1. Building a Financial Future for Transition Students Abby Cooper Kennedy Douglas Consulting Marc Gold & Associates February 26, 2013

2. TACE Center: Region IV, a project of the Burton Blatt Institute. Funded by RSA Grant # H264A080021. Abby Cooper Kennedy Douglas Consulting/Marc Gold & Associates © 2013 2 Brown, Kuttner, and Shapiro, 2002 Quote “The premise that we want to be a nation of owners is attractive and deeply rooted in the American psyche” (Brown, Kuttner, and Shapiro, 2002) http://iasp.brandeis.edu/pdfs/Ownership.pdf http://iasp.brandeis.edu/pdfs/Ownership.pdf

3. TACE Center: Region IV, a project of the Burton Blatt Institute. Funded by RSA Grant # H264A080021. Abby Cooper Kennedy Douglas Consulting/Marc Gold & Associates © 2013 3 What is the financial mainstream? Having a bank account Having a good credit score Being able to take out a loan Buying a house, a car But how true is that for students? How many of your transition students will participate in the financial mainstream?

4. TACE Center: Region IV, a project of the Burton Blatt Institute. Funded by RSA Grant # H264A080021. Abby Cooper Kennedy Douglas Consulting/Marc Gold & Associates © 2013 4 What are Assets? Strictly speaking, assets are a stock of capital, including savings, financial securities, owning a business or property. Other less tangible forms of assets include educational achievement, job skills, training and access to credit. Part of the problem Frequently we assume these items will not be part of an individual’s life who has a disabilities. We do not help students plan for a future with assets.

5. TACE Center: Region IV, a project of the Burton Blatt Institute. Funded by RSA Grant # H264A080021. Abby Cooper Kennedy Douglas Consulting/Marc Gold & Associates © 2013 5 Employment will be the answer Welfare policy for the poor and disabled has tended to focus nearly exclusively on income support. Disability policy for the last 30 years has focused on employment not a combination of employment, living wages and assets development. Many students are not leaving school with the expectation that they will earn a living wage. Some students are leaving school with limited understanding of the connection between money and work

6. TACE Center: Region IV, a project of the Burton Blatt Institute. Funded by RSA Grant # H264A080021. Abby Cooper Kennedy Douglas Consulting/Marc Gold & Associates © 2013 6 Our Current Approach Has Resulted In 54% of persons with disabilities have no savings account 75% of persons with disabilities do not have any loans with financial institutions 10% of persons with intellectual disabilities own their own home 39% of persons with disabilities indicate that lack of financial resources is the most serious problem they face

7. TACE Center: Region IV, a project of the Burton Blatt Institute. Funded by RSA Grant # H264A080021. Abby Cooper Kennedy Douglas Consulting/Marc Gold & Associates © 2013 7 Need to Change Assumptions Frequently there is the assumption that the wage doesn’t matter because the person doesn’t understand money and they have public benefits. Yet how many of us really understand money? Most people only understand what they need to know to function.

8. TACE Center: Region IV, a project of the Burton Blatt Institute. Funded by RSA Grant # H264A080021. Abby Cooper Kennedy Douglas Consulting/Marc Gold & Associates © 2013 8 IEP Expectation that the person will be part of the financial mainstream A plan when a student will have paid work. To use work incentives as a asset building tool Conversations on money and wages. IPE Counseling and guidance includes money issues connected to vocational planning – How much does the person need to earn now & in the future, what would that provide his or her life, What community supports are needed to achieve financially stable. closure Earns a living wage, Has work incentives in place Knows community resources Has a financial plan What You Want From a The System

9. TACE Center: Region IV, a project of the Burton Blatt Institute. Funded by RSA Grant # H264A080021. Abby Cooper Kennedy Douglas Consulting/Marc Gold & Associates © 2013 9 Assumptions that should be embedded People should always be better off financially by working. If we are serious about individuals with disabilities being fully involved in their community then we must implement strategies that enhance financial stability and employment alone is not enough. Everyone should be part of the financial mainstream

10. TACE Center: Region IV, a project of the Burton Blatt Institute. Funded by RSA Grant # H264A080021. Abby Cooper Kennedy Douglas Consulting/Marc Gold & Associates © 2013 10 Assumptions that should be embedded (cont.) Work Incentives connected to public benefits are tools that can be used strategically to help position people to be better off financial. Incorporating into vocational planning: Financial literacy, Steps that create a pathway of financial stability Financial goals

11. TACE Center: Region IV, a project of the Burton Blatt Institute. Funded by RSA Grant # H264A080021. Abby Cooper Kennedy Douglas Consulting/Marc Gold & Associates © 2013 11 Three Theories Aversion Theory – people tend to be more afraid of what they will lose then what they will given. Need to think about how this shapes our thinking. Money and benefits are emotional topics for most people. How people define themselves and how their family, and others define them impacts if they think money applies to them.

