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Finance Basics
Organize Your Financial Life
Live Your Financial Life
Get Out of Debt,Free
Financial EducationResources
Assistive TechnologyResources
Assistive Technology
Table of Contents
www.alphaonenow.org
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
iii
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.
1
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
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
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.
1Finance Basics
6
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
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.
1Finance Basics
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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?
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?
1Finance Basics
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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).
1Finance Basics
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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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18
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.
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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21
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
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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.
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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
4Get Out of Debt,Free
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
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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
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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Create aFinancial
Plan and a Debt-
ReductionPlan
4Get Out of Debt,Free
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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
5
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
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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.
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InternetResources
MajorFinancial
Web Sites
6
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.
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50
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.
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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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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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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.
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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
Finance Basics
Organize Your Financial Life
Live Your Financial Life
Get Out of Debt,Free
Financial EducationResources
Assistive TechnologyResources
Assistive Technology