Financial Capability and Asset Building: A Transformational Practice Framework

Edward Scanlon,Cynthia K Sanders

doi:10.18060/21245

Edward Scanlon, Cynthia K Sanders

Open Access

https://doi.org/10.18060/21245

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Abstract

The promotion of financial capability and asset building (FCAB) is an important and fitting professional activity for social work, which has long been concerned with the economic well-being of individuals and families. Financial capability is attainable only if we assist clients by helping them to build new skills while simultaneously helping them to connect to economic opportunity structures such as savings, job training, or credit repair programs. We propose a person-environment-centered process model for use in FCAB endeavors, using case vignettes to illustrate the application of the process. By drawing upon several theoretical perspectives such as humanistic social work, cognitive behavioral theory, motivational interviewing, solution-focused brief therapy, and diffusion of innovations theory, practitioners may increase clients’ likelihood of successfully connecting to opportunity structures. Attention to behavioral, cognitive, emotional, and policy feedback processes may help to provide the “missing link” between individual financial behavior and the institutional opportunities offered by FCAB programs.

Highlights

The promotion of financial capability and asset building (FCAB) is an important and fitting professional activity for social work, which has long been concerned with the economic well-being of individuals and families
Arguing against both structuralism and methodological individualism, we suggest that the individual is neither the sole determinant of their economic capabilities, nor a passive recipient of structural forces that determine their outcomes
Human beings act within the economic and social context available to them, with varying degrees of success in achieving financial capability. We believe that this transformational practice framework is a needed corrective to the structuralism that has dominated asset-building, and to the individualism that dominates financial counseling practice. An examination of these ontological underpinnings of financial capability and asset building theory provides us with an opportunity to truly explore the reciprocal nature of human reality and social work’s emphasis upon the person-environment configuration

Summary

Introduction

The promotion of financial capability and asset building (FCAB) is an important and fitting professional activity for social work, which has long been concerned with the economic well-being of individuals and families. A focus in direct practice in FCAB should be helping individual clients to develop these behaviors and attitudes so that they may more effectively link to opportunity structures.

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Conclusion