financial literacy 1 welcome!. asset development and financial literacy 2 “few people have ever...

Financial Literacy

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Welcome!

Asset Development and Financial Literacy

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“Few people have ever spent their way out of poverty. Those who escape do so through saving

and investing for the long-term.”

Michael SherradenCenter 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.

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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!

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Financial Literacy

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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

Financial Literacy Includes:

Knowing how to use banks

Knowing how to pay your bills

Budgeting

Benefits managementLoansUnderstanding the wise

of credit Knowing about payday

loansUsing Credit CardsInsurance Smart Shopping Etc…

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Benefits Management-BIN-SSDI, SSI-Medicaid , MedicareHUDTANF, Food StampsEtc…

Guardianship & Representative payee statusWorkin

g & Earning

Savings, IDA’s, HUD, Trusts, IRA, etc…

Financial Literacy Includes:

Asset Development-Home-Business-Voc/Ed

Community integration

Self -direction

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Freedom, choice

Stability

Opportunity to work & participate

Mentoring, coaching

Who to contact about Financial Literacy Trainings

Contact your local Indiana United Way

(317) 923-2377Contact your local Community Action Program (CAP)

(317) 638.4232 or 1.800.382.9895 Contact the local Purdue Extension office

(765) 494-8491Contact the Indiana Housing and Community

Development Authority

(800) 872-0371

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Websites for Additional Information

• National Disability Institutehttp://www.realeconomicimpact.org/

• Virginia Commonwealth Universityhttp://www.vcu-ntc.org/resources/cwicmanual.cfm

• Social Security http://www.ssa.gov/disabilityresearch/wi/detailedinfo.htm

• Southern Indiana WIPAhttp://www.iidc.indiana.edu/disabilitybenefitsandwork/

workincentivescoordinators.htm