how the economy is changing fathers, families, and future expectations navigating a new normal
TRANSCRIPT
How the economy is changing fathers, families, and future
expectations
navigating a new normal
Welcome
University of Minnesota Extension
Minnesota Fathers & Families Network
Ellie McCannJennifer Garbow
Rose Allenwww.extension.umn.edu
Paul MasiarchinMelissa FroehleMolly Crawford
www.mnfathers.org
Thanks to these supporters: Minnesota Initiative Foundations, Otto Bremer Foundation, McKnight Foundation, and all of our regional hosts and panelists.
Today’s Agenda9:30 Introductions & background10:00 The current economy: Three conditions that impact
optimism10:45 Change & resilience11:00 Stretch11:10 The economy’s impact on gender, family, children, &
mental health11:50 The future12:15 Lunch12:45 Local community panel1:50 Stretch2:00 Myth busters: How fathers & mothers can access
government benefits3:00 Thank you
How far did you drive to get here today?
0%
0%
0%
0%
0%
0% 1. 10 miles or less2. 11 to 20 miles3. 21 to 30 miles4. 31 to 50 miles5. 51 to 100 miles6. 101 miles or more
Did you attend the Minnesota State Fair this year?
0%
0% 1. Yes2. No
What type of vacation have you taken in the past 6 months?
20%
20%
20%
20%
20% 1. I traveled out of the country2. I traveled out of Minnesota3. I traveled in Minnesota4. I took a staycation at home5. I haven’t had a vacation!
I know a lot about the economics of family formation
1 2 3 4
25% 25%25%25%1. Strongly Agree2. Agree3. Disagree4. Strongly Disagree
I know a lot about family resource management
1 2 3 4
25% 25%25%25%1. Strongly Agree2. Agree3. Disagree4. Strongly Disagree
I know a lot about access to government safety net programs based on parents’ marriage and
custodial status
1 2 3 4
25% 25%25%25%1. Strongly Agree2. Agree3. Disagree4. Strongly Disagree
I know a lot about family responses to change including loss, opportunity, and
resilience
1 2 3 4
25% 25%25%25%1. Strongly Agree2. Agree3. Disagree4. Strongly Disagree
We willnot share
your responses with the
group.
Let’s find out who is here
What generation do you belong to?(Indicate by your year of birth)
25%
25%
25%
25% 1. Millennial (Gen Y) – 1981 to 20002. Generation X – 1965 to 19803. Baby Boom – 1946 to 19644. Silent Generation – 1925 to 1945
What is your gender?
1. Female2. Male
What is your race
0%
0%
0%
0%
0%
0% 1. White2. African American or Black3. Asian4. Hispanic5. Native American6. Multiracial
What is your educational level?
20%
20%
20%
20%
20% 1. Less than high school2. High school graduate3. Some college4. College graduate5. Advanced degree – Masters or above
Employment
25%
25%
25%
25% 1. I am currently employed full time by one employer
2. I am currently employed part time or by multiple employers
3. I am unemployed4. I am not in the labor force
Where do you live?
0%
0%
0%
0%
0% 1. Urban – large city2. Suburban3. Regional center4. Small town5. Rural
Complete the Self Assessment “Staying Resilient in Times of
Change?”
www.mnfathers.org/newnormal.html
A New Normal
web resource links
Economic downturn
Adversity is the state in which man most easily becomes acquainted with himself.
- John Wooden
Recession or Depression?
Recession is when a neighbor loses his job. Depression is when you lose yours.
- Ronald Reagan
Where are we in economic history?a new normal
How many times has the United States experienced an economic downturn since the
Great Depression that began in 1929?
There have been 13 periods of economic decline since 1929
When did the current recession begin?
The current recession began in December of 2007.
This is the longest recession since the Great Depression.
Source: Business Cycle Dating Committee at the National Bureau of Economic
Research (NBER)
Do you think the U.S. economy is
Still in a recession?
Starting to come out of a recession?
orDo you think the recession is over?
How optimistic are you?Over the course of the next year, do you think the financial
situation for you and your family will improve or get worse?
