Integrating financial capability into employment services: Literature synthesis

This literature synthesis describes the current state of knowledge relevant to existing and potential efforts to deliver financial capability interventions together with education and training (E&T) programs. It is part of a larger study that aims to build more systematic evidence for policymakers and practitioners about the extent, forms, and practices of placing financial capability interventions in E&T programs serving adults with low incomes; identify research gaps; and help set up a basis for future research and evaluation in this area. A growing body of evidence finds that financial capability programs and services may have some positive effects on participants’ financial well-being, but program models vary widely and impacts differ across both outcomes and populations studied. Evidence and theory from both the financial capability literature and research on low-wage work and employment services suggest numerous ways in which financial capability interventions and E&T programs might work well together to bring about improvements in financial and economic outcomes for adults with low incomes. Over at least the past 15 years, recognition has grown among practitioners and policymakers of the potential value of offering integrated services—focused on creating connections between financial capability and workforce programming—which has led to numerous new integrated programs and models. There is limited research specifically examining the implementation and effectiveness of programs that integrate financial capability interventions into E&T programming. This paper suggests promising directions for future studies.