Putting Financial Skills into Action: New FIELD Whitepaper

There's a renewed awareness today that it's not enough to simply be knowledgeable about financial concepts–it's about applying that knowledge–even in simple ways. We all know that eating vegetables are good for us yet, more often than not we reach for the french fries instead. This simple scenario also holds true in the realm of financial skills. Many of us know that we need to save, budget and work on our credit score but all too often we give in to impulses and put things off until tomorrow. This move from gains in financial knowledge toward putting these skills into practice has been termed 'financial capability'. A commitment to building financial capability is growing amongst microenterprise organizations, as discussed by the Aspen Institute's FIELD program's new white paper on the topic.  Microenterprise organizations like ACCION USA use financial products coupled with financial education, allowing microentrepreneurs to not just learn about managing finances, but to effectively put that knowledge into practice with a financial product. How is ACCION USA building financial capability?  ACCION USA's small business loans, secured loans (guaranteed with the money of the applicant) and small dollar credit builder loans (for individuals with no credit history) allow microentrepreneurs to build a strong installment credit history through on-time payments over an extended period of time.  Financial education on credit and other small business fundamentals is provided by AUSA staff throughout the application process and the life of a small business loan, building skills around credit management that lead to long-term financial success. Keep your eyes peeled for new tools that are emerging to support work around financial education for microentrepreneurs, like ACCION USA's e-learning course on credit, or other web-based training sites like assetplatform.org. Author: Elizabeth Garlow Subject: Putting Financial Skills into Action: New FIELD

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