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
Evidence and impacts
- Increased knowledge of important financial concepts and skills
- Improved financial outcomes
- Reduced racial and socio-economic disparities
Best practices in 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.