Asset Development Strategies For Persons with Disabilities. Train the Trainer Guide

Transcription

1 National Disability Institute Presents Asset Development Strategies For Persons with Disabilities Train the Trainer Guide Developed by National Office: Washington, DC In Collaboration with Virginia s DOL - Disability Employment Initiative (Serving 5 Workforce Investment Board Areas in Virginia s Workforce Network) Page 1

2 Asset Development Strategies For Persons with Disabilities Train the Trainer Guide National Disability Institute, 2012 Page 2

3 National Disability Institute Introduction The Nation s proper goals regarding individuals with disabilities are to assure equality of opportunity, full participation, independent living, and economic selfsufficiency for such individuals; - The Americans with Disabilities Act [42 U.S.C. 1201(a)(8) (2005)] Introduction Passage of the Americans with Disabilities Act (ADA) in 1990 brought new hope and expectations about the possibilities of full participation in the workplace and community life for millions of individuals with disabilities and their families. Yet, twenty-two years later, the struggle to ensure equality of opportunity and full community participation continues. This training guide is dedicated to individuals with disabilities and their families who desire to be more self-sufficient, less dependent on public benefits and who want to build a better economic future that promotes choice and greater community participation. The guide introduces two strategies that complement each other as opportunities to become part of the economic mainstream by working, saving and developing assets. The two sections serve as lesson plans to orient individuals with disabilities and their supports to a possible new way of thinking and action. With new tools and strategies and new community partnerships we can discover together a path to advance self-sufficiency for individuals with disabilities. Purpose This training is intended to increase access to accurate information about Asset Building programs that are available for people with disabilities, their families and professionals in Virginia. Over the course of the six modules, the training will: Page 3

4 Provide a framework for understanding what asset development is and why it is important for people with disabilities; Provide training on three categories of asset development programs: Financial Literacy/Access to Banking; Earned Income Tax Credit/Free Tax Preparation Assistance; Individual Development Accounts; Provide an understanding of how these programs work in the local community and how they can be accessed by persons with disabilities; Identify local resources and support for both customers and advocates; Principles of Training Information provided in this training is just one tool for decision making about Asset Development. Good decisions are the result of good planning. Trainings are based on the philosophy of self-determination and person-centered planning. Building Blocks for Self-Determination A person has the FREEDOM to dream, to make his or her own decisions and plan his or her own life. A person has the AUTHORITY to control how money is spent for his or her supports. A person has the SUPPORT needed from friends, family, and other people whom that person chooses. Individuals take RESPONSIBILITY to do what they say they will do. CONFIRMATION the recognition that individuals themselves are a major part of the design of their long-term services and supports. Page 4

5 The Training Manual Information in the training manual is divided into four (4) modules to break down this complex information into more manageable morsels of information. Asset Development Strategies For Persons with Disabilities Train the Trainer Guide was created to increase access to accurate information about Asset Development programs that are available for people with disabilities, their families and professionals. The training curriculum includes activities for students to enhance their knowledge on building assets and how to apply the information that they learn from the training. The training is divided into four categories of asset building programs: Module 1: Introduction and Next Steps Module 1 introduces the students to the principles of self-determination and provides the framework of the remaining five modules. Module 1 also defines assets and asset development and begins to dispel the myths surrounding asset development for persons with disabilities. Module 2: Financial Education and Access to Financial Services Module 2 introduces students to financial literacy and will allow students to improve their understanding of the importance of financial education, access to financial services that minimize costs and opportunities to save and build assets. Module 3: Earned Income Tax Credit: Free Tax Preparation Assistance Module 3 introduces students to the Earned Income Tax Credit (EITC) including who is eligible for the tax credit and how the EITC is used by people with disabilities to improve their economic status. Students will also learn about the Volunteer Income Tax Assistance (VITA) sites statewide where assistance is provided to prepare and file a tax return for free. Module 4: Individual Development Accounts Module 4 introduces students to Individual Development Accounts (IDAs) as a new asset building strategy to help save and advance their economic self-sufficiency. Students will learn how to access IDAs, how an IDA can increase their savings and the three asset goals that an IDA can support. Page 5

6 Contact Information If you need additional information, contact Michael R. Roush, M.A. at National Disability Institute for assistance; To learn more about how to make a Real Economic Impact, join us: Page 6

7 National Disability Institute Module 1: Introduction and Overview Introduction Welcome to Module 1 Introduction and Overview. In this module you will learn about the principles of self-determination that provides the framework of the remaining five modules. Module 1 also defines assets and asset development and begins to dispel myths surrounding asset development for persons with disabilities. Page 7

