FINANCIAL EDUCATION CHARTING A COURSE TO FINANCIAL WELLNESS

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Please note: This webinar is being recorded and the materials will be placed on the National Disability Institute website at

www.realeconomicimpact.org/FinancialWellness

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during the webinar, please use the chat box to send a message to the host Nakia Matthews, or you may also email nmatthews@ndi-inc.org.

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Today’s Moderator

Elizabeth Jennings

Director of Training & Technical Assistance

National Disability Institute

Today’s Agenda Welcome

Elizabeth Jennings, National Disability Institute (NDI) Financial Wellness and Individuals with MS

Elizabeth Jennings, NDI Money Smart

John Olsen , FDIC Financial Wellness & Living with MS

Mary "Jeannette" Schultz, NEFE Questions & Answers Suggested Next Steps & Wrap Up

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Special Thank You

Special THANK YOU to our sponsor

Acorda Therapeutics

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National Disability InstituteA national research and development organization with the mission to promote income preservation and asset development for persons with disabilities and to build a better economic future for Americans with disabilities.

What is Financial Wellness?• We define financial wellness as the state of a

person’s finances with the intent of working towards financial behaviors that limit stress and the impact of stress on one’s daily life.

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Financial Wellness

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Being Financially Literate

Accessing Available

Healthcare Subsidies

Budgeting

Understanding work and long-term disability

options

Building and Maintaining Assets

Understanding Public Benefit

rules

Utilizing Favorable Tax Provisions

Accessing Affordable

Financial Services

Individuals ages 18-64For individuals without disabilities,

12.8% had income below the poverty level over the past 12 months

For individuals with disabilities, more than 2x that rate - 27.3% had income below the poverty level.

Source: U.S. Census Bureau, 2010 American Community Survey13

National Poverty Estimates

• No group in America is more in need and more deserving of economic recovery

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• For millions of working age adults with disabilities a dependence on public benefits for income, health care, food, and housing becomes a trap that requires staying poor to stay eligible

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The Americans With Disabilities Act

• The Nation’s proper goals regarding individuals with disabilities are to assure equality of opportunity, full participation, independent living, and economic self-sufficiency for such individuals;

42 U.S.C. § 1201(a)(8) (2005)

• the continuing existence of unfair and unnecessary discrimination and prejudice denies people with disabilities the opportunity to compete on an equal basis and to pursue those opportunities for which our free society is justifiably famous, and costs the United States billions of dollars in unnecessary expenses resulting from dependency and non-productivity.

42 U.S.C. § 1201(a)(9) (2005)

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Why is Financial Wellness Important?

• Impacts mental and physical health.• Positively impacts self-concept.• Changes status with other community

stakeholders.• Directly impacts quality of life.

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Financial Wellness and MS• A recent survey conducted by MSAA and NDI

involving individuals with MS indicated: 55.1% of households earn less than $35k annually, 16.4%

earn less than $50k but more than $35k annually. When asked about the ability to pay all of their bills in a

typical month, 32% have a “very difficult” time paying their bills in a typical month, 46.9% reported a “somewhat difficult time”.

43% of respondents reported that their financial status has affected their ability to access medical care at some point.

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Financial Wellness and MS• A recent survey conducted by MSAA and NDI

involving individuals with MS indicated: 71.7% of respondents do not have enough savings to

cover 3 months expenses. 67.1% of respondents reported that their finances were

worse since their MS diagnosis. 73.7% of Respondents reported that they were not aware

of/have not used financial stability programs (EITC, IDA, FSS, PASS – you will learn about these in subsequent webinars)

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Post-secondary EducationEmployment

Self-employmentMicro-EnterpriseHome Ownership

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Family Self-Sufficiency ProgramsIndividual Development AccountsAssistive Technology Loan Funds

Student LoansRetirement Accounts

Use of work incentivesUse of tax incentives

Volunteer Income Tax AssistanceEarned Income Tax Credit

Financial LiteracyBudgeting

Credit RepairGetting Banked

State MedicaidBuy-In

Programs

Protection and Advocacy, Taxpayer Advocates, Credit CounselingVolunteer Income Tax Assistance, Work Incentive Planning & Assistance

Financial Wellness Strategies Exist

1st Step - Financial EducationIncreasing your financial education is a great first

step that has zero negative impact.

Financial literacy can empower you to take charge of your financial life and improve your financial wellness.

