HOPE Through Financial Empowerment: Combating Inequality During Financial Literacy Month & Beyond

Nearly every big life decision a person makes — from paying for college to renting an apartment to choosing when to retire — is closely linked to their understanding of finances. Nothing has the ability to either empower or entrap someone quite like money.

Yet, only about a third of Americans are considered financially literate. This knowledge gap cost Americans more than $415 billion in 2020 alone, disproportionately affecting minorities. Not only does it hurt one’s ability to build wealth and share in “The American Dream.” Financial stress is linked to health conditions and can strain relationships.

“I feel that financial literacy should be a focus year-round,” said Stephine Roberts-Polk, a HOPE Atlanta housing specialist who works with clients and landlords to secure permanent housing. “However, what better month than April to focus on financial literacy as it is the month that most people do their Spring cleaning?”

While there are other factors, like systemic racism and the affordable housing crisis, that perpetuate financial inequality, financially literate people are more likely to make sound decisions that can help them avoid problems like debt, bankruptcy, and poor credit.

“I believe sharing the knowledge with our clients and encouraging them to search for and utilize the resources in their community that is free of charge or at a reduced cost would be a huge component to showing them how to save money,” said Polk. “That, along with creating a budget that would allow them to open and deposit into a savings account, would give way to a sense of security and pride as they build their nest egg and watch it grow.”

Besides working individually with clients to increase their likelihood of securing housing and remaining housed, HOPE Atlanta offers special programming to help clients thrive — including a series of interactive workshops this month with Mathilda Lambert, Vice President of Community & Business Development at JPMorgan Chase & Co.

Around 30 attendees have gathered at these sessions, held at the Women’s Community Kitchen. Each received a workbook to help them define their financial goals, build a roadmap, and set a budget. In the second session, they discussed credit.

“Have you ever heard someone say, ‘Let’s keep it real. Let’s keep it 100,’” said Lambert. “I like to say, ‘Let’s keep it at 700 and above.’ That’s when [credit] is going to become a wealth-building tool for you.”

Here are a few other pieces of advice from Lambert and the Chase team:

• Set your goals by starting with your needs.
• Set your budget, then check your actual spending monthly.
• Rainy day funds must be part of your budget, even if you start with saving $5 per paycheck.
• Use credit cards to pay for things already in the budget, like gas and groceries.
• You are entitled to 1 free credit report annually from each bureau, so make sure you utilize this benefit.

Why not add “making a difference” to your monthly budget?

Already well on your way to building wealth? Consider using it to help others. The HOPE365 program is the perfect way to put compassion on auto-pay. Sign Up Today!