Financial literacy is more than just understanding money – it’s the ability to make informed, confident decisions about earning, spending, and borrowing. It consists of skills, knowledge, and behaviors that support long-term financial well-being. Without financial literacy, navigating everyday choices like budgeting for housing, groceries, transportation, childcare or managing debt AND working toward long-term goals of education, retirement, and/or generational wealth, are impossible.

Despite how essential these skills are, financial literacy remains a significant challenge across the United States. On average, Americans only answer about 48% of financial literacy questions accurately. Younger people score even lower; members of Gen Z only answer about 38% of questions correctly.

Financial literacy is also closely tied to income. National research consistently shows that individuals with lower incomes are significantly less likely to have a strong understanding of basic financial concepts like interest, inflation, and risk. These disparities can start in childhood, with students from higher-income households demonstrating stronger financial knowledge than their peers. Because financial habits and knowledge are often shaped at home, limited access to financial tools, resources, and education can create a cycle where gaps persist across generations. This has real world consequences.

Young adults only learning about money for the first time through trial and error cost themselves an estimated average of $1,015/year in mistakes or missed opportunities. Without access to financial education, families are more likely to experience stress, debt, and barriers to long-term goals.

While financial literacy alone cannot solve the structural causes of poverty, it is a critical piece of the puzzle. When people have access to the tools and knowledge to make informed financial decisions, they are better positioned to build stability, navigate challenges, and create new opportunities for themselves and their families.

At Families Moving Forward, we see financial literacy as a foundational part of building lasting change. Through our educational programming and case management, families gain practical tools like budgeting, credit awareness, and goal setting. We also engage children in learning some of these skills early. Programs like our Kids Store and Decision Dollars create hands-on opportunities for children to practice saving, spending, and prioritizing—helping them build self-reliance and healthy financial habits from a young age.

Ultimately, financial literacy is about empowerment. When families have the knowledge and tools to make informed financial decisions, they gain more than stability; they gain choice, confidence, and the ability to plan for a future they define for themselves.

Take a quick financial literacy quiz to see where you stand: https://www.finra.org/financial_knowledge_quiz

Want to read more about financial literacy? Check out these links:

“Americans Want — and Need — Financial Literacy | American Bankers Association.” Aba.com, 2025, www.aba.com/news-research/analysis-guides/americans-financial-literacy.

Caporal, Jack. “Financial Literacy Statistics: The Average American Scores Just 48%.” The Motley Fool, 9 May 2025, www.fool.com/money/research/financial-literacy-statistics/.

“Financial Literacy Gap | Literacy Ledger.” Literacy Ledger, 2025, www.literacyledger.com/financial-literacy-gap. Accessed 9 Apr. 2026.

Family homelessness is often discussed in terms of housing instability, but its impact reaches far beyond the loss of a home. For parents and children alike, the experience of homelessness can have profound effects on both physical health and overall family well-being.

Without stable housing, families face increased exposure to environmental stressors like extreme temperatures, overcrowding, and limited access to safe, clean spaces. These conditions can contribute to higher rates of chronic illness, respiratory issues, and weakened immune systems, especially for young children whose bodies are still developing. The health effects of homelessness can begin even before birth.

Pregnant people experiencing homelessness face significant barriers to accessing prenatal care — from lack of transportation to gaps in insurance coverage — leaving unborn children at elevated risk from their very first days. Research shows that by the age of three, children without stable housing have higher rates of injuries and nutritional problems, in addition to more frequent respiratory problems and higher rates of illness. Unhoused children are twice as likely as other children to go hungry and four times as likely to experience delayed development.

Children who experience homelessness and other trauma are exposed to “toxic stress,” a kind of prolonged physiological strain that can disrupt the brain and nervous system’s critical early development. Unlike ordinary stress that children bounce back from, toxic stress rewires developing physiological systems in ways that can elevate the risk for asthma, chronic infections, hypertension, and behavioral challenges well into adulthood. For many children in this situation who are toddlers or preschoolers — consistently the largest population of guests FMF serves — these are formative years in which environment profoundly shapes lifelong health and learning. The longer a family remains without stable housing, the more severe these developmental consequences tend to be.

Parents, too, often experience declines in physical health as they navigate the daily strain of meeting basic needs without consistent resources. Studies find that parents experiencing homelessness carry significantly higher rates of depression, anxiety, and chronic stress than the general population. One in three mothers in unhoused families has a chronic health condition, and many have experienced prior trauma — including domestic violence and assault — compounding the physical and emotional weight they carry.

Just as significant are the effects on family well-being. The uncertainty of homelessness can disrupt routines, strain parent-child relationships, and increase levels of stress and anxiety for every member of the household. Children may struggle with sleep, emotional regulation, and school attendance, while parents shoulder the responsibility of both caregiving and crisis management. Families experiencing homelessness are more vulnerable to additional forms of trauma, including exposure to violence. All of this combines to make recovery not just a matter of finding a new apartment — it is a comprehensive physical, emotional, and relational rebuilding that takes time, consistency, and sustained community support.

At Families Moving Forward, we recognize that addressing homelessness means caring for the whole family; not just their housing needs. Our multi-generational approach is designed to support both parents and children with the tools, resources, and stability they need to thrive. We connect families to health, vision, and dental care; mental health support; access to nutritious food; skills education and programming focused on health, self-care, hygiene, and nutrition; resources to strengthen and repair parent-child attachment; and additional ongoing support for transitioning to and maintaining permanent housing.

The result is a community of families who are not just housed, but healthier; children who get to be children, and parents who have the support they need. Because when families have the help they need to heal and rebuild, the benefits ripple outwards — strengthening not only individual households, but the health and well-being of our entire community.

Financial Literacy

Health, Family Well-being and Homelessness

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