We Believe Improving Family Stability Enhances Community Stability.
Financial Literacy Educational Program
Low financial literacy poses a significant threat to the well-being of individuals and families, particularly in underserved and low-income communities. Without a robust financial foundation, young people become increasingly vulnerable to predatory lending practices and costly mistakes in managing debts and expenses, which can result in lifelong financial inequity.
​
Moreover, inadequate financial literacy can lead to missed opportunities for wealth accumulation and diminished access to higher education and professional development. When young individuals lack the financial acumen necessary to make informed choices, they are at a higher risk of becoming ensnared in cycles of poverty and debt. For instance, poor spending and borrowing habits often result in low credit scores, further exacerbating financial insecurity.
Financial education is essential for enhancing the financial health and well-being of our communities, but the ultimate objective is to cultivate financial capability. Financial capability is achieved when knowledge of financial literacy is consistently practiced and applied, becoming second nature and influencing behavior to yield positive economic outcomes.
This capability empowers individuals to make informed financial decisions, seize opportunities, and establish financial security for themselves and their families.
​
According to a July 2022 FINRA Foundation national financial capability study, a significant financial literacy gap persists in the United States. The study reveals that young individuals, as well as Black/African American, Hispanic/Latino, and low-income households, are disproportionately affected by the repercussions of insufficient financial literacy compared to other demographics.
​
Additionally, the research indicates that these groups are more likely to experience psychological symptoms associated with financial stress. Notably, younger individuals are 38% more likely to miss mortgage payments and 26% more likely to withdraw from retirement accounts due to financial hardships.
​
These findings underscore the critical need for investment in financial education and access to resources that empower individuals and families to build assets and enhance their economic opportunities, particularly among younger populations across all demographic groups.