42% of Americans give themselves a grade of C, D or F on personal finance

2012 Consumer Financial Literacy Survey from the National Foundation for Credit Counseling and the Network Branded Prepaid Card Association

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FDIC Money Smart

John OlsenFDIC Community Affairs Specialist

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FDIC Money Smart: A Financial Education

Program

John Olsen Community Affairs Specialist

Federal Deposit Insurance Corporationjolsen@fdic.gov | 334-271-5213 (ext. 4719)

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Money Smart

• Money Smart is FDIC’s Financial Education Curriculum– Money Smart has reached over 2.75

million consumers since 2001. – Research shows that the curriculum can

positively influence how consumers manage their finances, as well as their financial confidence (FDIC FIL, June 2007.)

– Money Smart is an award-winning program (Service to America Medal and others)

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Versions for Adults: Instructor-Led & Self-Paced

Self-Paced CBIInstructor-Led

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Instructor-Led Curriculum

• Each Module is Structured Identically

• Comprehensive Guide for Instructors

• Take-home Booklet for Participants

• Visual Aid Slides – PowerPoint & PDF

• Pre- and post-training quizzes• Duration of each Module: 1-2

Hours

Instructor-Led Curriculum

• Available in: English, Spanish, Chinese, Korean, Vietnamese, Hindi, Haitian-Creole, Hmong & Russian

• Version for visually impaired is available• FDIC’s Money Smart was the first

nationally distributed curriculum to provide a guide that includes training tips & strategies for teaching participants with disabilities (Guide to Presenting the Money Smart curriculum)

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Money Smart Modules

Module 2: Borrowing Basics

Module 3:

Check it Out

Module 4: Money Matters

Module 5:

Pay Yourself First

Module 6:

Keep it Safe

Module 1: Bank on It

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Money Smart Modules (continued)

Module 10:

Your Own Home

Module 9: Loan to Own

Module 8: Charge it Right

Module 7: To Your Credit

Module 11:

Financial Recovery

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Money Smart for Young Adults (MSYA) Overview

Based on the award-winning Money Smart Curriculum, but Targeted Towards Teens &Young Adults

Ages 12-20 FDIC’s Financial

Education Curriculum – Grades 7-12– First and second

years of college

The Young Adult Modules

1. Bank On It 2. Check It Out 3. Money Matters 4. Pay Yourself First5. Borrowing Basics 6. Charge It Right 7. Paying for College and

Cars 8. A Roof Over Your Head

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Money Smart Podcast Network

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Money Smart for Small Business: The Modules

• Record Keeping• Financial

Management• Banking Services• Credit Reporting• Tax Planning &

Reporting• Time Management• Risk Management

• Insurance• Selling a Small

Business & Succession Planning

• Organizational Types for Small Business: Pros and Cons of business structures

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Money Smart is Unique

1. Easy to Teach2. Easy to Learn3. Flexible4. Targeted to Cash Consumer5. Universal Appeal6. No Copyrights 7. Multiple Media8. Multiple Languages9. FDIC Seal of Approval10.Free!!

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Money Smart Updates• Revised MS computer-based

instruction (online only) for adults & young adults

• MS Instructor-led multi-lingual CD-ROM

• MS for Small Business• MS for Elementary School Students

(downloadable guides)• MS for Older Adults (62 and up)• View online or subscribe to receive via

e-mails: www.fdic.gov

Downloadable Money Smart Products

• Money Smart for Elementary School Students (2012)

Introduces primary personal finance concepts to children ages 5-8

Includes activities designed to teach children about "paying yourself first,” "wants versus needs," and other important lessons from the Money Smart curriculum

• Money Smart for Older Adults (June 2013)

MSOA is an instructor-led training developed jointly by FDIC and the CFPB

How to prevent, identify and respond to elder financial exploitation, plan for a secure financial future, and make informed financial decisions

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Questions?

www.fdic.gov/moneysmart

John Olsen FDIC Community Affairs Specialist

Jolsen@fdic.gov | 334-271-5213 (ext. 4719)

Thank You!

Financial Wellness & Living with MS

Mary "Jeannette" Schultz, NEFE

National Endowment Financial Education

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Charting A Course to Financial WellnessWebinar – July 17, 2013

Mary “Jeannette” SchultzProject Manager of Strategic Programs and Alliances

National Endowment for Financial Education

www.nefe.org

The National Endowment for Financial Education is . . .

• A nonprofit, noncommercial, independent, 501©(3), self-funded, private foundation based in Denver Colorado.

40www.NEFE.org

NEFE inspires empowered financial decision-making for individuals and families through every stage of life.

NEFE Overview

We Serve . . .• youth up to retired adults • particularly “underserved”• people in difficult or unusual life circumstances

We Provide. . .• Grants for research about the field of financial literacy• Resources for consumers, educators, and facilitators

We Partner with . . .• Habitat for Humanity• American Indian College Fund• American Red Cross• Dress for Success• Generations United• Others . . .

