navigating a new normal How the economy is changing fathers, families, and future expectations Welcome University of Minnesota Extension Minnesota Fathers & Families Network Ellie McCann Jennifer Garbow Rose Allen www.extension.umn.edu Paul Masiarchin Melissa Froehle Molly 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 Agenda 9:30 10:00 10:45 11:00 11:10 11:50 12:15 12:45 1:50 2:00 3:00 Introductions & background The current economy: Three conditions that impact optimism Change & resilience Stretch The economy’s impact on gender, family, children, & mental health The future Lunch Local community panel Stretch Myth busters: How fathers & mothers can access government benefits Thank you How far did you drive to get here today? 0% 0% 0% 0% 0% 0% 1. 2. 3. 4. 5. 6. 10 miles or less 11 to 20 miles 21 to 30 miles 31 to 50 miles 51 to 100 miles 101 miles or more Did you attend the Minnesota State Fair this year? 0% 0% 1. Yes 2. No What type of vacation have you taken in the past 6 months? 20% 20% 20% 20% 20% 1. 2. 3. 4. 5. I traveled out of the country I traveled out of Minnesota I traveled in Minnesota I took a staycation at home I haven’t had a vacation! I know a lot about the economics of family formation 1. 2. 3. 4. Strongly Agree Agree Disagree Strongly Disagree 25% 1 25% 25% 2 3 25% 4 I know a lot about family resource management 1. 2. 3. 4. Strongly Agree Agree Disagree Strongly Disagree 25% 1 25% 25% 2 3 25% 4 I know a lot about access to government safety net programs based on parents’ marriage and custodial status 1. 2. 3. 4. Strongly Agree Agree Disagree Strongly Disagree 25% 1 25% 25% 2 3 25% 4 I know a lot about family responses to change including loss, opportunity, and resilience 1. 2. 3. 4. Strongly Agree Agree Disagree Strongly Disagree 25% 1 25% 25% 2 3 25% 4 Let’s find out who is here We will not share your responses with the group. What generation do you belong to? (Indicate by your year of birth) 25% 25% 25% 25% 1. Millennial (Gen Y) – 1981 to 2000 2. Generation X – 1965 to 1980 3. Baby Boom – 1946 to 1964 4. Silent Generation – 1925 to 1945 What is your gender? 1. Female 2. Male What is your race 0% 0% 0% 0% 0% 0% 1. 2. 3. 4. 5. 6. White African American or Black Asian Hispanic Native American Multiracial What is your educational level? 20% 20% 20% 20% 20% 1. 2. 3. 4. 5. Less than high school High school graduate Some college College graduate 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 unemployed 4. I am not in the labor force Where do you live? 0% 0% 0% 0% 0% 1. 2. 3. 4. 5. Urban – large city Suburban Regional center Small town Rural Complete the Self Assessment “Staying Resilient in Times of Change?” A New Normal web resource links www.mnfathers.org/newnormal.html 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? or Do 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. Improve 2. Get worse Optimism’s many faces Will your financial situation improve or get worse over the next year? 90 80 70 60 50 40 30 20 10 0 Improve Get worse Pew Research Center 2010 Discussion What are some individual conditions that may impact a person’s financial optimism? - Your job situation - Housing - Family finances Jobs a new normal How many of the following have you experienced in the past 3 years? Work hours reduced A pay cut Forced to take unpaid leave Forced to switch from full time to part time 1. None of the above 2. One 3. Two or more How many of the following have you experienced in the past 3 years? - Work hours reduced - Pay cut - Forced to take unpaid leave - Forced to switch from full-time to part-time Two or more, 20% One, 22% None, 58% Pew Research Center 2010 How does job loss or a decrease in income impact families? • 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 Data compiled by NDSU Extension Service and University of Minnesota Extension, 2009 Nearly 6 months! Underemployment Percent of part-time workers who would prefer to work full-time 70 60 50 40 Minorities, 59 All adults, 47 Whites, 41 Men, 60 Women, 38 HS or less, Some 56 college, 44 College, 35 30 20 10 0 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 Housing a 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. 2. 3. 4. Strongly agree Somewhat agree Somewhat disagree 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 Read the Initiative Foundation’s March 2010 IQ magazine to learn more. Linked at www.mnfathers.org/newnormal.html Initiative Quarterly, March 2010 Financial Issues a new normal Since the recession began, have you changed your spending habits? 1. I have cut back on spending 2. My spending has stayed the same 3. I am spending more Spending Habits Since the recession began, are you spending: 100 6 80 30 60 40 62 More Same Less 20 0 Pew Research Center 2010 What are life’s necessities? 100 90 80 70 60 50 40 30 20 10 0 88 2009 2006 54 52 50 49 47 31 21 8 4 Pew Research Center 2010 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 changes 2. Minor changes 3. No changes Frugality How have our habits changed? Spending Savings Use of credit Design and functionality Green Generosity What does this mean for families that already are low income? Meeting Basic Needs Costs for a Family of Four with Two Workers Minnesota Statewide Average—2009 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 Hourly wages needed - $14.03/hour each worker or a total of $28.06/hour Source: Jobs Now Coalition The definition of poverty 2010 Federal Poverty Level The Working Poor The Near Poor Unequal Impact on Families In 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 Professor University of Minnesota Family Social Science Department 612-625-9273 sdanes@umn.edu “Staying Resilient in Times of Change?” Your score 1. 2. 3. 4. 