Folding Money
Foldin’ money, you need a little stash
Some greenback dollars and cold hard cash
Save it for a rainy day or go away a little bit, son
It takes foldin’ money… to get the deal done.
There are a LOT of songs about money. Earning it. Finding it. Losing it. Dreaming about it. The Beatles managed to have hit singles about money being “all I want” and another one about how it “Can’t Buy Me Love.” Those two songs were released four months apart. The Bare Naked Ladies’ “If I Had a Million Dollars” imagines a whimsical spending spree, on among other things, a treehouse and fancy ketchup. While the O’Jays “For the Love of Money” warns of the corrupting influence of money and greed.
Foster’s song extols the practical use of money. Specifically, “folding money” or paper bills. My grandfather would call it “walking around money” – the cash you carry with you. It is the money you intend to spend. Debit cards, ATM machines, Venmo and Apple Pay have changed the way we carry out routine transactions, even the way we think about cash. But whatever format we use, we all need money for day-to-day activities.
According to a study by the NORC at the University of Chicago, many middle-income older adults, struggle to pay for health, personal care, and housing services. The study looked at “individual future financial resources” including income and annuitized assets (including retirement accounts and homeownership). The researchers also considered life expectancy and health conditions. The study focused on individuals age 75 and older. The range of “middle-income” in the study was identified as $26,569 to $78,959 per year. This is a population that does not qualify for most safety net programs. Not poor and not wealthy, it is literally the Middle Class. It is also a growing percentage of the overall adult population, doubling in size to more than sixteen million by 2033.
Middle-income older adults primarily rely on income (not assets) for living expenses. Only four percent of adults 75 and older are working , while more than ninety percent are retired. Home equity is a major source of wealth for the population, surpassing investment accounts, and other assets. The NORC study focuses on the ability to pay for healthcare and housing, noting the growing likelihood that chronic health conditions or mobility limitations will require some level of assistance with caregiving. Housing and healthcare costs rise as we age, but other routine expenses also continue and continue to rise.
The Elder Index, developed by the Gerontology Institute at the University of Massachusetts Boston, measures the income required to meet the basic needs of older adults. The tool calculates average costs of living for older adults, based on community, health status, and other factors. It includes housing, healthcare, transportation, food, clothing, and other costs. In Cuyahoga County, the average older adult, in good health and with no mortgage debt, the average cost of living is $24,500, slightly below the national average. The cost per person is higher if the older adult paying rent or a mortgage ($28,900) or is in poor health (31,000 or more). So, the older adult at the lower end of the average income may struggle to cover basic living expenses. According to the Institute for Healthcare Policy and Innovation at the University of Michigan, more than half of older adults felt stress about their personal finances in the past year, and a 52 percent reporting cutting back on at leas one everyday expenses, such as groceries, personal items or home maintenance.
Benjamin Rose conducts Client Experience Surveys among our participants each year. Research Scientist Sara Powers leads the survey, which looks at client satisfaction and program outcomes. Recent surveys have also focused on social determinants of health and unmet needs of our clients. Many of responses point to economic challenges. The most frequently identified areas identified as a need for information or support:
- Paying for food or groceries (56.3%)
- Staying active (55.5%)
- Paying for housing, rent, mortgage, or utilities (52.1%)
- Learning about benefits or programs you may qualify for like Social Security or Medicare (50.6%)
- Help with technology (49.0%)
Financial resources and information at Benjamin Rose
Helping older adults achieve and maintain financial stability is one of the service pillars at Benjamin Rose. Our Housing and Financial Wellness team promotes financial wellbeing with benefits counseling and enrollment. As a VITA (Volunteer Income Tax Assistance) site, we assist older adults in filing their taxes each year. Our homebuyer education and home ownership programs help prepare people to purchase a home, and keep it, as well as explore transition options when and if the time comes to move. It is part of our commitment to be a trusted partner in the aging journey.
Earlier in March, we launched a new partnership with Cuyahoga County and the Cities for Financial Empowerment Fund (CFE Fund). The new Financial Empowerment Center will support Cuyahoga County residents efforts to build financial security by reducing debt, developing budgeting skills, improve credit scores and increase saving. FECs nationwide have provided more than 200,000 people with counseling services and help reduce consumer debt by more than $340,000,000. We are honored to be part of this public/private partnership, supported in part by the CFE Fund, Keybank and First Federal Lakewood that will bring financial literacy and financial freedom to residents of our community.
At Benjamin Rose we are mindful of the importance of financial stability for people at all stages along the aging journey. Helping people be more financially aware and consumer savvy means they can have more options about where and how they live as they age. It is a conversation about needs, and wants and desires, about the things that are important to us. And, having a little foldin’ money for the journey.
Learn more about our Financial Wellness Services by visiting our website.
Notes:
https://hhs.cuyahogacounty.gov/departments/cjfs/income-tax-help
Radney Foster, “Foldin’ Money” https://open.spotify.com/track/16ABGHpzR7kjuFebK7g3cD
O’Jays “For the Love of Money” https://open.spotify.com/track/3p1JoOEhVkEnTaa4JzTMSk
Bare Naked Ladies “If I Had $1,000,000” https://open.spotify.com/track/0KeDuUqEX3P0cKzRD5pEom
The Forgotten Middle in 2033: https://www.norc.org/research/projects/the-forgotten-middle-in-2033.html
University of Michigan: https://ihpi.umich.edu/national-poll-healthy-aging/national-findings/making-ends-meet-financial-strain-and-well-being