Financial Capability and Asset Building

The ability to establish and maintain financial plans during times of uncertainty as well as prosperity is critical for people to remain financially stable. In 2004, Citi launched a 10-year, $200 million global commitment to financial capability. We have since become a global leader in supporting financial capability and asset building programs such as budgeting, savings, money management and homeownership.

The Citi Foundation supports programs that help people take control fo their finances by improving their financial behaviors, making informed decisions about financial products and services, and learning how to acquire and preserve their assets. The Citi Foundation recognizes that people's priorities differ throughout their lives, and supports programs that reflect the varying needs of young people, adults and families. Since the launch of our 2004 commitment, we have invested approximately $167 million in hundreds of financial capability programs, and in research that is critical to improving the effectiveness of our efforts.

In 2009, the Citi Foundation provided $18.4 million in support of financial capability programs in 73 countries and U.S. territories.

What is Financial Capability?

At the halfway mark of our 10-year commitment our thinking has evolved to reflect the realization that while classroom-based financial education is important, other elements are necessary to achieve sustainable changes in financial behavior. Therefore we have adopted a new and more holistic approach that is focused on the broader concept of "Financial Capability," which encompasses four key elements:

1. Increasing financial literacy
2. Developing short-term and long-term financial plans
3. Increasing ability to select appropriate financial products or services to implement those plans
4. Providing ongoing support that helps consumers redefine their financial goals over the course of their lives

What is Asset Building?

Assets are defined as everything owned by a person or company that can be converted into probable future economic benefit. They are important because they can help individuals and families prepare for unexpected events. In addition, building assets can change the way people think about and plan for the future. Poor individuals are usually limited in the means by which to broaden their savings and assets, making asset building an important and efficient way to allow those in need to find their way out of poverty.