10 to 20 21 to 30 31 to 40 41 to 50 25% 1 25% 25% 2 3 25% 4 “Staying Resilient in Times of Change?” Your client’s score 1. 2. 3. 4. 10 to 20 21 to 30 31 to 40 41 to 50 25% 1 25% 25% 2 3 25% 4 Getting Through Tough Times Fact 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 Economy a 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.” The rise of wives 2007 22% of husbands earn less than their wives 1970 4% of husbands earn less than their wives Share of husbands whose wives’ income tops theirs How is the economy impacting gender roles? For men? For women? Family Relationships a 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 Life Interrupted Percent of each group who say they did the following because of the recession… 5 Postponed getting married 21 6 24 Postponed having a baby 3 3 6 Moved back in with parents 11 25-34 2 2 2 Took in a boarder Pew Research Center 2010 18-24 1 0 35+ 10 20 30 Multigenerational Households Grow 30 25 That’s 1 in 6 households! 24.7 20 16.1 15 15 15.1 10 12.1 5 0 1940 1950 1960 1970 1980 1990 2000 2010 Pew Research Center 2010 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 rent Be cautious • Assisting with student loans • Offering a personal loan Don’t do it • Paying for bad shopping habits • Co-signing on a credit card Tips for helping families to manage a multigenerational home Parade.com July 18, 2010 What is one opportunity and one challenge experienced by multigenerational homes? What about the children? a new normal In 2010, some states are experiencing the lowest birth rates in 100 years! Finances impact parenting 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 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. 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 households Average grant: $212/month During 2009 – • Participation increased by 30% • 58% of Family Households were working • The average time on SNAP is 36 months Source: Minnesota Department of Human Service Nutrition Resources Minnesota Food HelpLine (1-888-711-1151) Community Action Agencies Bridge 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 Health a new normal Unemployment & Mental Health Based on Family Role Are employed or unemployed individuals more likely to have poor mental health? Employed Single ++ ++ Women Men Married Women ++ Men Divorced / Separated Source: American Journal of Public Health, 2004 Unemployed Women Men ++ ++ How does job loss impact mental health? Long term unemployment impacts mental health Suicide and Economic Strain Economic 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. Agree 2. Disagree How confident do you feel about having enough income and assets for retirement? 1. 2. 3. 4. Very confident Somewhat confident Not too confident Not at all confident When your children are at the age you are now, do you think their standard of living will be 1. 2. 3. 4. 5. Much better than now Somewhat better About the same Somewhat worse Much worse Happiness… How much money do you need? a new normal How are these terms similar? Staycation Food Stamps Groupons Small plates Redbox Pedicure Unemployment benefits Higher income is strongly correlated with how people evaluate their lives, but only moderately with day-to-day positive feelings Social Capital Mastery Having others you can count on Respect Learning new things Using 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: Where are you now? Change: Loss, Opportunity and Resilience, Sharon M. Danes Copyright © 2008 Regents of the University of Minnesota. All rights reserved. What does the “New Normal” mean to you and your community? Lunch followed by Community Panel & Myth Busters Myth Busters a new normal Safety Net 1 in __ Americans gets government aid in the form of a safety net. 1. 2. 3. 4. Two Four Six Eight Public Assistance Programs • • • • MFIP Food Support WIC Child Care Assistance Program • Medical Assistance • MinnesotaCare Also, 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 IMPORTANT DISCLAIMERS 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 applicant For “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. 2. 3. 4. MFIP stays the same MFIP goes down 50¢ for every $1 paid in child support MFIP goes down $1 for every $1 paid in child support MFIP is cut-off Food Support Can a single dad, living alone with his child, without a custody order, get Food Support for him and the child? 1. Yes 2. 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 and buy 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 WIC Can fathers receive WIC benefits for their children? 1. Yes 2. 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 MinnesotaCare Role 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 Apart Scenario: 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 professional 2. Claim all that he can on his taxes for Bobby 3. Talk to Bobby’s mom, and claim what she allows him to on his taxes 4. Call the child support office 5. Claim the dependency exemption and the Earned Income Tax Credit 6. 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 Assessment a new normal I know a lot about the economics of family formation 1. 2. 3. 4. Strongly Agree Agree Disagree Strongly Disagree I know a lot about family resource management 1. 2. 3. 4. Strongly Agree Agree Disagree Strongly Disagree I know a lot about access to government safety net programs based on parents’ marriage and custodial status 1. 2. 3. 4. Strongly Agree Agree Disagree Strongly Disagree I know a lot about family responses to change including loss, opportunity, and resilience 1. 2. 3. 4. Strongly Agree Agree Disagree Strongly Disagree navigating a new normal www.mnfathers.org/newnormal.html Evaluation: www.mnfathers.org/newnormalEVAL.html