Finance Basics Organize Your Live Your Get Out of …...Finance Basics Organize Your Financial Life...

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Finance Basics Organize Your Financial Life Live Your Financial Life Get Out of Debt, Free Financial Education Resources Assistive Technology Resources Assistive Technology

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Page 1: Finance Basics Organize Your Live Your Get Out of …...Finance Basics Organize Your Financial Life Live Your Financial Life Get Out of Debt, Free Financial Education Resources Assistive

Finance Basics

Organize Your Financial Life

Live Your Financial Life

Get Out of Debt,Free

Financial EducationResources

Assistive TechnologyResources

Assistive Technology

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Table of Contents

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Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . iv

Chapter 1: Finance Basics. . . . . . . . . . . . . . . . . . . . . . . . 1

Banks and Credit Unions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

Checking vs. Savings Accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

Credit and Debit Cards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

How to Balance Your Checkbook . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Step 1: Update Your Checkbook Register . . . . . . . . . . . . . . . . . . . . . 5

Step 2: Update Your Checking Account Statement . . . . . . . . . . . . . 6

Where Does All My Money Go? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

Keep All Your Cash Receipts in a Spending Jar. . . . . . . . . . . . . . . . . 8

Determine Your Income and Expenses . . . . . . . . . . . . . . . . . . . . . . . 9

Basic Monthly Income Worksheet . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Do You Receive SSI and Also Work? . . . . . . . . . . . . . . . . . . . . . . . . 10

Types of Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

Chapter 2: Organize Your Financial Life . . . . . . . . . . . 13

Step 1: Gather Your Financial and Personal Paperwork. . . . . . . . . . . . 14

Step 2: Organize Your Home Office . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

Step 3: Designate Files as Permanent or Temporary . . . . . . . . . . . . . . 15

Monthly Bills to Pay . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

Checking and Savings Accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

Income/Wages/Financial Assistance . . . . . . . . . . . . . . . . . . . . . . . 16

Health Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

Social Security . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

Assistive Technology and Out-of-Pocket Medical Expenses . . . . . 18

Other Important Files to Consider Keeping. . . . . . . . . . . . . . . . . . . 18

How to Sort Your Mail: The Five-Minute Mail Game . . . . . . . . . . . . . . 19

Junk Mail . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

Papers to File . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

Bills and Action Items . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

Documents to Carry with You . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

Documents to Place in Your Car . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

Documents to Leave Home and Why . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

Chapter 3: Live Your Financial Life . . . . . . . . . . . . . . . 22

Why You Need a Livable Budget . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

Create a Livable Budget . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

Setting Up a Cash Envelope System . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

Save for Your Future . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26

Pay Yourself First. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26

Set Up an Emergency Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28

Save Three to Six Months’ Worth of Expenses. . . . . . . . . . . . . . . . 28

Expenses Worksheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29

Start an Assistive Technology Fund . . . . . . . . . . . . . . . . . . . . . . . . 29

Start a Retirement Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29

Make a Long-Range Plan for Your Future . . . . . . . . . . . . . . . . . . . . 29

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Chapter 4: Get Out of Debt, Free. . . . . . . . . . . . . . . . . . 30

Your Credit Report: Why It’s Important . . . . . . . . . . . . . . . . . . . . . . . . . 31

How to Get a Copy of Your Credit-Report . . . . . . . . . . . . . . . . . . . . 31

Skip the “Free” Reports. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31

How to Read Your Credit Reports . . . . . . . . . . . . . . . . . . . . . . . . . . 32

Can Shopping for the Best Interest Rates

Affect Your Credit Score? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33

How to Handle Mistakes on Your Report . . . . . . . . . . . . . . . . . . . . 33

Steps to Correct Your Credit Report . . . . . . . . . . . . . . . . . . . . . . . . 33

How to Improve Your Credit Score . . . . . . . . . . . . . . . . . . . . . . . . . 35

You Can Free Yourself from Debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36

Myths vs. Facts: The Truth about Credit and Debt. . . . . . . . . . . . . 36

Create a Financial Plan and a Debt-Reduction Plan . . . . . . . . . . . . . . 38

The Debt Snowball Technique . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38

Fifteen Quick Tips to Cut Spending . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40

Chapter 5: Financial Education Resources . . . . . . . . . 42

Centers for Independent Living . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43

Internet Resources: Major Financial Web Sites . . . . . . . . . . . . . . . . . . 44

Chapter 6: Assistive Technology

and Insurance Implications . . . . . . . . . . . . . . . . . . . . . 46

What Is Assistive Technology? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47

Is it Assistive Technology or Durable Medical Equipment? . . . . . . . . 48

Understanding Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48

Private Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48

Medicare . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49

Medicaid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50

Funding Options: DME and AT Differences . . . . . . . . . . . . . . . . . . . . . . 51

Finding the Right Assistive Technology . . . . . . . . . . . . . . . . . . . . . . . . . 51

Basic Insurance Terms and Concepts . . . . . . . . . . . . . . . . . . . . . . . . . . 52

Covered Service/Item. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52

Copayment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52

Deductible . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52

Medical Necessity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52

Certificate of Medical Necessity . . . . . . . . . . . . . . . . . . . . . . . . . . . 52

Tips for Documenting Medical Necessity of DME and AT . . . . . . . 53

Chapter 7: Assistive Technology Resources . . . . . . . . 55

Internet Resources: Major AT Web Sites . . . . . . . . . . . . . . . . . . . . . . . . 56

Centers for Independent Living (CIL) and Peers . . . . . . . . . . . . . . . . . 58

Assistive Technology and Independent Living Fairs . . . . . . . . . . . . . . 58

Tips for Choosing the Right Vendors . . . . . . . . . . . . . . . . . . . . . . . . . . . 59

Funding for Assistive Technology: Federal, State,

and Community Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60

Federal- and State-Funded Programs . . . . . . . . . . . . . . . . . . . . . . . 60

Community Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61

Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63

Acknowledgments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63

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Introduction

www.alphaonenow.orgiv

There’s no question about it: Living with a disability is

expensive. Federal and state budget cuts, changes in

insurance coverage, continued difficulties in finding

quality jobs, and rising costs of living have contributed

to making people with disabilities some of the poorest

in the United States.

That’s why learning the financial skills that can

empower you to make smart money decisions is one

of the best investments you can make in yourself.

Learning how to manage your money—rather than

letting your money manage you—will help you now and

for the rest of your life. You’ll be better able to access

the assistive technologies and services you need to live

independently, and you’ll help ensure a financially

secure future.

Alpha One and NEFE have provided the information in

this booklet to help you gain the money management

skills that will support you along your path to

financial freedom.

You can also use this workbook in a class or peer

group setting. We have created a professional

companion guide with helpful hints and group exercises

along with additional information about financial tips.

Download this companion guide from our Web site:

www.alphaonenow.org.

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1Finance Basics

2

This chapter explains the money terms you need to

know. It will help provide the basic foundation for your

financial decision making by discussing where to keep

your money, how to balance your checkbook, and

providing tools to examine where your money goes

each month which can be a positive first step in

creating your livable budget.

Banks and CreditUnions A bank is a for-profit, financial institution controlled by

a board and stockholders. Bank deposits are insured by

the Federal Deposit Insurance Corporation (FDIC) up to

$100,000 for any account (except retirement accounts,

for which the limit is higher).

A credit union is a member-owned, not-for-profit financial

cooperative. Credit union deposits are insured by the

National Credit Union Share Insurance Fund (NCUSIF).

Checking vs. Savings AccountsUnderstanding the difference between checking

accounts and savings accounts is important when it

comes to learning how to manage your money.

A checking account is a service many banks provide to

ensure their customers an efficient way to pay bills and

deposit money. Checking accounts seldom generate

interest. (Interest is money the bank pays you in

exchange for keeping your money in the bank account.)

A minimum balance is sometimes required and some

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1Finance Basics

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banks charge monthly fees. However, the benefits of

having a checking account include that you do not have

to use money orders or carry large amounts of cash for

items such as rent or making a mortgage payment. There

is usually a branch or Automated Teller Machine (ATM)

nearby and you can access tele-banking/online banking.

A savings account is an account that holds your money

for future use or emergencies. Savings accounts

normally pay you a small amount of interest, which is

typically higher than the interest rates that checking

accounts generate.

You may hear the following terms in relation

to savings and checking accounts.

A withdrawal is money taken out of your account. Debit

is another term that simply means money taken out of

your account. A debit transaction is an electronic

transfer of money from your account.

A deposit is money put into the account. A direct

deposit is an electronic transfer of money into your

checking or savings account. Direct deposits can come

from your paycheck, your Social Security check, your

pension, perhaps your IRS refund, etc.

You may be able to access your money in a checking

or savings account through an ATM using a debit card

or ATM card. ATMs are convenient—they allow you

24-hour access to money without having to go to the

bank or credit union in person.

Credit and Debit CardsA debit card operates like cash or a check. When you

make a purchase using a debit card, the bank or credit

union withdraws money from your checking or savings

account that is linked to the card.

With a debit card, the money is taken directly from your

account when you make the purchase, so you must

have the money in your account to cover the cost. Your

bank may charge you a transaction fee or require you to

pay interest if you spend more than what is in your

account or if you use the bank’s overdraft protection.

Banks and

Credit Unions

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A credit card allows you to purchase now and pay later.

It is important to remember that a credit card works like

a loan. The credit company or bank is agreeing to allow

you to use a predetermined amount of money that you

will pay back with interest.

The credit-card company or bank may also charge you

fees. There may be an annual fee for having the card.

There might also be fees charged by the bank or credit

union for such things as overdraft protection, online

banking, minimum balance, teller use, cash advances,

and ATM fees.

Your credit limit describes the amount of money you

may borrow. The amount depends on your credit

history, credit record, length of time as a customer of

the financial institution, and so on. Your credit limit is

not the same as how much money you have in the

account—it is not free money and it must be paid back.

