Newswise — For months, individuals and families across the country have been feeling the brunt of the current economic crisis. Some have lost long-held jobs or watched retirement savings quickly dissolve. Many are still struggling to pay mortgages and other bills. Others are on the brink of homelessness.
At the University of North Carolina at Chapel Hill School of Social Work, such scenarios often play a significant role in faculty research and study. That's because every day " financial meltdown or not " social workers are on the frontlines helping adults, children, the elderly and people with disabilities cope with and find answers to fiscal, physical and psychological challenges.
Along with searching for possible solutions, the school's faculty assess the effectiveness of current policies and programs, such as those related to affordable housing and violence prevention, said Anna Scheyett, Ph.D., associate dean for academic affairs.
"During times of economic crisis, more people are at risk," Scheyett said. "Our research " and sharing our findings with students and practicing social workers " becomes even more important in helping vulnerable people and their families and communities."
'Fair and responsible mortgages'
For Michal Grinstein-Weiss, Ph.D., assistant professor, the current mortgage crisis emphasizes the need for increasing opportunities for homeownership among low-income households, a topic she has been researching for much of her career. Studies have shown that families who own their own homes are happier, healthier physically and economically and that their children do better socially and academically.
Where others see challenges, Grinstein-Weiss sees potential solutions. She believes one possible answer is individual development accounts (IDAs) " matched savings account programs that enable low-income residents to save for a down payment on a house, college tuition or a start-up business. Such programs require participants to receive credit counseling, take financial literacy classes and work with a homeownership counselor to understand the home-buying process. Between 1998 and 2006, almost 50,000 people nationwide opened IDAs.
Results appear promising. According to a study by Grinstein-Weiss and researchers from UNC, the Center for Social Development and the Brookings Institution being published this month in the journal Housing Policy Debate, low-income families who participated in a program from 1998 to 2003 were 75 percent more likely than other low-income people to purchase a home. After 18 months, IDA participants had nearly two times greater odds of being engaged in the activity of clearing up old debts.
Grinstein-Weiss and her team are now collecting additional data to examine the effects of homeownership on low-income households and to determine if recent foreclosures were less common among IDA participants.
"We would hope to be able to say, 'Look, with fair and responsible mortgages and the appropriate financial education, low-income households will be able to do better,'" she said.
Grinstein-Weiss expects to have more results from the study by February.
Tumultuous times can lead to domestic violence
Along with housing worries, some families are struggling to cope with overwhelming pressure and general anxiety. And in some cases, they are taking it out on each other, said Rebecca Macy, Ph.D., associate professor, who researches interpersonal and relationship violence.
Such tumultuous times can lead to an increase in domestic violence and sexual assault incidents, Macy said. According to a 2004 report from the National Institute of Justice, couples who reported extensive financial strain had a rate of violence more than three times that of couples that were less stressed about finances. Moreover, the report noted the highest rates of intimate violence are found among women who live in disadvantaged neighborhoods with men who struggle to remain employed.
Locally, at least one shelter has already reported a rise in abuse cases, Macy said. The increase comes as nonprofit groups and service agencies are being forced to tighten spending. "My worry is that those agencies already struggling with money as it is will have less money to support services."
Macy recently completed a two-year study that looked for effective sexual assault and domestic violence services in the state and at existing gaps. Among other challenges, the investigation found that limited funding often prevents agencies and shelters from providing ideal services, such as transportation to help survivors access services, transitional housing and specialized services for children.
Macy said understanding what's working and what isn't should ensure that public and private funds are wisely spent.
To read more about Grinstein-Weiss and Macy's work, visit: http://ssw.unc.edu/about/news/troubled_economy_12-5-08
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