8 Facilitator Preparation - Module 1 Objective: To provide an overview of the Asset Development Strategies for People with Disabilities. To introduce students to assets and asset development. Facilitator Preparation: Prior to this workshop, the facilitator should read Building a Better Economic Future: A Progress Report for Individuals with Disabilities and Their Families Review PowerPoint presentation for Module 1. Personally complete all activities in Module 1 to familiarize yourself with each activity. Gather: Laptop and LCD projector Sign-in Sheet Easel Pad & Easel Markers Power Point Presentation (make copies if you would like to distribute to attendees) Agenda (make copies if you would like to distribute to attendees) Activities (make copies of activity handouts) Homework Assignment (make copies) Page 8

9 Module 1 Agenda: Introduction & Overview Introduction.. 15 Minutes Overview, Purpose and Expected Outcomes..10 Minutes PowerPoint Presentation 30 Minutes What Do We Know About People with Disabilities and Poverty? What is Asset Development? Why is it Important to Persons with Disabilities? BREAK..15 Minutes American Dream Exercise..30 Minutes Introduction to New Tools and Strategies Making Connections in Your Community.10 Minutes Homework Assignment and Wrap-up 10 Minutes Closing Page 9

10 Module 1: Facilitator Script Introduction (15 Minutes) Script for Trainer (corresponding PowerPoint Presentation Module 1) My name is. Welcome to our training program to Asset Development Strategies training. There will be four sessions. Each session will last about two hours. The purpose of the training is to help you learn more about working, saving, and building assets and what tools and strategies to use to help you make good decisions in these areas. We will help you understand what asset building is and why it is important for people with disabilities. Each training session will help you learn about a different strategy to advance your self-sufficiency, promote choice and community participation. ACTIVITY # 1 To get started, let s go around the room and have each person introduce himself or herself. Tell us your name, if you are currently working, and something you like to do. For examples, go to the movies, shopping, visit with friends. [As each individual provides their answers, the Trainers should create a chart on a large easel pad.] Conclusion: Trainer will point out common interests among participants and conclude with a positive statement: We will get to know each other better during the next six weeks as we learn together about a new way of thinking and action. Page 10

11 Overview, Purpose, and Expected Outcomes (10 Minutes) Script for Trainer (corresponding PowerPoint Presentation Module 1) The Asset Development Strategies training has been developed by the National Disability Institute for the purpose of promoting asset development and fostering greater economic self-sufficiency for persons with disabilities. Let s spend a few minutes setting a framework for the Asset Development Training program. Passage of the Americans with Disabilities Act (ADA) in 1990 brought new hope and expectations about the possibilities of full participation in the workplace and community life for millions of individuals with disabilities and their families. The ADA states clearly the nation s proper goals regarding individuals with disabilities are to ensure equality of opportunity, full participation, independent living, and economic self-sufficiency for individuals with disabilities. Twenty years later, great efforts have been made to advance opportunities related to employment and independent living. However, we have not really focused on economic self-sufficiency. Activity # 2 What does the term economic self-sufficiency mean to you? [Create a chart with answers on the easel pad.] Economic self-sufficiency is about making good decisions about working and saving and managing a budget. It is setting goals to advance employment and economic status. It is about building assets. This training program will introduce you to new strategies to advance your economic independence and to become less dependent on government benefits. Today we will learn more about what are assets and different kinds of asset building programs. The next three sessions will look more closely at specific asset building strategies and provide an understanding of how these programs work in our community and how they could benefit you. Page 11

12 The next three sessions will focus on: Financial Literacy: Access to Financial Services Earned Income Tax Credit: Free Tax Preparation Assistance Individual Development Accounts Module 1: Introduction and Next Steps All the training sessions are based on the principles of self-determination. Module 2: Financial Education and Access to Financial Services Ability to make informed decisions about producing income, savings, and asset building Save money through access to mainstream banks and credit Module 3: Earned Income Tax Credit: Free Tax Preparation Assistance Tax refunds even with no tax liability when you are a low-income workers Free tax preparation assistance Module 4: Individual Development Accounts Matched savings plans Setting an asset goal Page 12

13 Self Determination the Building Blocks A person has the FREEDOM to dream, to make his or her own decisions and plan his or her own life. A person has the AUTHORITY to control how money is spent for his or her supports. A person has the SUPPORT needed from friends, family, and other people whom the person chooses. A person takes RESPONSIBILITY to do what he or she says he or she will do. CONFIRMATION the recognition that individuals themselves be a major part of the design of longterm services and supports. The information in each training session will help you make informed decisions about saving money and asset building. Good decisions are the result of good planning. At the end of four sessions, you will have gained new knowledge to plan and make decisions about a better economic future, a better quality of life, and more independence. PowerPoint Presentation (30 Minutes) Prepared for persons with disabilities that reside in Virginia and the people who support them by the National Disability Institute. What do we know about people with disabilities and poverty? One out of every three adults with disabilities live in very low income households as opposed to one of every eight non-disabled adults (NCD 1996 Report) Lack of money is a serious problem for 68%: 39% of people with disabilities say that the lack of financial resources is the most serious problem they face. (NOD/Harris Survey 2000) Even when people with disabilities are employed, they earn substantially less than their nondisabled peers, roughly 72 cent to the dollar (NCD 1996 Report) Public assistance represents 59% of the total income of people with significant disabilities and only 8% of the total income of people who have no disability. (Harris Survey 2002) Less than 10% of people with disabilities own their own homes compared with 70% of persons with no disabilities. Page 13