You have a certain amount of time, called a grace

period, from when you make the purchase to when you

receive the bill. If you pay the bill in full before the

grace period expires, you won’t be charged interest on

the account. If you pay late—after the grace period–

you will be assessed a late fee.

To pay the least amount of interest, pay your entire

credit card bill at the end of each month. This way, you

won’t have a balance carried forward, so no interest will

be charged on the remaining balance.

1Finance Basics

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Banks and Credit Unions

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How to Balance Your Checkbook 1Finance Basics

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Now that you understand the basic banking terms and

how banks and credit unions operate, it is time to learn

to balance your checkbook. This helps you get a better

handle on your money.

Learning how to balance your checkbook will help you

keep track of exactly how much money you have in your

checking (or savings) account at any point in time. So

grab your checkbook register (the little book with lines

and spaces), your checking account statement (the

statement your bank sends you to show your

transactions over the past month), all your deposit slips,

debit slips, ATM withdrawal receipts, and a calculator to

learn how to successfully balance your checkbook.

Step 1: Update Your Checkbook RegisterFirst, be sure your checkbook register is up to date.

Here are tips to do that.

Deposits: In your checkbook register, make sure you

have added all recent deposits. If not, write them into

your checkbook register now and add the amount(s) to

your total checkbook balance.

ATM Withdrawals and Debits: Make sure you have

subtracted all recent ATM withdrawals and debits from

your checkbook register. If not, write them into the

checkbook register now and subtract the amounts from

your total checkbook balance.

Now look at your checking account statement

for fees and interest.

Fees: Your checking account statement will list any

recent fees or charges that you may not have subtracted

from the total balance of your checkbook register. Look

for things like printing charges, overdraft (bounced

check) fees, or ATM withdrawal fees. If you find fees that

you have not already entered into your checkbook

register, write these in your checkbook register and

subtract the amounts from your total checkbook balance.

Interest: Your checking account statement will list any

credits (money added to your account) that you may

not have added to the total balance of your checkbook,

such as interest you earned or a refund of charges.

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1Finance Basics

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Write these amounts in your checkbook register and

add the amounts to your total checkbook balance.

After you have made these changes in your checkbook

register, circle the checkbook balance.

Step 2: Update Your Checking AccountStatement Your checking account statement may not show every

deposit or withdrawal you have made. Your statement

will cover a certain timeframe (for example the 1st to

the 30th of the month) so remember that any deposits,

checks you wrote, ATM withdrawals, or debits made

after that last date might not be on the statement. Do

not assume that either the statement balance from the

bank or your own checkbook balance is the current

balance in your checkbook.

To find out your current balance, you need to know

which transactions have cleared at the bank or are still

waiting to be cleared. “Cleared” means that the bank or

credit union has not yet recorded these transactions in

its system). Your checking account statement lists all

the deposits, checks, debits, and other transactions in

order by date and by check number.

Compare the statement and your checkbook register.

How toBalance YourCheckbook

Ten Steps to Balancing Your Checking Account

1. Enter your checkbook balance $

2. Add: any deposits not recorded inyour checkbook

+

3. Subtotal =

4. Subtract: any checks or deductionsnot recorded in your checkbook

5. Equals: revised checkbook balance $

6. Next, enter your account balanceshown by your bank statement

$

7. Add: any deposits not included in this statement period

+

8. Subtotal =

9. Subtract: any outstanding checks—see worksheet below (outstandingchecks are those that have not yetcleared your account, as shown onyour statement).

10. Equals: revised bank balance $

Outstanding Checks

Check number Amount

Total $

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1Finance Basics

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Does the new statement balance match the balance you

circled in your checkbook? If it does, congratulations!

You have balanced your checkbook!

If your checkbook balance and the “new statement

balance” do not match, don’t panic! It is usually a

simple matter of detective work.

Here is what to do:

n Recheck your math in your checkbook and in your

totals. Are they correct?

n Make sure you correctly transferred the balance

amount from one page to the next page in your

checkbook register.

n Verify the following for accuracy:

o deposits on the statement and in your checkbook

o withdrawals on the statement and in your checkbook

o ATM and debit transactions

o money transfers

o the bank or credit union’s math

o the amount of the check written in your check

register matches the amount in the bank statement

If the balances still do not match, take a break and

come back to it tomorrow.

Give your checkbook a second look. Double-check the

math one more time and rework your calculations. If

the balances don’t match, ask if a trusted family

member or friend that’s good with money matters can

help you. Or, take your statement and all other

information to your bank or credit union and ask for

assistance. Many banks and credit unions will offer you

free (or low-cost) and confidential help in learning how

to balance your checkbook.

HINT: If you would like more practice, make a copy of

the checkbook balance sheet sent monthly by your

bank or credit union to practice balancing your

checkbook. You can also use the same process to

balance your savings account. Next month, you will

be able to balance your checkbook in even less time.

The more you do it, the easier it gets!

How toBalance

YourCheckbook

7

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Where Does All My Money Go?1Finance Basics

www.alphaonenow.org8

Do you know where all your money goes each month?

If not, you are not alone. Many people have no idea

where they spend their money each month. Therefore,

they live month to month, hoping to make ends meet.

We will show you some quick and easy ways to find out

where all your money goes, and to start taking control

of your money.

With this knowledge, you can help you start to manage

your money wisely. This is a tool that can be used to

help you live the life you deserve, rather than having

your money concerns manage you.

Keep All Your Cash Receipts in a Spending JarFind a large jar, or a basket, or shoe box. For one

month, any time you use cash to pay for something—

no matter how small the cost—put the receipt in the jar.

If you forget to get a receipt, just write down what you

bought and the amount you think you spent on a piece

of paper and put it in the jar.

At the end of the month, gather all the receipts and

separate them into categories. Here are some that may

apply to your purchases:

n groceries

n incidentals

n dining out

n transportation (such as bus tickets, taxis, gas,

or tolls)

n clothing

n entertainment

Add the total money spent for each category, such as

groceries $300, clothing $25. Then, total all the amounts.

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Do your spending habits surprise you? Do you see any

patterns to your spending? For example, on weekends

do you spend more due to impulse buying or dining

out? You can learn about your spending habits from

what the receipts indicate. Going through your past

month’s expenses will help you keep track of your

spending and curb what you feel is unnecessary

spending. Keep this up for at least three months—even

better is six months to a year if you can. It will give you

a clear idea of your spending habits.

For people who use debit cards or credit cards as well

as cash it may be easier to keep a spending diary. A

spending diary is a notebook you carry with you to help

you keep track of all purchases made whether with

cash, your debit card, or your credit card. You would

simply enter every item you purchase, how much you

spent on it, and how you paid for it. For example:

Movie theatre, $8.50, cash.

Now you are beginning to know where all your money

goes—and that is an important first step in taking

control of your finances.

Determine Your Income and ExpensesIncome is all of the money you receive each month.

There are two basic types of income:

n Earned income is money you receive in exchange

for working.

n Unearned income is money that you receive from

pensions, Social Security Retirement, Social Security

Disability or Supplemental Security, long-term or

short-term disability, workers compensation, VA

pension, in-kind support, or ongoing gifts of money.

Where Does All

My MoneyGo?

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1Finance Basics

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There are two ways to understand or count how much

earned income you have:

n Gross earnings: Your hourly wage multiplied by the

hours worked, or your full annual salary.

n Net earnings: Your gross earnings minus deductions.

Deductions are amounts of money subtracted from

your gross earnings to pay for a variety of taxes or

benefits, such as: o Federal income tax: this money goes to the

federal governmento State income tax: this money goes to your

state governmento Social Security tax: this money goes into the

Social Security trust fund to pay for retirement

or disability benefitso Medicare tax: this money supports the

Medicare system

When figuring out how much income or money you

have each month, always use your net earnings.

Now that you understand the differences between net

and gross earnings, unearned income, and earned

income, you are ready to figure out how much income

you have each month.

Do You Receive SSI and Also Work?If you receive Supplemental Security Income (SSI),

there is a basic calculation that the Social Security

Administration uses to figure out how much SSI to pay

you each month. The following example is meant to

give you a basic idea of how the Social Security

Administration figures SSI amounts for individuals who

are working. For exact information on your situation,

contact a Community Work Incentives Coordinator

(CWIC) or Social Security office in your area. This

example does not include the effects of wages on SSDI

beneficiaries or retirees.

Basic Monthly Income Worksheet

Net Wages/Income: $

Social Security Retirement: $

Supplemental Security Income (SSI): $

Social Security Disability Income (SSDI): $

Other: $

TOTAL: $

Where Does All My MoneyGo?

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Step 1: Write down your gross wages for the month.

This means you must gather one month’s

worth of pay stubs and add up the gross

wages on each of them. That total is your

gross wages. Remember gross wages are

before taxes and deductions.

Step 2: Subtract $20. This is the General Income

Exclusion (GIE).

Step 3: Subtract $65. This is the Earned Income

Exclusion (EIE).

Step 4: Divide the new total by 2.

Step 5: This amount is what Social Security will use

to determine your new SSI amount. It is your

countable income.

Step 6: Subtract your countable income from the

amount of your SSI check.

Step 7: This is the amount of your new SSI check.

Step 8: Add this amount to your net wages. This

becomes your total income for the month.

Here is an example: Susie works 25 hours a week at a

local grocery store as a cashier. She is paid $8 per hour,

earning a total of $200 gross income each week. In a

four-paycheck month, Susie will earn $800 gross

income or wages. Susie’s net (after taxes) income is

$740. She also receives SSI income that will be $245.

Here is how this is calculated:

Step 1: Gross wages: $800.00

Step 2: Subtract GEI: –$20.00

= $780.00

Step 3: Subtract EIE –$65.00

= $715.00

Step 4: Divide by 2. $715.00 ÷ 2 = $357.50

(Rounded up to $358.00)

Step 5: Susie’s countable income is $358.

Step 6: $603.00** – $358.00 = $245.00

Step 7: $245 is Susie’s new SSI check amount.

Step 8: Add net wages and the SSI check amount or

$245 + $740 = $985.

