Financial Capability

Publication Date

3-1-2017

Summary

Financial capability combines the ability to act with the opportunity to act in ways that contribute to financial functioning. As large numbers of people struggle to manage their household finances, financial capability has become increasingly important. Improving financial capability requires financial education and guidance as well as improved access across the life span to appropriate and beneficial financial products and services. Examples of policies that promote financial capability across the life span include Children’s Development Accounts and myRAs, long-term investment vehicles that build financial capability. Social work can play a key role in building financial capability through interventions in households, communities, and policies. However, these contributions require practice and research to develop and test interventions. They also require financial education for social workers.

Document Type

Article

Category

Financial Inclusion

Subarea

Financial Capability

Original Citation

Sherraden, M. S. (2017). Financial capability. In C. Franklin (Ed.), Encyclopedia of Social Work. doi:10.1093/acrefore/9780199975839.013.1201

Project

Financial Capability and Asset Building

Keywords

financial capability, financial capability practice, financial education, financial knowledge, financial literacy, financial services, asset building, assets, CDA, child development account, myRA

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