OUR MISSION

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We promote financial empowerment by guiding people and institutions toward asset building programs and services. The need is evident. Latino families lost about two-thirds of their wealth in the Great Recession.¹ Without intervention, African Americans will need 228 years and Latinos 84 years to accumulate the amount of wealth whites have today.² Asset-building community products (such as matched savings accounts or down payment assistance) can help people with low-to-moderate incomes rebuild this wealth.

However, 90% of the annual federal asset building budget ($348 billion of $385 billion) is spent on tax deductions for the highest income earners, leaving little funding for public programs that help struggling families build wealth.³ Without funding for advertising existing programs, it is challenging for service providers to recruit vulnerable clients to such programs.⁴ It is our objective to transform the contexts within which these clients operate, so that people in need may have access to people in their social networks who are sufficiently financially empowered to help with basics and refer to experts as needed. In so doing, we seek to create a path for wealth building for everyone.

We are inspired by Margaret Sherraden’s (2010) Financial Capability Theory, which posits that financial knowledge only leads to financial capability (the ability to act) when combined with opportunities to act (i.e., financial inclusion). Financially inclusive products are accessible, affordable, financially attractive, easy to use, secure, and reliable. We also base our model on behavioral economics and its recognition that people can only devote so much mental energy to complex financial decisions, even if they value its merits. Quality financial instruction is already freely available from FDIC and CFPB; so rather than creating new content, we strive to promote easy, seamless access to all these resources. Our goal is to clear the path and encourage people to take steps toward their financial well-being and financial stability.

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We invite you to join us!

 

How? Educators can implement our Financial First Responder (FFR) certificate training in their classes or assign students to complete individual financially empowering acts. Our training comes with surveys where students can reflect on their practice. Program directors can ask clients and staff to complete the FFR or financially empowering acts as part of their organization’s protocol. It’s easy and highly inclusive! Everyone can organize events with friends and family to complete an act together, such as checking credit reports during winter holidays. If you have other ideas or suggestions, please reach out to us (info@assetbuildingclinic.org)!