Posted on August 26, 2024

By Angela Rapp Kennedy, CQL Vice President of Training & Learning Initiatives

Money, our possession of it, our understanding of it, and our use of it has a major impact on our life. Imagine not knowing what your income was, where it came from, or that you even had one. Imagine that you do not know what bills you owe and how or if they get paid. Imagine you want to buy a cold drink on a hot day and have no way to do that – no cash, no card. These are all realities for far too many people supported in the I/DD service system today. 

According to Wikipedia, “Financial literacy is the possession of skills, knowledge, and behaviors that allow an individual to make informed decisions regarding money.” In this Capstone we will share a bit of data about how access to money can impact a person’s life, explore how two different organizations have put systems in place to increase and support financial literacy for the people they support, and finally we’ll share some resources and information to add to your toolbox. 

How Access to Money Impacts Quality of Life

By Carli Friedman, CQL Director of Research

When I examined the relationship between people having access to their money and their outcomes, using the Personal Outcome Measures^®, I found that when people with disabilities had access to their money, they were: 

• 2 times more likely to:
  • Have friends 
  • Have the best possible health 
  • Use their environments 
  • Realize goals 
  • Experience continuity and security 
  • Interact with other members of the community 
  • Choose their goals 
  • Be respected 
• 3 times more likely to:
  • Choose where to live
  • Choose their services
• 6 times more likely to:
  • Be treated fairly

As such, the findings suggest that when people with disabilities have more access to their money, they have a better overall quality of life. 

Yet, in 2023, 30% of people with disabilities did not have access to their money. The most common reason people didn’t have access to their money was because of provider organizations or support staff (43.3%), followed by guardians (24.7%), and family (17.3%). 

Who Limits Access to Money? 

In addition, there were several groups of people who were especially less likely to have access to their money. 

Support Needs: People with disabilities who had complex behavior support needs were 1.2 times less likely to have access to their money than people without these support needs.  

Residential Settings: Compared to people with disabilities who lived in provider owned/operated homes, people with disabilities who lived in their own homes were 1.5 times more likely to have access to their money, people in family homes 1.3 times more likely, and people in host family / family foster care 1.6 times more likely. 

Decision-Making Authority: Compared to people with disabilities with independent decision-making, people with disabilities with full/plenary guardianship were 1.4 times less likely to have access to their money. In contrast, people with disabilities with assisted decision-making were 1.4 times more likely to have access to their money than people with disabilities with independent decision-making. 

These are people who would especially benefit from individualized targeted supports. After all, as we saw above, having access to one’s money can go a long way to improve outcomes. 

Providing Education And Supports For Money Management

By Susan Arwood, Executive Director, Core Services of Northeast Tennessee 

As with many agencies, when considering findings from Personal Outcome Measures^® interviews and Basic Assurances^® monitoring, it became evident at Core Services that we were not doing a good job in educating and supporting people to manage their money. People did not know where their money came from, what types of protections are in place to protect their resources, or that there is a budget that follows them if they choose to change provider agencies or the way they receive their supports.  

Agency practices designed to comply with regulations were not person-centered and actually quite prohibitive in people having easy access to their personal funds. This was most often driven by a greater concern to meet state regulatory rules than in supporting people to exercise their rights. For the past 4 years a concerted effort has been made to improve education efforts and agency practices to ensure people have knowledge and control of their money.

To strengthen the commitment to the practice of people managing their money, the job description and title of Personal Funds Coordinator was changed to that of Financial Independence Coordinator. An antiquated system of check requests and paper checks was abandoned, and everyone was supported to obtain their own debit card and provided the opportunity to choose their own bank. This allowed people to withdraw cash or use a card for purchases, as well as the opportunity to learn about overdrafts and the consequences of spending more than they bring in. People were supported in setting up personal Amazon and other online accounts so they could engage in online shopping. Anita is pictured below making her first independent online purchase.

A Money Management Workbook was developed as a tool to open the discussion of preferences during annual planning. The workbook includes the types of funding and supports that a person receives, what their income is and where it comes from, where their money is kept, what their living expenses are, etc. This is used annually to support people in learning financial literacy and exercising choices related to money management.  

Promoting financial literacy will perhaps always be a work in progress. Our dream is that by transforming the way we look at financial literacy, meaningful change will happen for the people we support. 

