact Tour (REI Tour) and how can I get involved? 14

Where can I go to get the series of 20 Asset Development 30-Second Trainings? The DPNavigator.net website: – – *Note: These trainings will be posted the week of February 1 st

Changing Public Attitudes: Knowledge is Power One of the ways to help the public understand the importance of saving and building assets is through increasing financial literacy. – Many people with disabilities (and people without disabilities) lack the basic understanding of finances and are afraid to save or build assets due to income eligibility and asset limits associated with public benefit programs. – It is essential for all people to understand the basic financial principals associated with being economically self-sufficient and the way to do that is through financial education. 16

Financial Literacy and Education Strategies to – “save” and – “build” assets 17

Financial Literacy: What organizations provide financial education? Financial Institutions – Banks – Credit Unions Community Colleges Consumer Credit Counseling Service Other community nonprofit groups One-Stop Career Centers 18

What is Financial Literacy? Hey… don’t we have a 30- Second Training on that? 19

Financial Literacy: Money Smart In 2001, the Federal Deposit Insurance Corporation (FDIC) launched a national financial education program called Money Smart. – The purpose of Money Smart is to provide money management skill-building and create positive relationships with banks. It is available in Braille and larger print. An online version is available on the FDIC website : – Money Smart has ten modules that take between one and two hours to complete. 20

Financial Literacy: Money Smart, cont. Modules: 1. Bank On It – covers types of insured financial institution, types of accounts, and the differences between check-cashing businesses and banking institutions. 2. Borrowing Basics – covers loans and credit. 3. Check It Out – covers the ins and outs of a checking account and its features. 4. Money Matters – covers the benefits and how-to’s of saving. 5. Pay Yourself First – covers ways to save money. 21

Financial Literacy: Money Smart, cont. Modules: 6. Keep It Safe – covers laws that protect banking consumers and shows how to protect your money. 7. To Your Credit - covers the ins and outs of credit reports and repair. 8. Charge It Right – covers the basics of credit card use. 9. Loan To Own – covers the types of installment loans and how to pick the best loan for your needs. 10. Your Own Home – covers the merits of owning a home over renting and steps to take to prepare for homeownership. 22

Is there a financial literacy curriculum that can be offered in the One-Stop Career Center? Hmmmnn…. I think we have a 30-Second Training on that… 23

Disability Program Navigators How can you assist with asset development: – Resource? – Facilitator? 24

The Navigator’s Role… As a Navigator, part of your role is to be a resource and a facilitator. – Asset Development is a crucial piece of economic self-sufficiency and greater community participation and choice. – It is essential for a Navigator to understand what Asset Development is and some of the basics in order to connect job seekers and One-Stop Career Center staff to the right resources. 25

The Navigator’s Role… In many towns/cities there are local coalitions who work on Asset Development issues, as a Navigator, participation in that coalition is key. If there is not a coalition who works on these issues, perhaps there is an already established committee who may be willing to make Asset Development an issue for a sub-committee. The Navigator can also act as a conduit for access to financial literacy education to promote asset development. The FDIC’s Money Smart Financial Literacy Program offers a “Train the Trainer” workshop which many DPNs have been successful in coordinating. To learn more about the Money Smart “Train the Trainer” program please visit the following website: Share the Asset Development 30-Second Trainings with appropriate staff and partners. 26

Contact Information DJ Diamond Miranda Kennedy