12. TACE Center: Region IV, a project of the Burton Blatt Institute. Funded by RSA Grant # H264A080021. Abby Cooper Kennedy Douglas Consulting/Marc Gold & Associates © 2013 12 Money - The last Taboo Talking about money is difficult Trust is required Conversations need to happen repeatedly. A person’s ability to hear the information changes over time.

13. TACE Center: Region IV, a project of the Burton Blatt Institute. Funded by RSA Grant # H264A080021. Abby Cooper Kennedy Douglas Consulting/Marc Gold & Associates © 2013 13 Need More Conversations About Money There are limited conversations about money: On the amount of money people need to be financially stable. Or how they define financial stability? How to use their public benefits strategically? What public benefits are essential to them and why? What their lives could look like with a little more money? What they would like to buy now and what they would like to save for? What a bank does? Who not to trust with your money The more complex a person’s disability is, the less conversations occur.

14. TACE Center: Region IV, a project of the Burton Blatt Institute. Funded by RSA Grant # H264A080021. Abby Cooper Kennedy Douglas Consulting/Marc Gold & Associates © 2013 14 No One Learns about money in a Vacuum We need to have conversations that start early. View the person as a wage earner and someone who will be part of the financial mainstream. Need to curative the belief that the person will not only obtain employment but a living wage. What does that mean to how jobs are secured? Work experiences ? We have learned how to look at tasks a person can do and start to customized a job that fits who that person is. We need to start thinking about money in the same way.

15. TACE Center: Region IV, a project of the Burton Blatt Institute. Funded by RSA Grant # H264A080021. Abby Cooper Kennedy Douglas Consulting/Marc Gold & Associates © 2013 15 Employment is a Perfect Time to Talk Money if Not Before People and their families think about what are essential benefits for now and overtime. Essential benefits are what the person and family have decided are needed and can put a person on a pathway to financial stability. Wee need to dispel misinformation about benefits and start thinking how work incentives can be used strategically. Create a financial plan that is a living document. Could include: what work incentives to utilize, when, where to open a bank account, financial literacy that is available online or in the community, wages, savings, using the Earn Income Tax Credit (EITC), community resources.

16. TACE Center: Region IV, a project of the Burton Blatt Institute. Funded by RSA Grant # H264A080021. Abby Cooper Kennedy Douglas Consulting/Marc Gold & Associates © 2013 16 Topics that Could be Explored During Transition by Both the Teacher and VRC That people work for pay. What minimum wage is and what it can buy. A plan for saving towards a goal that matters to the person. When to open a bank account, checking account or an alternatives like prepaid debit cards. Why a relationship with a credit union or bank is important. The Real Cost of Credit and credit scores Taxes – people get their first introduction into the world of taxes when they discover their paycheck was less than expected.

17. TACE Center: Region IV, a project of the Burton Blatt Institute. Funded by RSA Grant # H264A080021. Abby Cooper Kennedy Douglas Consulting/Marc Gold & Associates © 2013 17 Discovery and Money Many VR program in the SE have started to use discovery as a positive assessment tool. If your agency does use discovery then there are some things to think about when doing discovery. The following questions can be at the beginning of the process: Related to desired salary – how much do you want to earn? What would you do with the money your earned? Do you need any help with money? Who helps you now? Do you earn money now? How? Do you want any help in understanding benefits and working? In managing money? Do you have a bank account?

18. TACE Center: Region IV, a project of the Burton Blatt Institute. Funded by RSA Grant # H264A080021. Abby Cooper Kennedy Douglas Consulting/Marc Gold & Associates © 2013 18 Need to Learn During Discovery What does financial security look like for the individual? Is family’s vision the same? What behaviors does money encourage? What does status mean and how does it play out in financial behavior? Why do they want to work?  To be able to buy things  To take a vacation  Have something to do  Be involved  Be helpful

19. TACE Center: Region IV, a project of the Burton Blatt Institute. Funded by RSA Grant # H264A080021. Abby Cooper Kennedy Douglas Consulting/Marc Gold & Associates © 2013 19 Sample Questions to Ask or Observations to make What would change in your life if you had more money? What would you buy? Would you be willing or want to save for that? What part of your money do you manage? Have you ever earned money? Who would you help if you had more money? When do you find it the most difficult to say “no”? Is there anyone you really want to impress with money? Is there anything you like to know about in regards to money?

20. TACE Center: Region IV, a project of the Burton Blatt Institute. Funded by RSA Grant # H264A080021. Abby Cooper Kennedy Douglas Consulting/Marc Gold & Associates © 2013 20 During Discovery What observations are noted around money that might later translate into the type of wage a person would need. Financial interests that translated into preferences concerning wages, hour worked, insurance Conditions  Frequency of Raises  Supported needed from the employer around Wages- automatic deposit, or deductions.

