Release date: 4/8/2024

Contact:
Kim Marshall
NeighborWorks America Media
202-760-4097
[email protected]

Survey affirms connection between trust and income, ability to build wealth

Washington, D.C. — Only 18% of adults surveyed noted that they feel financially successful and are on a path to achieving their financial goals. Fewer than 30% of adults are using even the most basic tools like budget spreadsheets to manage their finances with those making less than $50,000 annually just under half as likely to use these tools compared to their counterparts in higher income brackets. Only 7% of low-income participants use a financial coach, compared to 15% of participants who make more than $50,000 a year. Participants who use a financial coach are two and a half times as likely to use tools like spreadsheets and mobile apps to manage their finances.

This data underscores the role of trust and relationship building in helping people take charge of their financial health.

"NeighborWorks America is building this trust and supporting the vision of thriving communities with a focus on affordable housing and home ownership," noted Marietta Rodriguez, president & CEO of NeighborWorks America. "We are driving partnerships and programs aimed to close the racial wealth gap, one homeowner at a time. Through our direct support and that of our network of organizations across the county, we are committed to holistic partnerships connecting health, housing, and economic resilience."

A sentiment shared among NeighborWorks' experts. Financial coaches provide a safe, nonjudgemental environment to understand how to use different tools that help consumers reach their financial goals. Adults with lower trust in various financial sources reported lower usage of tools to address their financial health, indicating the need for trustworthy resources. Having that trust can help consumers take the first step in improving their financial stability. Investing in building this one-on-one relationship with a financial coach puts consumers in the driver's seat, leading the way to the financial future they want.

Molly Barackman-Eder, director of financial capability at NeighborWorks, emphasized, "the training and expertise provided by NeighborWorks focuses on building trusting relationships through courses, including trauma-informed financial counseling. These courses also provide training on equitable service delivery to promote inclusiveness and are centered on the overall well-being of clients."

NeighborWorks' survey also revealed that women are 11 percentage points more likely than men to feel financially unstable currently. Women also responded as less likely to feel optimistic about their ability to create and pass along wealth to younger generations. Financial capability programs, which offer individual services, group education and access to financial tools, can reduce the pay disparity that negatively affects women from the ripple effect of a lack of confidence in financial stability and the ability to pass on intergenerational wealth.

Expanding educational efforts around financial stability for those in challenging environments is vital in improving results across all income levels. It is important to understand the long-term value that nonprofits like NeighborWorks and others can provide banks and financial institutions through long-term dialogue as well as ensuring well-resourced nonprofits have coaches in place to support communities in good times and bad.

About NeighborWorks America
For 45 years, Neighborhood Reinvestment Corp., a national, nonpartisan nonprofit known as NeighborWorks America, has strived to make every community a place of opportunity. Our network of excellence includes nearly 250 nonprofits in every state, the District of Columbia and Puerto Rico. NeighborWorks offers grant funding, peer exchange, technical assistance, evaluation tools, and access to training as the nation's leading trainer of housing and community development professionals. NeighborWorks network organizations provide residents in their communities with affordable homes, owned and rented; financial counseling and coaching; community building through resident engagement; and collaboration in the areas of health, employment and education.

About NeighborWorks America's consumer survey
The survey was conducted by Morning Consult March 19-22, 2024, among a sample of 2,202 adults. The interviews were conducted online, and the data were weighted to approximate a target sample of adults based on age, gender, race, educational attainment, region, gender by age, and race by educational attainment. Results from the full survey have a margin of error of plus or minus 2 percentage points.