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What are you doing at age 36? Or, what do you plan to do by age 36? Buy a house, perhaps? Be climbing the corporate ladder in your career? Starting a family or getting your startup off the ground? Most people look forward to doing those things in their 30s, but this is a pipe dream for more than 33,000 Americans.
As of August 2018, using available statistics, the Federal Bureau of Prisons reported that out of the 18-65 year-olds incarcerated in federal prisons, more than 33,000 of them are 36 – the highest age range represented.
There is a big push for prison education, which means more and more incarcerated persons are getting access to a GED and college education. However, to round out their skills, financial literacy is essential. At 36, the non-incarnated population typically juggles a household budget and a growing salary. When one’s stay in prison stunts formal and informal education, care must be taken to include “soft” skills like financial literacy to prisoners before they are released if the offender is expected to be rehabilitated and on par with their peers.
“We have found that inmates too often do not have fundamental knowledge, skills, or experience to face the complex financial realities of life. Upon re-entry into society, too often they repeat poor financial decisions that helped put them on the path to incarceration,” said John Wetzel, Pennsylvania secretary of corrections, and Robin L. Wiessmann, Pennsylvania secretary of banking and securities.
To combat this problem, Corrections opened a dialogue in 2016 with the Pennsylvania State Agency Financial Exchange (PA $AFE).
PA $AFE is a group of 20+ state agencies working together to provide financial education for consumers. Corrections began working with the organization to provide financial education as part of a re-entry strategy.
Although the program is in its early stages, inmates and corrections officers report positive feedback.
The program will be measured against four attainable outcomes:
- To see if those who received financial education in prison have a lower recidivism rate than those who did not;
- To see if past offenders who are back in society and had financial literacy training are more successfully employed than those who did not;
- To see if the released offenders are more motivated to use financial tools such as a bank account and are more willing to engage in entrepreneurship;
- To see how satisfied the staff and inmates are with the overall program results.
According to Fortune, two-thirds of Americans can’t pass a financial literacy test, and that’s with the added benefit of not being incarcerated and having ready access to financial tools and education. One can only imagine how the prison population would fare in this regard.
Without knowing the ins and outs of budgeting, understanding how debt works, and the importance of balancing a checking account and building up a savings account, your ability to enjoy life is compromised. Working toward financial literacy does not mean having a substantial disposable income. It implies no matter what stage you are in your financial life, you can recognize the money you have and how to make it work for you, or you realize where the gaps in the budget are and what needs to be done to fill them.
Published Sep 20, 2018 by Christopher Zoukis, JD, MBA | Last Updated by Christopher Zoukis, JD, MBA on Feb 21, 2024 at 1:06 pm