April is National Financial Literacy Month, established in 2004 to highlight the importance of financial literacy and teach Americans how to establish and maintain healthy financial habits. A critical intersection exists between financial literacy and affordable housing. While affordable housing can serve as a foundation for building strong financial health, that opportunity can also be lost without good financial habits.
The Consumer Financial Health Study reveals that more than half of American adults are struggling financially in some way, whether it be keeping up with bills, building an emergency fund or saving for retirement, with more than a quarter having less than $1,000 put away.
For many North Carolinians, affordable housing can be the gateway to opportunities like education and employment that help individuals and families build wealth. Without financial education, renters and homeowners might not develop the financial habits needed to prevent evictions and foreclosures, let alone to help them secure their financial futures.
The affordable housing shortage demands attention and resources. But financing and getting people into affordable homes and apartments can’t be counted as a full success if we forget about those people once the keys are handed over. We are investing in far more than bricks and mortar—we are investing in lives and futures.
While stable housing can positively impact an individual’s current well-being, strong financial health can build on that and lead to upward mobility that benefits both individuals today and future generations. The greatest success we can have are those individuals and families who move beyond our housing, leaving affordable homes and apartments for those still in need.
Many of our community home ownership partners understand this and offer their prospective home buyer financial classes that surpass required home ownership education to encompass financial literacy tools such as budgeting, saving and debt management. One of our 2018 Housing North Carolina Award winners, Northstone in Hickory, offers financial literacy classes to not only increase homeowner success but create a pathway of financial health for their children. Some rental property managers are taking these steps as well, partnering with community colleges to offer their residents adult education classes that include financial components.
If you want to give your renters and homeowners the tools they need to build their financial health, National Financial Literacy Month is a great time to start. Look around your community to see what resources are being offered—local colleges, libraries and community centers often host free financial literacy events. Or you may want to host your own—the National Financial Educator Council offers a wealth of Financial Literacy Month resources to help you get started.
Our Agency will be featuring daily financial literacy tips on social media that you can share with your residents and clients, so be sure to follow us on Facebook, Linked In, and Twitter. Together, we can work to ensure that our affordable housing opportunities are only the beginning of a successful financial future.
