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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
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