Empowering Financial Independence

By Colleen Tapia, Compass and QI Administrator, AHRC Nassau (ctapia@ahrc.org) 

People are on a path toward financial independence with the support of AHRC Nassau and Citizens Options Unlimited, Inc. At AHRC Nassau and Citizens Options Unlimited, Inc., we believe in the fundamental right of every person to make their own financial decisions. This belief drives our mission as both Compass and CQL Accredited organizations. 

People receive comprehensive support from the agencies’ clinical staff, Compass/CQL Quality Enhancement Department, Residential Managers, and Entitlements Department to manage their own finances. Financial education is based on the individual person and what support they need to be successful. People are exposed and educated to develop a budget and develop financial goals. They have attended educational forums, created monthly budgets, and gathered letters of support from physicians, psychologists, and family. The next step toward financial freedom is often an appointment with Social Security. 

Our organizational philosophy is that all people have presumed capacity to make financial decisions and therefore do not require a Representative Payee. A policy was developed to provide clarification on how to proceed if a someone’s support team believes a person does not have the capability to make financial decisions and manage their financial benefits, or if a person chooses not to make financial decisions. If a person’s support team believes a Rep Payee is needed and the person objects, due process is initiated, and a referral made to the Human Rights Committee. A financial capacity assessment was developed for this purpose. 

For people new to supports and services, Representative Payee services are offered only upon request. Existing members undergo regular assessments to review their desire to manage their finances. If someone wants to remove their Representative Payee, they are guided to the Compass/CQL Quality Enhancement department, where supports are personalized and developed to match the need. There is no one-size-fits-all approach; we meet people where they are. A toolkit was developed for this purpose. The money management assessment and the person determine where the journey to financial freedom begins. 

While the Social Security Administration makes the final determination if Organizational Rep Payee can be removed, we are developing a new policy to streamline the process of removing a Representative Payee, reinforcing our commitment to restoring financial rights. Our quality enhancement committee, which of course includes people who receive services, assisted with drafting and reviewing this new policy. 

AHRC Nassau and Citizens Options Unlimited, Inc. are dedicated to championing financial independence. We ensure that everyone’s right to make their own financial decisions is respected and supported. This journey is a testament to our shared philosophies, and we are proud to support everyone in their pursuit of financial autonomy. 

Financial Information and Resources

By Angela Rapp Kennedy, CQL Vice President of Training & Learning Initiatives 

If you have spent any time around CQL you will no doubt have heard us talk about The Three Es: Education, Experience, Exposure. As you reflect on the Wikipedia definition of Financial Literacy, you will see that the Three E’s are an excellent framework as you build a vision and systems for supporting people to become more financially literate. 

Educational Resources  

Educational resources might include: 

• Cents and Sensibility: A Guide to Money Management 
• National Disability Institute: Building A Better Financial Future 
• Bank of America: Better Money Habits 

Credit Score 

Because a credit score can have a substantial impact and is used so widely, it’s important to help people understand what credit is, what it can do for you, how to establish credit history, and how to review and keep your credit history in good shape. Supporting people to develop a credit history is essential to many aspects of life the average person finds important such as: 

• Applying for a credit card or a loan 
• Getting a mortgage 
• Renting an apartment 
• Signing up for utilities 
• Interviewing for a job 
• Purchasing insurance 

There is plenty of information on the Internet about understanding and building your credit. Here’s some links to a few examples: 

• Investopedia: What Is A Credit Score? 
• Upgrade: Credit Score Guide 
• Capital One: How To Build Credit 

Financial Tools 

Financial tools, such as budgeting apps, prepaid cards, autopay, direct deposit, auto transfer, online banking, overdraft protection, low balance alerts, fraud detection, and more, provide a variety of excellent options for enabling people to budget and safely have access to their money. We’ve listed a few links below to explore. 

• HoneyDue 
• Everydollar 
• GoodBudget 
• PocketGuard 

Take It To The Bank 

Money: how much we have, our access to it, how we make it, how we use it, and keeping it safe, are all very important to most people. The data shows access to their money makes a difference in the quality of people’s lives. Our hope is that you will use the information in this edition of the Capstone to positively impact the lives of the people you support by helping them to gain knowledge and skills and learn how to make informed decisions regarding money.