21. TACE Center: Region IV, a project of the Burton Blatt Institute. Funded by RSA Grant # H264A080021. Abby Cooper Kennedy Douglas Consulting/Marc Gold & Associates © 2013 21 Asset Building Approaches Need to start thinking about how we bundle approaches together to help people be on a pathway to financial Stability.

22. TACE Center: Region IV, a project of the Burton Blatt Institute. Funded by RSA Grant # H264A080021. Abby Cooper Kennedy Douglas Consulting/Marc Gold & Associates © 2013 22 Individual Development Accounts (IDAs) What are IDAs? Matched savings accounts- matches range form $1.00 to $9.00 The match comes from Asset for Independence (AFI) and private donations Federal IDAs can save for education, homeownership, or starting own business. Account holders receive financial literacy training and counseling. Who Qualifies for an Individual Development Account? In Federal IDAs it must be Earned income 200% of poverty level Other requirements (vary by program)

23. TACE Center: Region IV, a project of the Burton Blatt Institute. Funded by RSA Grant # H264A080021. Abby Cooper Kennedy Douglas Consulting/Marc Gold & Associates © 2013 23 IDAs Federally funded IDAs are exempt from asset calculations on ALL benefit programs- SSI, Medicaid, food stamps, etc… Contributions deduct from countable income Non-federally funded IDAs count as a resource unless in a custodial account http://idaresources.org/afigrantees

24. TACE Center: Region IV, a project of the Burton Blatt Institute. Funded by RSA Grant # H264A080021. Abby Cooper Kennedy Douglas Consulting/Marc Gold & Associates © 2013 24 Number of IDA Providers By State Alabama- 2 North Carolina- 5 Mississippi-2 Georgia-5 Florida-9 Kentucky-6 Tennessee-6

25. TACE Center: Region IV, a project of the Burton Blatt Institute. Funded by RSA Grant # H264A080021. Abby Cooper Kennedy Douglas Consulting/Marc Gold & Associates © 2013 25 Student Earned Income Exclusions This work incentive allows a student who is under age 22 and regularly attending school to exclude up to $1,7300 per month with a yearly maximum of $6,960. That means for a student on SSI, SSA will not count up to $6,960 of their earnings. This work incentives should be part of any students work plan

26. TACE Center: Region IV, a project of the Burton Blatt Institute. Funded by RSA Grant # H264A080021. Abby Cooper Kennedy Douglas Consulting/Marc Gold & Associates © 2013 26 Trial Work Period Trial Work Period (TWP): The Trial Work Period applies to you only if you receive SSDI or SSDAC. Trial Work Period is a nine month period with three additional months called the cessation and grace period. For a full year you can try working without losing your benefits. During the Trial work period you can earn as much money as you can and still receive your full Social Security check.

27. TACE Center: Region IV, a project of the Burton Blatt Institute. Funded by RSA Grant # H264A080021. Abby Cooper Kennedy Douglas Consulting/Marc Gold & Associates © 2013 27 Income-Related Work Expenses What are Income-Related Work Expenses (IRWEs)? Items or services that are related to the student’s disability and are needed in order to work Cost must be paid for by the student Can decrease countable income and help increase or maintain benefits Can provide the student with another saving opportunity

28. TACE Center: Region IV, a project of the Burton Blatt Institute. Funded by RSA Grant # H264A080021. Abby Cooper Kennedy Douglas Consulting/Marc Gold & Associates © 2013 28 Earned Income Tax Credit (EITC) Federal income tax credit for low-income workers Reduces the amount of tax an individual owes, and may be returned in the form of a refund Does not count as earned income Must have earned income Must file a return Cannot be a qualifying child of another person

29. TACE Center: Region IV, a project of the Burton Blatt Institute. Funded by RSA Grant # H264A080021. Abby Cooper Kennedy Douglas Consulting/Marc Gold & Associates © 2013 29 The Alliance for Economic Inclusion (AEI) (AEI) is the FDIC's national initiative to establish broad- based coalitions of financial institutions, community- based organizations and other partners in markets across the country to bring all unbanked and underserved populations into the financial mainstream. AEI's focus is on expanding basic retail financial services for underserved populations, including savings accounts, affordable remittance products, affordable small-dollar loan programs, targeted financial education programs, alternative delivery channels and other asset-building programs. What alternative products do persons with intellectual disabilities need?

