Elevate your financial know-how
Managing money can be intimidating, especially if it is a new responsibility or you feel you don’t have the right skills or language to talk about it. Financial literacy is all about empowering individuals with the skills and understanding needed to manage their personal finances confidently. As part of National Financial Literacy Month, we interviewed Carleda Johnson, Independent Living Skills Coordinator and Financial Literacy Coach at Access Living. Carleda shares her knowledge and expertise below to help you build your financial literacy.
IL ABLE: What is Financial Literacy?
CJ: Financial literacy is all about understanding what it means to manage and take care of your money. This can include saving, investing, budgeting, and borrowing money. Every day, we make financial decisions, whether as small as ordering a cup of coffee or as significant as purchasing a home. Managing your money is a skill that benefits you and your family throughout your life. Being financially literate makes this task less daunting.
IL ABLE: Why is it important for people with disabilities and those who help them to build their financial literacy?
CJ: It is just as important for people with disabilities and their supporters to build the same financial knowledge, tools, and skills as those without disabilities. This way, they can effectively manage their money, create and follow a budget, and use credit wisely. People with disabilities are more likely to be unemployed and financially insecure. Financial insecurity and a lack of financial literacy can make people with disabilities more likely to be targets of what’s called “predatory lending”. Predatory lending occurs when someone with money to lend takes advantage of someone who needs to borrow by imposing unfair or abusive terms. Additionally, individuals who receive public benefits, such as Supplemental Security Income (SSI)*, need to understand how earning income or building financial assets will affect their benefits.
*Editor’s Note: Eligible people with disabilities can consider opening an IL ABLE account to build financial assets and protect benefits like SSI.
IL ABLE: How do people with disabilities get started learning about financial literacy?
CJ: First, start by examining your current financial behaviors. Ask yourself these 3 questions:
- What areas of managing my money do I need to improve? Is it saving more, spending less, not having enough income, or learning to follow a spending plan? We all have areas that we struggle with when it comes to managing our money. Recognizing the challenges is half the battle.
- Am I working toward a financial goal? Examples of financial goals could be building emergency savings, saving to have more money left over at the end of the month, or working* to earn more income and build assets.
- Do I have a network of individuals to help me reach my goals? Having a trusted individual or network of people can help you stay focused and keep you
*Editor’s Note: Eligible people with disabilities who work may save more with ABLE to Work.
IL ABLE: What are some financial resources that people with disabilities can use to help build their financial security?
CJ: One resource with helpful tools and resources for people with disabilities is the National Disability Institute (NDI). NDI provides tools for people with disabilities, including benefits planning and financial assessments, along with a host of articles and webinars to guide you on your journey to financial empowerment.
Another tool to explore is the Illinois Achieving a Better Life Experience (ABLE) account. For eligible people, an IL ABLE account can help them save and invest money without risking their benefits. With an IL ABLE account, you can save money as well as maintain eligibility for the benefits.
As a Financial Literacy Coach, I find that many people with disabilities are so afraid of losing the benefits that they stray away from working. To get a better understanding of how your benefits might change if you work, use the Illinois Disability Benefits Estimator to learn more about retaining or supplementing your benefits after an increase in income.
Additional resources include:
• Disability Works gives good insight into developing a financial plan as a person with a disability;
• The Chicago Mayor’s Office for People with Disabilities offers programs that can assist with the cost of home modifications, which can be extremely expensive to pay for out of pocket;
• And, check your local credit union or bank for any workshops or classes they may offer.
As people with disabilities, we are sometimes taught that our questions don’t matter, causing us to believe that we don’t have a voice. We do, and it’s important not to be afraid or ashamed to ask questions, and not just ask the question but keep asking until you have a clear understanding. You wouldn’t just let a doctor operate without knowing what they are operating on; the same is true for your finances. Sometimes, your best resource is yourself and the questions you ask!
Carleda Johnson is an Independent Living Skills Coordinator and Financial Literacy Coach at Access Living, a Center for Independent Living serving the City of Chicago.
Download the IL ABLE PDF “What Type of Investor Are You?” tips sheet here: What Type of Investor Are You?
Learn More About IL ABLE
Explore how an IL ABLE account can help you save for qualified disability-related expenses.
- Visit the IL ABLE website
- Review the Plan Disclosure Booklet
- Explore IL ABLE Investment Options
- Open an IL ABLE Account
For assistance, call 888-609-8683 Monday through Friday from 8 am to 5 pm CT, or email il.clientservice@savewithable.com. Support is available in multiple languages and for callers who are deaf or hard of hearing.