A family in New York received financial coaching from a local nonprofit and was able to pay rent and achieve stable housing. An entrepreneur in Puerto Rico reached out to a community organization and received free expert assistance on how to secure capital for their new small business. Individuals in South Florida, including veterans, worked with a community organization to develop budgets and savings plans and were better able to navigate a rising cost of living.
These stories tell us how community organizations play a unique role in helping people build financial health so that they can plan for their futures.
In a time where only about 30% of Americans are considered “financially healthy” and many are struggling with daily expenses, community organizations recognize that there is no one-size-fits all solution to the personal financial challenges facing low-income individuals and families. They understand the local context in their neighborhoods and provide financial coaching and counseling that meet their community needs. Through shorter-term financial counseling, community organizations provide guidance, education and action plans to support individuals, families and entrepreneurs address immediate financial challenges such as debt, credit repair or a household budget crisis. Through longer-term financial coaching, community organizations help those they serve build saving habits, plan for future milestones and develop money management confidence.
Recognizing the importance of these services for financial resilience, for the second iteration of the Community Finance Initiative, the Citi Foundation has committed $15 million to 60 community organizations with a focus on providing financial coaching and counseling across the U.S. In addition to funding, this group of grantees will also have access to capacity building support, including the opportunity to directly offer financial education and coaching services to their own staff members. Together with these organizations, we’re helping level the playing field for low-income individuals, families and entrepreneurs, so they can take charge of their financial futures
Our latest commitment builds on the Citi Foundation’s track record of investing in efforts to advance financial health in low-income communities across the U.S., including through financial coaching and counseling. This includes the launch of the Community Finance Initiative in 2022, as well as earlier efforts throughout the Foundation’s 30 year history, to strengthen entrepreneurs and small businesses and our investments in digital financial counseling during the height of the COVID-19 pandemic.
Our grantees are integrating a deep understanding of local needs as they expand their financial coaching and counseling services. For example, GROW South Dakota is expanding its financial coaching services to geographically isolated communities across the state and Operation HOPE in Los Angeles is providing financial education as communities recover from the wildfires and work to build post-disaster financial resilience. Washington Area Community Investment Fund (WACIF) is providing small business technical assistance offerings and Neighborhood Housing Services of Southern Nevada is offering financial counseling and education as part of its affordable housing programs, including on topics like budgeting, credit and buying a home for the first time.
These are just a few examples of community organizations working as economic first responders and trusted advisors so that more households can achieve stability and economic progress. Whether it’s to become a homeowner or an entrepreneur or open a savings account for future generations, we know that when America’s communities are equipped with these resources, it leads to greater financial health for all.
Source: citigroup.com