When Susie adds her net wages (after taxes) to her new

SSI check amount as in Step 8, she’ll know how much

real income she has for the month.

Where Does All

My MoneyGo?

**This figure is theFederal Benefit

Rate, whichchanges each

December with theCost of Living

Allowance (COLA).

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Each state has a Work Incentives Planning and

Assistance Program (WIPA). If you are working, consult

with your local CWIC or Social Security office to ask

about the effects of earned income on their particular

set of benefits. To find your state’s WIPA, look on the

Social Security Web site www.ssa.gov under the Ticket

to Work program.

Types of ExpensesNow you are ready to look at your expenses.

There are three types of expenses: fixed expenses,

flexible expenses, and discretionary expenses.

Fixed Expenses are items in your budget that cost

the same every month. Here are some examples of

fixed expenses:n rent or mortgage paymentn property taxesn insurance payments for automobiles or health caren medical needs: doctor visits, dentist visitsn monthly prescription costs and co-paysn loan payments for automobiles, home equity

loans, etc.

Flexible Expenses can vary from month to month. Here

are some examples of flexible expenses:

n groceriesn electric billn heating billn gasoline for your carn telephone bill or cellphone billn credit-card payments

Discretionary Expenses are items you can spend money

on after you’ve paid your Fixed Expenses and Flexible

Expenses, such as:n dining at restaurantsn going to moviesn new clothing n magazine subscriptions

n cable TV or satellite TV

The money left over after paying fixed and flexible

expenses some people refer to as “discretionary income.”

Where Does All My MoneyGo?

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If you ever ask yourself “Where did I put that bill?” or

“Which pile is that receipt in?” then this chapter is for you.

We have all been in this situation at one time or another.

Why sort financial records and keep accurate files? It

will help you to know what you owe to whom, when you

need to make a payment, and it will give you quick

access to important documents in an emergency. Good

recordkeeping will also give you easy access to informa-

tion if the Social Security Administration or any other

agency asks for your financial or personal information.

When you’ve organized your financial papers, it will be

much easier for you to create a working, livable budget.

This is covered in Chapter 3. Organizing your files

and creating a budget will give you a solid handle on

your overall financial situation and allow you to set

long-term goals that will help you attain the assistive

technology and other services you need today, and plan

for a more secure financial future.

Step 1: Gather YourFinancial and PersonalPaperwork

Schedule a time to locate and to pull together all of

your important papers, bills, insurance, and other

financial records. Once you have all the paperwork

together, separate the papers into their own category

piles: telephone bills, electric bills, rent or mortgage,

health insurance, and so on.

Next, take each pile and put the documents in order

with the most recent month on top and the oldest on

bottom. Therefore, if it is June, June is on top, followed

by May, April, and so on. This will help you see if you are

missing any papers. If you are missing anything, make a

note on a piece of paper and place the paper where the

missing document should be. If you cannot find it, then

call the company and get a copy sent to you.

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HINT: Reviewing a year’s worth of bills can show you

what you actually spend on each bill in an average

month, quarter, or year. This way, you can also see the

seasonal costs of each expense. This is a more accurate

way of determining your expenses than averaging out

your last few months’ bills. Also, many federal and state

agencies require a year’s worth of proof of payment of

utilities or other household expenses before

determining your eligibility for services. At the end of

the calendar year, sort through the files and discard old

bills you no longer need. In many cases—such as with

mortgages, student loans, and credit card debts—you

will want to keep the bills as proof of payment until the

loan, debt, or mortgage is paid off in full.

Step 2: Organize Your Home OfficeCreate a home office area to keep all of your files in one

safe, accessible place. It doesn’t have to be a separate

room, but simply a desk or a table. Keeping all your

files in one place eliminates stress and confusion

caused by trying to locate missing bills or paperwork in

different piles around your home. It is helpful to have a

few pens, envelopes, stamps, a recycle paper bin, a

trash can, a pair of scissors or a shredder, and some file

folders in the same area as your files and bills.

You can ask family and friends if they have office

supplies they no longer need. You might also want to

check out the local dollar store or recycling center.

Many times, office supplies are available at recycling

centers and they will give them to you free of charge.

You can buy an inexpensive file box or a cardboard box

to hold your finished files. Just make sure whatever you

use is big enough to hold the files standing up so you

can read the labels and not bend the files.

Step 3: Designate Files as Permanent or TemporaryHow long should you keep the paperwork in your files?

It varies. The following sections describe important files

you might want to keep and when you might be able to

safely throw away files.

Monthly Bills to Pay Place all incoming bills in the “Monthly Bills to Pay” file.

Organize them so that the bills due at the beginning of

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the month are in front, bills due mid-month are in the

middle, and the bills due the end of the month are last.

Placing bills in the order they need to be paid can help

you to remember to pay them on time.

Once you pay a bill, get in the habit of writing the date

you paid the bill and the check number on the bill. This

will help you follow up on the bill if you need to at a

later time. Then, put each paid bill into the individual

bill files that you have already created. For example,

after paying your electricity bill, place it in the

electricity bill folder, and keep it separated from the

yet-to-be paid bills.

HINT: To make it easy to remember when to pay bills,

you can find a bill holder that has a slot with each day

of the month at dollar stores. Just remember when filing

each bill that it needs to be paid and mailed about a

week to 10 days before the due date.

Checking and Savings Accounts Place all balanced monthly statements from your bank

or credit union in this file. Once you have balanced your

checking and/or savings account statements, staple

that month’s canceled checks, ATM receipts, and any

transaction records and deposit slips to the back of that

statement. Keep account statements in monthly order

with the most recent month on top and the oldest on

the bottom.

It is a good idea to save your checking and savings

accounts statements because many entities providing

benefits such as fuel assistance, general assistance, or

food stamps may request them. Also, if you are

involved with buying a house, your mortgage broker

may request these.

HINT: If you have separate checking and savings

account statements, create two separate files. Keep at

least a year’s worth of statements until you get your

year-end statement. Keep the statements longer if

needed for tax purposes.

Income/Wages/Financial Assistance Make a separate file folder for each job you have. Place

all of your paycheck stubs and letters from your

employer in each job file.

Make separate files for your Social Security benefits

income, SSDI, SSI, or workers compensation, food stamps,

and so on. Place all letters, notices that you receive, letters

you send, and proof of direct deposits in these files.

Designate Files asPermanent or Temporary

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HINT: Use the Income and Support Worksheet and fill

in the totals for each job or income source to make a

list of your monthly gross income. A master list with

your total income broken down by its source and with

monthly totals can help you with preparing your taxes

and verifying your income if needed. Keep at least a

year’s worth of income records until you get your year-

end wage statements (W-2s, 1099s, etc.). Keep them

longer if needed for tax purposes.

Health InsuranceIn this file folder, place your most recent paid insurance

bill on top and previous paid bills in order underneath

going backwards in time. Also, in this file folder place your

health insurance policy, a copy of your insurance card, and

any letters or statements that the agencies might send

you, as well as copies of letters you send to them.

Social SecurityCreate file folders for your Social Security benefits

records. Social Security will send you annual notices

around your birthday as to what you can expect to

receive if you retire at a certain age. This file needs to

be separate from the files you might have already

created for insurance benefits (Medicare, Medicaid) or

income payments you are receiving (SSDI or SSI).

If you are paying down an overpayment to the Social

Security Administration, create a separate file for the

overpayment issue. Keep a clear record of all payments

to you or payments you are making on an overpayment.

Keep all letters from the Social Security Administration

as well as copies of letters you send. In most cases,

keep your Social Security file forever. Keep income

records at least until you get your year-end statement

or your overpayment is settled. Keep income records

longer if needed for tax purposes.

Designate Files as

Permanent or Temporary

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HINT: Take notes on all face-to-face or telephone

conversations you have with Social Security, health

insurance agency caseworkers, or insurance company

staff. Log the time and date of the conversation, the

name of the person you spoke with, their job title, the

purpose of the conversation, what was decided, and

what will happen next. Place these notes in the file

folders so you can follow up with a second telephone

call or a written letter if needed. It is a good practice to

keep these notes as long as you have the insurance

policy, Social Security benefit, or other benefit.

Assistive Technology and Out-of-PocketMedical ExpensesPlace any receipts for your purchases of assistive

technology or out-of-pocket medical expenses (things

that were not paid for or reimbursed by any insurance)

in this file. Items that qualify include copays, small or

large equipment purchases, auto repairs, transportation

to and from medical-related appointments, parking fees

and tolls, hotel stays, and even food expenses if you

travel long distances for treatment.

The list can vary between insurance companies, so

keep track of what you use or buy that is in any way

related to your disability. Some expenses might be

deductible from your taxes or deducted from your gross

income to lower your income, which may make you

eligible for additional financial assistance or social

services. (One example of this would be a potential rent

reduction if you live in subsidized housing.) Keep these

files for one year or until you file your tax return. Keep

these longer if you are awaiting reimbursement from

your insurance company.

Other Important Files to Consider Keeping Using the same steps as before, decide if you want to

create new files for categories such as life,

home/rental, or automobile insurance; automobile or

other loans; your medical records; and so forth.

Designate Files asPermanent or Temporary

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How to Sort Your Mail: The Five-Minute Mail Game

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Try to get in the habit of placing all your mail in your

home office area. When you first bring in your mail, do a

quick sort into three categories: Junk Mail (shred, trash,

or recycle), Papers to File, and Bills and Action Items.

Junk MailCut up or use a paper shredder and then throw into the

trash any junk mail with your name and any

identification on it. Do not risk placing it in a recycling

bin where someone might find it. Throw all other junk

mail into the recycle bin.

Be honest with yourself about catalogs. Will you really

have time to look at them this week, or even this

month? If you know you will read them within the

month, keep them. Or, if you know you can find the

information you need later online, recycle them as soon

as you get them.

Papers to FileCreate a folder named “Papers to File.” Place papers

you need to file in this folder. If you have time, file them

as soon as you finish your quick five-minute mail sort.

