July 2015 Newsletter
RAISE Texas News
The 2015 Legislative Session Final Policy Update
The 2015 Legislative Session officially ended on June 1, 2015. Four of the bills that we tracked and supported this session made it through the legislature and onto the Governor’s desk. The Governor signed three of the bills into law and vetoed one. We would like to thank everyone who supported asset-building bills this session, whether through testimony, submitting a card, or by phone or email. Your voice mattered! See the final bills listed below.
- Bills Signed by Governor Abbott
- HB 3987: Relating to programs in public schools designed to facilitate planning and savings for higher education and facilitate personal literacy instruction.
- SB 1664: Relating to the establishment of the Texas Achieving a Better Life Experience (ABLE) Program; authorizing the imposition of fees.
- HB 1626: Relating to the designation of certain areas of banking development districts to encourage the establishment of financial institution branches in those areas.
- Bill Vetoed by Governor Abbott
- HB 1628: Relating to authorizing a credit union or other financial institution to conduct savings promotion raffles.
RAISE Texas Convenes Community Leaders From Throughout Texas
Following the end of the 2015 Legislative Session, RAISE Texas convened community leaders from 12 geographic regions in Texas to discuss our work and ways to expand asset-building activities throughout our state. The meeting was a success as we planned next steps and activities to move our work forward in 2015 and 2016. We also started planning our 2016 RAISE Texas Action Summit for next spring. RAISE Texas would like to thank Yvette Ruiz and JPMorgan Chase Foundation for sponsoring this two-day event.
National News
The Ohio State University Releases National Student Financial Wellness Study
The National Student Financial Wellness Study (NSFWS) was recently released showing the financial attitudes, practices and knowledge of students from fifty-two four-year public, four-year private and two-year public institutions of higher education across the United States. The NSFWS was developed and administered by The Ohio State University to obtain a thorough and accurate picture of the financial wellness of college students. Five key topics were examined by the report: student loans, credit cards, financial behaviors, financial knowledge and financial futures. Some interesting findings include:
- Seven out of ten college students feel stressed about their personal finances
- More than 20% of students with loans expect they will have $50,000 or more in loans at the time of their graduation
- Almost 60% of all students agree they worry about having enough money to pay for school
- The majority of students (64%) use loans to pay for college
To read the entire report click here.
New Report by The Hamilton Project on Financial Well-Being in Retirement
There are many economic factors that make retirement planning a challenge for many American households, and a new report from The Hamilton Project, Ten Economic Facts about Financial Well-Being in Retirement, finds that rising life expectancies, stagnant wage growth, and uncertainty about the stability of investments all threaten the financial security of future retirees. Some of the findings in the report show that only half of American adults who are not yet retired expect to retire with enough money to live comfortably and basic financial concepts are not well understood by many Americans. Those findings combined with increasing health care costs create uncertainty for Americans’ financial security and preparedness for retirement. Click here to read the entire report.
IRS Proposed Regulations for the ABLE Act Released
The Internal Revenue Service (IRS) released its proposed regulations that provide guidance for programs under The Stephen Beck, Jr., Achieving a Better Life Experience (ABLE) Act of 2014. Specifically, these regulations will help States or State agencies establish a new type of tax-favored savings program for eligible disabled individuals to meet qualified disability expenses. The Texas Legislature and the Governor recently passed SB 1664 to establish the ABLE accounts here in Texas. RAISE Texas will be following the proposed federal regulations as the state begins the implementation process. Read the proposed regulations here.
CFPB Announced the Launch of its Financial Well-Being Initiative for People with Disabilities
The Consumer Financial Protection Bureau (CFPB) launched their new financial well-being initiative, in partnership with the National Disability Institute on June 3, 2015. The ROADS (“Reach Outcomes. Achieve Dreams, Succeed.”) to Financial Independence initiative will integrate financial counseling with employment, independent living, and other support services to individuals with disabilities in six communities across the country. This initiative aims to improve the economic security and financial well-being of individuals with disabilities who are currently working or transitioning into the workforce. Click here to read the full remarks about this initiative by CFPB Director Richard Cordray of the CFPB. One of the six locations for this demonstration project is in Austin, Texas.
Squared Away Blog Post on Financial Anxiety
The Squared Away Blog by the Center for Retirement Research at Boston College recently posted about financial anxiety. The new post, “Avoidance Comes with Financial Anxiety”, discusses how a number of studies show that managing money isn’t only about what a person knows, but also how a person feels. The studies specifically looked into a newly identified emotion known as financial anxiety. Read the blog to find out if financial anxiety is real, and does it explain why people make financial decisions like avoiding money issues or going into debt.
