Autumn 2008 finds too many men and women less able to appreciate the changing colors and the falling leaves than in previous years because of the financial problems which they are experiencing personally and which the world is experiencing collectively. Suddenly, it is obvious that the financial beliefs which had been considered to be relative absolutes, clearly are not, and Americans are left to figure out what this means to them on micro and macro levels.
According to the Federal Reserve Board, household debt in 2008, including mortgages and credit cards, represents 19 percent of the average family's total assets, as compared with 13 percent in 1980. If that doesn't sound significant to you, do the math; it is!
The tumble of the stock markets, the enormous loss of wealth, homes, retirement funds and futures have Americans, as well as men and women around the world, reeling from the unprecedented financial chaos.
For most of the past decade, many Americans prospered, but there are always members of society who are disenfranchised and living below the poverty line, as well as those who experience medical expenses, job loss, divorce and unanticipated financial challenges which result in their finances and their lives spiraling out of control.
Today, soaring home foreclosures, credit card debt and personal bankruptcy filings are wreaking havoc on children, families and workplaces and contributing to growing poverty, homelessness, need for social services, etc.
However, the recent financial losses of millions of Americans go far deeper than property, jobs and money. Self-worth, sense of self, mental health and marriages are among the collateral casualties preventing men and women from recovering and moving their lives forward.
Certainly no one wanted an economic pandemic, but since we now have one, I see the potential for it to have a silver lining. If ultimately by reaching bottom more people choose to stop denying, ignoring or avoiding the role of personal and financial choice and responsibility there is a real possibility that financial circumstances can begin to stabilize one person, one dollar, one day and one dream at a time. While certainly not simple or easy, neither is it as difficult as one might expect.
In this fall of 2008 there are countless lessons to be learned personally as well as financially. While the government tries to "right" the wrongs of decades of bad financial policies on a macro level, you have the opportunity to evalutate your past personal spending choices and to determine how, or whether, to create long-term financial behavioral change in order have a more stable and secure future, emotionally and financially.
The Center for Financial Social Work is dedicated to helping men and women to feel less overwhelmed and hopeless by their daily interaction with the economy and by the financial situations they may be currently experiencing, and to be a TRUSTED RESOURCE which provides knowledgeable guidance and support in all economic times.
The Center provides free and fee based materials that contribute to LONG TERM FINANCIAL BEHAVIORAL CHANGE - because until and unless behavior changes - NOTHING changes!
Reeta
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Reeta Wolfsohn, CMSW, is the founder of Financial Social Work; she can be reached at 800.707.1002 or at
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Currently, Certified Financial Social Workers, Counselors and Educators/Coaches across the US work with cancer patients, dialysis patients, HIV-AIDS clients, domestic violence, adolescent pregnancy, the EAP department of several national and international companies, the US military, veterans, schools, the elderly, Departments of Social Services, the federal government and in private practice.
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A Trick or Treat View of the Economy - by Alicia B. Solomon
Ok—no Snickers please. We all want a Sugar Daddy or Sugar Mamma to help us make ends meet. Reality is that we need to be our own Lifesaver. Unless you live on planet Mars, you know that times are difficult and we need to make our Payday last a little longer.
Remember to be a Smartie with your money and not a Butterfinger. There are still Good n Plenty of Red Hot deals out there if we keep a watchful eye. You don’t need 100 Grand to get by – just some good M&M: Money Management. If we have hit a Sour Patch, it doesn’t need to be a Tear Jerker. Pick yourself up, look out into the Milky Way and watch a Starburst.
We don’t need to live on Fifth Avenue to have Mounds of money. The Nerds have figured it out. During Crunch time, pull it in and don’t go on a shopping Spree. Spend time at home. Go for a walk. Just don’t be a Dumb Dumb or go Bonkers. Remember – it’s tight for everyone. As Baby Ruth once said, “Every strike brings me closer to the next home run”.
Alicia Solomon is the director for the HOPE (Helping Others Progress Economically) Initiative, the United Way of Henry County and Martinsville’s financial stability partnership. HOPE Initiative programs include free income-tax filing and community and workplace financial education classes.
