Peggy Swarbrick, PhD, OTR, CPRP

Supporting Employment Outcomes through

Financial Education & Services

Poverty

“Poverty is one of the most pervasive, significant, and debilitating barriers that individuals diagnosed with a mental illness face that prevents them from participating fully in the community”

Poverty impacts Mental Health Recovery and Wellness

DimensionsPhysical

Environment

Spiritual

Mental/Emotional

Social

Intellectual

Occupational

Financial National Wellness Institute- 6 dimensionsCSPNJ Institute for Wellness and Recovery Initiatives Wellness Dimensions (2006, 2008).

Work: AnImportant Impact on Wellness

• Impacts all other wellness dimensions (physical, spiritual, emotional, social, etc)

• Especially financial

• Impact of poverty on occupational wellness is all around us. Interrupted education resulting from poverty is a major reason people take low-paying jobs, and remain in a “poverty trap.”

• People who cannot afford to keep a car on the road often have far narrower job choices. People whose social networks are attenuated by poverty miss out on job opportunities.

• Even completing job applications and attending job interviews may require financial resources beyond the reach of people living in poverty.

Financial• Subjective perceptions and objective

indicators of individuals’ personal financial status.

• Objective indicators of financial circumstances include measures such as income, debt, savings and aspects of financial capability such as knowledge of financial products and services, planning ahead and staying on budget.

• Subjective perceptions include individuals’ satisfaction with their current and future financial situation.

• http://www.employment-studies.co.uk/press/project.php?item=N1018&id=hrm

• Having control over financial life- Some instances in which the individual does not have such control are when the person has:– a “guardian” who makes not only economic decisions

but ultimate decisions in any area of the person’s life;– a “representative payee” who has authority to receive or

cash checks and make financial decisions for individuals; and

– a “trustee” who administers a special needs trust fund to ensure money is utilized for a specific purpose, often not determined by the beneficiary.

• Assets- Like income, assets give individuals a certain level of empowerment and independence.

• It is assets and not income that determine the wealth of an individual.

• Being a productive and contributive member of society- Being economically self-sufficient means that the individual is participating in the workforce and contributing to the assets of their community rather than only partaking of them.

• Having sufficient earned income- Having a solid income, earned through working rather than public benefits is important to empower the individual to break out of poverty and accumulate assets.

Importance of The Relationship

• Build a trusting rapport • Dignity• Confident that change can happen &

Hopeful attitude• Flexibility

Financial Stability

Financial stability includes:

• Steady Income• Managed Expenses• Balanced Budget• Good Credit

Budgeting

• Helps reduce stress by establishing a financial plan• May Provide stability • Identifies savings and prioritizes spending• Defines one’s responsibilities• Offers control and can contribute to hope to attain

future goals and dreams

Financial Security

How does one build a strong foundation?Financial security is savings:

• Savings for emergencies• Savings for a “rainy day”• Savings for big ticket items • Savings for investment (Individual

Development Accounts)

A Strong Foundation Begins With Saving

Why Is It Important to Save?

• Helps reduce stress in case of emergencies

• Provides security, a sense of well-being and worth

• Establishes financial goals, increases hope, dares to dream

• Gives control to one’s future

Broadening Your Horizon

Financial self sufficiency is saving to invest, accumulate assets and build wealth:

• A car• A business• Degree or Certification education • A home• Investing in your future

• Partner - offer financial service help based on a collaborative relationship with the person served. Also keep in mind the value of partnering with other providers, family, etc.

• Assess - help the person see what financial services he or she needs to maximize the long-term success and benefit of work.

• Teach skills-to the extent as appropriate.

• Refer - develop and use an understanding of the resources in your community. Credible credit counseling agencies with a history of serving low income communities. Financial skills trainings offered thru banks, Independent Living Centers , etc.

Financial Literacy Training & Education Program

• Understand and rebuild credit• Banking Basics• Basic Money management skills• Education, services and supports that provide

access to the mainstream financial community

Money Smart • http://www.fdic.gov/consumers/consumer/moneysmart/

• Financial education fosters financial stability for individuals, families, and entire communities. The more people know about credit and banking services, the more likely they are to increase savings, buy homes, and improve their financial health and well being. The Money Smart curriculum helps individuals build financial knowledge, develop financial confidence, and use banking services effectively.

• http://www.fdic.gov/consumers/consumer/moneysmart/mscbi/mscbi.html

Financial Education for Persons in Recovery

• http://www.cmhsrp.uic.edu/nrtc/ida.asp

• This financial education curriculum is designed to be implemented in 6, two-hour sessions that are highly interactive and hands-on. Topics include: identifying values and financial goals; tracking and managing income vs. expenses; managing debt; understanding credit; using financial institutions; and building savvy consumer skills. Lessons involve hands-on budgeting activities, small group activities, and homework. The curriculum meets the requirements for financial training of individuals wishing to start Individual Development Accounts..

Effectively Managing you Illness and Finances

• Dr Judith Cook. UIC National Research and Training Center

• http://www.cmhsrp.uic.edu/download/DBSA2008Conference.pdf

Contact Information• Collaborative Support Programs of NJ– 8 Spring St.– Freehold, NJ 07728– Peggy Swarbrick, PhD, OT, CPRP– pswarbrick@cspnj.org