View Full Version : RE: financial education - does it work for people with disabilities?
Community Development Banking List
07-22-2010, 10:46 AM
Original message from: pat@nyrehab.org
I too have been reading all the good stuff and I finally feel the need to
jump in and ask if any of your fine institutions have begun to look at the
asset development needs of people with disabilities that are receiving SSI
and SSDI? For so long people with disabilities have been viewed not as wage
earners but dependents on our government. In all this discussion of
financial literacy are any of you looking at programs, tools and other ideas
to assist the person who needs Medicaid as their insurer and as a result is
often limited by their eligibility status to "saving" money? I look forward
to anyone's thoughts.
Pat Dowse, COO
New York State Rehabilitation Association
518-449-2976 x103
www.nyrehab.org
From: bounce-6124301-11587879@list.cornell.edu
[mailto:bounce-6124301-11587879@list.cornell.edu] On Behalf Of george barany
Sent: Wednesday, July 21, 2010 2:28 PM
To: communitydevelopmentbanking-l@cornell.edu
Subject: financial education - does it work?
I have read with interest the comments, suggestions and beliefs reflected in
the list serve emails. I continue to be fascinated by this discussion as
good people struggle with supporting particularly LMI individuals to develop
some financial stability. The focus always seems to be miracle of education
once provided will change habits.
I have a firm belief that knowledge without practice is no more that short
term retention of what is presented. Learning how to play the piano without
touching a piano does not work, and certainly not without regular and
consistent practice. Learning algebra, geometry, French in school without
the opportunity to practice outside of the classroom allows the information
to quickly disappear.
The example I tend to use is the generations of savers from the 1920's -
1960's cutting their teeth on school banking programs where no formal in
school financial education was provided, just social expectation that
regardless of the amount, you brought your pennies to school on a certain
day to be deposited with the banker. These savers kept the national savings
rate between 11- 14%, not the 0% we have experienced the last ten years and
now more recently the fluctuation between 0% - 5% due to the recession.
What happened to us as a nation was one, the dramatic increase in
advertising and promotion opportunities - think about how often each day we
get hit with spend marketing - with no counter message to save and be
prudent; and two the huge availability of credit that allowed anyone to buy
anything. This has caused now at least two generations to have the mind set
of being in debt your whole life is the norm - and I am talking about
consumer debt and not mortgages.
This is a huge behavioral shift that requires more than just education.
Education is a vital component that needs to be coupled with positive and
consistent financial action, saving in some form, and access and opportunity
to save in an appropriate product.
Even though we now have some boutique programs offered by community banks,
there is no large scale student centered banking program to teach the habit
of saving. The trend is to provide education and hope for the best with
limited and marginal results - see Lou Mandel's studies for Jumpstart. And
think about the huge amount of financial education provided by non profits,
banks and credit unions, and others during the ten years we experienced a 0%
national savings rate. We had impact, I am sure, but definitely not enough.
I would recommend that if an organization provides financial education it be
linked to a saving product, expectation of regular deposits, and the easiest
process - ideally automatic - to save. From my experience the saving,
actually having some growth in an account, a relationship with a financial
institution, getting statements ..etc support the financial education and
the desire to learn how to do more and better. And the financial education
now becomes practical, real life and can be quantified by what is saved.
I come from my experience with America Saves and our experience with over
210,000 Savers and reaching over 40 million people each year through America
Saves Week.
George Barany
Consumer Federation of America
America Saves
216 375-3255
gbarany@consumerfed.org
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Community Development Banking List
07-22-2010, 11:18 AM
Original message from: TCarter@psych.uic.edu
Yes it does, here is a link to what we are doing here at our Center.
http://www.cmhsrp.uic.edu/nrtc/ida.asp#curriculum ('http://www.cmhsrp.uic.edu/nrtc/ida.asp#curriculum')
________________________________
From: bounce-6125203-13399081@list.cornell.edu [mailto:bounce-6125203-13399081@list.cornell.edu] On Behalf Of Pat Dowse
Sent: Thursday, July 22, 2010 9:11 AM
To: 'george barany'; communitydevelopmentbanking-l@cornell.edu
Subject: RE: financial education - does it work for people with disabilities?