30. TACE Center: Region IV, a project of the Burton Blatt Institute. Funded by RSA Grant # H264A080021. Abby Cooper Kennedy Douglas Consulting/Marc Gold & Associates © 2013 30 Attitudes are changing Disability Policy makers are starting to think about the importance of financial stability for individuals who have a disability As a country as a whole we are thinking about financial stability 13 states require students to take a personal finance course or include the subject in an economics course before they graduate from high school, according to the Council for Economic Education. Council for Economic Education 34 states (including those 13) have personal finance within their curriculum guidelines, up from 28 states in 2007. How are our students with disabilities included?

31. TACE Center: Region IV, a project of the Burton Blatt Institute. Funded by RSA Grant # H264A080021. Abby Cooper Kennedy Douglas Consulting/Marc Gold & Associates © 2013 31 Achieving a Better Life Experience (ABLE) Act of 2009 Able was Reintroduce in November. This reflects the attitude shift. Purpose: to encourage & assist individuals & families in saving private funds for the purpose of supporting individuals with disabilities to maintain health, independence, and quality of life To provide secure funding for disability- related expenses on behalf of designated beneficiaries with disabilities that supplement, not supplant, public benefits.

32. TACE Center: Region IV, a project of the Burton Blatt Institute. Funded by RSA Grant # H264A080021. Abby Cooper Kennedy Douglas Consulting/Marc Gold & Associates © 2013 32 One Tax Exempt Account per SSI beneficiary up to $500,000 Allowable expenses include: Preschool & postsecondary education; tutoring; special education services; training; employment supports; personal assistance & community-based supports; respite care; clothing; assistive technology; home modifications; out-of-pocket medical, vision, or dental expenses; transportation vehicle purchases or modifications; insurance premiums; habilitation and rehabilitation services; funeral and burial expenses; and other services or products allowed by regulation.

33. TACE Center: Region IV, a project of the Burton Blatt Institute. Funded by RSA Grant # H264A080021. Abby Cooper Kennedy Douglas Consulting/Marc Gold & Associates © 2013 33 Resources Financial literacy information for youth including curriculum www.jumpstart.org/www.jumpstart.org/ Asset for Independence Resource Center http://idaresources.org/ http://idaresources.org/ The Corporation for Enterprise Development (CFED) is a national nonprofit based in Washington, DC dedicated to expanding economic stability. http://cfed.org/ http://cfed.org/ http://wid.org/publications Southeast TACe Asset Development Exchange: http://www.tacesoutheast.org/network/ax/index.php http://www.tacesoutheast.org/network/ax/index.php

34. TACE Center: Region IV, a project of the Burton Blatt Institute. Funded by RSA Grant # H264A080021. Abby Cooper Kennedy Douglas Consulting/Marc Gold & Associates © 2013 34 Comments & Questions

35. TACE Center: Region IV, a project of the Burton Blatt Institute. Funded by RSA Grant # H264A080021. Abby Cooper Kennedy Douglas Consulting/Marc Gold & Associates © 2013 35 Contact Information Abby Cooper at: abbylindmancooper@gmail.com

36. TACE Center: Region IV, a project of the Burton Blatt Institute. Funded by RSA Grant # H264A080021. Abby Cooper Kennedy Douglas Consulting/Marc Gold & Associates © 2013 36 THANK YOU! The value of an idea lies in the using of it. Thomas A. EdisonThomas A. Edison 36

37. TACE Center: Region IV, a project of the Burton Blatt Institute. Funded by RSA Grant # H264A080021. Abby Cooper Kennedy Douglas Consulting/Marc Gold & Associates © 2013 37 Education Credits CRCC Credit - (2.0 - pending) Pending approval by Commission on Rehabilitation Counselor Certification (CRCC) By March 11, 2013, participants must score 80% or better on a online Post Test and submit an online CRCC Request Form via the MyTACE Portal. My TACE Portal: TACEsoutheast.org/myportal

38. TACE Center: Region IV, a project of the Burton Blatt Institute. Funded by RSA Grant # H264A080021. Abby Cooper Kennedy Douglas Consulting/Marc Gold & Associates © 2013 38 Southeast TACE Region IV Toll-free: (866) 518-7750 [voice/tty] Fax: (404) 541-9002 Web: TACEsoutheast.org My TACE Portal: TACEsoutheast.org/myportal Email: tacesoutheast@law.syr.edu

39. TACE Center: Region IV, a project of the Burton Blatt Institute. Funded by RSA Grant # H264A080021. Abby Cooper Kennedy Douglas Consulting/Marc Gold & Associates © 2013 39 Disclaimer This presentation was developed by the Southeast TACE Center: Region IV ©2013 with funds from the U.S. Department of Education, Rehabilitation Services Administration (RSA) under the priority of Technical Assistance and Continuing Education Projects (TACE) – Grant #H264A080021. However, the contents of this presentation do not necessarily represent the policy of the RSA and you should not assume endorsement by the Federal Government [34 CFR 75.620 (b)].