Tools for Survival: An Analysis of Financial Literacy Programs for Lower-Income Families

Schools and Financial Literacy

While some states provide consumer and economic instruction in public schools, specific topics, assessment methods, or extent of instruction varies. Policies about consumer and economic instruction in schools have changed over time; however, schools represent an opportunity to provide financial literacy programs.

Individual Development Accounts

Individual Development Account (IDA) programs provide an opportunity to offer financial literacy training to lower-income families. As part of the IDA process, individuals can learn money management skills while learning how to apply those skills to achieve their IDA goals.

Goal and Situation-Based Programs

One challenge with existing financial literacy programs is that the program may be limited to a particular goal (saving to purchase a home) or a situation (credit counseling when the family has considerable debt). While these specific programs can assist some low-income families, more general financial literacy programs are needed to serve the larger population.