Or, file them when you sit down to pay your bills.

Bills and Action ItemsPlace any bills in your “Monthly Bills to Pay” file. Place

other important mail you need to act on (such as

making a call or writing a response) in a file called

“Action File.” When you sit down to pay bills, respond

to these items and then file them as needed.

If you get in the habit of doing this sort each day, you

will have fewer piles of paper in your home. You will be

free from paper clutter and more organized.

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Documents to Carry with You

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Make a list of these documents for your home file so

you and your family will know where they are. Be sure

to carry these documents with you at all times.

n Driver’s License: This is widely accepted as a major

form of personal identification, evidence of your legal

eligibility to drive, and proof of where you live.

n Personal Identification Card: This card is available in

most states to non-drivers at your state Department of

Motor Vehicles. It is widely accepted as a major form

of personal identification and proof of where you live.

n Emergency Contact Card: A small card that has your

name, address, and telephone number and the name

of a person(s) to notify in case of emergency.

n Medical Emergency Card or Bracelet: This lists

information including your preferred doctor (name,

address, and telephone numbers); blood type;

allergies to drugs; whether you have diabetes,

epilepsy, or another health condition; and any other

critical information needed for emergency treatment.

n Insurance Cards: Carry your private insurance,

Medicare, or Medicaid insurance cards unless there

is a Social Security number on it (yours or a family

member’s). This is your primary way to receive

coverage and benefits when admitted to a hospital.

HINT: If your Social Security number is on any card,

make a photocopy and then use a permanent marker to

cross out the last four numbers of your Social Security

number on the copy. Carry the photocopy with you, but

leave the original card at home unless you know you

will need it for a specific appointment that day. This is

one way to protect yourself against identity theft.

Documents to Place inYour CarInsurance companies provide extra insurance cards for

your wallet and your car. Place one insurance card in

your wallet and the other in your glove box along with

your car registration.

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Documents to Leave Home and Why

Do not carry your Social Security card or any other card

having your Social Security number on it.

Do not carry bank/credit union or savings account

cards unless you plan to use them that day.

HINT: Here is an interesting article about identity theft

from the Washington Post on Oct. 14, 2006, written by

Fred H. Cate, director of the Indiana University Center

for Applied Cybersecurity Research, “Identity theft is

most commonly the result of information being

obtained directly from victims, not through security

breaches. According to a 2005 Javelin Strategy &

Research survey, the most common source was a ‘lost

or stolen wallet, checkbook, or credit card.’

Additionally, cited was ‘thirty-five percent of identity-

theft cases in which the perpetrator was identified

involved a family member or relative,’ and 18 percent a

friend or neighbor. This means that roughly half of all

known identity thieves were not strangers.

This article indicates that by following the simple steps

outlined here and keeping your private information

private, you can reduce your chances of being a victim

of identity theft.

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Failure to plan for the financial future can affect your

life today, and tomorrow. If your disabilities cause you

to live near or below the poverty line and struggle

financially, you may be tempted to use credit as a

means to pay for basic living expenses such as rent and

groceries, and to fund assistive technology and

adaptive equipment not covered by insurance.

One way you can stop this pattern is to gain more control

over your financial situation and to make informed

decisions about your spending. One of the best tools you

can use to achieve this is a Livable Budget.

Why You Need aLivable BudgetBudgets (also known as spending plans) are for

everyone—but too few people take the time to create a

budget. Many people fear money and feel like they are

doing “math homework” when they think of creating a

budget. Or, they think that creating and maintaining a

budget takes too much time, or that it will be restrictive.

Even if you don’t have a budget, you still make

decisions every day about where your money goes.

However, if you have a budget, it will help you manage

your money. A budget allows you to decide where you

want your money to go before you spend it. It shows

you how much money you have and how to rearrange

your budget in order to stay on track.

The fact is, with the sample budget forms in this

booklet, computer-based budgeting programs, or free

downloadable budget software, once you set up your

monthly budget it takes very little time to maintain it.

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Taking the time to create a Livable Budget may help

reduce your fears and lower your level of financial

stress. A budget may help you get out of debt or build

your savings. A budget may also be a tool that helps

you talk with your family, spouse, or partner about

short-term and long-term financial goals. Your budget

may help you set long-term, realistic financial goals to

plan for large purchases such as assistive technology

that you might need, to start saving for an emergency

fund, or to begin contributing to a savings account. In

short, creating a Livable Budget may help you find ways

to help your money work for you.

Create a Livable BudgetTo create a budget that fits you, gather your financial

information—including the files containing bank

statements, pay stubs, Social Security statements, bills,

and the totals of the cash receipts from your spending

jar. These will be the first tools you need to create your

initial Livable Budget. Using all your financial

information and bills, start entering the totals into one

of the sample budget forms provided in the forms

section of this book.

We provide a quick budget form and a more detailed

budget form you can use. Starting with the quick budget

form, fill in the categories that apply to you. Do not

forget to break down into monthly amounts any

expenses that are due quarterly (four times a year),

semiannually (twice a year), or annually (once a year)

that you will need to set aside money for (for example,

yearly car insurance $600 ÷ 12 months = $50 a month).

Most importantly, remember the budget is yours to

control—it is a reflection of how you want to spend

your money. It is a tool to help you be more

independent. Set time aside every week to go over your

budget and see if you are still on track with your

spending. At the end of each month, review your

expenses and see how well you followed your budget. If

you need to rearrange some budget amounts, do that

for next month’s budget. If you didn’t meet your budget

goals, reevaluate your expenses and your spending

habits so next month you may be able to meet your

budget. Your expenses might vary a little from month to

month, but by sticking to your Livable Budget, you will

begin to move toward your goals.

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Setting Up a CashEnvelope SystemOnce you have a budget in place, think about how you

would like to handle the things you normally pay for

with cash. Would paying them by check be easier or

safer? Today, with many options available for free

checking accounts, it’s safer and easier to track your

money if you play for most expenses with checks rather

than cash. For the few remaining “cash” items in your

budget, consider using “cash envelopes.”

The cash envelope method of managing money has

been around a long time. It’s a good idea to limit the

number of envelopes full of cash you have on hand—

and thus limit the temptation to “borrow” from your

envelopes. Having all your money in envelopes may

also place you at risk of being robbed, so try using just

a few cash envelopes for your small basic cash-based

or discretionary expenses. Just like the spending jar,

which helped you set up your budget, the cash

envelope system is a simple but powerful tool for

tracking your cash expenses and for helping you stay

within your budget goals.

First, create a few envelopes with the names of the

expenses you are planning to use cash for this month.

Each expense will have its own envelope. For example,

take an envelope and write the word “Food” on it. Second,

place in the envelope the budgeted amount of money you

have decided to spend on the expense. Do this with all

your other cash expenses such as clothing, gas, and so on.

The money for each expense should stay in its separate

envelope until you need it for that expense.

Each day, take with you only the envelopes you need

that day. For example, take your “Food” envelope if you

plan to go food shopping or your “Clothing” envelope

when you go clothes shopping. The key is to spread the

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money out over the month and only spend the total

amount you budgeted. When the envelope is empty,

unless it’s a true emergency, do your best to stop

spending on that category for the rest of the month.

If you must “borrow” from one envelope, track the

transfer amount so you know to increase or decrease

that item in your budget next month.

Save for Your FutureEven small amounts of money, saved regularly, add up

over time. It can be easier to save if you plan for your

savings. Make savings an expense item on your budget.

Set aside money in your budget each month for

savings—but do not save money if it means you cannot

pay your bills. Begin by using money you do not need

to spend on bills each month. Following are a few steps

you could take to help you start saving for your future.

Pay Yourself FirstYou may have every intention of saving the money

that’s left over at the end of every month. However, the

reality probably is that there won’t be money left over.

It all gets used up for other expenses.

Instead, change the equation. Rather than saving

what’s left over, put some money—no matter how small

an amount—into savings right at the beginning of the

month. This way, it won’t get eaten up by other

expenses and you won’t be tempted to spend it.

Save $5, $10, $20, or whatever amount you decide.

Ideally, you can strive for saving at least 10 percent of

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your income, but the more important thing is to start

saving now and making it a lifetime habit.

Establishing a savings fund will go a long way in

helping you build an emergency fund, save for assistive

technology that will help your quality of life, pay off

debt, and start toward a more financially secure future.

Tips for Paying Yourself First

If you think that paying yourself first is easier said than

done, here are some ideas to get started:

n Include “savings” as part of your spending plan.

Make it a priority above spending for things like

movies or eating out.

n If possible, have your employer automatically deduct

money from your paycheck and deposit it into a

savings account. What you don’t see, you won’t miss.

Even if the amount is small (say $10, $15, or $20 a

week), you’ll be amazed at how fast your money grows.

n Another option is to have your financial institution

automatically deduct a set amount from your

checking account each month and deposit it into your

savings account. Your financial institution usually can

set the date of the automatic transfer for the day

(or a few days after) your paycheck is deposited.

n Try putting $1 a day, plus pocket change, into a large

envelope or a jar. At the end of the month, deposit

that money into your savings account. This can add

up to a few hundred dollars per year.

n Put any tax refund, raise, or bonus you receive into

savings rather than spending it.

n When looking for a better job, give preference to

employers who offer good benefits, such as health

coverage and life insurance. If your employer

provides these benefits, you won’t have to pay for

your own coverage.

n When you purchase a product, send in any rebate

forms. Most people fail to take advantage of this

savings tool.

n When you need items, shop first at thrift stores and

garage sales. You can pick up some great bargains

this way.

n Break costly habits, such as excessive clothes-buying

and smoking, and save the difference.

n After paying off a loan, put the same amount each

month into savings—if the money isn’t already going

to paying off another loan.

Save for Your

Future

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Set Up an Emergency FundWe all know that unexpected and costly events can

happen. The car breaks down, the refrigerator stops

working, or you have another type of unexpected but

unavoidable expense. To help avoid a serious financial

problem, you may want to set up an emergency fund.