1. Improve2. Get worse
Black
Hispan
icW
hite
Democrat
Independent
Republican
0102030405060708090
ImproveGet worse
Optimism’s many facesWill your financial situation improve or get
worse over the next year?
Pew Research Center 2010
Discussion
What are some individual conditions that may impact a person’s financial optimism?
- Your job situation - Housing - Family finances
Jobsa new normal
How many of the following have you experienced in the past 3 years?
Work hours reducedA pay cut
Forced to take unpaid leaveForced to switch from full time to part time
1. None of the above2. One3. Two or more
How many of the following have you experienced in the past 3 years?
None; 58%One; 22%
Two or more; 20%
- Work hours reduced
- Pay cut- Forced to take
unpaid leave- Forced to switch
from full-time to part-time
Pew Research Center 2010
How does job loss or a decrease in income impact families?
Data compiled by NDSU Extension Service and University of Minnesota Extension, 2009
• Moving to a different home, town, or state• Cutting back on personal and household expenses
(food expenditure reduction, recreational activities, extracurricular activities for children)
• Taking a low paying job and/or working several jobs• Applying for public assistance or other types of
financial support• Putting off education• Inability to visit doctors or afford certain medical
procedures
Nearly 6 months!
UnderemploymentPercent of part-time workers who would prefer
to work full-time
0
10
20
30
40
50
60
70
All adults,
47 Whites, 41
Minorities; 59 Men; 60
Women, 38 College,
35
Some college,
44
HS or less, 56
Pew Research Center 2010
Most dads want full time work
Most moms want part time work
Staying where you are…
Tips for Supporting the Unemployed
Help unemployed clients and participants:• Guard against depression• Join professional associations or subscribe to
trade journals/e-journals• Fill time (and potential resume gaps) with
volunteering• Older workers should whittle down resumes to
recent jobs and eliminate old dates
Housinga new normal
Housing facts in Minnesota
• In 2010, there will be a shortfall of 32,600 affordable housing units in Minnesota:– 22,000 units in the Twin Cities – 10,600 units in Greater Minnesota
• 23,000 Minnesota homes were foreclosed in 2009• At least 9,200 people are homeless in Minnesota
each night; 28% of homeless adults are employed
Initiative Quarterly, March 2010
About 1/3 of all households!
Some people say that buying a home is the best long-term investment in the United States. What do you think?
25%
25%
25%
25% 1. Strongly agree2. Somewhat agree3. Somewhat disagree4. Strongly disagree
As rent goes up, income goes down
Nearly half of renters in MN pay more than 30% of their income for housing.
Housing instability impacts children• Loss of friends and changing a school
• Children who did not have both biological parents present and who moved frequently (8 or more times in a lifetime) had poorer school performance (Tucker, Max, & Long, 1998)
• Family moves predicted increases in children’s emotional and behavioral problems (Hoglund & Leadbeater, 2004).
• Early initiation of illicit drug use and drug-related problems, especially among males (DeWit, 1998)
• On the other hand, positive parenting quality is strongly correlated to student performance in school among homeless and highly mobile children.Most data compiled by NDSU Extension Service and University of Minnesota Extension, 2009
Tips for housing support
Check these resources:• Local Housing & Redevelopment Authority• Habitat for Humanity• USDA Rural Development’s Direct Home Loan
Program• Minnesota Housing Finance Agency
Initiative Quarterly, March 2010
Read the Initiative Foundation’s March 2010 IQ magazine to learn more. Linked at www.mnfathers.org/newnormal.html
Financial Issuesa new normal
Since the recession began, have you changed your spending habits?
1. I have cut back on spending2. My spending has stayed the same3. I am spending more
Spending Habits
Since the recession began, are you spending:
0102030405060708090
100
62
30
6
MoreSameLess
Pew Research Center 2010
What are life’s necessities?
Pew Research Center 2010
Car A/C TV
Computer
Cell phone
Microwav
e
High sp
eed Inte...
Dishwas
her
Flat-s
creen TV
iPod0
102030405060708090
10088
54 52 50 49 47
3121
8 4
2009 2006
We are spending less
• Credit card balances are at their lowest level in 8 years.
• The average balance in the U.S. is $4951 - this is the first time it has dipped under $5000 since 2002.
