People with disabilities encounter many financial expenses that those without disabilities do not incur. In this article, we provide estimates of the extra costs associated with living with a disability in the United States. Drawing on four nationally representative surveys, we estimate that a household containing an adult with a work disability requires, on average, 29% more income (or an additional $18,322 a year for a household at the median income level) to obtain the same standard of living as a comparable household without a member with a disability. Single adults with disabilities are estimated to have higher costs than those with disabilities who are married, and adults with cognitive impairments are estimated to have higher costs compared to those with other kinds of impairments. We further calculate the federal poverty rate for households that include adults with disabilities adjusted for the direct additional costs of disability. The rate rises from 24% to 35% after adjusting for the extra costs of disability, which would result in an estimated 2.2 million more people with disabilities counted as poor. This suggests that the official poverty measure in the United States substantially underestimates the degree of deprivation experienced by people with disabilities.

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Summary People with disabilities are five times more likely to experience poverty than the general population, yet very little is known about how financial capability can help increase their financial well-being. Using secondary data from the 2015 National Financial Capabilities Study, this study used path analysis to test Sherraden’s theoretical model of building financial capability on a nationally representative sample of people with disabilities. This included assessing how variables of ability (i.e., financial literacy) and variables of opportunity (i.e., financial inclusion) combine to improve one’s financial well-being and stability. Findings Multiple fit indices suggested that the data fit the path model well: χ2 = 37.73 (14), p = .001, RMSEA = 0.04 (90% CI: 0.03–0.05), TLI = 0.97, CFI = 0.99. Findings indicate that financial literacy and financial access both impact the financial well-being in this sample of people with disabilities ( N = 1232). Also, access to financial products moderated financial literacy to increase its impact. This study empirically substantiated the selected financial capability framework. Applications Implications of this study are targeted toward social work researchers and practitioners. There have been very few empirical studies on building financial capability among people with disabilities, so this article serves as a foundation for much needed research in this area while also filling a gap in the extant literature. Additionally, disability case managers will find this research useful, as it provides evidence for practical steps they can take to help their clients work toward achieving financial well-being.

In the second edition of Handbook of Consumer Finance Research, Margaret Sherraden, Jodi Jacobson Frey, and Julie Birkenmaier (Sherraden, et al. 2016, cited under Introductory Work) refer to financial literacy as the effective use of financial skills and knowledge to manage financial resources in a way that maximizes lifelong financial security. Resources normally include personal budgets, checking accounts, savings accounts, credit cards, personal loans, simple insurance products, and retirement plans. As explored in Sherraden’s entry on “Financial Capability” in the Encyclopedia of Social Work (Sherraden 2017, cited under Introductory Work), the need for financial literacy among the general population is becoming an increasingly essential function in response to the current trend toward increased financialization globally. As financial institutions and markets continue to increase in size and influence, individuals without financial skills and knowledge to navigate these systems become economically vulnerable. Many academic fields, including accounting, economics, and public policy, have focused on financial literacy as an intervention for poverty. The field of social work, however, offers a unique contribution to this subject area by positioning financial literacy within the larger system of financial capability. In “Financial Capability and Asset Building for All” (Sherraden, et al. 2015, cited under Introductory Work), Sherraden and colleagues define financial capability as the combined effects of financial literacy (i.e., the ability) with financial inclusion (i.e., the opportunity). Increasing both financial ability and opportunity is needed to increase one’s financial well-being. Currently, work related to financial social work takes many forms. Direct practitioners often help assess the financial well-being of clients, teach clients financial skills, help enroll participants into asset-building programs, and assist individuals to create spending plans. Complementing our micropractice work, mezzo and macro social workers promote high-quality community financial services, push for increased financial inclusion, and work to eliminate inequitable community financial practices through advocacy policy interventions.

Improving the economic well-being of the girls and women is a key to reducing re-trafficking and in providing stability that survivors can use to rebuild their lives. The study looks at how various sociodemographic traits affected the financial capability of n = 144 women and girls who received intervention at a residential care facility in Ghana, West Africa. Three domain of financial capability are assessed in this, i.e., financial risk, financial planning, and financial saving. A scaled likelihood ratio test (chi-square difference test) was used to evaluate the significance of each direct covariate effect(%). Each of the overall goodness-of-fit indices suggested that the initial CFA model fit the data well, χ = 31.45, p = 0.04, RMSEA = 0.067 (90% CI: 0.017-0.108), TLI = 0.923, CFI = 0.948. Older women reported lower levels of financial savings than younger women. We found that women with secondary school education or higher reported significantly higher financial risk than women with less education. Women with children reported lower levels of financial saving than women without children. Married women indicated significantly more financial saving than single women. There was a significant negative effect of time spent in trafficking conditions on financial saving, indicating the highest average level of financial savings at intervention and decreased thereafter. Programs and policies in resource-scarce contexts that aim to assist trafficking survivors must go beyond providing psychosocial counseling and focus also on economic development opportunities.

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Background The objective of this study is to estimate the additional income required of a household containing an older adult member living with a cognitive impairment (CI) consistent with dementia (CID). Methods Secondary analyses were provided of data from the Survey of Health Aging and Retirement in Europe incorporating data of adults’ age 65 years old and older across 15 OECD countries in 2013. We also analyzed longitudinal data of a smaller subset of respondents interviewed in a previous survey wave in 2011. We used OLS regression and the Standard of Living (SOL) approach to estimating the extra costs of disability. Results Households containing a member experiencing a CID are estimated to require 48% more income to maintain their SOL compared to similar households not including an adult with CID. Those with CI without dementia are estimated to have lower costs (14%). Those with longer-term CID are estimated to incur greater costs than those with a more recent onset of a CI. The extra costs are estimated to be lower in countries with more formalized public long-term care arrangements. We further identified out of pocket costs for home care services as a likely expenditure item driving these cost estimates. Conclusions Results suggest that caring for a person living with dementia can lead to considerable expenses. These additional direct costs associated with dementia provide insights for households in anticipating the risks of financial insecurity as they grow older. Future research is needed to identify the consumption items driving these estimates.

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