I too have been reading all the good stuff and I finally feel the need to jump in and ask if any of your fine institutions have begun to look at the asset development needs of people with disabilities that are receiving SSI and SSDI? For so long people with disabilities have been viewed not as wage earners but dependents on our government. In all this discussion of financial literacy are any of you looking at programs, tools and other ideas to assist the person who needs Medicaid as their insurer and as a result is often limited by their eligibility status to "saving" money? I look forward to anyone's thoughts...
Pat Dowse, COO
New York State Rehabilitation Association
518-449-2976 x103
www.nyrehab.org
From: bounce-6124301-11587879@list.cornell.edu [mailto:bounce-6124301-11587879@list.cornell.edu] On Behalf Of george barany
Sent: Wednesday, July 21, 2010 2:28 PM
To: communitydevelopmentbanking-l@cornell.edu
Subject: financial education - does it work?
I have read with interest the comments, suggestions and beliefs reflected in the list serve emails. I continue to be fascinated by this discussion as good people struggle with supporting particularly LMI individuals to develop some financial stability. The focus always seems to be miracle of education once provided will change habits.
I have a firm belief that knowledge without practice is no more that short term retention of what is presented. Learning how to play the piano without touching a piano does not work, and certainly not without regular and consistent practice. Learning algebra, geometry, French in school without the opportunity to practice outside of the classroom allows the information to quickly disappear.
The example I tend to use is the generations of savers from the 1920's - 1960's cutting their teeth on school banking programs where no formal in school financial education was provided, just social expectation that regardless of the amount, you brought your pennies to school on a certain day to be deposited with the banker. These savers kept the national savings rate between 11- 14%, not the 0% we have experienced the last ten years and now more recently the fluctuation between 0% - 5% due to the recession.
What happened to us as a nation was one, the dramatic increase in advertising and promotion opportunities - think about how often each day we get hit with spend marketing - with no counter message to save and be prudent; and two the huge availability of credit that allowed anyone to buy anything. This has caused now at least two generations to have the mind set of being in debt your whole life is the norm - and I am talking about consumer debt and not mortgages.
This is a huge behavioral shift that requires more than just education. Education is a vital component that needs to be coupled with positive and consistent financial action, saving in some form, and access and opportunity to save in an appropriate product.
Even though we now have some boutique programs offered by community banks, there is no large scale student centered banking program to teach the habit of saving. The trend is to provide education and hope for the best with limited and marginal results - see Lou Mandel's studies for Jumpstart. And think about the huge amount of financial education provided by non profits, banks and credit unions, and others during the ten years we experienced a 0% national savings rate. We had impact, I am sure, but definitely not enough.
I would recommend that if an organization provides financial education it be linked to a saving product, expectation of regular deposits, and the easiest process - ideally automatic - to save. From my experience the saving, actually having some growth in an account, a relationship with a financial institution, getting statements ..etc support the financial education and the desire to learn how to do more and better. And the financial education now becomes practical, real life and can be quantified by what is saved.
I come from my experience with America Saves and our experience with over 210,000 Savers and reaching over 40 million people each year through America Saves Week.
George Barany
Consumer Federation of America
America Saves
216 375-3255
gbarany@consumerfed.org
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Community Development Banking List
07-22-2010, 05:58 PM
Original message from: drand@woodstockinst.org
A number of individuals and organizations, including CFED, CBPP, NDI,
New America Fdn., IASP, Woodstock Institute and state asset coalitions,
have been working to eliminate or raise asset limits in state and
federal public assistance programs, including SSI, so that persons in
need of such assistance are not discouraged from saving or forced to
spend down their assets. We have had some successes at the state level
with SNAP, TANF and Medicaid programs but Congress would have to approve
changes to the SSI program.