41www.NEFE.org

NEFE REACHES CONSUMERS

42www.NEFE.org

NEFE OVERVIEW• BODY OF WORK

(PROGRAMS)• RESEARCH• COLLABORATIONS• CONNECTIONS***********************ACCELERATE, STIMULATE,

GROUND43

YOUR ROLE IN A COMMUNITY

• LEADER• TEACHER• FACILITATOR• CONVENER/CONNECTOR• SUBJECT MATTER EXPERT

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Workshops

45www.NEFE.org

Living with MSLiving with MS

Use limitations: These materials may be used only for nonprofit, noncommercial educational purposes. These materials may not be used in connection with any sale, advertisement, endorsement, or promotion of any service, product, person, or business and may not be sold or offered for sale.

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Objectives

• Obtain a clearer picture of your MS status and needs with an eye toward finances

• Conduct a financial inventory• Create a monthly spending plan• Consider workplace options• Understand possible employer benefits and

government programs• Know where to go for more information

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Purpose of MS Tracker

• Gives a snapshot of current symptoms and treatments

• Identifies what exercise, alternative treatments, and similar regimens alleviate symptoms—and what they cost

• Can assist with talking to doctors and employers

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Financial Inventory

• Helps you understand what you own and owe

• Identifies assets (jewelry, collectibles) that may be tapped for future expenses

• Helps determine whether you qualify for government programs 49

Spending Plans

• Best way to manage expected and unexpected costs

• Clarifies actual monthly income• Provides a realistic picture of monthly

expenses• Establishes a plan for saving—both for long-

term goals and unexpected expenses

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• Understand all sources of income and exact amounts expected each month

• Many people have unrealistic ideas of actual income

• Track where your money goes each month• Don’t forget easily overlooked expenses,

such as savings

Income and Expenses

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Income vs. Expenses

• Revise spending plan when income or expenses change (keep in mind medications and MS-specific treatments and regimens)

• If there is money left over, increase savings—including emergency fund

• If coming up short, reduce the debt (cut expenses or raise more income)

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Expense Reduction

• Question every nonessential expense on Spending Plan, cut back where possible

• Sell unwanted or seldom-used items

• Consider working with a nonprofit credit counselor

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• Experts suggest organizing debts from those with the highest interest rates to the lowest

• In time, you will be debt free

Debt Reduction Plan

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Tips for Reducing Debt

• Balance the need to pay off debt with need to save for the future—including emergency funds (debt charges high interest rates and emergencies do happen)

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MS at Work: Disclose or Not?

• Disclosure “Pros”– Protections under

ADA may apply– Avoid MS symptoms

being attributed to drug or alcohol abuse

– Needed to negotiate job accommodations

Disclosure “Cons” Unsympathetic

employers Employer concerns

about loss of productivity

Concerns about costs of job accommodations

Disclosure “Cons” Unsympathetic

employers Employer concerns

about loss of productivity

Concerns about costs of job accommodations

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ADA Highlights

• ADA prohibits discrimination on the basis of disability

• Applies to workers in companies with 15 or more employees

• Requires employers to make a “reasonable accommodation” to allow you do to your job

• Accommodations cannot cause “undue hardship” for employers (decided on a case-by-case basis)

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Employer Benefits

• Review the benefits offered by your employer • Define any confusing or unfamiliar terms or

conditions

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Types of Possible Employee Leave

• Sick time - Paid time off to recover from sickness

• Vacation - Also can be used to recover from a flare-up of symptoms

• Short-term disability - Type of insurance that can begin after a few days of disability, typically provides 40 percent to 60 percent of wages, coverage ends after a few months

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Types of Possible Employee Leave

• Family Medical and Leave Act– Provides up to 12 weeks of unpaid leave per

year– Applies to eligible employees coping with

certain medical or family situations– Allows individuals to keep their jobs and health-

care benefits– Applies to employers with 50 or more workers;

employees must have worked at least 1,250 hours during the past 12 months

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Review Health-Care Plan

• Look for and understand the terms:– Formulary - What prescriptions the plan will

and won’t cover– Pre-existing condition exclusion periods -

Refusal to cover certain conditions for a set amount of time if the conditions existed before the health-care plan took effect (the Affordable Care Act is changing many aspects of health care)

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Affordable Health Care Act Overview

• Individuals denied private coverage because of pre-existing conditions can enter a Pre-Existing Condition Insurance Plan

• Lifetime maximum amounts eliminated (annual limits eliminated in 2014)

• Drug discounts for Medicare recipients• Young adults (under 25) can stay on parents’

health-care plan

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Government Programs

• Social Security Disability Income (SSDI) Applies to those who are disabled, have worked, and paid SS taxes. Provides a monthly income (amount based on years worked, age, amount earned, etc.). SSDI recipients also may qualify for Medicare.

