Building Family Economic Success: Financial Planning and Education

Expert Advice Needed

Basic fiscal know-how can only take a family so far. Many low-income households lack access to personalized advice and planning services that can help them tackle complex financial choices while avoiding long-term negative consequences.

The Ripple Effect

While savings levels for all Americans are low, working poor families often have no—or negative—savings and assets. Another sobering fact: Very low-income families saw their credit card debt jump 184% between 1989 and 2001. These issues are not happening in a vacuum, say experts. Poor financial decisions extend beyond the family unit and can impact the wider community.

A Multipronged Approach

On the financial education front, the Foundation is working to pinpoint best practices and encourage public- and private-sector players to invest in the cause. At the same time, Casey believes that enhanced financial education isn’t a universal fix. Families must also have access to high-quality financial services and—with the help of regulatory restrictions—far fewer run-ins with predatory lenders.

Don’t Reinvent the Wheel

Most communities already offer a variety of financial education workshops and services. The catch? These resources may be uncoordinated or difficult to access. Look to a state office or agency to help make sense of financial education and service options, say experts.

A Triple Threat

Many schools do not teach children about finances. Many workplaces do not offer financial education courses. And many low-income residents do not have access to financial counseling. Without these skill-building opportunities, many families struggle to make informed choices that can help pave the way for long-term economic success.