Introduction
Research Questions
- To what extent are E&T programs incorporating financial capability interventions or services?
- Why are E&T programs incorporating financial capability interventions or services? What factors, including any state or local policies, drive this decision?
- What are the key inputs, activities, and outputs of financial capability interventions as implemented within E&T programs?
- What are the efforts to evaluate financial capability interventions or services in employment and training contexts to date?
- What are the research gaps in these areas and what are the options for future research and evaluation efforts to address them?
Individuals with lower incomes may face a range of economic challenges and barriers to upward mobility. Two types of services that may both contribute to the goal of improving individuals’ financial situations are employment and training (E&T) services, which have the goal of improving employment outcomes, and financial capability interventions, which are focused on building financial knowledge and expanding access to resources. The Office of Planning, Research, and Evaluation (OPRE) within the Administration for Children and Families under the U.S. Department of Health and Human Services contracted with MEF Associates and their subcontractor, the Urban Institute, on the Integrating Financial Capability and Employment Services (InFin) study to learn about ways in which organizations provide E&T and financial capability services in an integrated manner. This report summarizes the study’s key findings about the approaches organizations use to integrate these services, their motivations for doing so, details on the types of financial capability services involved, and participant perspectives on integrated services. It also discusses considerations for future research on the effectiveness of integrated models.
Purpose
People with low incomes may face various challenges to improving their financial situations. E&T and financial capability services can help improve people's financial circumstances by providing them with useful skills, knowledge, and access to resources and opportunities. Moreover, E&T programs have the unique potential to offer financial capability services in a way that complements the E&T services to increase the likelihood of financial stability for participants. Given that there is limited research about the integration of these two types of services, the purpose of the InFin study was to expand the knowledge base on this topic.
Key Findings and Highlights
Key takeaways outlined in this report include:
- Organizations included in this study offered both E&T services and financial capability services because they saw the two types of services as sharing a common goal of empowering participants and improving their economic well-being.
- Organizations varied widely on a set of dimensions of integration identified by the study team, but could be generally organized into four models of integration based on:
- whether the organizations believe E&T and financial capability services mutually promote economic well-being as part of the same theory of change or separately
- whether their program arrangements assume participants will take up both types of services or allow participants to decide whether or not to engage in both.
- The majority of participants who were interviewed entered the programs because they needed employment services or support services. They took part in a wide range of both services and often set financial goals after enrolling in the financial capability services. Study participants expressed appreciation for the guidance and support of E&T and financial capability staff and the positive connections with peers. They shared challenges engaging in financial capability services while working full-time or trying to meet immediate needs.
Methods
This study used a variety of methods to gather data to build a better understanding of existing programs that integrate financial capability interventions into E&T programs serving adults with low incomes. Data collection efforts included a survey of organizations operating E&T programs that integrated some type of financial capability intervention; interviews with administrators, staff, partners, and participants from an overlapping set of organizations; interviews with employers offering financial capability services to their staff; and focus groups with administrators from a subset of the organizations that completed the survey.
The organizations included in the study were geographically diverse and included a mix of non-profits, for-profits, government-funded agencies and educational institutions. They administered a range of federally- funded programs and offered an overlapping set of E&T services. They served diverse populations but shared a focus on underserved populations with low incomes.
Citation
Elkin, Sam, Ashweeta Patnaik, Lorraine Perales, Sophie Hearn, Mark Treskon, Lauren Fung, Paige Sonoda, and Laura Wagner. 2024. Understanding Financial Capability Interventions within Employment-Related Contexts for Adults with Low Incomes: Final Report. OPRE Report 2024-012, Washington, DC: Office of Planning, Research, and Evaluation, Administration for Children and Families, U.S. Department of Health and Human Services.
Glossary
- Employment counseling or coaching:
- Meeting, typically one-on-one, with an employment specialist or counselor who helps assess needs and refers participants to available services.
- Access to financial products:
- Providing access to (usually low-cost) financial products, such as checking and savings accounts.
- Financial access:
- Access to financial products and resources that promote financial stability, such as low- or no-fee bank accounts.
- Financial capability:
- The capacity, based on knowledge, skills, and access, to manage financial resources effectively.
- Financial education:
- Workshops, classes, or curricula covering specific topics, such as money management, how to reduce debt, or how to manage credit.
- Financial situation:
- The objective facts of a person’s financial circumstances and economic context within which they live.
- Financial well-being:
- A state of being where a person can fully meet current and ongoing financial obligations, can feel secure in their financial future, and is able to make choices that allow for enjoyment of life.