• Supplemental Security Income (SSI) SSI is for people who are unable to work and have little income and few assets. There are no prior-work requirements.

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Government Programs

• Ticket to Work - Allows SSDI and SSI recipients to test their ability to return to work without losing all benefits

• Medicaid - A program for those who have no other means to pay for necessary medical care. Medicaid is a partnership between the federal and state government.

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Review

• Be proactive in your response to MS. Understand your symptoms and treatment.

• It’s a sound idea for everyone to conduct a financial inventory, create a spending plan, deal with any debt, and commit to saving.

• Knowledge is power. Understand employer benefits and health care options.

• Recognize the benefits and limitations of government programs.

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You Are Not Alone

• NEFE’s Smart About Money website www.smartaboutmoney.org offers practical guidance for life’s challenging financial situations

• The National MS Society and the Multiple Sclerosis Foundation provide a wealth of information about living with MS, strategies for coping, and access to various community groups and professionals

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Outreach: E-Newsletter

67www.NEFE.org

FINANCIAL WORKSHOP KIT/SURVEY OF NEFE TOOLSFINANCIAL WORKSHOP KIT/SURVEY OF NEFE TOOLS

www.nefe.org

NEFE Tools

• Smart About Money

• My Retirement Paycheck

• Retirement TLC

• Life Values Quiz

• NEFE Financial Education Evaluation Toolkit®

• NEFE High School Financial Planning Program® (HSFPP)

• CashCourse®

• Spendster

SmartAboutMoney.org

69www.NEFE.org

Consumer Tool

spendster.org

70www.NEFE.org

Consumer Tool

myretirementpaycheck.org

71www.NEFE.org

Consumer Tool

Other NEFE resources:• www.hsfpp.org

• www.financialworkshopkits.org• www.spendster.org

• www.smartaboutmoney.org

Contact

• Mary “Jeannette” Schultz, MNMProject Manager, Strategic Programs and AlliancesNational Endowment for Financial Educationjeh@nefe.org(303) 224-3502

• www.nefe.org

Questions & Answers

Suggested Next Steps

1. Take a financial literacy course of your choosing.

Set a goal to complete the course over the next three months

Share with us your experience.» We will send out emails over the next few months to offer you a

chance to share your experience.

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Suggested Next Steps2. Ask for what you want/need.

Paying fees at your bank – shop around» http://www.thebeehive.org/money/save-it/open-bank-account/q

uestions-ask-opening-new-bank-account» http://www.defendyourdollars.org/pdf/steps-moveyourmoney.pd

f Want a lower credit card rate – ask

» http://credit.org/blog/request-lower-interest-rate-credit-card/ Share with us your experience.

» We will send out emails over the next few months to offer you a chance to share your experience.

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Suggested Next Steps3. Join our upcoming webinars

August 21, 2013- Your Home – Owning, Refinancing & Modifying

September 18, 2013- Social Security Disability Insurance – The Impact of Work on Benefits

October 16, 2013 - Prolonging Work Supports to Keep You on the Job

November 20, 2013 - The NEW Healthcare Changes and You December 18, 2013 - Favorable Tax Deductions for Individuals

with Disabilitieswww.realeconomicimpact.org/Financial-Education/Financial-Wellness-Webinar-Series.aspx

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Suggested Next Steps

4. Review additional NDI resources/tools available Asset Development Employment Free Tax Preparation Financial Education Public Benefits Planning Public Policyhttp://www.realeconomicimpact.org/Our-Work.aspx

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Financial Literacy Resources• FDIC Money Smart -

http://www.fdic.gov/consumers/consumer/moneysmart/

• National Endowment for Financial Education® (NEFE®) - http://www.smartaboutmoney.org/

• Finra - http://www.finra.org/Investors/ToolsCalculators/

• Springboard - http://credit.org/blog/ebooks/?src=courses

• The Beehive - http://www.thebeehive.org/money79

Financial Literacy Games• Visa Financial Soccer

www.financialsoccer.com

• Doorway to Dreams - Financial Entertainment http://financialentertainment.org

• Practical Money Skills for Life http://www.practicalmoneyskills.com/games

• Geni Revolution: Online Personal Finance Game http://www.genirevolution.org/materials.php

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Financial Empowerment Tools• Mint - www.mint.com

• Love My Credit Union - www.lovemycreditunion.org

• My Money Check Up - www.mymoneycheckup.org

• Learn Vest - www.learnvest.com

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Thanks to our sponsor

Special THANK YOU again to our sponsor

Acorda Therapeutics

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Contact Information

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National Disability Institutewww.realeconomicimpact.org

Katie Metz904-716-7936

kmetz@ndi-inc.org

Find us at:www.realeconomicimpact.org

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