An Evaluation of Financial Empowerment Centers: Building People’s Financial Stability as a Public Service

The Cities for Financial Empowerment Fund released the results of an evaluation of a three-year investment in free, one-on-one financial counseling to residents in five cities. This project was based on a model that originated in New York City, in which individuals in financial trouble receive personalized help from a professionally trained counselor through their local government. Bloomberg Philanthropies partnered with Denver, Lansing, Nashville, Philadelphia, and San Antonio to see how they could replicate this model. In each city, the local government implemented the model and contracted with a nonprofit partner to provide counseling services. Over 22,000 individuals received financial counseling, and they were able to achieve positive financial outcomes like opening bank accounts, reducing debt, improving credit, and establishing emergency savings. Each city also found sources of public funding to sustain the program beyond the Bloomberg Philanthropies grant.