Typical financial advice doesn’t always apply to families under constant financial pressure, writes Maria LaMagna in her April 3 article for MarketWatch: “Low-income families are getting terrible financial advice online.”
Families who experience income volatility and unpredictable employment have a harder time making long-term budgets, for instance.
The financial pressure can cause severe stress, Kristin Seefeldt says in the article, making decisions even harder.
Some families are also resistant toward using certain resources, such as food pantries. “There’s this idea that as long as you have a roof over your head, you shouldn’t be availing yourself of those things,” Seefeldt explains. “When the whole community is under a lot of financial stress, people keep it to themselves."
For community-based financial advice, Seefeldt says local nonprofit organizations, like the Mission Asset Fund in San Francisco, can help families make decisions. LaMagna also lists other organizations, including the National Foundation for Credit Counseling and ActiveHours, that can help low-income families avoid the trap of predatory lenders.