14 Poverty Varies Significantly by Race 33% of all American households have no assets or are in debt. 54% of Hispanic households have no assets or are in debt. 60% of African American households have no assets or are in debt. For persons with disabilities, an estimated 80% have no assets or are in debt. Whether it is access to: A quality education Effective transition from school to work Needed transportation, housing, technology or long-term supports Enduring poverty and lack of economic empowerment will diminish choices and quality of life within communities and singularly diminish freedom, opportunity, and self-determination. What is Asset Development? Asset Development is a series of strategies that has the potential to help people with disabilities improve their economic status, expand opportunities for community participation, and impact positively the quality of life experience. Activity # 3 What are Assets? [Create a chart with answers on the easel pad.] Money you have in the bank Cash on hand Securities (shares) (retirement accounts, other investments) Property Owner equity in a home or business Furniture and appliances Miscellaneous items (jewelry, cars, etc.) Whatever is owed to you Education level and work experience What Prevents People with Significant Disabilities from Owning Assets? Eligibility for many public benefits requires individuals with disabilities to not develop assets. You have to stay poor to remain eligible. Examples: Social Security Benefits; Medicaid Why is Asset Development Important to Persons with Disabilities? Assets provide greater independence and financial security Assets allow greater choices in community participation and quality of life Page 14

15 Why is Income Preservation and Asset Development important? For persons with disabilities, it will produce choices that directly impact quality of life. o It will impact mental and physical health. o It will impact positively self-concept and level of community participation. o It will change expectations and status with other community stakeholders. To design a roadmap out of poverty for individuals with disabilities, there will need to be a change in public attitudes, new expectations in the disability community, and new partnerships that support savings and asset building. Change Public Attitudes Three Myths 1. Myth: People with disabilities are unable to work. Fact: Work produces income which is the first step towards saving and building assets. 2. Myth: People with disabilities have all their needs met by their special programs. Fact: People with disabilities want to reduce their reliance on government benefits and have more freedom and independence. 3. Myth: People with disabilities can t be expected to save and build assets. Fact: People with disabilities want a better economic future. They are starting businesses and becoming homeowners. Assets can improve economic stability and independence. Change Expectations in the Disability Community Social Security and Medicaid prevents individuals with disabilities from increasing their income and assets to remain eligible for public benefits. This training program will share with you tools and strategies that can help you overcome these policy barriers. There is no single strategy or simple solution that can provide a roadmap out of poverty and overcome common misconceptions. However, through this training, you will learn about new options to advance your economic status and promote greater self-sufficiency. Page 15

16 There are new partnerships to be formed with community-based groups. There are new choices to be made that reinforce new expectations about working and building assets. Page 16

17 Activity # 4 American Dream Exercise (30 Minutes) Two-Part Exercise to be led by Facilitator (corresponding PowerPoint Presentation Module 1) For millions of people in this country, the American Dream is owning a home, or starting and owning a business, or saving income from work to retire with a positive quality of life. (Distribute My American Dream Handout.) Ask the attendees to answer: What is your American Dream? [Please share your ideas] What prevents achievement of your goal? [Create list of barriers] Although there is no single strategy or solution to overcome these multiple barriers, there are new opportunities that we will learn about together to advance greater self-sufficiency and quality of life. Introduction to New Tools and Strategies During the past 20 years, tools and strategies have been developed to help people of low income save and grow assets. Federal policy has created disability-specific tools and strategies that are underutilized. During the next sessions we will be learning about the tools and strategies that can be leveraged and expanded to benefit persons with disabilities. We will be learning more about six complimentary strategies: Financial Education and Access to Financial Services Utilization of The Earned Income Tax Credit Individual Development Accounts Homeownership Microenterprise Development Social Security Work Incentives Page 17

18 Next Steps Each session ends with Homework assignments. You need to believe that the more you learn and gain knowledge, the better informed you will be to make decisions about a better economic future. Making Connections in Your Community The next session will be on Financial Education and Access to Financial Services. Activity #5 [Group Exercise: Ask the group to name financial institutions in your community (Banks and Credit Unions). Ask the group by a show of hands if they a) have a checking account and b) have a savings account. Do the accounts serve a different purpose? Question for the group: Do you have a credit card? Do you have more than one credit card? Does a credit card serve a different purpose than a checking or savings account? [The trainer will use these questions to introduce the topic of financial education for the next session.] A checking account will help you manage your spending and reduce your need to pay cash. A savings account is a starting point for planning for the future. For many individuals, saving is fun. The American culture is about spending. We spend very little time thinking about saving and putting money aside for building assets and a better quality of life in the future. Steps to Financial Independence For many of us, we have not been educated about a stepped approach to financial independence. Step One: A job that produces income. Step Two: Planning to increase income and build savings. Step Three: Set asset goals and gain and sustain assets for a better quality of life and greater independence. Step Four: Review goals and make adjustments to advance a better economic future. There are strategies we will learn about that will help achieve financial stability, security, and greater self-sufficiency. Managing money and credit are critical skills to advancing self-sufficiency. We will talk more about these topics at our next session as well as the importance of access to financial services. Page 18

