Community plays a big role when it comes to financial health and the ways in which people approach their finances. While money can be a personal topic, each individual’s decisions about money can have large-scale impacts and long-lasting effects. That’s why at Objective Measure, we believe that financial literacy is important to integrate into our communities. The more we as individuals know, the more we can help our communities and future generations thrive.

The Problem of Financial Illiteracy

When portions of the population do not have a solid understanding of how to navigate finances, it can lead to problems that can affect entire communities, leaving them stuck in repetitive cycles. A few consequences of financial illiteracy in communities are:

• Increased debt and bankruptcy rates: People may take out loans and borrow more money than they’re able to pay back. In time, this can lead to increased debt, housing foreclosure, and more.
• A wider wealth gap: Financial illiteracy tends to disproportionately affect those in lower income communities. Many times, people in these communities don’t have access to the educational opportunities or resources that those in higher income communities do. This often continues the cycle of poverty.
• Uneducated future generations: People who do not learn the importance of managing money when growing up can feel unprepared and under-informed when it comes time to handle their own finances. This phenomenon can affect families and children both functionally and through modeling poor decision-making.

Financial illiteracy is influenced and enabled by a lack of education, accessible resources, and conversations about finances. We can set future generations and communities up for success by developing resources, teaching people, and making financial education accessible for all.

A Community Effort

Real change happens when everyone works together. As a leader, it may feel overwhelming to take the first steps, but by working to cultivate a supporting and open community, you are building a team of others who value this same mission. Starting conversations and getting others on board helps the work of education spread more quickly and easily throughout your surrounding communities.

Real change happens when everyone works together. As a leader, it may feel overwhelming to take the first steps, but through vulnerability and support, you can cultivate a rich space for growth. When individuals can have honest conversations with people they trust, things start to open up. Resources and education spread throughout the community and people start to move towards new behaviors and priorities.

The Importance of Ongoing Education

One important aspect of community education is providing ongoing resources. Hosting a one-time workshop or event is a helpful first step, but it’s also important to think long term. Consistent, ongoing learning opportunities offer people more chances to engage, build on their new knowledge, and delve deeper into topics of interest. This also allows time for more hesitant people to get involved and acclimated over the course of time.

Creating Accessible Resources

As a leader, you can create and provide resources for the people in your community. That might look like:

• Hosting online classes or workshops: This can be a great way to get people involved in building financial literacy who may struggle with attending an in-person event or class, due to busy schedules or other reasons.
• Creating free resources: Whether it’s a class, flyer, or conversation, free and low-cost offerings are a great way to make learning about finances accessible for everyone.
• Teaching classes specifically for youth: Educating young people about the importance of money is a great way to get them on a solid financial path. The earlier they can learn about these topics, the earlier they can start implementing good habits into their lives and paving the way forward.

Collaboration

Everyone comes at their finances from different perspectives, life experiences, and lessons that they’ve learned. This is where collaboration is important. Start conversations with other people in your community and listen to their stories and backgrounds. Work together with different segments of your community to collect all of the topics people are interested in, so you can be sure you’re providing information that is important to them.

Growing Together

When leaders take the first steps toward change, they inspire those around them to follow. At Objective Measure, we're here to support you in bringing financial literacy to your community. With dedication, trust, and consistency, you can cultivate a thriving community—and you can count on us as your partner in making this lasting impact.