Policy & Practice June 2015

This is the second article in a three-part series focusing on economic independence.

Millions of working Americans

struggle to manage their finances, often accumulating no savings and high debt. According to the 2015 Assets & Opportunity Scorecard, 44 percent of households are liquid asset poor, meaning they cannot afford to live without income for three months at the poverty level. This vulnerability impacts all household levels; one in five middle-income households—those earning between $56,113 and $91,356 annually—are asset poor. Living on the brink of financial insecurity means these households are much more likely to cycle in and out of various forms of public assistance even if they are employed, creating a strain on govern- ment programs and services. Public social service agencies who engage with clients on workforce, edu- cation, housing, or health outcomes are poised to address financial chal- lenges faced by households in real, meaningful ways. By integrating opportunities to practice financial skills, to gain trusted financial advice, and to access financial products into the delivery of other social services, agencies can create pathways toward longer-term sustainability and decrease reliance on government income supports. This article empha- sizes the opportunity for service providers focused on building career pathways.

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June 2015   Policy&Practice