19 Module 1 Activity: My American Dream My American Dream The American Dream is the belief of achieving goals to a have a positive quality of life. For millions of people in this country, the American Dream is owning a home, starting and owning a business, or saving income from work to retire with a positive quality of life. If you were to improve your quality of life and achieve the American Dream, what would it be? Please share your idea in the space provided below. My American Dream is to What prevents achievement of your goal? Please share in the space provided below. Page 19

20 Homework Assignment and Wrap-Up (10 Minutes) 1. Visit a bank or credit union. Ask for an application to open a checking account and a savings account. Ask about the monthly costs to have one or both accounts. Be prepared to talk about your experience. Distribute My Trip to the Bank handout to each attendee. 2. For one week, keep track of your daily spending. Distribute Daily Spending Diary handout to each attendee. 3. Read about the Consumer Credit Counseling Services. You can find information on the National Foundation for Credit Counseling 4. Review National State Treasurer s Association s Tomorrow s Money JumpStart Virginia Page 20

21 Module 1 Activity: My Trip to the Bank Your task before the next class is to visit a bank or a credit union of your choice. During your trip to the bank, be sure to ask the following questions and to write down the responses. Name of the Bank: Address of the Bank: Hours of Operation: Is there a minimum dollar amount to open a checking account? Yes or No (circle one) If yes, what is the minimum dollar amount? What are the costs to you per month to have the checking account? Was there a minimum dollar amount to open a savings account? Are there monthly service costs to you? Do either the checking or savings account pay you interest on the money in your account? Do you have to maintain a minimum balance? Were you asked to apply for a credit card? Were you offered an ATM card and did you receive information about service fees? Page 21

22 Module 1 Activity: Daily Spending Diary For one week, keep track of the money that you spend each day. Sunday Day What did I spend money on today? Monday Tuesday Wednesday Thursday Friday Saturday Page 22

23 Module 1: Tools & Resources The following are additional tools and resources to enhance the knowledge of attendees. National Disability Institute National Disability Institute s My American Dream Video Contest World Institute on Disability National Foundation for Credit Counseling Listing of National Foundation for Credit Counseling Members in Virginia The following NFCC Member Agencies have physical locations, and operate in or around your local area. However, if you select an agency not in your state of residence be sure to check if the agency can still provide assistance to you. CCCS of Greater Washington, Inc. Alexandria, VA ClearPoint Credit Counseling Solutions Charlottesville, VA ClearPoint Credit Counseling Solutions Chesapeake, VA CCCS of Southwestern Virginia Collinsville, VA CCCS of Greater Washington, Inc. Fairfax, VA ClearPoint Credit Counseling Solutions Fredericksburg, VA ClearPoint Credit Counseling Solutions Hampton, VA CCCS of Hampton Roads (A Program of Center for Child & Family Service, Inc.) Hampton, VA CCCS of Greater Washington, Inc. Manassas, VA ClearPoint Credit Counseling Solutions Midlothian, VA Page 23

24 CCCS of Hampton Roads (A Program of Center for Child & Family Service, Inc.) Newport News, VA ClearPoint Credit Counseling Solutions Richmond, VA ClearPoint Credit Counseling Solutions Richmond, VA CCCS of Southwestern Virginia Roanoke, VA CCCS of Hampton Roads (A Program of Center for Child & Family Service, Inc.) Williamsburg, VA Williamsburg-Baylands Federal Credit Union Williamsburg, VA Page 24

25 Module 2: Financial Education and Access to Financial National Disability Institute Introduction Welcome to Module 2 Financial Education and Access to Financial Services. Module 2 introduces students to financial education and will allow students to improve their understanding of the importance of financial education, access to financial services that minimize costs and opportunities to save and build assets. Page 25

26 Module 2: Facilitator Preparation Objective: To improve understanding of the importance of financial education, access to financial services that minimize costs and opportunities to save and build assets; To become more aware of what financial education programs offer and where to find them; and To better understand the difference between mainstream financial institutions and check cashing stores that charge higher fees. Facilitator Preparation: Prior to this workshop, review FDIC Money Smart website Review PowerPoint presentation for Module 2. Personally complete all activities in Module 2 to familiarize yourself with each activity. Identify presenter for Making Connections in Your Community. Suggestions for this module are a representative from a Debt Management and/or consumer credit counseling organization and a representative from a financial institution. Gather: Laptop and LCD projector Sign-in Sheet Easel Pad & Easel Order Money Smart materials for those individuals who do not have access to the computer based application. Markers Power Point Presentation (make copies if you would like to distribute to attendees) Agenda (make copies if you would like to distribute to attendees) Activities (make copies of activity handouts) Homework Assignment (make copies) Page 26

