Changing Behaviors to Build Financial Health
Financial capability involves a combination of knowledge, skill, and access. Financially capable consumers possess:
- the knowledge to manage financial resources effectively;
- the skills to exercise behaviors that lead to financial health; and
- access to high-quality financial products and services.
The results are that they are able to cover monthly expenses with income, track spending, plan ahead, and save for the future.
CFSI started exploring the concept of Financial Capability in 2010 with the generous support of a coalition of funders and supporters
led by the Citi Foundation and also including Bank of America, Capital One Foundation, Charles Schwab Bank, Charles Schwab Foundation, Experian, Morgan Stanley, NYSE Euronext Foundation, US Bank, and Visa.
Through our research, we theorized that combining relevant, timely, actionable, and ongoing guidance with access to high-quality financial products and services would positively impact consumer financial behavior. Some of our findings are detailed in From Financial Education to Financial Capability: Opportunities for Innovation
The Financial Capability Innovation Funds
, managed by CFSI, support promising nonprofit-led projects designed to help consumers better manage their finances and achieve financial health.
The Financial Capability Institute
supports nonprofits, providing resources to implement financial capability strategies and learn about underserved consumers. Visit the Institute website to take our free nonprofit organization self-assessment, and benefit from customized advice, resources and case studies.