Financial capability represents a critical shift of moving beyond financial education to adopting new behaviors that individuals can use to identify and utilize appropriate financial tools and make sound financial decisions in order to build and preserve their assets over time.
Financial capability among consumers is an essential element to achieve financial inclusion.
The Citi Foundation is deeply committed to financial inclusion for low- to moderate-income individuals, families and communities. In 2004, Citi announced a 10-year, $200 million commitment to meet the growing financial education needs of the communities we serve. Although we accomplished our initial goals and commitment well ahead of schedule, our work is not finished. In 2012, we invested more than $25 million in Financial Capability and Asset Building programs globally because we recognized that an important change was neededone that redefines financial education from simply increasing knowledge alone to helping people adopt financial behaviors that facilitate asset building and preservation. We support a range of programs, including testing new models and program strategies, building the capacity of community partners to adopt new financial capability approaches, implementing systems changes and best practices in the field, and, increasingly, evaluating/measuring results and impact of initiatives. Our direct service grants employ a more comprehensive approach that combines financial knowledge and skill-building with ongoing coaching and access to appropriate financial products and services provided by nonprofit partners for low- to moderate-income people to improve their financial outcomes.
1 Chaia, A., Dalal, A., Goland, Tony, Gonzalez, M., Morduch, J., et al. (2009). Half the World is Unbanked. Financial Access Initiative