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Financial capability is a critical component of economic security and upward mobility. Two key elements—access to beneficial financial services and the ability to manage finances effectively—are essential for successful asset-building and long-term financial stability. However, U.S. government policies primarily promote Financial Capability and Asset Building (FCAB) among middle- and high-income populations through tax incentives, offering limited institutional support for low-income individuals. While a growing body of research explores FCAB among low-income populations, little attention has been paid to precarious immigrant workers—those in low-wage, unstable jobs with limited protections or benefits.
This study addresses that gap by examining how institutional support from worker cooperatives (co-ops) and their networks—including local and national co-op associations, credit unions, labor unions, and non-governmental organizations (NGOs)—influence FCAB among precarious immigrant workers in New York City.
Methods
This qualitative study employed grounded theory methodology to build a conceptual framework derived from lived experiences. The sample consisted of 25 Hispanic immigrant women co-op members, primarily engaged in domestic work like cleaning, caregiving, and home care. Participants were recruited through collaboration with the New York City Network of Worker Cooperatives (NYC NOWC). Interviews were conducted in English or Spanish via Zoom or phone and lasted 45–60 minutes. Data were analyzed through iterative coding. The research team conducted line-by-line open coding followed by focused and theoretical coding using ATLAS.ti software. Memos and collaborative team discussions ensured analytical rigor and the development of a data-driven framework that reflected both individual and institutional dimensions of FCAB.
Results
Three key findings emerged. First, participants prioritized financial stability over upward mobility, often employing short-term strategies to navigate chronic precarity, such as budgeting around inconsistent income and avoiding banking fees. Second, institutional actors—including co-ops and their networks—enabled access to financial services. Through co-op membership, participants opened checking accounts, built credit through credit union loans, and participated in financial education programs from NGOs. Their status as worker-owners provided employment verification—even for those without legal immigration status—enabling access to these services. Third, co-ops functioned as incubators for collective financial structures. Members developed mutual aid systems, group savings accounts, and interest-free emergency loan programs. These practices were democratically governed and grounded in cultural traditions of mutual responsibility, reinforced by collective support within the co-op. Members described these systems as critical safety nets during emergencies.
Conclusions and Implications
Findings demonstrate that FCAB is not merely an individual-level phenomenon but is co-produced through institutional infrastructure and collective cultural practices. Worker co-ops operate as mezzo-level institutions that bridge systemic exclusion from mainstream financial systems and empower members to create their own financial tools and networks. Based on these findings, we propose an expanded FCAB framework that incorporates collective culture, institutionalized financial structures, and collective financial mechanisms. This model better reflects the realities of precarious immigrant workers and highlights the need for public investment in cooperative institutions and NGO partnerships.