Financial literacy programs
Local governments can invest in this strategy using State and Local Fiscal Recovery Funds (SLFRF) from the American Rescue Plan Act (ARPA).
- This strategy can help address educational disparities. The U.S. Department of Treasury has indicated that strategies that help achieve this outcome are eligible for the use of Fiscal Recovery Funds.
Investments in this strategy are SLFRF-eligible as long as they are made in qualified census tracts or are designed to assist populations or communities disproportionately impacted by COVID-19.
- Teaches program participants key concepts and skills for financial literacy
- Topics covered by these programs include budgeting, managing debt, understanding insurance and healthcare, and setting and achieving financial goals
Strength of evidence
Evidence level: Promising (Third-highest tier)
Low- and moderate-income adults
Outcomes and impact
- Increased knowledge of important financial concepts and skills
- Improved financial outcomes
- Reduced racial and socio-economic disparities
Keys to successful implementation
- Note: This content is under review
- Local financial institutions and business leaders can make for strong partners, leading discussions on financial topics, providing educational materials, and offering guidance and mentorship to participants.
- Financial literacy programs designed for youth can help high school students increase their financial knowledge and improve financial behavior.
- Activity-based learning like simulations and gameified learning can help make program content more engaging.
- Program content should be tailored to the norms, attitudes, and experiences of participant populations.