Key Research Agenda on Building Financial Capability and Assets for All

Rising levels of market risk and economic precarity characterize life in the United States. As economic instability continues rising, social safety net funding continues declining leaving vulnerable populations locked out of upward mobility and at risk of asset depletion. Consequently, the role of building financial capability and assets is becoming a critical component of working with vulnerable populations who are most at risk. Nonetheless, many clients served by social workers lack the opportunity to develop financial capability because they are either locked out of wealth accumulation or targeted for riskier financial products that limit their ability to accrue assets and weather economic strain. For example, nearly one fourth of low-income households do not have a checking or saving account and low-income households receive fewer tax benefits incentivizing asset building. Further, only one-third of Americans correctly answered 4 of 5 basic financial questions, and racial minorities scored lowest on these questions.

To highlight its importance in social work practice, Financial Capability and Asset Building For All was selected by the American Academy of Social Work and Social Welfare as one of The Grand Challenges for Social Work Initiative in 2015. Scientific research plays a central role in advancing the goal of this Grand Challenge. The aim of this roundtable is to identify (1) a key research agenda on building financial capability and assets; (2) strategies, methods, and partnerships to implement the research agenda; and (3) interactions among researchers, policymakers, and social work practitioners that may best inform the development of financial capability policy and practices.

To achieve this goal, panelists will briefly describe how their research in financial capability and asset building informs the creation of this key research agenda. Panelists will summarize the main research themes proposed and conducted by social work researchers based on a survey collected from the financial capability scholar network. In particular, panelists will focus on the importance of conducting research to develop financial capability measures, identify evidence-based financial capability practices, evaluate financial capability policies and interventions, and promote effective financial capability education in social work. Three principals to implement the research agenda on financial capability and asset building are proposed, which include: (1) engaging clients served by social workers—including those with different socioeconomic, racial, and cultural backgrounds—in the research process; (2) clearly specifying the different contexts and conditions (e.g. the political climate) in framing research questions; and (3) testing research questions using comprehensive methods.

The roundtable session will encourage session participants to share their own experiences and engage with panelists in a facilitated discussion guided by the following questions:

1.What are the key research questions that can build financial capability for vulnerable populations? 2.What strategies, methods, and partnerships are needed to implement the research? 3.How should this research agenda interact with the development of financial capability policy, practice, and education in the social work profession? 4.What are the main opportunities facing social work researchers on this topic?