Transcript Supportive Banking: A New Horizon for Recovery

The Access Project:
A New Concept To Support Recovery
A Next Step to Financial Health and Wellness
Presentation to NJPRA
October 27, 2011
by
Peter Stahl, CSPNJ, Director
Tom Pyle, PsychOdyssey Services, Inc., Board Member
(in formation)
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Outline
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Financial Wellness: Road to Recovery Nirvana
Financial Reality: Poverty as Barrier to Recovery
Making Progress: CSP’s Financial Services Experience
Next Steps: A New Psych Rehab Concept?
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Psych Rehab: A Continuing Evolution…
Medical Model
Centralized
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Recovery Model
Decentralized
Hospital
Institution
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Agency
Community
Paternalism
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Autonomy
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Research: Wealth  Wellbeing
• Health, mental health, personal finance are interconnected
(O’Neill, Sorhaindo, et al., 2005)
• Impulse and compulsive buying linked to negative psychology
(Silvera, Lavack & Kroop, 2008; Baumeister, 2002; Verplanken, et al., 2005)
• Overspending and rising debt increase stress, reduces health
(Drentea & Lavraka, 2000; Kim, Garman & Sorhaindo, 2003)
• Debt reduction and credit repair improve physical health
(Bagwell, 2000; O’Neill, et al., 2005)
• Asset accumulation brings psychological and social benefit
(Dynner & Paxton, 2001)
• Asset ownership boosts confidence and expectations (hope)
(Yadama and Sherraden, 1996)
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SAMHSA’s 8 Dimensions of Wellness
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What Road to Recovery Nirvana?
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What Road to Recovery Nirvana?
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Integration? Those with SMI…
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32% live below poverty line (Erickson and Lee, 2008)
72% are unemployed (Erickson and Lee, 2008)
46% of the homeless
9% have college degrees (Erickson and Lee, 2008)
• Earn $27,500 AHI (vs. $50,007) (ACS, 2007; NIMH, 2008)
• Pay > 50% of AHI for housing (Sperling, et al., 2005)
• Largest group on SSI/SSD
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The Continuing Crisis…
Those with SMI are often…
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Ultra-poor
Homeless
In jail
In debt
Without credit
Unemployed
Unbanked
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Poverty Blocks Road To Recovery
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No economic safety net
No financial services
Insufficient housing
Inadequate insurance
No financial literacy
• Benefits endangered by…
working!
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Barriers to Financial Recovery
• Misinformation
– Work leads to loss of benefits…
– Asset limits don’t allow me…
– I can’t afford to save…
• Fear
– The economy is bad…
– I can’t afford a home/car…
– Emotional issues about money…
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Removing The Barriers…
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Financial literacy training
Matched savings incentives
Setting savings goals
Personal finance advising
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Financial Education: CSPNJ At Work
• Financial stability: Gaining personal
control over income and expense
• Financial security: Setting goals for
saving
• Financial empowerment: Using
products and services effectively
• Financial independence: Providing
money management and savings
products, i.e. IDAs
• Financial success: Credit repair; debt
reduction; asset accumulation
through savings
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FinEd Lessons Learned
• Gear towards the individual
• Teach…
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Budgeting
Money management
Debt reduction
Credit repair
Long term goal planning
• Support until self-efficacy attained
• Also address emotional stresses about finance
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FinEd Lessons Learned, ctd.
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Include FinEd in all wellness curricula
Teach stewardship for money
Address all aspects of finance
Encourage savings in every budget
Start with small savings accounts
Engage an IDA program
Focus on assets and QOL, not debt repayment
Use microloans instead of benevolence
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And Then We Got To Thinking…
How to support
financial independence,
that final barrier to…
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Psych Rehab Practices...
• Supportive Housing…
• Supportive Education…
• Supportive Employment…
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A New Psych Rehab Practice?...
• Supportive Housing…
• Supportive Education…
• Supportive Employment…
• Supportive Banking
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Our Supportive Banking Concept…
(in formation)
The first federally chartered
Credit Union of, by, and for
individuals with psychiatric
disabilities (and their
families, friends, providers,
and supporters).
A Membership Association
of individuals with
psychiatric disabilities and
their supporters to promote
financial literacy and build
the Credit Union.
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Our Supportive Banking Concept…
www.supportivebanking.com
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Possible Features: Some Product Ideas…
Literacy Association
• Courses
• Seminars
• Workshops
• Individual training
• Personal advisory
• Credit repair
• Consulting
Credit Union
• Savings Accounts
• IDAs
• Tax Prep and EITC’s
• Microloans
• Other loans
• Low or no fee
transactional services
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Challenges
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Current economic recession
Low interest rate environment
“Leveraging” participation
Deposit and loan growth
Operating capital
• (Not NCUA approval…)
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Opportunities
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Real business
Of, by, and for consumers
Means for meaningful support
Accountability and responsibility
Employment
Skills development
• Financial independence
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Status
• Board formed
• Company (501c3) established
• Research underway
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Industry
Markets
Competition
Products and services
Funding
• Business plan being drafted
• Application to NCUA being prepared
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Next Step: Pledges!
To Get Approval, Access Needs…
1. Members ( ~ 1000, to pledge deposits)
2. Deposit pledges ( ~ $100,000)
3. Consumer leaders ( ~ 100)
Note: Pledges, not yet money
Note: All deposits Federally insured
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The 100 | 1000 | 100,000 Plan
• 100 Leading Consumers (“The Centurions”)
• 1000 Individual Members (including corporations)
• $100,000 Total Deposits Pledged
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The 100 | 1000 | 100,000 Plan
Access Financial
100/1000/100,000 Charter Campaign
Membership and Deposit Pledges Mobilization Calculations
Depositor
Corporation 1
Corporation 2
Agencies
“Executive” Members
“Family” Members
"Founder" Centurions
"Senior" Members
TOTAL
Average
Deposit
$25,000
$10,000
$5,000
$1,000
$500
$100
$25
No. of
Depositors
1
2
10
20
50
100
1,000
%
0.1%
0.2%
0.8%
1.7%
4.2%
8.5%
84.5%
Total
$25,000
$20,000
$50,000
$20,000
$25,000
$10,000
$25,000
%
14.3%
11.4%
28.6%
11.4%
14.3%
5.7%
14.3%
1183
100.0%
$175,000
100.0%
Cumulative
Total
$25,000
$45,000
$95,000
$115,000
$140,000
$150,000
$175,000
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How You Can Help
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Join Access Financial Literacy Association ($1.00)
Sign a deposit pledge card ($5 minimum)
Fill out our questionnaire
Tell your clients
Recruit your family
Involve your agencies
Network us to others
Share your ideas
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Join Our Project!
For further information…
Visit CSPNJ’s table
for brochures and ways to support
Contact:
Peter Stahl, Director, Access Project
t. 732-780-1175 x 27 | e. [email protected]
(in formation)
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