Household Financial Security Framework
At Prosperity Now, we know there is no silver bullet for increasing household financial security. Rather, just as people's lives are complex and multi-faceted, addressing financial insecurity requires a multi-pronged approach. Prosperity Now’s Household Financial Security Framework lays out this approach by showing the elements that need to come together in order for households to achieve financial stability and have meaningful pathways to wealth and prosperity.
The Framework is a great tool for conveying the complexity of financial security strategies to a wide range of audiences, including practitioners, policymakers and funders. Any type of organization—whether government, nonprofit, philanthropic or private sector—can use the Framework to identify where their mission and work can fit into a larger picture of household financial well-being. The Framework enables organizations to look holistically at their clients’ lives and understand how financial issues influence and are influenced by other challenges clients experience. As a result, organizations can identify gaps that are not addressed by their services and identify opportunities for adding new services or partnering with other organizations in order to more fully address the pieces that contribute to their clients’ financial security.
The Household Financial Security Framework illustrates the iterative process by which households can gain financial skills, increase income, save for the future and leverage savings to purchase assets, such as a home or business. This process leads to increased financial stability and opportunities to build wealth and attain financial security.