Our country is experiencing an unprecedented series of crises–public health, economic, political, and social. These crises have shone a spotlight on many of the longstanding inequities in our systems, giving us an opportunity to remake those systems in ways that support people achieving financial security. 

Changing the landscape of financial security for people living on low to moderate incomes (LMI) requires a deep understanding of the elements of the financial system–the products, services, experiences, distribution channels, and policies–that support perceptions about being able to achieve financial security. Commonwealth, with support from MetLife Foundation, conducted research with low and moderate income individuals to identify non-financial factors affecting individuals’ perceptions about being able to attain financial security, and to understand how these intersect with households’ material financial situations.

During our webinar Money, Mindsets, & Systems: A Framework for Positive Financial Futures, we discussed the key findings from this new research and facilitated a discussion with industry experts about the findings. The research identified four non-financial factors that the financial system needs to support: a financial security, or journey, mindset; value-centered motivations; social networks and key resources shared within them; and inclusive messaging. 

Our expert panelists, Eric Leslie, Lead Organizer at Union Capital Boston, Evelyn Stark, Financial Health Strategy Lead at MetLife Foundation, and Dr. Nana Afoh-Manin of Shared Harvest had a lively conversation about the findings. Three key takeaways from the research and the panel discussion are: 

1. In the work to build financial security, it is as important to talk about people as it is to talk about their bank accounts. This matches what we feel and know anecdotally–that we are more than the sum of our individual parts.  
2. The dollar bill is not inherently racist or sexist, but it is the financial system and its institutions that have a long legacy of racism and sexism. These institutions have a responsibility to address all of the factors that prevent financial security. 
3. Product designers can ask themselves “How would the human in me solve this problem?” and be sure to have the voices of their customers inform their decision making. They can intentionally build products that include knowledge sharing, conversations and connections. They can build experiences that have  “friendly faces and interfaces” and that show that they are on the side of their customers.

Making the financial system more equitable for people living on LMI requires providing for individuals’ material financial needs and supporting the non-financial factors that are also key elements of the journey to financial security and opportunity.  As we look ahead to a new year full of hope and possibilities, Commonwealth will continue to partner with employers, financial institutions, nonprofits, and governments to further test this new framework for positive financial futures.

The full report, A Framework for Positive Financial Futures: Money, Mindsets & Social Networks, the release of which accompanied this webinar, can be found here.