NDI worked with Rep. Tsongas and CFED to introduce the SSI Savers Act of
2010 to address the outdated asset limits in the Supplemental Security
Income (SSI) program which prevent very low-income disabled, blind or
elderly individuals from accumulating the savings they need to
economically advance and rise out poverty. The bill, H.R. 4937, was
introduced on March 24th and was referred to the House Committee on Ways
& Means. The SSI Savers Act of 2010 increases asset limits from $2,000
(single) and $3,000 (married) to $5,000 and $7,500 respectively, and
indexes those limits to inflation. For recipients younger than 65, the
bill excludes retirement accounts, education savings, and individual
development accounts from counting against the limit. For recipients 65
and older, it allows retirement accounts up to $50,000 (single)/$75,000
(married) to reduce SSI benefits accordingly instead of creating an
immediate cut off. H.R. 4937 has been endorsed by both the Corporation
for Enterprise Development (CFED), as well as the New America
Foundation. The text of legislation can be reviewed at the following
link:
http://www.gpo.gov/fdsys/pkg/BILLS-111hr4937IH/pdf/BILLS-111hr4937IH.pdf ('http://www.gpo.gov/fdsys/pkg/BILLS-111hr4937IH/pdf/BILLS-111hr4937IH.pdf')
<http://www.gpo.gov/fdsys/pkg/BILLS-111hr4937IH/pdf/BILLS-111hr4937IH.pd ('http://www.gpo.gov/fdsys/pkg/BILLS-111hr4937IH/pdf/BILLS-111hr4937IH.pd')
f> . See full NDI newsletter at
http://archive.constantcontact.com/fs058/1102452069849/archive/110328111 ('http://archive.constantcontact.com/fs058/1102452069849/archive/110328111')
8915.html#LETTER.BLOCK30.
See CFED's brief at
http://cfed.org/assets/documents/policy/Asset_Test_Reform_Final.pdf. ('http://cfed.org/assets/documents/policy/Asset_Test_Reform_Final.pdf.')
CFED suggests allowing states to set SSI asset limits.
See CBPP papers at http://www.cbpp.org/cms/?fa=view&id=1181 ('http://www.cbpp.org/cms/?fa=view&id=1181') and
http://www.cbpp.org/pdf/9-12-08asset-brief.pdf. ('http://www.cbpp.org/pdf/9-12-08asset-brief.pdf.')
See IASP paper at http://iasp.brandeis.edu/pdfs/NASIfinal.pdf. ('http://iasp.brandeis.edu/pdfs/NASIfinal.pdf.')
The Social Security Advisory Board also recommended updating asset limit
policies in SSI. See
http://www.ssa.gov/OACT/ssir/SSI08/Statement_08.html. ('http://www.ssa.gov/OACT/ssir/SSI08/Statement_08.html.')
As NAF reports, the Obama Administration budget would establish a
national asset limit floor of $10,000 for working age, non-disabled
individuals in means-tested public assistance programs. The proposal
excludes SSI, Medicaid, and Medicare, but does apply to all remaining
federally-funded programs, including those that are state administered).
The Administration projects that the $10,000 national asset limit will
cost $9.4 billion over 10 years, though only $426 million in the first
year. The Administration budget would also exclude all refundable tax
credits from means-tests for 12 months. See
http://assets.newamerica.net/sites/newamerica.net/files/policydocs/Asset ('http://assets.newamerica.net/sites/newamerica.net/files/policydocs/Asset')
s_Report_2010_%202.0_FINAL.pdf.
I will be presenting on state and federal asset limits at CFED's assets
conference in September in DC. See
http://cfed.org/knowledge_center/events/alc2010/. ('http://cfed.org/knowledge_center/events/alc2010/.') I encourage people
interested in reforming asset tests to attend.
