La Follette students find financial capability program is vital for humanitarian migrants’ financial literacy, stability

An in-depth evaluation conducted by graduate students in UW-Madison’s La Follette School of Public Affairs indicates that the International Rescue Committee’s financial capability program successfully empowers humanitarian migrants to navigate the complex financial systems of the U.S. The International Rescue Committee (IRC) is an agency dedicated to helping people whose lives and livelihoods are shattered by conflict and disaster to survive, recover, and gain control of their future.  Core to IRC’s US work is a set of programming designed to help an exceptionally diverse group of humanitarian migrants integrate into their communities and realize economic mobility that allows them to build a future for themselves.  Along with language barriers, cultural differences, and the task of building a new life with limited resources, navigating the U.S. financial landscape is one of the most difficult transitions individuals make when entering the US. To support humanitarian migrants in understanding these systems, the IRC offers a financial capability program that provides comprehensive financial education, personalized financial coaching, and access to tailored financial products. The program intends to foster stability in the long-term for migrants, aiding in their ability to contribute positively to their communities and the U.S. economy. In partnership with the IRC, La Follette graduate students Jon Bechard, Min-Jung Jun, Amelia Lowe, Awa Maïga, Migena Vula, and Hnub Xiong examined the effectiveness of the financial capability program through both existing literature and data analysis.

“Our research journey uncovered the transformative impact of financial capability services on the lives of humanitarian migrants,” Maïga says. “Their stories of resilience and empowerment serve as a testament to the vital role of financial capability services in fostering economic integration of humanitarian migrants.”

The study found that the IRC’s programming has had considerable success in improving financial literacy in humanitarian migrant groups, evident in the ability of participants to navigate the country’s financial system. The impact of the program included a positive correlation with higher credit scores and improved savings behavior. The report also recommends that the IRC invest in high-quality data collection procedures and receive federal funding for financial capability programs to further amplify the results of the program. “We appreciate the research conducted by the La Follette student group which provided invaluable insights into IRC’s financial capability and inclusion programming,” says IRC’s Senior Director of Economic Empowerment Erica Bouris. “Further, we are excited about how this work can continue to inform and drive stakeholders – including public, private, and community sector partners – towards investment, strengthening, and scaling of financial capability services for newcomer populations.” The report findings also suggests the IRC consider avenues for future research and advocacy to enhance financial support for humanitarian migrants. Efficient financial capability programming not only enhances migrants’ personal financial proficiency but also advances broader objectives of immigrant integration and economic development. The collaboration between The La Follette School and the IRC yielded productive results, and moving forward, they aim to explore the possibility of continuing their partnership in long-term research on financial capability programming “The collaboration with the International Rescue Committee has been invaluable, and their support has been instrumental in conducting this evaluation,” Bechard says. “We commend their commitment to improving the financial well-being of humanitarian migrants and appreciate the opportunity to contribute to their mission.” [uw-reusable-content id=’5470′]