Kristin V. Richards

Does Individual Development Account Participation Help the Poor? A Review

Objectives: The purpose of this study is to review the current empirical research regarding the financial effects of participation in Individual Development Account (IDA) programs. Methods: Peer-reviewed outcome studies identified through electronic bibliographic databases and manual searches of article reference lists are reviewed. A total of 1 randomized controlled trial, 1 quasi-experimental study involving a comparison group, and 13 preexperimental 1-group pretest—posttest studies, were found. Results: Findings suggest IDA participants are capable of saving; however, total amount of savings is limited and may simply represent a reallocation of assets. Additionally, there is little evidence that the poor are enabled to achieve one of the three primary purposes of IDA programs (e.g., home ownership, postsecondary education, and microenterprise). Conclusion: It is premature to conclude that IDAs are an effective means of assisting low-income individuals in the development of assets. A stronger evidentiary foundation is needed, consisting of randomized controlled trials and cost-effectiveness and cost—benefit studies.

Effects of a Low-Element Challenge Course on Abstinence Self-Efficacy and Group Cohesion

Substance abuse researchers identify self-efficacy and group cohesion as important components in alcohol and other drug-dependency treatment. Objectives: The purpose of this single-group, pretest–posttest study is to explore the therapeutic value of a challenge course intervention on the self-efficacy and group cohesion of nine chemically dependent, adult females. Methods: Data were collected using two validated outcome measures administered before and after the intervention. Focus groups provided insight into the experiences of participants and were examined using manifest and latent theme analysis. Results: Findings indicate statistically significant improvements on both outcome measures with medium to large effect sizes. Several themes were identified including group unity, trust, interpersonal growth, and self-confidence. Conclusions: Suggestions for practice and future research are provided.

Language of Money

ABSTRACT This article examines the relationship of personal finance in a narrative-based treatment strategy as applied to couples. It builds on behavioral economics as the undergirding of an approach to financial literacy. By matching the treatment strategy with the stages of readiness for change, couples are able to gradually adopt a financially prudent lifestyle. The authors argue that the couples’ conflicts about personal financial behaviors are a proxy of underlying problems in intimacy. The use of a narrative-based theory addresses how personal finances are used to control relationships.

Mindfulness in Financial Literacy

ABSTRACT Financial education is becoming imperative in a society that has pitfalls for unwary consumers. To ensure effectiveness, educational strategies must take into consideration the readiness of consumers to learn the curriculum. Behavioral economics highlights the obstacles that educators face in promoting financial efficacy. Such obstacles include envy, fear, greed, and other all too familiar human failings. One innovative model, mindfulness, provides insight into the human dynamics of personal financial behaviors. This article ties together financial education, mindfulness techniques, and transtheoretical stages of readiness. The impact of gradually introduced educational tasks is presented with an eye toward clients’ stages of readiness, and mindfulness addresses the emotional burdens of altering a financially profligate lifestyle.

Solution-focused financial therapy with couples

ABSTRACT Conflicts over finances are a key reason why marital relationships dissolve. Financial literacy interventions provide a strategy to ameliorate this conflict. Because financial literacy interventions have a mixed history of success, a new model of financial counseling is presented. The model described in this article has three components: transtheoretical indicators of readiness for change, solution-focused therapeutic techniques in negotiating the stages of change, and a five step model of financial therapy. Implications for refining the practice model are given.

Sirens’ Call: Understanding Poor Financial Decision Making and Credit Card Misuse

Poor financial decision-making paradigms such as misuse of credit cards exist as ruinous forms of personal debt. Psychiatric and physical health problems arise from financial distress. Significant challenges exist for consumers to become financially solvent. Obstacles that exist in overcoming financial stressors can be explained by behavioral economic theories. These theories explain why consumers make unwise financial decisions. Research, practice implications, and a financial therapy model for improving financial decision-making skills are presented. The need for social work to ally with family economic scholars and policymakers around financial literacy and the development of effective financial therapy interventions is discussed.

Teaching Financial Problem Solving: A Curriculum Model From a Pilot BSW Course

Social work clients need financial literacy skills. Many clients are faced with the task of overcoming increasingly complex and challenging financial obstacles that can take a dire toll on their ph...

Online financial therapy

ABSTRACT This article discusses a case study implementing a manualized financial therapy intervention in an online setting. The benefits of financial therapy are discussed, and the pros and cons of online therapy are contrasted. A description the intervention is provided. At the conclusion of the intervention, the client and other family members reported satisfaction with this form of therapy. Using financial therapy in an online format may help reduce the service barriers that are often encountered by requiring therapy sessions to be conducted in-person, thus providing wider access to low-income clients who are most in need of these types of interventions.

Financial therapy in foster care

ABSTRACT The introduction of prevention-oriented financial therapy in foster care is presented. Consideration of emotional demands in financial literacy and therapy is examined and remedies provided that address them. Revisions to the five-step model of financial therapy are considered in terms of the needs of foster care client populations. A pared down prevention model provides aging out foster children with a means of successfully navigating lifestyle challenges. The need to empirically evaluate the prevention model is advised to demonstrate its value with this population.