Change Is Good by Michael Parrish
Very soon we will have to change our clocks again and “fall back”. I need to get our teenager to help me do this with my digital Timex wrist watch because I never seem to push the right button. I wonder how difficult it would be to not change the time and just extrapolate the time in my head until spring time comes and the watch is back to being correct again.
For many, change is a difficult thing. It seems as soon as we get used to doing things a certain way, something new comes along.
just like my digital watch, sometimes things that change to make our lives simpler and easier, can be a struggle.
In taking the Financial Social Work course, I became aware of a lot of things I need to change to become more fiscally fit. Before I could help others, I needed to be honest and re-evaluate my spending habits and resistance to saving. The process brought to mind a lot of other areas that I was neglecting like career fitness, physical fitness and personal relationships that I needed to work on.
Taking the Financial Social Work course also reminded me that pocket “change” was a good thing too. Wealth is best accumulated slowly and purposefully just as collecting the change I bring home each night and put on the counter with my car keys. Of course, helping people to change from spending and debt to saving and wealth takes a lot of change, but as mentors and guides we can be a powerful influence in the lives of individuals.
As we change our clocks again this year, I want to encourage you to ask yourself what might need to be changed in your life. I’m sure many have made a lot of changes over the years. But ask yourself “Am I there yet?” "What more do I need to change?" If you want an honest assessment of something you need to change, ask a relative or close friend. Sometimes they see us differently than how we see ourselves and can provide some very meaningful information. Be open to hearing what they might say. And remember, the journey is way more important than the goal. Remember, change IS good.
Mike Parrish, a licensed clinical social worker (LCSW-C) in the State of Maryland, also is a Certified Employee Assistance Professional, a Certified Trauma Specialist and a Certified Financial Social Worker. He currently works as a Work Life Specialist on the Social Security Administration headquarters Work Life Team. He is a recipient of many awards including Social Security's highest honor: the Commissioner Citation.
Finding Sanity in Insane Financial Timesby Elizabeth Lipscomb
First the Insanity: The news is full of reports of the stock market decline, the mortgage crisis, and the overall financial crisis that now is not only in the U.S. but has also spread to other countries. At first it is just news, affecting others and not us. But the flood waters are now invading more and more of our homes as the value of the roof over our heads and of our IRA’s, 401K’s, and investments are only a fraction of what they were just a few years ago. We worked so hard only to see the money we save dwindle to almost nothing, and we wonder if we can ever afford to retire or if we will have money for our children to go to college. .
Next the Sanity: The sanity comes from adhering to and continuing to practice the principles of the Financial Social Work course and encouraging our clients to do the same. The principles are for all economic times, and foster a sense of inner peace and security no matter what the stock market is doing. That is the beauty of it – we don’t have to learn new strategies for different market and financial environments. It is that simple, and the principles apply no matter what: pay down debt with the goal of being debt free, minimize expenses, maximize income, save and invest with an eye to the future. Although where we save and invest may change depending on the market conditions, the fact that we are saving does not change.
The market will still affect us, and we will see fewer dollars invested, but we will be less affected than those you see on the news. We will have a mortgage or rent within our means, we will not be overwhelmed with increasing credit card interest rates; we will feel a little more secure knowing that if laid off, there are several month's savings to fall back on. Peace of mind is what everyone is trying to find during these difficult times, and as Financial Social Workers, Counselors and Educator/Coaches, we have the keys to that peace, and those keys do not change with the whim of the financial market.
These financial strategy keys coupled with our counseling skills for working with couples, families and individuals on any DSM-IV diagnosis places us in the best position to assist those directly affected by the financial crisis and who are having difficulty coping.
Mental health professionals are concerned about increased incidences of anxiety, depression and suicidal ideation under these stressful times. As Financial Social Work professionals, not only do we have the keys to help ourselves, but these keys and principles work for everyone no matter what the current status of the financial market - what a wonderful profession we are in!
Elizabeth Lipscomb is an MSW, LCSW, ACSW and a Certified Financial Social Worker. Her background includes work in the financial industry and in the medical social work field. Elizabeth has recently returned to her lifelong home of Baton Rouge, Louisiana and is a regular contributor to the Financial Social Work Newsletter.
A Trick or Treat View of the Economy - by Alicia B. Solomon 
Finding Sanity in Insane Financial Times by Elizabeth Lipscomb