This report provides a compilation of the success of financial capability integration efforts for tribal communities. The report focuses on two locations in Alaska: the Kenaitze Indian Tribe and the Aleutian Pribilof Island Association (APIA). Household financial living and assessing organizational and community capacity to deliver services are discussed in depth.
This worksheet helps practitioners understand how to use the behavioral economics concept of “anchoring” in a goal setting conversation with clients. Anchoring means sharing information that may influence an individual’s behavior in one direction, without explicitly telling them what to do. (For example, posting a suggested donation of $10 for museum entry is an anchor – you do not have to donate $10, but many people likely will.) The worksheet addresses setting a savings goal, but the concept can be applied to any type of goal.
The Consumer Financial Protection Bureau (CFPB) offers colorful, visually appealing booklets for counselors addressing basic financial management skills with clients. Behind on bills? helps clients get a handle on cash flow, prioritizing bills and expenses, and creating an action plan. Debt getting in your way? helps clients map out existing debt, set repayment goals, and avoid future debt. Each booklet contains simple tools that can stimulate conversations about financial management. Booklets can be ordered from the CFPB for free.
This Abt Associates report details evaluation results from Family Self-Sufficiency programs in Lynn and Cambridge, Massachusetts. In these programs, Compass Working Capital partnered with local public housing agencies to provide case management and an escrow savings account to help participants achieve their financial goals. The researchers compared the change in earnings, welfare income, credit scores, and debt over time between program participants and a matched comparison group.
This working paper from the Upjohn Institute for Employment Research examines the effects of receipt of the federal Pell Grant on future earnings of low-income students and a cost-benefit analysis for the program. Researchers found that Pell Grant receipt greatly increases the chance of graduation and that within 10 years, the taxes from earnings of former Pell Grant recipients will fully recoup the total federal expenditures on the original grants. In addition, the social welfare implications of grant aid are discussed.
This paper from the National Council of La Raza explains the challenges that immigrants may face when learning about the U.S. financial system, such as using banks, accessing credit, and avoiding predatory loans. It then presents options for safe, affordable financial services that fit many immigrants’ needs and are available in most communities through credit unions and community development financial institutions.
This post from the Annie E. Casey Foundation describes the important differences between financial coaching and other types of money management, such as financial literacy, financial counseling, and financial planning. Financial coaching focuses on self-empowerment and the achievement of goals through short- and long-term steps. This can help low-income families achieve financial stability in the future.
Studies show that low-income families are more likely to be unbanked and “underbanked” than families with higher earnings. Lacking a bank account or depending on alternative financial services leads to significant financial barriers for low-income families that hinder economic growth and social mobility. This session will evaluate strategies that local and state human services agencies are testing to equip TANF recipients with the financial knowledge and resources they need to overcome barriers to financial security, including ACF’s Asset Initiative Partnership.
This documentary is from the Annie E. Casey Foundation, and tells the stories of people who have struggled to overcome the effects of having a poor credit score or no credit history. Poor credit scores can affect the ability to obtain credit cards, loans, rent or lease a house or apartment, and obtain student loans. Around 70 million people have poor credit scores or no credit history, and experts estimate that a good credit rating will save the average borrower $250,000 in interest over a lifetime.
This report is from the Urban Institute and is part of a series on asset building and the low-income population. In this report, authors provide an overview of 20 current research studies on the assets and liabilities of low-income households. By synthesizing the data, researchers offer a picture of the balance sheet for low-income families and conclude with suggestions for future research on this topic.