Association for Public Policy Analysis & Management

Washington, DC, has extensive resources to support its residents, ranging from policies that protect consumers, to city-led programs to assist those in need, to deep nonprofit capacity to help residents improve their financial standing. But, even in a city with such strong supports for the financial health of its residents, more can always be done. Researchers conducted focus groups with low-income DC residents from across the city to learn firsthand about their financial well-being, perceptions about how well financial service providers were meeting their needs, and potential solutions for helping residents cope with financial emergencies. Researchers also interviewed experts in DC government and local nonprofits about the needs and service gaps they observed.

Research Questions

Focus groups and interviews explored several questions regarding residents’ financial well-being: What are the needs of DC residents for managing their finances? Without the availability of payday lenders in DC, where do families obtain emergency funds? Is there a need for innovative, affordable, and safe products that could better help families seeking loans?

Data/Methods

This brief is grounded by six focus groups conducted between October and December 2018 with residents who were accessing financial programs through various DC nonprofit service providers. Additional stakeholder interviews were conducted among leaders working within the DC government and at area nonprofits who work with populations with notable financial needs of potential interest for financial empowerment center programming, including returning citizens, immigrants, those transitioning off Temporary Assistance for Needy Families (TANF), and those transitioning out of homelessness.

Findings

While most residents are banked and familiar with credit, many financial needs remain unmet by existing products and services, and distrust in financial institutions is common. Housing costs, poor credit, low or unstable wages or underemployment, transportation costs, debt, and financial disruptions are among the top of many residents’ financial concerns and pose challenges to their long-term financial goals. Local nonprofits, financial institutions, and DC government already offer a broad range of supports and can play complementary roles to help address many of these gaps, including offering flexible and affordable small loans that help residents build credit and cope with diverse financial emergencies and connecting families to financial counseling and other services appropriate for their specific needs.

Significance

By speaking with residents first-hand to learn about their financial challenges, how they address financial crises, the financial services they like and use most, and their financial services needs that are not being met, we can learn where gaps and opportunities exist in the financial landscape of Washington, DC. From this knowledge, better programs can be designed to help city residents shore up their financial standing.