If you are living on a fixed income, saving for

emergencies may seem difficult, but you can set a

reasonable goal. For example, if you are living on SSDI

or SSI or your income is under $20,000 a year, you

could start saving towards a $500 emergency fund. If

you are living on more than $20,000 a year, you could

start saving for a $1,000 emergency fund.

Do not worry if it takes you a while to get there.

Remember to pay yourself first, and set aside a certain

amount each month. Then, add a little more when you

have it. Try not to touch this money for purchases or

vacations. Keep it just for emergencies.

Save Three to Six Months’ Worth of ExpensesOnce you have your Emergency Fund established, you

may want to start saving at least three to six months’

worth of your expenses. Keep this money in a savings

account so you can access it for a major crisis such as

losing your job or experiencing a sudden illness, and so

that it’s not so easy to access you’re tempted to spend it.

If you are receiving SSDI or SSI, check with a CWIC in

your area to find out how much you can save without

risk to your benefits or medical coverage.

Save for Your Future

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Grocery bill for 1 month

x 3 months

= $

Gas/oil, electric, andwater for 1 month

x 3 months

= $

Mortgage or rent for 1 month

x 3 months

= $

Car payment or busfare for 1 month

x 3 months

= $

Other debt paymentsfor 1 month

x 3 months

= $

Total amount I will need to cover three months of expenses

= $

Start a Retirement FundStart building a safety net for your future. The more

money you set aside for your future, the easier it will be

for you financially as you get older. Start to save for the

time when you will be unable to work or when you need

more income to cover living expenses or health-care

costs not covered by insurance.

Better yet, consider speaking with a financial planner

about the best way to plan for your future. They may

suggest a pre-tax retirement plan at work or another

type of retirement account such as an IRA account,

401(k), or 403(b) plan. Speak to the professional about

how much of your gross income you should plan to

invest or set aside.

Make a Long-Range Plan for Your FutureLike many people with disabilities, you may find that

Social Security programs (SSDI, SSI, or Social Security

Retirement Benefits) are not enough to live comfortably

on and meet your goals.

Talk to a CWIC or your local Center for Independent

Living about ways to go back to work, generate income,

or save income. Also, ask where to go to learn about a

living trust, a “special needs” trust, or a “health care”

trust to maximize your benefits and save on taxes.

Expenses Worksheet

To figure the amount you should save to cover three

months’ worth of expenses, fill out this worksheet.

Then, double the amount to figure the total for six

months’ worth of expenses.

Start an Assistive Technology FundAssistive Technology (AT) is a planned “major

purchase.” Start a fund in which you can begin to save

money for any assistive technology, independent living,

or adaptive equipment needs not covered, or only

partly covered, by your insurance. When saving for AT,

you may want to include repairs and maintenance of

the equipment as well as the purchase price in your

total savings goal (much like budgeting for a vehicle).

AT is discussed in more detail in Chapters 6 and 7.

Save for Your

Future

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In this chapter, you’ll learn all about credit reports,

including how to get one, what’s in it, and how to handle

any mistakes reported. Once you understand your debt

situation, if necessary, you can go about increasing your

credit score and paying down your debts.

Your Credit Report:Why It’s ImportantIt is important to obtain a copy of your latest credit

report from each credit-reporting agency. This helps you

get a complete picture of your financial status and

current debts owed. Each credit-reporting agency

reports information differently and each might have

different interpretations of your financial or debt

situation. Some might even contain information another

agency does not have currently.

All credit reports should list your Social Security number,

date of birth, current and past addresses, and employ-

ment history. Credit-reporting agencies use this personal

information to identify you. Changes or additions to your

credit report come from your lenders (people you owe

money to), your payment history, and from information

you supply to the credit-reporting agencies.

How to Get a Copy of Your Credit-ReportOnce a year, you are entitled to a copy of your credit

report for free. To request a copy of each of your credit

reports, contact the three primary credit-reporting

agencies directly:

n Equifax: 1-800-685-1111, www.equifax.com

n Experian: 1-888-397-3742, www.experian.com

n TransUnion: 1-800-888-4213, www.transunion.com

If you find an error in your credit report, report it to the

credit-reporting agencies immediately. Federal law

requires that the credit-reporting agency must

investigate and respond to you within 30 days. Today,

even small errors can affect your overall credit score.

Skip the “Free” ReportsGenerally, buying an online credit report

or downloading a “free” credit report is notthe best way to obtain this information.

They are usually condensed versions of your reports meant to encourage you to sign up for a credit tracking program

that will cost you money.

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How to Read Your Credit Reports Credit reports contain a record of just about everything

you do with money, including taking out loans and

paying your bills. Here are a few financial items you’ll

see on your reports.

Each credit-reporting agency has a format and style of

reporting your credit information. All will provide you

with a “key” or guide to understanding how to read

their report.

Credits or Loans

Your lenders report on each account you have with

them. They report the type of account (credit card, debit

or bankcard, automobile loan, home mortgage), the

date you opened the account, your credit limit or total

loan amount, your current account balance, and your

payment history, including any late or unpaid balances.

Credit Inquiries

Whenever you apply for a credit card or a loan, you

authorize the lender to ask for a copy of your credit

report. This is a voluntary inquiry, in which you allow

someone to look at your credit report. However,

sometimes companies order your credit report without

your specific permission. This is an involuntary inquiry

and you are unlikely to learn about these types of

inquiries unless you get a copy of your report.

Your credit report will list everyone who accessed your

credit report within a specified time period. Too many

inquires can reflect badly on your total credit score.

Public Record and Debt Collection

Credit-reporting agencies collect all public record

information (bankruptcies, foreclosures, lawsuits, wage

attachments, liens, and judgments) from state, county,

and federal courts. They also track information on any

overdue or delinquent debt you are carrying and any

debt collection agencies involved.

Your CreditReport: Why It’s

Important

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How to Handle Mistakes on Your Report

It’s important to promptly correct mistakes on your

credit report. Information contained in your credit

report is the basis of your credit score. Lenders could

deny you credit for a car loan or a home mortgage, or a

prospective employer could refuse to hire you based

upon what is on your credit report. Credit reports may

contain errors due to incomplete or inaccurate

reporting, or they may even contain information about

someone else.

It is good practice to review your credit report from

each credit-reporting agency at least once a year—plus

a few months before you decide to make a large

purchase, such as assistive technology, a car, or a

house. If you are already in the process of applying for

a loan, notify your lender of any incorrect information

you have found in your report and let them know you

have requested corrections.

Steps to Correct Your Credit Report

Tell the credit reporting agency, in writing, what

information you think is wrong. Include copies (not

originals) of documents that support your position. You

should provide your complete name and address, and

Can Shopping for the Best Interest RatesAffect Your Credit Score?

Researching the best mortgage or auto loanrate is the best way to guarantee that youget the lowest interest rate at a term you

can afford. Lenders may tell you thatseeking multiple offers or shopping aroundfor the best interest rate will reflect badly

on your credit report. Is that true?

Actually, no.

While it is true that this may causemultiple lenders to request your credit

report, you are only shopping for one loan.Therefore, most credit-reporting agencies

will count multiple auto or mortgageinquiries in any 14-day period as one

inquiry. In addition, your credit score willnot include mortgage and auto inquiriesmade in the 30 days prior to a request

for your report or credit score. So, if you find a loan within that 30-day

period, those inquiries will not affect yourscore. Keep rate shopping!

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your letter should clearly identify each item that you

dispute in your report. You need to explain why you

think the information is wrong and request that it be

removed or corrected.

You may want to enclose a copy of your report with the

items circled that you believe are wrong. Send your letter

by certified mail, “return receipt requested,” so you

know that your letter arrived at the agency. Keep copies

of everything you send to the credit reporting agency.

Consumer reporting companies must investigate the

items in question—usually within 30 days—unless they

consider your dispute frivolous. They also must forward

all the information you provide about the inaccuracy to

the organization that provided the information. After the

organization receives notice of a dispute from the credit-

reporting agency, it must review the information and

report what it learns back to the credit reporting agency.

If the organization finds that you are correct, it must

notify all three nationwide credit reporting agencies so

they can correct the information in your file.

When the investigation is complete, the credit reporting

agency must give you the results in writing and a free

copy of your report if the resolved dispute results in a

change. This free report does not count as your annual

free report. If an item is changed or deleted, the credit

reporting agency cannot put the wrong information

back in your file unless the organization verifies that it

is accurate and complete. The credit reporting agency

also must send you written notice that includes the

name, address, and telephone number of the

organization that sent the wrong information.

If you ask, the credit reporting agency must send

notices of any corrections to anyone who received your

report in the past six months. In addition, you can have

a corrected copy of your report sent to anyone who

received a copy during the past two years for

employment purposes.

If an investigation doesn’t resolve your dispute with the

credit reporting agency, you can ask that a statement of

the dispute be included in your file and in future

reports. You also can ask the credit reporting agency to

provide your statement to anyone who received a copy

of your report in the recent past. You can expect to pay

a fee for this service.

Your CreditReport: Why It’s

Important

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How to Improve Your Credit ScoreIf you have had financial problems, you can improve

your credit record and your credit score. You can start

to do this by paying current or new accounts on time.

Then, work out payment plans with past due credit

accounts. In general, remember these two key points:

Pay your bills on time.

Pay off your balances each month, or keep balances

low on credit cards and any other revolving credit. This

helps your debt-to-income ratio stay in balance.

If you have fallen behind on payments because of job

loss or the onset of a disability in the family, you have a

right to place a letter in your credit report that explains

the situation. In this letter, you can explain what you

are doing to correct any past-due accounts. Your credit

score might take into account your willingness to pay

versus showing an account that is past due or in

collection. All of these things will help raise your FICO

score over time.

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You Can Free Yourself from Debt

4Get Out of Debt,Free

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Believing you can free yourself from your debt is an

important first step toward managing your financial life.

Adopt a mindset that affirms the idea you are capable

of managing your money.