27 Module 2: Agenda Introduction 10 Minutes Overview, Purpose and Expected Outcomes..10 Minutes Financial Education 40 Minutes Financial Literacy and What is Financial Education Why do People with Disabilities Need Financial Literacy Education? Rule Number One: Pay Yourself First Organizations Providing Financial Literacy Education Training BREAK.15 Minutes Making Connections in Your Community: Guest Speakers 30 Minutes Access to Banking.15 Minutes o Why do People with Disabilities Need a Bank Account? o Organizations Providing Access to Financial Services o Get Checking Program Homework Assignment and Wrap-up..10 Minutes Closing..5 Minutes Page 27

28 Module 2: Facilitator Script Introduction (10 Minutes) Script for Trainer (corresponding PowerPoint Presentation attached Module 2) My name is. Welcome to our second session of Asset Development Strategies. Today, we will focus on the importance of financial education and access to banking. To start us on the right path, I want you to answer two questions to test your knowledge about managing money. These two questions were part of a financial literacy test given to 7th graders in another state. Which of these statements are true about savings accounts? a. They are very risky. b. They are not very risky. c. They require a $1000 minimum balance. d. They are not accessible via ATM withdrawals. You go to a store to purchase an item but don t have the cash to pay for it. Which payment method will likely cost you the least amount of money? a. Purchasing the item with a credit card. b. Obtaining a bank loan to cover the cost of the item. c. Relying on overdraft protection to cover the difference. d. Saving up for the item by putting money in an interest bearing savings account. Here are the answers provided by seventh graders: Which of these statements are true about savings accounts? a. They are very risky. (23%) b. They are not very risky. (30%) c. They require a $1000 minimum balance. (18%) d. They are not accessible via ATM withdrawals. (29%) Page 28

29 You go to a store to purchase an item but don t have the cash to pay for it. Which payment method will likely cost you the least amount of money? 1. Purchasing the item with a credit card. (47%) 2. Obtaining a bank loan to cover the cost of the item. (11%) 3. Relying on overdraft protection to cover the difference. (8%) 4. Saving up for the item by putting money in an interest bearing savings account. (34%) Raise your hand if you had the correct answer to both questions. Financial education or financial literacy is about making informed decisions that are in your own best economic interest. It is about understanding the difference between paying cash and using a credit card, which will cost you money in interest payments if you do not pay your full credit card charges each month. Financial Education is about creating a budget and setting savings and asset goals. A recent study by the Federal Deposit Insurance Corporation (FDIC) found that 80 percent of all Americans needed very basic financial education and only 10 percent needed none. There are costs to not having a savings and/or checking account. Families with incomes under $20,000 per year spend an average of $500 per year to get a check cashed or pay bills. The same services at a bank would cost between $30 and $60 per year. Research conducted by the Internal Revenue Service (IRS) and the National Disability Institute in identified that an estimated 30 to 50 percent of people with disabilities do not have a savings or checking account. Activity # 1 Let s review the homework assignment from our first meeting. Do I have a volunteer to talk about his or her experience visiting a bank or credit union to learn more about opening an account? [Questions to ask the group:] 1. Was there a minimum dollar amount to open a checking account? 2. What are the costs to you per month to have the account? 3. Was there a minimum dollar amount to open a savings account? 4. Are there monthly service costs to you? Page 29

30 5. Do either the checking or savings account pay you interest on the money in your account? 6. Do you have to maintain a minimum balance? 7. Were you asked to apply for a credit card? 8. Were you offered an ATM card and did you receive information about service fees? [The trainer could chart answers from more than one member of the group to show differences in service fees and interest payments affecting how an account earns money.] [The trainer uses the homework assignment to show the importance of making informed decisions about the selection of a bank or credit union. The right decision can cost you or help you earn money.] Overview, Purpose, and Expected Outcomes (10 Minutes) Script for Trainer (corresponding PowerPoint Presentation Module 2) The training today will focus on financial literacy and access to mainstream financial services. Financial literacy is the ability to make informed judgments and effective decisions regarding the use and management of money. Financial education programs cover a range of topics to help you manage your money, save, and build assets. Financial education topics include: creating a budget managing money understanding efficient use of credit avoiding high interest rates with credit or a loan avoiding fraud and protecting your money becoming an educated consumer of financial services The session today has three objectives: 1. improve understanding of the importance of financial education, access to financial services that minimize costs and opportunities to save and build assets; 2. become more aware of what financial education programs offer and where to find them; and 3. better understand the difference between mainstream financial institutions and check cashing stores that charge higher fees. Page 30

