Financial Coaching for Low-Income Adults

Summary

The CFPB financial coaching trial found meaningful improvements in credit scores, savings balances, and bill payment behavior at 12 months, with effect sizes larger than online financial education. The 19-point credit score gain is economically meaningful — enough to improve loan terms for many participants. The study is notable for its rigorous multi-site design and for demonstrating that brief, personalized coaching outperforms information provision alone. The finding has been replicated in multiple city financial empowerment programs, particularly those targeting community college students and recent immigrants.

Research question

"Does one-on-one financial coaching improve financial outcomes for low-income adults?"

Methodology

Result

Positive

Credit score: +19 points at 12 months; savings: +$168 median; bill timeliness: +11 percentage points

Evidence strength

Strong

Randomized controlled trial with large sample.

Replication status

Partially replicated