Myths vs. Facts: The Truth about Credit and DebtAs a consumer, you have probably heard many myths

about credit. For example, the idea that you must have

debt to be “credit worthy” is widely accepted. The truth

surrounding money and debt is different from the

myths. Following are a few major myths about credit

and debt, and the truth about these issues.

Myth: You need debt in order to achieve credit.

Truth: You do not need to borrow money in order to

improve your credit. A 12-month history of

repaying any bill—rent, electricity, oil, cable, or

phone, for instance—can show an ability to

repay. A current steady job and a firm salary or

income can also show the ability to repay.

Myth: Using debt-management companies or

consolidation loans will save me interest and

combine my installment loans into one

smaller payment.

Truth: The myth that debt consolidation always “saves

you interest and gives you one smaller payment”

is inaccurate. The fact is that debt consolidation

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may save you little to nothing on interest because

when you consolidate your loans, you lump

together your lower-interest-rate loans with your

higher-interest-rate loans. Be an informed

consumer. Debt-management companies treat

only the symptom of being in debt, but not the

real issue of learning to handle your finances.

The use of debt management or credit counseling

may also negatively affect your credit score.

Myth: New cars are better than buying used cars.

Truth: New cars lose 60 percent of their value in the

first four years. Because of this, it may make

sense for you to look at buying a used vehicle.

A used vehicle can come with a warranty and

financing options that are similar to those

offered when buying a new car.

Myth: Playing the lottery, scratch tickets, and other

forms of gambling will make you wealthy.

Truth: It is simple math. A “one in a million” chance of

winning means you have to be that one person

in a million. What are the odds of that happening?

If you want to play the lottery or engage in

another form of gambling, do so wisely. Keep in

mind it is really a form of entertainment. Saving

to gain wealth is your best bet.

Myth: Rent-to-own stores and leasing items are good

options when you cannot afford to buy

something outright.

Truth: With these options, you often end up paying more

in interest rates than you would if you saved for a

few months and purchased the item with cash.

Myth: Borrowing money online is safe and the best

way to secure a low-interest loan.

Truth: Borrowing money online is not a better deal than

borrowing from your local bank or credit union.

Myth: When my ability to make payments looks weak,

I will just file for bankruptcy and start over.

Truth: Bankruptcy is a life-changing event that has

long-term financial implications. Recent changes

to federal laws have made it harder to declare

bankruptcy and they require people to work out

payment plans with debtors instead of

discharging all debts.

You Can Free Yourself

from Debt

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Create a Financial Plan and a Debt-Reduction Plan

4Get Out of Debt,Free

38

It may be easier to stay on track with your new

financial goals if you put your commitment in writing.

Consider creating two written plans: a financial plan

and a debt-reduction plan.

For both plans, state the financial goals you want to

accomplish, the steps you need to take to get there,

and a timetable by which you want to accomplish your

financial goals. Keeping track of your progress by

writing down your financial goals and crossing them off

as you achieve them may inspire you to stick with your

plan. This booklet has presented much of what you

need to include in your financial plan.

Your financial plan should include your Livable Budget,

your cash envelope system, a savings plan and savings

goals, ways to generate money, and ways to save money.

Your debt-reduction plan should include ways to ensure

you are borrowing money wisely and reducing your

spending as you pay off your debt. One helpful tool for

paying off debt and working with your creditors is the

“Debt Snowball Technique,” a list of whom you owe, how

much money you owe, and when payments are due.

The Debt Snowball TechniqueIf you have ample income and available financial

resources, paying down your highest interest rate debt

first works best. However, if you are on a limited income

and resources, using the Debt Snowball Technique may

help you to get out of debt quicker.

How the Debt Snowball Works

List all of your debts, beginning with the smallest

balance and ranging to the largest. For example, if you

have three debts and one is $100, one is $250, and one

is $1,000, list the debts as follows:

$100

$250

$1,000

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When making this list, do not consider interest rates or

terms unless two balances are close to the same

amount. If two balances are nearly the same, list the

balance with the higher interest rate first.

By paying off smaller balances first, you will see fast

results and be more likely to stay with the plan. When

you pay off a debt, cross out the debt you paid and

make a new list.

Start to pay off the first debt on your list by paying

more than the minimum monthly payment. Continue to

pay the minimum payment on all other debts.

As you pay off each debt, take the payment you were

making on the paid-off balances and roll it into the next

debt payment on the list. Spread the amount across

the remaining debts. This is the “Snowball Effect.” As

you pay off balances and roll the entire payments you

were making on those paid-off balances into other

payments, you are able to make bigger payments on

your larger balances. Compounding payments may help

you get out of debt quicker. Resist any temptation to

pay only the minimum payment or to not roll over the

money from paid-off debts. That will stop the snowball.

See the Debt Snowball Form for more details on how to

use the process.

The most important step in the Debt Snowball

Technique is to stop borrowing money! Otherwise, the

balances on your debts remain the same and the only

thing that changes is the names of the creditors.

It might seem simple, but it can be a hard idea to put

into action. Use your credit cards wisely. Say your card

charges 15 percent annual interest rate and you have a

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Plan and a Debt-

ReductionPlan

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$500 balance. If you pay only the minimum amount

due, for example $10 or 2.5 percent a month, it will take

almost six 6 years (or 74 months) to pay off that $500!

In addition, at the end of six years, you will have paid

the credit card company a total of $758—$258 of which

was interest. Whenever you pay only the minimum

payment due, you are not covering the monthly interest

being charged for your debt. Therefore, more interest is

being added to your balance due.

Fifteen Quick Tips to Cut Spending1. Make a list of your life goals and your savings goals.

Keep a copy of this list with you to remind you ofwhat they are. Build savings into your budget—make it a “must” to save money every month. Themore you save, the less you spend.

2. If you are married or partnered, consult with your

partner before making big purchases. Agree to

spend only within the budget. Share budgeting and

bill-paying tasks. Create mutual goals for your

money and your future.

3. Pay your bills on time to avoid late fees and to help

maintain good credit.

4. Have your wages directly deposited into your

account. Some people find that carrying cash makes

it easier to spend.

5. Establish a checking account. If you can find one

that pays you interest, that is a plus.

6. Set up a separate savings account. This may make your

money seem less accessible and make it easier to save.

7. Use the cash envelope system. It can help you avoid

overspending each month.

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8. To bring in more money, you can sell items you do not

need. Use the profits from those sales to pay off

money you owe. Make it fun—for example, have a

garage sale with friends. You could also use an online

service such as eBay or Craig’s List to sell items.

9. If you want to pay off your debt or work towards

your goals even faster, you may want to work more

hours or get a second job.

10.Resist the idea that you have “extra cash.” We

suggest you budget all your money—even your

discretionary income, and put it into your savings

account or emergency fund.

11. Making a list before going to the grocery store may

help you cut down on impulse buying. Using

coupons for items you normally purchase can help

you cut costs. Joining a food co-op or a membership

food club and buying in bulk can be a further cost

savings—if you have a family or if you will use the

items before any sell-by dates.

12.Bring a bag lunch to work. Cook at home more and

dine out less.

13.Resist the temptation to go on shopping sprees. Do

not purchase items simply because they are on sale.

If you find impulse buying is a continuing problem

for you, try leaving cash, checkbooks, and credit

cards at home. Bring only your cash envelope with

the money you need for your purchase. Sometimes

waiting overnight before you make the decision to

buy can be a useful tool.

14.Use your credit cards wisely.

15. When making large purchases, such as assistive

technology, shop around and compare prices to get

the best deal. Seek out your local Center for

Independent Living for funding resources, an

Independent Living evaluation, and/or an assistive

technology evaluation to get the best technology for

your needs within your budget.

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Fifteen Quick Tips

to CutSpending

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You can find information on financial education in a

variety of places. The Internet can be a valuable tool for

finding resources and learning about finances. Many

community resources, as well as private vendors, provide

financial education or services. There may be a cost for

their services, so find out before you agree to anything.

Here are a few resources to get you started.

Centers forIndependent LivingIf you have a disability, a good place to go for resources

or to start learning about finances is your local Center

for Independent Living (CIL). Centers have Independent

Living Specialists who can work with you on financial

budgeting, time budgeting, and life-skills planning.

CILs can assign you to peers who have gained financial

independence and who can provide you with any

support and guidance you need to learn to empower

yourself financially. Some CILs also house CWIC

programs that can help you learn how to go back to

work and keep your Medicare or Medicaid benefits.

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Internet Resources: Major Financial Web Sites

5Financial EducationResources

44

Federal Trade Commissionwww.ftc.gov and click on For Consumers

The Federal Trade Commission (FTC) is an independent

federal government agency that monitors and enforces

federal trade laws and seeks to protect consumers

from fraud. The FTC Web site has a page dedicated

to consumers’ issues and it is the lead agency on

enforcing the Do Not Call list telemarketing program.

Institute for Financial Literacywww.financiallit.org and click on Products

The Institute for Financial Literacy is a nonprofit

organization that makes financial literacy education

available to the public. The Institute has financial

literacy education programs and downloadable

financial handouts and forms.

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Institute of Consumer Financial Educationwww.financial-education-icfe.org

The Institute of Consumer Financial Education (ICFE) is

a consumer-oriented, nonprofit, tax-exempt [501c(3)],

public education organization that provides financial

information and personal financial education on topics

such as financial planning and budgeting, credit and

credit repair, debt management, bankruptcy, and

savings and investments.

Kidz Onlinewww.masteringmoney.org

Kidz Online, a nonprofit 501(c)(3) educational

organization, has developed an interactive online financial

education program course for high-school students.

National Endowment for Financial Educationwww.nefe.org

The National Endowment for Financial Education (NEFE)

is a nonprofit foundation dedicated to helping people

acquire the information and gain the skills necessary to

take control of their personal finances. NEFE

accomplishes its mission primarily by partnering with

other concerned organizations to provide financial

education to members of the public—in particular, to

underserved individuals whose financial education

issues are not being addressed by others.

