The Workforce Innovation and Opportunity Act (WIOA) is a landmark piece of legislation designed to help job seekers, including individuals with disabilities, access education, training, and employment opportunities. Beyond supporting workforce development, WIOA also emphasizes the importance of financial empowerment as a critical component of economic self-sufficiency. By connecting individuals to resources, training, and tools, WIOA helps ensure that increased work income leads to long-term financial stability and growth.
WIOA Requirements for Financial Empowerment
WIOA includes specific provisions aimed at promoting financial literacy and economic advancement for participants:
- Financial Literacy Education WIOA requires workforce programs to provide financial literacy education as part of their services. This includes teaching:
- Budgeting and managing personal finances.
- Understanding credit scores and improving credit.
- Strategies to reduce debt.
- Saving for future goals like education, housing, or retirement.
- Integration with Employment Plans Participants in WIOA programs, including those in vocational rehabilitation (VR), develop Individualized Employment Plans (IEPs) that may include financial empowerment goals. These plans often connect individuals to:
- Benefits counseling to understand how work income affects disability benefits.
- Resources for opening savings accounts or achieving financial independence.
- Access to Supportive Services WIOA funds can be used to provide supportive services that enable individuals to participate in training and employment. These services may include help with transportation, childcare, and tools for financial stability, such as assistance in accessing tax credits or managing work-related expenses.
Resources for Financial Empowerment
- Local American Job Centers (AJCs) AJCs are a hub for WIOA services and often provide financial literacy workshops, access to financial counseling, and referrals to community organizations focused on financial empowerment.
- Vocational Rehabilitation Agencies VR programs funded by WIOA include benefits counseling to help individuals with disabilities navigate how work income interacts with Social Security Disability Insurance (SSDI), Supplemental Security Income (SSI), and Medicaid/Medicare benefits.
- Partner Organizations
- Consumer Financial Protection Bureau (CFPB): Provides resources on managing finances, improving credit, and planning for financial goals.
- National Disability Institute (NDI): Offers programs like financial coaching, tax assistance, and training tailored to people with disabilities.
- Community Action Agencies (CAAs): Deliver local programs for asset-building and financial stability.
- Education and Training Grants WIOA funding can cover training programs in financial literacy and skills that help participants achieve higher-paying jobs and long-term financial security.
Tools to Promote Economic Advancement as Income Grows
- Benefits Counseling and Work Incentives Planning For individuals receiving disability benefits, services like the Work Incentives Planning and Assistance (WIPA) program help clarify how earnings impact benefits and identify work incentives such as:
- Earned Income Exclusion: Allows individuals to earn a certain amount without reducing SSI benefits.
- Plan to Achieve Self-Support (PASS): Enables individuals to set aside income for education, training, or starting a business.
- Financial Apps and Tools Several digital tools can assist individuals in managing finances effectively as their income grows:
- Budgeting apps like Mint or YNAB (You Need A Budget).
- Credit monitoring services like Credit Karma.
- Savings tools such as Acorns or Qapital, which automate saving for specific goals.
- Tax Credits and Savings Programs
- Earned Income Tax Credit (EITC): A refundable tax credit that benefits low- to moderate-income workers.
- Achieving a Better Life Experience (ABLE) Accounts: Tax-advantaged savings accounts for individuals with disabilities to save for qualified expenses without jeopardizing benefits.
- Employer-Based Programs Many employers offer programs that support financial well-being, such as:
- Retirement savings plans (e.g., 401(k) with employer match).
- Employee Assistance Programs (EAPs) with financial counseling services.
- Flexible spending accounts (FSAs) or health savings accounts (HSAs).
- Asset-Building Programs Programs like Individual Development Accounts (IDAs) provide matching funds for saving toward specific goals, such as buying a home, starting a business, or furthering education.
How WIOA Fosters Long-Term Financial Growth
WIOA’s holistic approach to workforce development ensures that financial empowerment is not an afterthought but a core component of helping individuals achieve economic independence. By combining employment-focused services with tools and resources for managing finances, WIOA sets participants on a path to:
- Build savings and reduce reliance on public benefits.
- Improve credit scores and access affordable financing.
- Plan for long-term goals like homeownership or retirement.
WIOA’s emphasis on financial empowerment recognizes that true economic advancement goes beyond earning a paycheck. By leveraging WIOA resources, integrating financial literacy into workforce programs, and using tools designed to promote financial stability, individuals can achieve lasting economic independence and success. Whether through local American Job Centers, VR agencies, or partner organizations, WIOA participants have access to a wealth of resources that empower them to turn work income into long-term prosperity.
More information and a free financial tool kit for individuals with disabilities
