Financial Literacy 1 Welcome!

Asset Development and Financial Literacy 2 “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.

What is Financial Literacy? Financial Literacy is a large body of information about finances. One of the parts is Asset Development. 3 Asset Development Financial Literacy is “having the knowledge, skills and confidence to make responsible financial decisions”. (Task Force on Financial Literacy, 2010

Why is it import to know about Financial Literacy? The average family spends $1.22 for every dollar it earns! In 2003, the average American household owed $8,565 in credit cards, compared to $2,600 in 1989 –that’s a 329% increase! In 2005, 2 million Americans filed for bankruptcy –the highest amount in history! 4

Financial Literacy 5

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. ( April 2001 and National Disability Institutehttp://

Financial Literacy Includes: Knowing how to use banks Knowing how to pay your bills Budgeting Benefits management Loans Understanding the wise of credit Knowing about payday loans Using Credit Cards Insurance Smart Shopping Etc… 7

Benefits Management -BIN -SSDI, SSI -Medicaid, Medicare HUD TANF, Food Stamps Etc… Guardianship & Representative payee status Working & Earning Savings, IDA’s, HUD, Trusts, IRA, etc… Financial Literacy Includes: Asset Development -Home -Business -Voc/Ed ASSETASSET Community integration Self -direction 8 Freedom, choice Stability Opportunity to work & participate Mentoring, coaching

Who to contact about Financial Literacy Trainings Contact your local Indiana United Way (317) Contact your local Community Action Program (CAP) (317) or Contact the local Purdue Extension office (765) Contact the Indiana Housing and Community Development Authority (800)

Websites for Additional Information National Disability Institute Virginia Commonwealth University Social Security Southern Indiana WIPA coordinators.htm