FINANCIAL INCLUSION AND SHARED PROSPERITY: THE NEXT FRONTIER Michael Morris Executive Director National Disability Institute June 2, 2016

At the bottom of the economic ladder no group in America is more economically vulnerable than individuals across the spectrum of disabilities who are three times more likely to be living in poverty than their non-disabled peers. 2

Only one-third of people with disabilities are working, and two-thirds are counted as outside the labor force and not looking for employment. 3

Forty-six percent of working age adults with disabilities are more likely to be unbanked or underbanked as compared to twenty-nine percent of adults without disabilities. 4

The challenges of living with a disability in America are even greater for people of color. 5

Almost forty percent of African Americans with disabilities are living in poverty as compared to 28.4 percent of all people with disabilities who are living in poverty. 6

Change the Discussion Employment is the means, not the end goal. Advancing economic self-sufficiency is the end goal. Focus on building financial capability and well- being. 7

Financial Capability Combination of knowledge and skills to inform financial decisions and behaviors, identify opportunities to improve financial stability, and manage financial resources effectively.

Financial Education vs. Financial Capability vs. Financial Well-Being Financial Education (Knowledge & Skills) Financial Capability (Actions) Financial Well-Being (Outcomes)

Key Skills and Knowledge Money management / budgeting Debt management Credit management Public benefits management How to secure good advice How to connect to resources/programs/services

Desired Behavior/Actions Financial decisions are based on good information and actions driven by positive financial goals.  Earning Money: Individuals work to their full potential and utilize available employer benefits and work incentives.  Using Money: Individuals budget to meet their needs and attain their goals, utilize affordable financial products, and use credit wisely, including proactive debt management.  Saving Money: Individuals pay themselves first, have emergency funds, and use matched savings programs and other protected savings opportunities to build assets.  Protecting Money: Individuals access and use available insurance options to protect the money they have and their ability to earn more.  Understanding Money: Individuals build their knowledge of money, connect to trusted entities for advice, and use available resources and supports.

Financial Health Assessment Do you have a checking account? Do you have a savings account? Do you have a monthly budget? Are you in debt from:  A) student loan  B) credit cards  C) medical expenses, or  D) other? 12

Financial Health Assessment (cont.) Do you have a plan to reduce debt? Do you receive Social Security benefits?  (SSI and/or SSID) Have you used your Ticket to Work? For the next 12 months do you have a financial goal? 13

Financial Health Assessment (cont.) For the next five years, do you have financial goals? Do you plan on opening an ABLE account? 14

The Next Frontier Reduce by 50 percent the number of working age adults with disabilities living in poverty. Increase by 50 percent the number of working age adults with disabilities who are banked and consistently using mainstream affordable and accessible financial services. 15

Resources Financial Education MyMoney.gov developed by the US Financial Literacy and Education Commission, is designed for adults, youth, teachers and educators to learn strategies for financial health. MyMoney.gov FDIC offers a comprehensive financial education curriculum for adults (Money Smart) and youth (Money Smart for Young Adults) designed to help low- and moderate-income individuals enhance their financial skills. It can be either instructor-led or, self- paced and computer-based.Money SmartMoney Smart for Young Adults 16

Resources Financial Education (cont.) Savings Fitness: A Guide to Your Money and Your Financial Future was developed by the US Department of Labor’s Employee Benefits Security Administration and the Certified Financial Planner Board of Standards Inc. This website and publication provide tools to help individuals plan for retirement. Savings Fitness: A Guide to Your Money and Your Financial Future Consumer Financial Protection Bureau (CFPB) has as its central mission to make markets for consumer financial products and services work for Americans — whether they are applying for a mortgage, choosing among credit cards, or using any number of other consumer financial products. The CFPB website provides consumers with a variety of information and educational resources to understand the terms of their agreements with financial companies. Consumer Financial Protection Bureau 17

Resources General Financial Capability for Workforce and Social Service Organizations: CFPB Your Money, Your Goals is a toolkit that social services organizations can use to help their customers set goals, choose financial products, and build skills in managing money, credit, and debt.Your Money, Your Goals National Disability Institute’s Real Economic Impact Network provides a range of tools and trainings on taxes and tax preparation, financial education, asset development, benefits, and employment. National Disability Institute’s Real Economic Impact Network 18

Resources Favorable Tax Provisions IRS Publication Tax Highlights for Persons with Disabilities provides more detailed information on tax provisions specific to individuals with disabilities. IRS Publication Tax Highlights for Persons with Disabilities 19

Resources Work Incentives for Social Security Disability (SSDI) and Supplemental Security Income (SSI) beneficiaries SSA’s Official Ticket to Work Program provides information on SSA’s Ticket to Work program and addresses questions related to eligibility and participation. SSA’s Official Ticket to Work Program PASS Online is an online tool to assist individuals in completing a PASS Plan online, including an overview of what a PASS plan is, who should consider a PASS and what to expect from SSA. Provided by Cornell University’s Employment and Disability Institute. PASS Online 20

Resources ABLE Act Implementation ABLENRC.org is a site managed by National Disability Institute in cooperation with 20 other national disability organizations to provide objective independent information about state options to open an ABLE account. ABLENRC.org 21