For Immediate Release:
December 6, 2022
Media Contacts: Ariana Contreras
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.