Research Measures Impact of Financial Literacy Skills

New research, released by SiMPACT Strategy Group, examined the social return on investment (SROI) for Money Matters, a financial literacy and education savings program developed by ABC Life Literacy Canada. People with low literacy skills and low incomes are especially vulnerable to financial crisis: they have difficulty saving, are more likely to use high-fee outlets for payday loans and cheque cashing, and miss out on opportunities for government contributions to their children’s education.  Adult learners who participate in Money Matters workshops develop important financial literacy skills, decrease their anxiety about working with financial institutions, and increase their knowledge and confidence about managing money.

Through statistical analysis and learner surveys, the study revealed that for every dollar invested in the program, $2.21 was created in value for stakeholders.  Of this value, 71% was attributed to participants who experienced value as a result of decreased use of fringe financial services, decreased debt and increased savings.  Another 11% of the value was attributed to the children of participants who experienced value of increased savings.

“Social Return on Investment (SROI) is about moving the conversation from cost to value.  The Money Matters SROI demonstrates that there is significant value created when you invest in the capacity of adult learners to more effectively manage their finances,” said Anne Miller, SiMPACT Strategy Group.

>> Continue Reading

Source: ABC Life Literacy Canada