• In Minnesota, we have the 11th lowest credit card balances in the U.S. at $4586.
Has the recession caused major changes in the way you live?
1. Major changes2. Minor changes3. No changes
FrugalityHow have our habits changed?
SpendingSavingsUse of creditDesign and functionalityGreenGenerosity
What does this mean for families that already are low income?
Meeting Basic NeedsCosts for a Family of Four
with Two WorkersMinnesota Statewide Average—2009
Hourly wages needed - $14.03/hour each worker or a total of $28.06/hour
Source: Jobs Now Coalition
Food $690
Housing $1023
Health Care $569
Transportation $739
Child Care $945
Clothing and other necessities $316
Net Taxes $582
Monthly Total $4,864
Annual Total $58,368
The definition of poverty
2010 Federal Poverty Level
The Working Poor
The Near Poor
Unequal Impact on FamiliesIn comparison to white families, black families:• Are more likely to suffer a job loss.• Are more likely to experience long-term
unemployment.• In general have fewer resources with which to buffer
the shock of job loss.• Tend to have a higher percent of physical assets (e.g.
homes, automobiles), and fewer financial assets (e.g. stocks), which would be more easily converted into cash to meet emergencies.
Source: A visual essay: Blacks, Asians and Hispanics in the civilian labor force (2004); Kalil, (2005)
Data compiled by NDSU Extension Service and University of Minnesota Extension, 2009
A new normal means change
Staying Resilient in times of Change
Sharon M. Danes, PhD ProfessorUniversity of Minnesota
Family Social ScienceDepartment
“Staying Resilient in Times of Change?”Your score
1 2 3 4
25% 25%25%25%1. 10 to 202. 21 to 303. 31 to 404. 41 to 50
“Staying Resilient in Times of Change?”Your client’s score
1 2 3 4
25% 25%25%25%1. 10 to 202. 21 to 303. 31 to 404. 41 to 50
Getting Through Tough TimesFact Sheets
This series of 17 fact sheets covers five content areas for people experiencing trauma.• Getting help• Financial decisions with less• Dealing with stress• Figuring out how to do more with less• Children and tough times
Find the link at www.mnfathers.org/newnormal.html
Break
Gender & the Economya new normal
A woman’s economy?
How are men faring?
Of the 11 million jobs lost since 2007 men lost 2/3 of them.
According to Obama’s chief economic advisor, Larry Summers,
“When the economy recovers, five years from now, one in six men who are 25 to 54 will not be working.”
1970
2007
The rise of wives
Share of husbands whose wives’ income
tops theirs
4% of husbands earn less than their wives
22% of husbands earn less than their wives
How is the economy impacting gender
roles?
For men? For women?
Family Relationshipsa new normal
Marriage is declining
Finances impact couples’ relationships
Economic pressure creates depression in the partner of the unemployed, thus decreasing the partner’s ability to provide support (Vinokur, Price, & Caplan,1996)
Secondary stressors after job loss (relocation, increased debt) increase depressive symptoms in both spouses, which in turn negatively affects the quality of their relationship (Howe, Lockshin, Levy, & Caplan, 2004)
Divorce?Some studies indicate a link between unemployment and a likelihood of divorce (Ström, 2003)
Data compiled by NDSU Extension Service and University of Minnesota Extension, 2009
Took in a boarder
Moved back in with parents
Postponed having a baby
Postponed getting married
0 5 10 15 20 25 30
2
1
3
6
2
11
3
21
2
6
24
5
18-2425-3435+
Life InterruptedPercent of each group who say they did the following because of the recession…
Pew Research Center 2010
Multigenerational Households Grow
1940 1950 1960 1970 1980 1990 2000 20100
5
10
15
20
25
3024.7
15
12.1
15.1
16.1
Pew Research Center 2010
That’s 1 in 6 households!
Empty Nest Undone• Unemployment rate for 20-24 year olds around 15%• Average student with college loans owes $23,000 in
debt• 41% of parents support their 23-28 year old kids• Average support is 10% of parent’s income• 10% of 18-34 year-olds moved back into parents’ home
during this recession
Parade.com July 18, 2010
When to support an adult child
OK to help• Health insurance• Helping with rentBe cautious • Assisting with student loans• Offering a personal loanDon’t do it• Paying for bad shopping habits• Co-signing on a credit card Parade.com July 18, 2010
Tips for helping
families to manage a
multi-generational
home
What is one opportunity and one challenge experienced by multi-generational homes?
