Protect Community Wealth by Increasing Financial Literacy of Adults

<p>Tyler Mulligan is a School of Government faculty member. </p> <p>This post is part of a series that highlights approaches described in a School of Government web guide on asset-building tactics for individuals and communities on the economic margin. </p> <p>When a household falls victim to a predatory financial product, such as a high-interest payday loan, a high-fee prepaid debit card, or a fraudulent reverse mortgage, there can be no doubt that the affected household suffers. The household’s purchasing power is reduced and the family’s financial stability is placed in jeopardy. But there is broader impact on the community, because others may depend on the financial participation of that household in the local economy, such as local businesses and charitable groups, to say nothing of close friends and family of the household.</p> <p>Low-income persons are often targeted by purveyors of predatory financial products, so the aggregate wealth-draining effect of these products is particularly acute in low-income communities. Recognizing the need to protect community wealth and make residents more resistant to these products, some communities have stepped up their financial education efforts. The importance of financial education was explained in an earlier post. This post describes two creative approaches that communities have used to make financial education programs more accessible to vulnerable populations.</p> <p>One approach involves bringing financial education to the workplace. Workplace financial education programs have been shown to have favorable effects on employee financial behavior and to increase savings among employees. In western North Carolina, OnTrack Financial Education and Counseling has employed a workplace-based approach to financial education. OnTrack has [...]</p>