From Information to Impact: How Education Can Help Advance Financial Health

I recently had the opportunity to moderate a webinar titled “Empowering Financial Health: The Role of Financial Education,” featuring insights from EVERFI from Blackbaud and VyStar Credit Union. Our conversation focused on two major themes: the importance of measuring financial health outcomes and the need for personalized, in-the-moment financial education. One of the most striking revelations we discussed was the current state of consumer financial health, as highlighted by the latest findings from the Financial Health Pulse 2024 Trends Report.

The Financial Health Reality: Only 30% of U.S. Consumers Are Financially Healthy

The latest Financial Health Pulse data  paint a stark picture: Only 30% of people in the U.S. are considered financially healthy. This means that an overwhelming 70% of individuals struggle in areas such as spending, saving, borrowing, and planning. These numbers underscore the magnitude of the financial challenges that consumers face every day. As financial services professionals, we must recognize that these are the people within our customer bases and our workplaces, all grappling with various aspects of their financial well-being.

This data served as a poignant reminder of the widespread financial vulnerability plaguing millions nationwide. The persistent disparities in financial health are particularly concerning, especially for Black and Latine households, which continue to face systemic barriers that impede their ability to build wealth and achieve financial security. Less than 15% of Black and Latine households are considered Financially Healthy, compared with 37% of white households.

The report also revealed troubling trends for women, families earning low incomes, and younger generations. All of these groups are facing steeper financial challenges. These findings reinforce the need for comprehensive, tailored solutions that address the diverse financial realities of consumers.

Key Takeaways: Measuring What Matters and Personalizing Education

The panelists, Doug Haehl from EVERFI from Blackbaud and Mary Gustafson from VyStar Credit Union, offered deep insights into how financial education can be a transformative tool, but only if it’s paired with robust measurement and tailored to the unique needs of each consumer.

Linking Financial Education to Measurable Outcomes

Haehl opened the discussion by emphasizing that while financial education is essential, it’s only as effective as the outcomes it produces. He shared compelling data showing that when financial education is paired with robust measurement, institutions can track how consumers improve in key financial health metrics like savings rates, credit scores, and debt reduction.

This shift in focus – from offering information to tracking outcomes – allows institutions to refine and improve their educational programs continuously. Without measuring the results, it’s impossible to know if you’re moving the needle on financial health.

Personalized, In-the-Moment Education Drives Engagement

Gustafson expanded the conversation by stressing the need for personalized, in-the-moment financial education that meets consumers exactly where they need it most. VyStar Credit Union has seen consumers engage more deeply with financial education when it’s tailored to their current financial challenges. Whether someone is applying for a loan, trying to build savings, or managing debt, they are more likely to benefit from educational resources that address their specific circumstances.

This personalized education is particularly effective because it meets people where they are, making the information more relevant and actionable. Personalized education allows institutions to support consumers through key financial decisions, offering guidance at the right time to ensure better outcomes.

Measuring Financial Health Deepens Consumer Relationships

When institutions track and respond to consumers’ progress – whether it’s improving credit, increasing savings, or managing debt – they can offer more personalized support. This deeper engagement builds trust, as consumers come to view their financial institution not just as a provider of products, but as a true partner in their financial journey.

What’s Next? Addressing Disparities Through Actionable Education

The insights from this webinar reinforced the urgent need for financial institutions to prioritize measuring financial health and deliver personalized, just-in-time support to consumers. This approach is critical not only for improving overall financial health, but also for addressing the significant disparities faced by Black and Latine households, women, and families earning low incomes, and other marginalized communities.

By leveraging the power of technology and focusing on measurable outcomes, institutions can play a crucial role in closing the financial health gap and ensuring that more people – regardless of their background – are equipped to achieve financial health.

Thank you to Doug Haehl and Mary Gustafson for their valuable contributions to this vital conversation. If you missed the event, I encourage you to watch the full recording here. As we move forward, let’s continue to explore ways to create a financially healthier future for all consumers by prioritizing measurement, personalization, and impact.