What about the children?a new normal
In 2010, some states are
experiencing the lowest
birth rates in 100 years!
Finances impact parenting
Data compiled by NDSU Extension Service and University of Minnesota Extension, 2009. Sources: Yeung, Linver, Brooks-Gunn, 2002. Conger et al., 2002. Mistry, Vandewater, Huston, & McLoyd, 2002.
Low and unstable income is associated with:
• punitive parenting practices
• low nurturant-involved parenting; less responsive parenting
• lower efficacy in disciplining children
These parenting challenges, in turn, are associated with:
• child’s lower cognitive performance
• more behavior problems; child’s reduced social competence
• lower child positive adjustment
Parental employment impacts kids’ attitudes and achievement
Poverty Impacts Parent & Child Roles
In chronic poverty situations, children may take on some of the parenting roles that are not developmentally appropriate
(Burton, 2007).
Data compiled by NDSU Extension Service and University of Minnesota Extension, 2009
Finances impact children’s nutrition
15% of American households were food insecure in 2008:
“Not sufficient access to enough food for an active, healthy life for all household members.”
This is the highest recorded level of food insecurity.
Food insecurity among children may lead to:• Health problems• Behavior problems• Poor academic performance• Obesity
Data compiled by NDSU Extension Service and University of Minnesota Extension, 2009
SNAP - Food support in Minnesota
Eligibility: 130% of poverty (increases to 165% 11-1-10)
Participation: 54% of eligible householdsAverage grant: $212/month
During 2009 – • Participation increased by 30%• 58% of Family Households were working • The average time on SNAP is 36 monthsSource: Minnesota Department of Human Service
Nutrition Resources
Minnesota Food HelpLine (1-888-711-1151)Community Action AgenciesBridge to Benefits www.bridgetobenefits.org SNAP-Ed - nutrition education for Food Support-eligible clients University of Minnesota Extension
www.extension.umn.edu/Nutrition/contact.html 612-625-7070
What is one strategy parents can use to teach resilience in times of
change?
Mental Healtha new normal
Unemployment & Mental HealthBased on Family Role
Source: American Journal of Public Health, 2004
Employed Unemployed
Single Women
Men
Married Women
Men
Divorced / Separated
Women
Men
Are employed or unemployed individuals more likely to have poor mental health?
++++
++++
++
How does job loss impact mental health?
Long term unemployment impacts mental health
Suicide and Economic StrainEconomic strain & personal financial crises - Unemployment- Home foreclosures- Relationship struggles (often caused by finances)
Can lead to suicide
US suicide rates: 4 men to every 1 woman- Male socialization (higher aggression, risk-taking)- Men are more reluctant to seek help, social support
Source: www.suicidology.org
What will the future bring?a new normal
Do you agree or disagree: Although there may be bad times every now and
then, America will always continue to be prosperous and make economic progress?
1. Agree2. Disagree
How confident do you feel about having enough income and assets for retirement?
1. Very confident2. Somewhat confident3. Not too confident4. Not at all confident
When your children are at the age you are now, do you think their standard of
living will be1. Much better than now2. Somewhat better3. About the same4. Somewhat worse5. Much worse
Happiness…How much money do you
need?a new normal
How are these terms similar?
StaycationFood Stamps
GrouponsSmall plates
RedboxPedicure
Unemployment benefits
Higher income is strongly correlated with how people evaluate their lives,
but only moderately with day-to-day positive feelings
Social CapitalHaving others you can count on
Respect
MasteryLearning new thingsUsing your abilities
Lower income exacerbated the emotional pain associated with poor health, divorce
and being alone.
Gallup survey of 136,000 people in 132 nations, 2010
Change: Loss, Opportunity and Resilience, Sharon M. DanesCopyright © 2008 Regents of the University of Minnesota. All rights reserved.
Change: Where are you now?
What does the “New Normal” mean to you and your community?
