A Longitudinal Study Examining Financial Inclusion Among Refugees Resettled in the U.S

Background and purpose: Economic self-sufficiency is a central goal of refugee resettlement services and policy in the U.S. However, attention in practice and research to how refugees develop financial stability over time is limited. This study examines banking resources and asset ownership as indicators of financial inclusion among a longitudinal sample of resettled refugees. In addition to measuring change over the course of three years post-arrival, the study examines individual and community factors associated with higher rates of financial inclusion. Understanding factors that promote and limit financial resource access can guide services seeking to increase financial literacy and economic integration post-resettlement.

Methods: This longitudinal study was conducted with refugees in two states in the western U.S., with assessments conducted at 6-months, 1 year, 2 years, and 3 years post-arrival. Participants (N=243) were recruited from resettlement agencies and interviewed by trained staff, with interpretation as needed. Participants reported whether they had a checking account, a savings account, a credit card, car ownership, and home ownership at each time period. Individual and community factors assessed included gender, age, marital status, English level at arrival, state of resettlement, and national origin (Democratic Republic of Congo, Syria, Iraq, Somalia, Bhutan, Burundi, Burma, and other). After examining results descriptively, linear growth curve modeling within Mplus (v8.5) was utilized to examine financial inclusion outcomes over time, with Bayesian estimation. Four financial inclusion outcomes were analyzed first without covariates, then in conditional models with covariates to examine the effects of individual and community factors.

Results: Most participants (69%) had a checking account from the first assessment. Access to savings accounts increased from 26% to 44% during the first three years post-resettlement, while access to credit cards increased from 6% to 21% and car ownership increased from 19% to 55%. Home ownership remained small, increasing from 0 to 3%. Estimates of the linear growth models indicated that car ownership increased significantly over time. Conditional models indicated that at the initial assessment, women were less likely than men to have a checking account or own a car, and over time, women accessed savings accounts and car ownership at lower rates. Younger age, being married, and speaking English at higher levels were also associated positively with some financial inclusion outcomes. Differences were observed by state of resettlement as well as by national origin across some financial outcomes; for example, refugees originally from Iraq were more likely to have checking accounts and car ownership than the comparison group of participants from the Democratic Republic of Congo.

Conclusions and implications: Access to financial resources remained limited for many refugees three years post-arrival. Further, access varied by gender, language, and national origin, highlighting the need for inclusive programming that targets particular community and individual needs. Additional research attention to when and how refugees access financial institutions and resources is needed. Social service programming can support refugee financial awareness and independence. Finally, policies can promote fair and equitable access to tax benefits, loans, and other financial resources.