As an organization that advocates for women living on low-incomes, their families, and their communities, we are discouraged, disheartened, and disappointed by The Supreme Court’s decision to strike down affirmative action in college admissions. This decision will negatively affect the already marginalized communities we serve, who are primarily Black, Indigenous, and other People of Color (BIPOC) – communities who  already lack opportunities for economic mobility and generational wealth building. 

Affirmative action is crucial for promoting economic mobility and breaking the cycle of poverty among BIPOC people. Historically, systemic discrimination and inequality have hindered the progress of marginalized communities, particularly people of color. Affirmative action policies aim to level the playing field by providing opportunities and addressing the structural barriers that have perpetuated racial disparities. By increasing access to education, employment, and other resources, affirmative action enables individuals from disadvantaged backgrounds to overcome the obstacles they face and pursue upward mobility.

In the past, by implementing policies that promote diversity and inclusion in educational institutions, affirmative action helped to address historical disadvantages and foster equal access to quality education. This not only enhances the educational experience for all students but also creates pathways for BIPOC people to gain the skills and knowledge necessary for economic success. With improved access to education, individuals from marginalized backgrounds can secure better job opportunities, higher wages, and improved prospects for their future. Thus breaking down barriers and challenging stereotypes, affirmative action can help dismantle the structural inequalities that have hindered the economic progress of BIPOC people, contributing to the overall reduction of poverty rates within these communities.

This decision by the Supreme Court to end affirmative action will end the educational opportunities that have been essential for promoting economic mobility and lifting BIPOC people out of the cycle of poverty. Affirmative action not only benefits individuals but also contributes to a more inclusive and equitable society, where everyone has the chance to thrive and contribute to the nation’s economic growth.  

As a successful businesswoman and member of the Women Money Matters’ Board of Directors, Gisel Lopez exudes a quiet confidence and poise. However, it wasn’t all that long ago that Gisel found herself new to the U.S. and uncertain about how to navigate the culture, including how to get her financial footing.

Gisel moved to the U.S. from Peru in 2015. Gisel explains, “I found it difficult to navigate my finances in the U.S. Unlike in Peru, I needed to establish a credit score to be eligible to access credit. Also, I did not understand the different methods to save for retirement and the different terms associated with filing taxes felt confusing.”

Like many, Gisel turned to Google to get some answers. While some of the information online was very helpful, not all of it was relevant, or even necessarily in her best interest. Fortunately, her manager at the time was also an immigrant and guided her with her approach to personal finances. “I was so lucky to have a mentor to answer my financial questions,” said Gisel.“That is why I am so passionate about Women’s Money Matters mission and its coaching model. I truly believe that as an organization we can support women on their journey to financial independence.”

Gisel has witnessed first hand the importance of women achieving financial independence. At 14, Gisel’s parents divorced, and Gisel’s mother no longer had the financial support of her husband. Without a college degree, Gisel’s mother had to be creative about how she’d support her children. They moved in with Gisel’s grandparents and her mother began selling things door to door. It was a much different life than they’d had before. However, with a lot of hard work, Gisel’s mother later went on to become a successful realtor and now she managed her own properties.  “My Mom showed such tremendous courage as she began a new life for us,” said Gisel. “Even though it wasn’t easy, we are all stronger than we think.”

When asked what advice she’d give to others, Gisel shared, “Find a community that has your best interest at heart. Every day we are faced with different and often difficult decisions and having a community makes it so much easier.”

PRESS RELEASE

For Immediate Release:

December 6, 2022

Media Contacts: Ariana Contreras

([email protected])

520-456-5965

Women’s Money Matters Graduate Speaks on the Impact of Cliff Effects

Deonne Luacaw spoke on the impact the cliff effect has had on her finances and employment. 

Women’s Money Matters, formerly Budget Buddies, which builds the financial wellness, confidence, and security of women living on low-incomes, connected program graduate Deonne Luacaw to be featured in an article by Fed Communities about the economic cliff effects. The cliff effect is the gap between what someone will be earning in a new job and the value of the public assistance benefits that person loses as a result. The cut off for benefits is often lower than the income needed to earn to replace that benefit. 

Danielle Piskadlo, Executive Director of Women’s Money Matters, on the cliff effects “In our financial wellness programs our participants frequently share their struggles with the cliff effect and that they have the desire to enter the workforce or seek better paying jobs. However when they increase their incomes they can’t afford childcare costs, it will change the amount of their housing vouchers and increase their rent, plus the loss of food assistance would be difficult due to the rising costs of essentials like groceries.”

Due to the cliff effect, people like Luacaw who get financial support from public assistance can end up worse off after joining the workforce, accepting a pay raise or promotion, or moving to a better-paying job. Luacaw shared, “We’re going to write out my goals, how much I can put into savings, when to pay my rent—these are the priorities. Before [Women’s Money Matters], I was never paying my bills on time. Now, I have steps. I have a calendar with reminders, just to anticipate these things. I never had a checking account. They helped me navigate through that. It’s these things that I wasn’t taught. I was just trying to survive.”

Read the full article here. 

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About Women’s Money Matters:

Women’s Money Matters, formerly Budget Buddies, builds the financial wellness, confidence, and security of women living on low-incomes through a unique program that combines instructional workshops and personal, one-to-one coaching.

About Fed Communities 

Through applied research, public programs, outreach and technical assistance, Federal Reserve community development teams help promote economic growth and financial stability in low- and moderate-income communities across the country.