Lunch followed by Community Panel & Myth Busters
Myth Bustersa new normal
Safety Net1 in __ Americans gets government aid in the form of a safety net.
1. Two2. Four3. Six4. Eight
Public Assistance Programs• MFIP• Food Support• WIC• Child Care Assistance
Program• Medical Assistance• MinnesotaCareAlso, filing federal taxes/tax credits/exemptions
related to children/custody
Public benefits: How are the needs changing for families including fathers?
Quick Review of Paternity
• Married mother, (generally) husband’s name goes on birth certificate
• Unmarried mother, no father’s name on birth certificate until paternity is established
• Two ways in MN to establish paternity: Recognition of Parentage & Court (Paternity) Order
IMPORTANTDISCLAIMERS
Cash Assistance – MFIP basics
• Cash portion and food portion• Generally eligible for child care assistance and
medical assistance• Most families first diverted to Diversionary
Work Program• 60-month time limit• Required to develop an individualized
employment plan
MFIP - eligibility• Income and asset test• Consider the
household unit that lives together
• Must be a minor child or pregnant woman in household
• If parent is a minor, additional rules apply
MFIP – two parents in the home• If parents are married, both parents
income/assets counted.• If parents are not married:
– and father is in the household, he should be reported as residing there, regardless of paternity status
– his income will likely only be included as part of the assistance unit when/if paternity is established*, but would be included as part of the shared household standard (when the household includes an unrelated member)
MFIP – parent relationship, e.g. if father is applicant
• Must be relationship between child and applicant caregiver, e.g. natural or adopted parent(s) or a relative
• Verification required• For unmarried fathers, the law does not specifically
require that paternity be established, but generally, he is going to need paternity established to meet the standard
• Thus, an unmarried father applicant must show ROP, Court Order or birth certificate that lists him as the father
MFIP – single father applicantFor “noncustodial” parent applying: If parent applies who does not have sole physical custody order they must provide an affidavit signed by both parents specifying the custody arrangement
MFIP – child presence• Child must have “physical presence” in home• In shared custody situations, it is not what the
court order says, but the actual facts of where the child lives (except for temporary absence)
Application for MFIP results in referral to child support agency.
The agency must pursue support.
What happens to MFIP grant if the noncustodial parent pays child support?
1. MFIP stays the same2. MFIP goes down 50¢ for every $1 paid in child support3. MFIP goes down $1 for every $1 paid in child support4. MFIP is cut-off
Food SupportCan a single dad, living alone with his child, without a custody
order, get Food Support for him and the child?
1. Yes2. No
Food Support• EBT Card - Used to buy food or plants and
seeds to grow food; in some places can use it at Farmer’s Market
• Income and asset test• Household is people
who live together andbuy and prepare food together
Food Support• No requirement to verify relationship of child
to caregivers (but still need proof of residence with child if getting support on behalf of child)
• Child can only have one residence – if questionable, specific rules apply
• Does not result in child support referral
WICCan fathers receive WIC benefits
for their children?
1. Yes2. No
WIC• Provides nutrition education and food vouchers for
approved foods• For pregnant women or children under 5• Income eligibility required, unless already
participating in other programs, such as MinnesotaCare
• Eligibility based on number of household members• Also must have a “medical or nutrition need” such as
health-based risks or lack variety in foods (e.g. missing iron or protein)
• Verification of parent-child relationship not required
Child Care Assistance Program - CCAP
• Subsidies for child care during work, job search or education related activities
• Child care costs for children under 13, or if disabled and under age 15
• Subsidy can apply to a legal licensed or unlicensed provider but exceptions if unlicensed
CCAP - eligibility
• Household eligibility includes all parents, stepparents, legal guardians or eligible relative caregivers who live in the home, and their spouses and blood-related dependent children and adoptive siblings
• If parents live together, both parents must meet employment, education and training requirements or be deemed unable to care for the child
CCAP• Must verify the relationship of the child to the
applicant (same rules as MFIP)• Must verify the presence of the child in the
home if questionable
Medical Assistance• Provides health care coverage, no premiums,
may be some small co-pays• Must have a child or be pregnant (or be blind,
elderly or disabled) • Individual eligibility
(not household unit)• Income and assets
test
MA – parent relationship
• For unmarried, father does not have parent/caretaker basis of eligibility (on a parental basis) until paternity is established
• But verification of relationship is not required
MA – child presence• Child cannot be counted in two households in
the same month• Child or eligible person must be present in the
household for a full calendar month to be included, but temporary absence ok
• If child alternates homes, household is where child spends most of the time
• If equal amount of time, where child lives at date of application
MinnesotaCare• Health care for low-income families who
cannot get affordable insurance through job or elsewhere
• Children must be in the household at least 50% of time to receive MinnesotaCare
• When custody alternates between parents, the child can be counted in the household of each parent but only enrolled in one household
MinnesotaCareRole of noncustodial parent’s insurance
If an applicant for MinnesotaCare is aware the noncustodial parent has insurance in place for the child, they must report that and the child will not be eligible.
