We hear this philosophy often, and I believe it to be true.  Think back to all those who have shaped your life, your thoughts, and your decisions: teachers and family, friends and mentors, coaches, neighbors, and pastors.  Sometimes, short, one-time experiences can be just as impactful. 

That is the hope of ACCION USA’s financial education team.  We aim to build lasting relationships with program participants, and often we do; individuals will attend a webinar, we’ll then invite them a speed coaching event, and they will eventually apply for a business loan.  Many times, though, we have only an hour – the length of a webinar or community workshop – to impact someone’s life. 

Samuel Adams founder Jim Koch (right) offers business advice to a Boston business owner at a recent financial education event.

With that understanding, ACCION USA recently developed and launched our first-ever financial education longitudinal impact survey.  We’ve gathered the names and contact information of financial education participants over the past year and half and are, through the end of July, surveying them on the quality, outcomes, and long-term impact of our financial education events. 

Thus far, the results are very positive.  Participants – even those from as far back as January 2009 – remember the events, remember what they learned, and can explain how the event content has since shaped their financial decisions.  I’m personally interviewing speed coaching participants, and nearly all remember specific business advice they received!  One man explained a coach’s advice to simplify his business logo, and another woman gushed about a coach’s suggestions to reach new clients with her niche business. 

Currently, we gather feedback at the end of each financial education event; it helps us understand the event’s immediate effect on participants.  But this longitudinal survey will be even more helpful by reporting the event’s long-lasting effects.  Does a woman now have a habit of making a budget?  Did she review her credit report for the first time and dispute an error?  Did she improve her credit score, qualifying herself for a small business loan?

Above all, the survey results will help ACCION USA learn what we are doing well and how we can change our programs to more effectively serve entrepreneurs. 

Stay tuned for the full survey report in August!

Elements of financial education appear throughout the lending process. From teaching individuals about the high costs of payday loans to showing business owners how to separate their personal and business finances, ACCION USA equips and empowers entrepreneurs with the education to achieve their financial goals.

Every so often, one of those days comes along that brings you back to the roots of what you do. It’s that client, that partner, that sale or proposal – that something that stands out and reinforces your daily work. It’s what causes you to go home with a smile on your face.

I’m fortunate to work in a place where these days come frequently – weekly, not quarterly. At ACCION USA, our success comes from our clients, and you’ve probably seen our many client success stories. Read one, and you’ll see the power of matching a microloan with the entrepreneurial spirit. It’s exciting, and it’s inspiring.

What you might not see, though, is the added value of financial education – an element of ACCION USA’s service portfolio that makes us unique among microfinance organizations. Elements of our financial education program are weaved into each and every client success story. Whether the client attended a legal counseling workshop, used our online budgeting worksheet, or received a half-hour of technical assistance from a loan consultant, financial education is ever-present in our work.

One of our most recent success stories is a true testament to this service.

Greg’s journey with ACCION USA began in February 2009. He owns an answering service business and needed a loan to keep up with his growing list of clientele. When a damaged credit history and low credit score meant that he didn’t qualify for a loan, Greg demonstrated two characteristics that entrepreneurs tend to possess: persistence and a desire to learn. He contacted our Boston office, determined to understand how he could improve his credit history.

That call was the first of many. Throughout the next year, my colleague Melissa led Greg through the process of improving his score. With her guidance, Greg took control of his debt, improved his credit score over 60 points, and regularly called to check in with Melissa. And his hard work paid off: last month, Greg was approved for a loan.

Greg is proof that financial education can give hard-working, determined individuals the boost they need to realize their entrepreneurial dreams. And all I’m left to say is congratulations. Congratulations to Greg on his persistence and drive to grow his business. Congratulations to Melissa for her dedication.

And congratulations to all of ACCION USA’s supporters for helping connect them.  You make this all possible.

For Margarita Amador, ACCIÓN USA served as more than just a lender; “ACCIÓN USA has helped me tremendously because I received a lot of advice not only on how to continue with my business, but on how to improve and manage my personal credit.”

Knowledge is power. What a simple but empowering phrase. It resonates with me on so many levels: as a recent college graduate, as a woman, and as a voter. So, when the latest FDIC white paper, Financial Education and the Future, outlined the startling state of financial education in the United States, it prompted me to consider ACCION USA’s role as not only a microlender but also as an educator.

The FDIC paper reported that an estimated 10-20 million individuals are unbanked – that is, they have no relationship with a bank. Moreover, this trend appears most acutely among new immigrants and members of minority communities. A staggering 35% of our county’s Latino population is unbanked, due equally in part to cultural differences, language barriers, and institutional distrust. This unbanked trend continues to lead these individuals to expensive alternative banking sources, such as predatory payday lenders.

Some advocate regulating these alternative sources, but rate caps only go so far. And more importantly, they don’t directly target the financial illiteracy that frequently lies at the root of this problem.

ACCION USA targets this root. We’re in the asset-building business, and education is an asset that adds value for generations to come. Our interactive workshops show individuals that saving is important – if only $5 a month. Our personalized technical assistance explains why good credit is crucial in this country, and why debt must be managed and not ignored. Our one-to-one business counseling demonstrates that planning and cash flow and recordkeeping are essential for business survival.

For some, these things might be common sense. But consider the perspective of a recent immigrant or of someone whose parents immediately cashed each paycheck just to put dinner on the table. Just as your home environment will influence your knowledge of sports, music, or any other activity, it can also predict your future money management skills and those of your children and of your children’s children.

Instead of allowing financial illiteracy to perpetuate, ACCION USA takes the initiative to educate and instill in individuals the education and tools they need to succeed in this country.

And by doing so, we’re seeing every day that knowledge really is power.