Technical Definition

Affordable financial products include, but are not limited to, checking and saving accounts, credit cards, loans, and insurance.  Affordable housing includes accessing benefits to help defray the cost of housing (e.g. Section 8), access to temporary shelter for those who are displaced, and connecting individuals and families to permanent housing.  

Why Is This Indicator Important?

Affordable financial products and services help individuals and families manage their money, handle emergencies or unexpected expenses, and plan for their future. Financial products and services offered by banks or credit unions have lower fees and interest rates than alternative financial service providers, such as check cashers or payday lenders. Access to these products can help consumers save money on financial transactions in the short-term and support their longer-term financial goals such as owing a home, starting a business, and/or investing in education.

Data Sources and Collection Methods

United Way partners that are helping individuals and families access affordable financial products and services should report the number of individuals that opened a checking account, savings account, or applied for and received credit in the form of a credit card, mortgage, or other loan. To ensure an un-duplicated count, if an individual accessed more than one financial product or service, they should only be counted once.

How to calculate - Sum the total number of individuals who accessed for the first time one or more affordable financial products or services with the assistance of United Way or its partners. 

Additional Resources

• World Bank Group’s Universal Financial Access 2020 Initiative.