If no insurance is in place, applicant will be asked if he/she has insurance available through his/her employer or union.
Resources• Bridge to Benefits website• Minnesota House Research Department,
Minnesota Family Assistance, A Guide to Public Programs Providing Assistance to Minnesota Families (December 2009)
• For clients: www.lawhelpmn.org (public benefits section)
Details at www.mnfathers.org/newnormal.html
Tax Benefits & Parents Living ApartScenario:Bobby’s parents don’t live together. They were never married, but Bobby’s father pays child support as part of a court order. Bobby’s father wants to know if he can claim Bobby on his taxes, since Bobby’s mom didn’t work very much last year and he believes she won’t receive much benefit from claiming Bobby. What can or should Bobby’s father do?
Continued…
Tax Benefits & Parents Living Apart
1. Consult a tax professional2. Claim all that he can on his taxes for Bobby3. Talk to Bobby’s mom, and claim what she
allows him to on his taxes4. Call the child support office5. Claim the dependency exemption and the
Earned Income Tax Credit6. None of the above
Why we’re covering this:Additional Family Income
• Point: If parents can agree, they both might be able to gain for making changes—where legally possible—to who gets what tax benefits.
• Some tax benefits can be changed with mutual agreement and proper forms filled out – some cannot.
• Tax laws have changed, and do change. Send clients to a tax professional, such as AccountAbility Minnesota.
35,000 foot overview – Federal only• Only one custodial parent for tax purposes• Only the custodial parent can claim:
– Head of household filing status– Child and dependent care credit– Earned income credit
• Custodial parent is entitled to the following, but can give them to noncustodial parent– The dependency exemption – Child tax credit – Additional child tax credit
Resources
• Booklet: Tax Credit Primer for Social Service Providers, 2009
• Fact Sheet: Can I Claim a Child on My Tax Return? (lawhelpmn.org)
• Free Tax Help for Low-Income People: AccountAbility Minnesota
Details at www.mnfathers.org/newnormal.html
Child Support Referrals• Use of any of these programs results in automatic
referral to child support: MFIP, Child Care Assistance Program, Medical Assistance and MinnesotaCare
• Parents do have the option of “medical-only” child support (if there is not other public assistance)
• Child support is connected to gov’t programs and databases when looking for people (absent parent locator, e.g.) and money (new hire hits, e.g.) but not required to interface with immigration
How benefits & child support interact
• Parents must cooperate in establishing paternity and with child support efforts; can be sanctioned if they do not
• Child support may be counted as income in some programs and reduce benefits, e.g. MFIP (treated as “unearned income”, reduce dollar for dollar)
Final Assessmenta new normal
I know a lot about the economics of family formation
1. Strongly Agree2. Agree3. Disagree4. Strongly Disagree
I know a lot about family resource management
1. Strongly Agree2. Agree3. Disagree4. Strongly Disagree
I know a lot about access to government safety net programs based on parents’ marriage and
custodial status1. Strongly Agree2. Agree3. Disagree4. Strongly Disagree
I know a lot about family responses to change including loss, opportunity, and
resilience1. Strongly Agree2. Agree3. Disagree4. Strongly Disagree
www.mnfathers.org/newnormal.html
Evaluation: www.mnfathers.org/newnormalEVAL.html
navigating a new normal