Introduction
Low- income families often do not have access to banking services for a variety of reasons and can often fall victim to predatory lending. This study explores reasons why they have limited access to banking services, the need for financial education, it examines the training programs, the knowledge and attitudes associated with financial understanding and the role and involvement of social workers. The researcher, Anderson, Zhan, and Scott (2007) discuss how the wages have declined and the impact of social welfare reform such as, TANF forcing people to take low wage jobs with little assistance. The study focused on completion of a financial training that targeted low-income families and those about to leave the TANF program (Anderson, Zhan, and Scott, 2007).
Limited Access to Banking Services Low- income families are less likely to use banking services than middle class families. According to Anderson et al. (2007), 9% of US households do not use banking services and found that 83% of families had an annual …show more content…
Pay day loans give money to an individual for a dated check to be paid later, however, there are fees and interest that can be as high as 470%, in 2003, their loans valued 25 billion dollars (Anderson et. al., 2007). Unfortunately, these agencies have grown and are likely to be found in neighborhoods with a high percentage of low- income families. Another predatory practice mentioned in this study is “refund anticipation loans.” Many families are eligible for the Earned Income Tax Credit and child credit when receiving their income tax return, however many tax preparation services are offering these anticipated loans which allows a person to receive their tax return immediately but comes at a high cost in the form of fees (Anderson et. al.,
Low- income families often do not have access to banking services for a variety of reasons and can often fall victim to predatory lending. This study explores reasons why they have limited access to banking services, the need for financial education, it examines the training programs, the knowledge and attitudes associated with financial understanding and the role and involvement of social workers. The researcher, Anderson, Zhan, and Scott (2007) discuss how the wages have declined and the impact of social welfare reform such as, TANF forcing people to take low wage jobs with little assistance. The study focused on completion of a financial training that targeted low-income families and those about to leave the TANF program (Anderson, Zhan, and Scott, 2007).
Limited Access to Banking Services Low- income families are less likely to use banking services than middle class families. According to Anderson et al. (2007), 9% of US households do not use banking services and found that 83% of families had an annual …show more content…
Pay day loans give money to an individual for a dated check to be paid later, however, there are fees and interest that can be as high as 470%, in 2003, their loans valued 25 billion dollars (Anderson et. al., 2007). Unfortunately, these agencies have grown and are likely to be found in neighborhoods with a high percentage of low- income families. Another predatory practice mentioned in this study is “refund anticipation loans.” Many families are eligible for the Earned Income Tax Credit and child credit when receiving their income tax return, however many tax preparation services are offering these anticipated loans which allows a person to receive their tax return immediately but comes at a high cost in the form of fees (Anderson et. al.,