This week on Solutions News, we welcome Kristine Schwarz, Executive Director of New Beginnings Counseling Center, a mental health center that provides services to low-income families and individuals. When it comes to mental health, having a safe place to sleep is the first step to treatment.
But having an address is also essential to access other types of practical support - including the ability to open a checking account. On the edge of stability, how does a person manage his or her finances? That’s a question we had too. Something as simple as cashing a check becomes increasingly difficult in an increasingly cashless society, so what is it like being unbanked in America, and what are some solutions?
According to the FDIC, cash represented only 26 percent of all payments in 2018. Likewise, unstable addresses make it even more difficult to manage finances, let alone reestablishing credit, applying for a loan, or opening an account.
In 2017, the FDIC reported that 25 percent of American households are either underbanked or fully unbanked, and there is a clear correlation between this number and homelessness.
So what are the solutions? One simple yet effective solution is a prepaid card that acts like a debit card that you can reload at common stores without the need for a bank account or a credit history.
To beat the obstacle of not having a permanent address, an online company called iPostal1 provides a digital account to manage postal services - they help by providing a physical street address that can be used for credit card services.
To get people back under a roof, we talk about solutions including tiny houses, home for good programs, sanctuary centers, and multi-generational partnerships. We must do something now to help with homelessness, financial instability, and the oftentimes associated mental health issues.
Still, these innovative services and solutions have somewhat limited accessibility, such as internet access or membership fees. To learn about the strategies that New Beginnings has been developing for more than a decade to deal with such widespread issues, listen now!