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.

The goal of workforce development efforts serving individuals in poverty is to provide them with the skills and credentials they need to increase their earnings in the labor market and advance to self-sufficiency. It is important for workforce stakeholders to understand that low-income families’ household income is often partly comprised of public benefits (such as supports for housing, child care, and health care) that phase out as increases in earnings are made through higher wages and/or more hours on the job. Rapid phaseouts of benefits – what are known as “benefits cliffs” – can have the effect of canceling out large portions of a family’s earnings gains, or even make a family substantially worse off from a self-sufficiency standpoint that prior to its earnings gains. This latest research by the Seattle Jobs Initiative examines the impact of benefits cliffs on low-income Washington families. The goal is to support workforce and social service providers in their efforts to better help these families to navigate the potential loss of benefits as they assist them to make earnings gains.

Almost half of American families are financially insecure, and financial capability programs have the potential to provide solutions. This brief from The Pew Charitable Trusts analyzes four different types of financial capability programs for economically vulnerable Americans: literacy, counseling, coaching, and planning. Each section links to research and program examples of all four types of financial capability programs.

Many American families experience significant shifts in income from one year to the next. These shifts, known as income volatility, make it difficult for families to balance paying expenses and planning for the future. This report from The Pew Charitable Trusts analyzes the differences between families that experienced income volatility and those that did not. The researchers found that more than a third of American families experienced a large year-to-year change in income, but Hispanic families and families without a high school diploma were more likely to experience income volatility.

This report from Brookings discusses the impact of tax refunds—primarily the Earned Income Tax Credit (EITC) and the Additional Child Tax Credit—on helping families out of poverty. Research indicates that the EITC benefits recipients in a variety of ways, including by increasing adult workforce participation and improving child health. The report includes a link to the recently updated Brookings EITC Interactive, which provides IRS data on the zip code level about where EITC filers live and additional information about the filers. Data like this can help practitioners target their work toward helping eligible families obtain assistance.

Many States offer low- and moderate-income families an additional Earned Income Tax Credit (EITC) in addition to the Federal EITC. In this brief from the University of New Hampshire Carsey School of Public Policy, the effect of these additional benefits on families in need is explored. Findings show that State EITC benefits help families out of poverty, and children benefit the most from these economic gains.

This toolkit from the Annie E. Casey Foundation outlines a five-step strategic finance planning process geared toward supporting programs that serve children and families. It aims to help stakeholders work together to examine what they want to finance, how their current investments align with their financing goals, and which strategies can help them achieve those goals.

This brief from the Office of Child Support Enforcement encourages eligible taxpayers to file for the Earned Income Tax Credit (EITC). Last year across the United States, about 27 million taxpayers received more than $65 billion in EITC; despite this success, about 25% of eligible filers do not claim it. The brief includes helpful information about qualification levels, useful resources, and how to claim the EITC.

Commonwealth, an Annie E. Casey Foundation grantee, recently launched an incentive program to help Americans build savings through a program called Prize Savings. Prize Savings allows Walmart MoneyCard customers to enter monthly sweepstakes that awards cash prizes when the customers elect to save. This proven strategy that motivates positive financial behaviors can help families build savings and assets.

Assets for Independence (AFI) helps provide families with individual development accounts (IDAs) that allow them to save by matching their personal savings for specific investments, such as buying a home or enrolling in higher education and training programs. The Urban Institute evaluated two Assets for Independence (AFI) program sites, Albuquerque and Los Angeles. This report presents findings that show that AFI produced a seven percentage point increase in the share of participants with liquid assets, and a $799 mean increase in liquid assets.