U.S. Financial Literacy and Education Commissionwww.mymoney.gov

This federal government Web site is dedicated to

helping people understand more about their money—

how to save it, invest it, and manage it to meet their

personal goals. You can order a sample of financial

publications by asking for a free “My Money” toolkit. It

has information to help you choose and use credit

cards, get out of debt, protect your credit record,

understand your Social Security benefits, insure your

bank deposits, and start a savings and investing plan.

45

InternetResources

MajorFinancial

Web Sites

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For many individuals with disabilities, acquiring durable

medical equipment (DME) or assistive technology (AT)

can be a frustrating maze of evaluations, vendors, and

insurance forms. Even worse is when you’ve navigated

the maze only to discover the item or service is not

covered (even partially) by your insurance. Now what

do you do?

The first five chapters of this booklet were designed to

help you better understand your finances and to give

you tools and tips to begin saving and managing your

money. The last two chapters are intended to explain

the differences between DME and AT, help you

understand insurance, find the right technology for you,

and find the resources for funding it.

What Is AssistiveTechnology?Assistive Technology is any item, piece of equipment,

product, or system that is used to increase, maintain, or

improve the functional capabilities of an individual with

a disability.

Common examples of assistive technology include:n amplified telephonesn videophones

n TTYsn hearing aidsn reachersn white canesn Braille readersn flashing alarm clocksn voice-activated systems or computer software

programs that create access for individuals with

disabilities to use computers, large-button

telephones, and TV remotes

Generally, insurance companies will cover only what

they define as “medically necessary” assistive

technology. This type of assistive technology is called

Durable Medical Equipment (DME). It is important to

understand the differences between AT and DME and

how Medicaid, Medicare, and private insurance

companies differentiate between them.

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Is it AssistiveTechnology or DurableMedical Equipment?Durable Medical Equipment (DME) is a specific kind of

assistive technology. The key here is that the

equipment or assistive technology has a direct medical

use. Examples of DME are wheelchairs, power

wheelchairs, lifts, and hospital beds.

Generally, DME has the following characteristics:

1. It is durable; that is, it will last for a long time, over

many uses.

2. It is related to the diagnosis, direct care, and

treatment of a medical condition.

3. It meets the standards of good medical practice.

4. It is not mainly for your convenience or that of

your doctor.

UnderstandingInsuranceThe three most common forms of health insurance are

private insurance and two forms of insurance provided

by state or federal government insurance programs:

Medicaid and Medicare. Many people have more than

one of these types of insurance. It is important to

understand which type of health insurance you have

when you are planning to purchase assistive

technology. You need to know if your insurance plan

covers the cost of the assistive technology. Insurance

can reduce the amount you have to pay or even cover

the total cost of your assistive technology.

Private InsuranceInsurance policies should be purchased from an

insurance company. You can buy insurance policies

from agents of the company. Another way to purchase

this type of insurance is through an employer’s group

plan. Generally, group plans offered by employers are

less expensive than plans purchased on your own.

Private insurance companies have a document called a

Certificate of Coverage. They also have handbooks that

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describe all of the covered services and equipment.

Always refer to this manual and follow the instructions

carefully. Most insurance companies have toll-free

telephone numbers to answer your questions as a

policyholder. When in doubt, ask—and it is good

practice to ask for the answer in writing.

MedicareThe federal government provides Medicare insurance.

Medicare is administered through the Center for

Medicaid and Medicare Services (CMS).

Medicare is a federal health insurance program that is

available to people over age 65, certain people with

disabilities under age 65, and individuals with End

Stage Renal disease. Medicare provides each of its

beneficiaries with a Medicare Card.

Medicare has two parts: Part A covers hospital

insurance and Part B covers outpatient services and

Durable Medical Equipment (DME). For example:

Part A covers inpatient hospital care, care in a skilled

nursing facility, and some home health care.

Part B covers outpatient services, such as doctor’s

office visits, testing outside the hospital such as

colorectal screening and mammograms, and Durable

Medical Equipment.

You can learn more about Medicare by visiting

www.cms.gov or www.medicare.gov.

To find a Medicare DME provider in your area, visit

www.medicare.gov.

Understanding Insurance

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MedicaidMedicaid is a joint state and federal government health

insurance program. Medicaid is offered to elderly,

disabled, and retired individuals based on their income

or Social Security benefit. Most states provide Medicaid

to Supplemental Security Income (SSI) recipients.

However, there are a small number of states, called

209(b) states, that do not offer Medicaid to all

Supplemental Security Income recipients. These

states—Connecticut, Hawaii, Illinois, Indiana,

Minnesota, Missouri, New Hampshire, North Dakota,

Ohio, Oklahoma, and Virginia—have an eligibility

process separate from that of Social Security.

Medicaid has many different names, depending on the

state in which you live. The rules for your state

Medicaid plan are probably different from those of

another state.

For example, in Maine, the Department of Health and

Human Services administers the Medicaid program

under the names MaineCare for adults and Cub Care for

children. In Illinois, Medicaid goes by the names Family

Care, Senior Care, and Kid Care, and the Department of

Health and Human Services administers the Medicaid

program. In Colorado, the Health Care and Policy

Finance Department administers the Medicaid program

and the program goes by the name Medicaid.

For information on your state’s Medicaid program,

contact your state’s Department of Human Services.

Medicaid information is available at www.cms.gov.

www.alphaonenow.org

Understanding Insurance

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Funding Options: DMEand AT DifferencesGenerally, private insurance, Medicare, and Medicaid

will be the primary funding sources for DME. This is due

to the “medical nature” of DME.

In comparison, you often must pay out of pocket for

assistive technology. Sometimes, grants, loans, or other

funding resources can help such as State Vocational

Rehabilitation Services or Assistive Technology

Loan Programs.

Finding the RightAssistive TechnologyTo find the right assistive technology for your needs

and financial situation, start by asking yourself: What is

my goal? What do I need to do that requires assistive

technology? Do I need Durable Medical Equipment or

“general” assistive technology?

Then, consider the following:

n Contact a professional for an evaluation, particularly

if the equipment needed is of a medical nature. For

example, contact a CIL, an occupational therapist,

physical therapist, audiologist, etc.

n Any professional evaluation should include a series

of recommendations and suggestions for assistive

technology and/or DME.

n Review your budget, funding, and insurance options.

n Talk with your CIL about other possible funding

resources such as grants or loans.

n Use all available funding sources, including saving

for assistive technology.

n Before buying, try out the equipment if possible,

shop for the best deal, and ask for cost estimates

and bids on any DME or assistive technology.

n Be sure to get warranty information about your

equipment.

n Check to see if the item is returnable, and if so under

what conditions.

n Determine the typical maintenance costs for this

equipment.

n Check to see if the vendor you choose provides

follow-up services such as training and repair.

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Just as with Social Security benefits and banking, there

are some basic terms and concepts that are important

when understanding insurance. Here are a few that will

be helpful for you to know.

Covered Service/ItemA covered service or item is something for which the

insurance company agrees to pay. All three types of

insurance have lists of the items and services they will

cover. Insurance providers usually will not pay for items

or services that are not on their approved lists.

CopaymentA copayment is an amount of money that the insurer

expects you to pay towards the cost of a service, item,

or assistive technology. All three forms of insurance

have copayments.

DeductibleThe deductible is a set amount of money the insurer

will expect you to spend first before they begin paying.

Medical Necessity For a particular piece of assistive technology to be

medically necessary, the following must apply:

n It can withstand repeated use.

n It is used to serve a medical purpose and is medically

necessary and reasonable for the treatment of the

beneficiary’s illness or injury or to improve an altered

body function.

n It is not generally useful to a person in the absence

of an illness or injury.

n It is appropriate for use in the home and is in safe

and reasonably good condition and suitable for its

intended use.

Certificate of Medical NecessityThis form is required by Medicare and Medicaid, and it

allows you to acquire certain DME. The form is

completed by your doctor or another professional such

as an audiologist, occupational therapist, or physical

Basic Insurance Terms and Concepts

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therapist who certifies that your medical condition

requires the DME that is being recommended. A

professional must develop documentation of Medical

Necessity, but you can provide support and guidance in

the process.

Tips for Documenting Medical Necessity ofDME and ATThe following can be used to document the need for

assistive technology to a potential funder if such

documentation is required.

n Must meet the definition of Durable Medical

Equipment.

n Must meet the definition of medical necessity.

n Documentation must be objective and measurable.

n Documentation must include a primary diagnosis,

secondary diagnosis, and functional diagnosis as

well as a complete medical and surgical history with

documentation from a physician supporting the

medical history.

n Documentation must include an objective

assessment from a hands-on neuromuscular and/or

orthopedic examination.

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BasicInsurance

Terms andConcepts

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n Documentation must include detailed functional

assessment data.

n Documentation must include a summary of existing

equipment, its age and condition, and reasons for

replacement with a statement from the vendor about

the condition of the existing equipment.

n Documentation must include a detailed summary of

the home environment—such as is it accessible or is

there a plan for improving access.

n Documentation must include specific equipment

recommendations; when, where, and how it will be

used; and why it is medically necessary.

n Documentation must include expected outcomes if

the equipment is provided.

n Documentation must include a summary of the

equipment trial and supportive still photography

demonstrating outcomes.

n Documentation must include a plan for providing the

equipment, evaluating outcomes, and training in the

use of equipment.

n Documentation should include a plan for growth and

equipment adjustment if the prescription is for a child

or if the person has a progressive illness or disability.

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BasicInsuranceTerms andConcepts

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The Internet is a valuable tool for learning about and

locating assistive technology. The Centers for

Independent Living and your peers are both great

sources for information on the latest assistive

technology and first-hand advice on how to use and

fund assistive technology.

In addition, Alliance for Technology Access Centers as

well as Assistive Technology and Independent Living fairs

are great ways to actually see what is available. Durable

Medical Equipment vendors are also great places to view

assistive technology and get product information.

Classified ads are also a good place to look.

