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

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Financial Literacy 1 Welcome!

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Page 1: 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

Financial Literacy

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Welcome!

Page 2: 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

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.

Page 3: 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

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

Page 4: 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

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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Page 5: 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

Financial Literacy

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Page 6: 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

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

Page 7: 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

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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Page 8: 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

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

Page 9: 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

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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Page 10: 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

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