31 PowerPoint Presentation (30 Minutes) In today s world, managing the money you earn from work is not easy. You have many decisions to make and many choices as to what to do with the money you earn. Financial education, like learning how to read or write, is about learning important skills you will use every day to make important, informed decisions about your personal financial situation. Financial education programs will help you understand how to manage the money you earn. Financial management is about a series of decisions related to setting financial goals, creating a budget and spending plan, effectively using credit and continually reviewing and refining your goals and strategies to achieve a better economic future. A better economic future is not just defined by your employment status in terms of where you work and how much you are paid. A better economic future will result from setting savings and asset building goals to improve your quality of life, expand choices for you and enhance opportunities for community participation. Why do people with disabilities need financial education? If you rely only on public benefits, and live from benefit check to benefit check each month, it is important to develop skills to set a budget and have a spending plan. If you are working even part-time, you have decisions to make about spending within a budget and setting savings goals. With the right support and education, you can learn more about managing money, setting goals, and building assets. What organizations provide financial education? Financial Institutions o Banks o Credit Unions Community College Consumer Credit Counseling Services Other community nonprofit groups Page 31

32 Financial Education Curriculum There are a wide range and variety of financial education curriculum available to you. In the Tools & Resources section of Module 2, you will find additional information on financial education tools and resources. One particular financial education course that we will look at is FDICs Money Smart. Money Smart In 2001, the Federal Deposit Insurance Corporation ( FDIC ) launched a national financial education program called Money Smart. The purpose of Money Smart is to provide money management skill-building and create positive relationships with banks. Money Smart has ten modules that take between one and two hours to complete. An interactive computer based version of the Money Smart Curriculum is available on line at The Ten Modules are: 1. Bank On It covers types of insured financial institution, types of accounts, and the differences between check-cashing businesses and banking institutions. 2. Borrowing Basics covers loans and credit. 3. Check It Out covers the ins and outs of a checking account and its features. 4. Money Matters covers the benefits and how-to s of saving. 5. Pay Yourself First covers ways to save money. 6. Keep It Safe covers laws that protect banking consumers and how to protect your money. 7. To Your Credit - covers the ins and outs of credit reports and repair. 8. Charge It Right covers the basics of credit card use. 9. Loan To Own covers the types of installment loans and how to choose the best loan for your needs. 10. Your Own Home covers the advantages of owning a home over renting and steps to take to prepare for homeownership. Money Smart is available in Braille and larger print. An online version is available on the FDIC website : To change a pattern of spending or cashing your check from work at a check cashing store is not easy. Changing financial behavior requires thinking about the consequences of not following a spending plan and having no savings plan. Page 32

33 Activity # 2 If you have internet access demonstrate the online version of FDICs Money Smart Training. Let s look at a couple key pieces to financial literacy. Rule Number One: Pay Yourself First! What would happen if each month before you paid your list of bills for food, rent, and other things, you paid yourself $12.50 per week or $50 for the month? If the $12.50 per week were put in a savings account you would earn additional dollars based on the best interest rate you could find in a savings account. Pay yourself first is the secret to financial independence. Deposit $12.50 per week for 10 years in a piggy bank in your house and you would accumulate $6,000. Deposit $12.50 per week for 10 years in a savings account in a bank or credit union at 4.5 percent interest and you would accumulate over $7,500 or $1,500 more. Competition in the financial services industry has dramatically increased the variety of products offered to you and other potential customers. There are more non-bank providers of financial services than ever before. You have choices to make. Activity #3 What questions do you want to ask a financial service provider? [Trainer asks the group and makes a list on the easel pad.] 1. Do you charge a fee for each transaction (cashing a check, using an ATM, writing a check, writing a check with insufficient funds in your account)? 2. Do you offer any incentives for savings (match your savings, no fees, interest rate higher for first six months)? 3. Do you offer no-fee or low-fee checking accounts (any limits on checks you can write per month or requirements of a minimum balance)? Page 33

34 4. Is my money insured so I am protected if the bank has losses or closes its business? Use of Credit Many individuals and families have difficulty managing credit. Credit is the use of funds from a financial service provider. Credit may be extended to you by a loan with specific terms and conditions to purchase a car, a house, or a consumer product like a computer. Credit may also be extended to you with a credit card which allows you to make purchases at most stores. You will receive a monthly statement that indicates what you bought and how much you owe. The credit card statement will also indicate a minimum amount due without additional interest payments. Without paying the entire balance monthly, you will incur debt or additional interest costs at a high rate. An individual s credit history will have a major impact on the ability to borrow money at the more reasonable interest rates or at all. Without a good credit history based on regular on-time bill payments, it is unlikely you will be able to borrow money at reasonable rates to build assets (purchase a home, start a business, or purchase a computer). What is a Credit Report: Why is it Important? There are several companies that collect information from banks, retail stores, tax authorities and landlords. They use the information to create a credit report which provides a history of your financial transaction experiences. Your credit history and credit score will tell potential lenders and creditors whether you are likely to pay your bills on time. There are three national consumer credit reporting companies: 1. Equifax 2. TransUnion 3. Experian Page 34