Internet Resources:Major AT Web SitesTo get started on your search, check out these major

assistive technology Web sites. This list is not meant to

be all-inclusive, so use these as a starting point.

Ability Hubwww.abilityhub.com

A Web site with a focus on computer-related AT,

adaptive equipment, and alternative methods available

for accessing computers.

Abledatawww.abledata.com

A Web site maintained by funding provided through the

U.S. Department of Education, it contains classified ads

for adaptive equipment, customer reviews of adaptive

equipment, consumer forums, and information on

adaptive equipment for the workplace, including

agricultural, workstations, and office equipment.

Access to Recreationwww.accesstr.com

A Web site that focuses on recreational equipment,

including beach wheelchairs, pool lifts, exercise

equipment, and equipment for hunting, fishing,

gardening, and water sports.

Alliance for Technology Accesswww.ataccess.org

The Alliance for Technology Access (ATA) is a network of

community-based assistive technology resource

centers, assistive technology developers, and assistive

technology vendors that provide assistive technology

information and support services to people with

disabilities. Each state has an assistive technology

center or a program that will supply you with the latest

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information on assistive technology. For the assistive

technology resource near you, visit www.ataccess.org.

Alpha One, Maine’s Center for Independent Livingwww.alphaonenow.org

This CIL Web site with national news and major

disability links also includes a classified ad section

with AT and adaptive equipment and an archive of

assistive technology articles.

Connecting People and Assistive Technologywww.techconnections.org

This Web site, funded by the National Institute on

Disability and Rehabilitation Research (NIDRR), offers

quick reference guides to computer and general

independent-living related AT, comprehensive

information relating to the Vocational Rehabilitation

System, and its role in providing or funding of AT.

Infinite Potential Through Assistive Technologywww.infinitec.org

Along with lots of adaptive equipment information,

especially adaptive equipment for artists and workplace

AT, this Web site includes a wealth of user reviews of

products, stories, and examples of real people using AT.

New Mobilitywww.newmobility.com

Produced by an online and print magazine for people

with disabilities, this Web site has major news articles

and classified ads for AT, accessible home listings,

discussion groups, and multiple links.

Rehabilitation Engineering & AssistiveTechnology Society of North Americawww.resna.org

Here you’ll find a comprehensive listing of state-specific

AT projects and loan programs, online discussion

groups, and multiple links.

USA Assistive Technology Tech Guidewww.usatechguide.org

This Web site, sponsored by the United Spinal

Association, has extensive examples of wheelchairs and

accessories with AT user reviews and product

information, a large section on grants, and multiple

links to helpful information.

InternetResources:

Major AT Web Sites

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Centers forIndependent Living(CIL) and PeersYour local Center for Independent Living and one-to-one

peer interaction and peer groups are valuable resources

in your search for assistive technology and product

information. Each state has at least one center. The

majority of staff at the centers are people with

disabilities who understand disability issues first-hand.

Peers are a great source of information about AT

because they are the people who actually use it. To find

peers in your area to talk with about assistive

technology needs, contact your local CIL.

You can find your local Center for Independent Living in

your phone book or online at www.ilru.org.

Assistive Technologyand Independent LivingFairsAssistive Technology and Independent Living Fairs are

an excellent place to have a hands-on experience with

assistive technology and adaptive equipment and

examine the equipment that may suit your needs. The

fairs are usually free or low cost. Contact your local CIL

and ask to be notified of upcoming AT and IL Fairs.

Durable Medical Equipment vendors carry primarily

durable medical equipment, but many are also

beginning to carry assistive technology products. Most

can be found in the yellow pages of your local phone

book. The salespeople in these stores are often well

versed in insurance reimbursement and can be helpful

in working your way through the insurance paperwork.

Medicare-approved vendors of Durable Medical

Equipment can be found at www.medicare.gov.

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Tips for Choosing the Right Vendors

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Use these tips and questions when selecting a vendor

for the DME or AT in which you’re interested.

1. Check with your local Center for Independent Living

to see if they have a DME business or can

recommend disability supportive vendors sensitive

to the rights and needs of people with disabilities.

2. Is the vendor in a convenient location to your home?

Will the vendor deliver your equipment? Is there a

delivery fee?

3. Does the vendor provide repair and maintenance

service on the equipment they sell?

4. What kinds of warranties/guarantees does the

vendor offer?

5. Does the vendor stock the equipment you are

looking for or will you be ordering from the

manufacturer?

6. Will the vendor allow you to try before you buy?

For example, can you take a similar model home,

or will they give you a hands-on demonstration of

the equipment?

7. Does the vendor provide assistance with insurance,

Medicare, and/or Medicaid paperwork?

8. Is the vendor Medicare and/or Medicaid approved or

does it take your particular insurance?

9. Does the vendor have a good rating with the Better

Business Bureau? (www.bbb.org)

10.Does the vendor offer financing options? If so, are

they competitive with other sources of funding?

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Funding for Assistive Technology: Federal, State, and Community Resources

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If you need help paying for assistive technology, many

resources are available. Here are a few to get you started.

Federal- and State-Funded ProgramsThere are several federal- and state-funded programs

that offer financial aid for assistive technology in the

form of either grants or loans to people with

disabilities. Check with your local Center for

Independent Living or state Vocational Rehabilitation

Services program to see what programs are offered in

your state. Here are a few examples.

Vocational Rehabilitation Services (VRS) are federal-

funded or state-funded programs providing services to

help individuals with disabilities enter or return to

employment. The programs help individuals with

physical or mental disabilities or both to compete

successfully with others in earning a livelihood. To find

your state Vocational Rehabilitation Services office, visit

www.ed.gov/about/offices/list/osers/rsa/index.html.

The Rehabilitation Services Administration (RSA)

oversees grant programs that help individuals with

physical or mental disabilities to obtain employment

and live more independently. The help provided

includes counseling, medical and psychological

services, job training, assistive technology, and other

individualized services.

Adaptive Equipment Loan Programs: Many states—

including Alabama, Arizona, Florida, Hawaii, Illinois,

Massachusetts, and New York—have low-interest loan

programs administered by their State Rehabilitation

Services Administration.

For a complete list of states that offer Adaptive

Equipment Loan Programs, visit www.resna.org. Some

states have other Adaptive Equipment Loan programs

(such as Maine’s mPower, www.mpowerloans.org).

Check with your local CIL for programs in your state.

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Community ResourcesLocal civic clubs and fraternal organizations often

contribute to the purchase of assistive technology by

setting aside or raising money to help people with

disabilities obtain the equipment they need. These

nonprofit organizations often have specific mission

statements that direct their activities and may target

only certain types of disabilities or age groups. Because

chapter activities of groups vary, individuals who wish

to pursue this potential funding avenue will find it

beneficial to contact the group’s national headquarters

or look in the phone book for the local chapter listing.

Information to obtain includes chapter locations, goals

of specific chapters, focus of the local chapter,

eligibility, and application processes.

Here are examples of national organizations you may

want to contact:

Civitan International Foundation: Support programs

assist children and persons with developmental

disabilities. Local Civitan clubs support a variety of

community service activities. For your local Civitan

Club, check your phone book or visit www.civitan.org.

www.alphaonenow.org

Funding forAssistive

Technology: Federal,

State, andCommunityResources

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Elks of the United States: Local clubs assist children

with disabilities and some adults with disabilities.

Support includes funding for services, essential

treatments such as special examinations, therapy and

special prescriptions, and assistive technology that

helps people with disabilities become self-sufficient,

healthy, contributing citizens of our communities. For

your local Elks Club, check your phone book or visit

www.elks.org.

Give Tech: This organization provides computer

equipment and peripherals to individuals with severe

disabilities. Call 415-750-2576 or visit

www.givetech.org.

Kiwanis Club: This international organization’s focus is

primarily children. Local chapters may vary in their

particular focus, but some have begun to give grants

for AT for people with disabilities. For your local Kiwanis

Club, check your phone book or visit www.kiwanis.org.

Lions Club: Local chapters may vary in their particular

focus; however, in general, grants focus on AT for

people who are hard of hearing or deaf, and those who

are visually impaired or blind. For your local Lions Club,

check your phone book or visit www.lionsclubs.org.

MS Society: The MS Society provides grants for

adaptive equipment for individuals who have MS.

For your local chapter of the MS Society, call toll-free

1-800-FIGHTMS or visit www.nationalmssociety.org.

Many more organizations will provide funding and

technical support for funding for Assistive Technology

or Independent Living. Contact your local Center for

Independent Living for a complete list of funding

sources in your area.

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AcknowledgmentsAlpha One is Maine’s leading enterprisein providing the community with accessto information, services and productsthat create opportunities for people withdisabilities to live independently. Since1978, Alpha One has been Maine andNew England’s most comprehensiveresource for people who want current information about independent living.Online, www.alphaonenow.org provides a powerful web portal with daily local &national disability news. Alpha One also publishes One in Five, a regionalnewspaper serving the needs of the disability community.

NEFE is an independent nonprofit foundation committed to educating Americansabout personal finance and empowering them to make positive and sound

decisions to reach financial goals. The NationalEndowment for Financial Education, NEFE, and theNEFE logo are federally registered service marks ofthe National Endowment for Financial Education.

For more information about the NationalEndowment for Financial Education, visitwww.nefe.org.

Financial Freedom: Borrowing for Assistive Technology was written and preparedfor Alpha One as a public service by the Denver-based National Endowment forFinancial Education® (NEFE®), or NEFE.

Living with your ‘livable budget’Congratulations! By reading this book and

completing the exercises you have made significant

strides in better understanding your finances, saving

for your future, and planning for your next assistive

technology or durable medical equipment purchase.

The following are important points to keep you

moving forward:

n Pay yourself first; start saving now,

even if it’s only a small amount

n Pay down your debt as soon as possible

n Use your livable budget

n Review your credit report annually

n Understand your insurance coverage

n Plan for your assistive technology and durable

medical purchases

n Log on to www.alphaonenow.org for additional

financial information

n Most importantly, stay focused on your dreams

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