Best regards,
Dory
Dory Rand | President
Woodstock Institute
29 E Madison Suite 1710 | Chicago, Illinois 60602
T 312/368-0310 x2026 | F 312/368-0316 | M 773/814-0723
www.woodstockinst.org <http://www.woodstockinst.org> ('http://www.woodstockinst.org>') |
drand@woodstockinst.org
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Advancing Economic Security and Community Prosperity
From: bounce-6125203-10328584@list.cornell.edu
[mailto:bounce-6125203-10328584@list.cornell.edu] On Behalf Of Pat Dowse
Sent: Thursday, July 22, 2010 9:11 AM
To: 'george barany'; communitydevelopmentbanking-l@cornell.edu
Subject: RE: financial education - does it work for people with
disabilities?
I too have been reading all the good stuff and I finally feel the need
to jump in and ask if any of your fine institutions have begun to look
at the asset development needs of people with disabilities that are
receiving SSI and SSDI? For so long people with disabilities have been
viewed not as wage earners but dependents on our government. In all
this discussion of financial literacy are any of you looking at
programs, tools and other ideas to assist the person who needs Medicaid
as their insurer and as a result is often limited by their eligibility
status to "saving" money? I look forward to anyone's thoughts...
Pat Dowse, COO
New York State Rehabilitation Association
518-449-2976 x103
www.nyrehab.org
From: bounce-6124301-11587879@list.cornell.edu
[mailto:bounce-6124301-11587879@list.cornell.edu] On Behalf Of george
barany
Sent: Wednesday, July 21, 2010 2:28 PM
To: communitydevelopmentbanking-l@cornell.edu
Subject: financial education - does it work?
I have read with interest the comments, suggestions and beliefs
reflected in the list serve emails. I continue to be fascinated by this
discussion as good people struggle with supporting particularly LMI
individuals to develop some financial stability. The focus always seems
to be miracle of education once provided will change habits.
I have a firm belief that knowledge without practice is no more that
short term retention of what is presented. Learning how to play the
piano without touching a piano does not work, and certainly not without
regular and consistent practice. Learning algebra, geometry, French in
school without the opportunity to practice outside of the classroom
allows the information to quickly disappear.
The example I tend to use is the generations of savers from the 1920's -
1960's cutting their teeth on school banking programs where no formal in
school financial education was provided, just social expectation that
regardless of the amount, you brought your pennies to school on a
certain day to be deposited with the banker. These savers kept the
national savings rate between 11- 14%, not the 0% we have experienced
the last ten years and now more recently the fluctuation between 0% - 5%
due to the recession.
What happened to us as a nation was one, the dramatic increase in
advertising and promotion opportunities - think about how often each day
we get hit with spend marketing - with no counter message to save and be
prudent; and two the huge availability of credit that allowed anyone to
buy anything. This has caused now at least two generations to have the
mind set of being in debt your whole life is the norm - and I am talking
about consumer debt and not mortgages.
This is a huge behavioral shift that requires more than just education.
Education is a vital component that needs to be coupled with positive
and consistent financial action, saving in some form, and access and
opportunity to save in an appropriate product.
Even though we now have some boutique programs offered by community
banks, there is no large scale student centered banking program to teach
the habit of saving. The trend is to provide education and hope for the
best with limited and marginal results - see Lou Mandel's studies for
Jumpstart. And think about the huge amount of financial education
provided by non profits, banks and credit unions, and others during the
ten years we experienced a 0% national savings rate. We had impact, I am
sure, but definitely not enough.
I would recommend that if an organization provides financial education
it be linked to a saving product, expectation of regular deposits, and
the easiest process - ideally automatic - to save. From my experience
the saving, actually having some growth in an account, a relationship
with a financial institution, getting statements ..etc support the
financial education and the desire to learn how to do more and better.
And the financial education now becomes practical, real life and can be
quantified by what is saved.
I come from my experience with America Saves and our experience with
over 210,000 Savers and reaching over 40 million people each year
through America Saves Week.
George Barany
Consumer Federation of America
America Saves
216 375-3255
gbarany@consumerfed.org
__________ Information from ESET NOD32 Antivirus, version of virus
signature database 5298 (20100721) __________
The message was checked by ESET NOD32 Antivirus.
http://www.eset.com ('http://www.eset.com')
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