35 These companies have credit history files on almost every adult in the United States. Your credit history shows whether you make late payments on credit card bills and to other creditors with whom you have a financial relationship. A good credit history will help you get loans, purchase a car, a home, or other large cost consumer products, and may even impact whether an employer will hire you. Your credit history and credit score is a financial profile that will impact your ability to plan and achieve a better economic future. The higher the credit score, the more success you will have with a potential lender. Scores between will indicate to a lender that you have a strong, positive credit history and represent a low risk not to pay your bills on time. Scores between indicate that you have had problems in managing your bills and debt. You may have great difficulty securing a credit card or loan. The better the score, the greater the possibility you will receive better terms (lower interest rates) on a loan. The 3 C s of Credit: Character reliable to pay your debts on time? Capital valuable assets to repay debt if needed? Capacity current job and income production? There are consumer credit counseling agencies that can help you with debt repayment plans when interest on debt is causing you to fall further behind on payments. Your homework assignment was to read about National Foundation for Credit Counseling (NFCC). As the nation's largest financial counseling organization, the NFCC Member Agency Network includes more than 700 community-based offices located in all 50 states and Puerto Rico. More than 3 million consumers annually receive financial counseling and education from NFCC Member Agencies in person, over the phone, or online. To locate an NFCC Member Agency in your area call Page 35

36 Most debt management/consumer credit counseling agencies will negotiate a debt management plan (DMP) and then pay bills covered in the DMP. The customer then pays the debt management company. With timely bill payments, a customer s credit history will improve with regular on-time payments. Many of the members of National Foundation for Credit Counseling also offer financial education classes in addition to one-on-one counseling. Activity # 4 [Trainer asks the group several questions.] 1. Raise your hand if you have a credit card. 2. Have you ever had problems with paying the monthly bill? 3. If yes, what did you do? 4. Who did you have assist you in reducing your debt? 5. What did you learn from the experience? After the break, we are going to hear from two guest speakers. We will learn more about services offered from a credit counseling program and a financial institution. Making Connections in Your Community: Guest Speakers (30 minutes) Trainer will introduce the two speakers: Representative A: Credit Counseling Program Representative B: Bank or Credit Union Each will speak for 10 minutes and follow the proposed outline: 1. What services do you offer? 2. Explain your fee structure. 3. How do you distinguish what you offer from other financial service providers? 4. Do you offer any incentives to promote saving? Allow up to 15 minutes for questions. Page 36

37 Access to Financial Education and Financial Services (15 Minutes) Script for Trainer (corresponding PowerPoint Presentation Module 2) Why do people with disabilities need a bank account? 1. cash checks without service fees 2. pay bills 3. protect resources (security) 4. save and grow assets Who can help you become a saver? Many banks and credit unions offer different products and services to help you set savings goals and open a savings account. Virginia Saves is part of the America Saves which is a national program of the Consumer Federation of America to help people get in the habit of saving. Activity # 5 [Trainer asks group the following questions:] 1. Does anyone have a savings plan or goals? 2. Do you save a certain amount of money each week or every month? 3. Do you have a specific asset goal? What is it? 4. Are your savings in an account with a financial provider? 5. Do you earn interest on your savings? Page 37

38 Activity #6 [Hand out to participants Rate Your Financial Behavior. Ask each participant to fill in the form. The trainer should create a chart on a large easel pad with the answers for the group.] Rate Your Financial Behavior Read each statement in rows 1 through 12. In the columns next to the statement, place an X under the column that describes your Financial Behavior. Do this for each question. ALWAYS SOMETIMES NEVER 1 Pay bills on time. 2 Have a checking account with direct deposit of paycheck from work. 3 Balance checkbook monthly. 4 Track expenses/record keeping system. 5 Have a spending plan/budget and review it at least quarterly. 6 Have a savings plan. 7 Save a specific dollar amount weekly. 8 Plan and set goals for a financial future. 9 Have a savings account. 10 Review credit report. 11 Pay credit card balances in full each month. 12 Have money in more than one type of investment. Page 38

39 Homework Assignment and Wrap-Up (10 Minutes) 1. Learn more about Virginia Saves Program by visiting 2. Find out your credit report by visiting Important information from the Federal Trade Commission, the nation s consumer protection agency: annualcreditreport.com is the ONLY authorized online source for you to get a free credit report under federal law. You can get a free report from each of the three national credit reporting companies every 12 months. Some other sites claim to offer "free" credit reports, but may charge you for another product if you accept a "free" report. 3. Learn more about America Saves by visiting their website at 4. Set a weekly savings goal. Be prepared to talk about your goals and your approach to meet the goal. Is it tied to an asset goal? We will talk more about setting goals and strategies next session. Distribute My Savings Goal and the Monthly Income and Expense Worksheet handout to each student. 5. Visit FDIC s website and complete the first Money Smart Module Bank on It. Page 39

40 Module 2: Activity Rate Your Financial Behavior Rate Your Financial Behavior Read each statement in rows 1 through 12. In the columns next to the statement, place an X under the column that describes your Financial Behavior. Do this for each question. ALWAYS SOMETIMES NEVER 1 Pay bills on time. 2 Have a checking account with direct deposit of paycheck from work. 3 Balance checkbook monthly. 4 Track expenses/record keeping system. 5 Have a spending plan/budget and review it at least quarterly. 6 Have a savings plan. 7 Save a specific dollar amount weekly. 8 Plan and set goals for a financial future. 9 Have a savings account. 10 Review credit report. 11 Pay credit card balances in full each month. 12 Have money in more than one type of investment. Page 40

41 Module 2 Activity My Savings Goal My American Dream is to I will save $ per week from my job at. If I save $ per week for weeks, I will have $ to put towards my American Dream. My ultimate Savings Goal is $. In the next session we will talk about setting goals and strategies on how to save to achieve Your American Dream. Page 41

42 Module 2 Activity: My Budget My Income My Expenses Fixed Expenses Wages $ Rent/Mortgage $ Public Assistance $ Property taxes/ Insurance $ Child Support/Alimony $ Trash Collection $ Interest/Dividends $ Cable $ Social Security $ Car payment $ $ Car insurance $ Other $ Other loan payments $ Health Insurance $ Day care $ Flexible Expenses Savings $ Gas/Oil $ Electricity $ Water $ Telephone/Cell Phone $ Food $ Transportation/Gas $ Car Maintenance $ Education $ Personal expenses $ Charity/Donations $ Other $ Total Income $ Total Expenses $ Page 42

43 Module 2: Tools & Resources Bank On Financial Entertainment VISA Financial Soccer FDICs Money Smart Practical Money Skills for Life The National Association of State Treasurers Foundation Tomorrow s Money Page 43

44 National Disability Institute Module 3: Earned Income Tax Credit & Free Tax Preparation Assistance Introduction Welcome to Module 3 Earned Income Tax Credit and Free Tax Preparation Assistance. Module 3 introduces students to the Earned Income Tax Credit (EITC) including who is eligible for the tax credit and how the EITC is used by people with disabilities to improve their economic status. Students will also learn about the Volunteer Income Tax Assistance (VITA) sites statewide where assistance is provided to prepare and file a tax return for free. Page 44

45 Module 3: Facilitator Preparation Objective: To provide an overview on the Earned Income Tax Credit. To understand who is eligible for the Earned Income Tax Credit. To identify and understand how to access free tax preparation services. Facilitator Preparation: Prior to this workshop, the facilitator should review the following websites: o o o o Review PowerPoint presentation for Module 3. Personally complete all activities in Module 3 to familiarize yourself with each activity. Gather: Laptop and LCD projector Sign-in Sheet Easel Pad & Easel Markers Power Point Presentation (make copies if you would like to distribute to attendees) Agenda (make copies if you would like to distribute to attendees) Activities (make copies of activity handouts) Homework Assignment (make copies) Page 45

46 Module 3 Agenda: Earned Income Tax Credit Introduction 15 Minutes Overview, Purpose and Expected Outcomes..10 Minutes PowerPoint Presentation..30 Minutes What is the Earned Income Tax Credit? Why is it Important to Persons with Disabilities? What is Volunteer Tax Preparation Assistance? Where Do I Go for Assistance? BREAK.15 Minutes Making Connections in Your Community: Guest Speakers 30 Minutes Split Refund Exercise.10 Minutes Prior Homework Review.10 Minutes Homework Assignment and Wrap-up..10 Minutes Closing Page 46

47 Module 3: Facilitator Script Introduction (15 Minutes) Script for Trainer (corresponding PowerPoint Presentation attached) My name is. Welcome back to our training program to Build Assets, Promote Choice and Community Participation for People with Disabilities. Today s session will focus on the Earned Income Tax Credit (EITC). To benefit from the Earned Income Tax Credit or EITC, you must file a tax return with the Internal Revenue Service (IRS). As a person with a disability you may qualify for one or more tax deductions or credits which may result in the government owing you money. Activity #1 Raise your hand if you have heard of the Earned Income Tax Credit? Last year, did you file a tax return with the IRS? Who helped you file a tax return? Let s make a list of people or places which provide assistance in to filing taxes? [Trainer should create a chart on a large easel pad] Assistance with Tax Return 1. Paid tax preparer 2. Family member 3. Did it myself 4. Volunteer Tax Preparation Assistance Site [Conclusion: Trainer will point out that there are choices to be made in receiving preparation assistance. Some will cost money. Others are free and can help you save money.] Page 47