Money Talks Help Parolees in New Jersey

New Jersey Officials Excited About Study of Financial Literacy’s Impact on Recidivism

 

Judges and state parole officials in New Jersey are anxious to expand a FINRA Investor Education Foundation funded program that teaches probationers and others under court supervision basic financial skills.

 

The Money Talks, Building a Brighter Future program is led by the American Credit Alliance in partnership with the U.S. Probation Office in N.J., and Goodwill Industries of Greater New York and Northern New Jersey.

 

Project Coordinator Carole Glade said the goal of the pilot program “is to increase ex-offenders’ financial knowledge and skills, which will help them become more productive members of society. The program also hopes to see if financial knowledge will impact on recidivism.”

 

Before-and-after testing indicates that the students are learning the lessons the program is trying to teach. Test results after the course show a 40 percent to 60 percent improvement over pre-course results, Glade said. It will take much longer to see whether these new skills will reduce recidivism, she said. The program was launched in December 2008.

 

The pilot program’s partners are optimistic and want to expand the project across the state. In addition to reducing recidivism, officials hope that teaching financial responsibility will improve the offenders’ ability to pay their court ordered fines and restitution.

 

In all, 50 men and 50 women on court ordered supervision will complete 12 hours of financial literacy training. The course begins with the basics of handling a budget, credit and opening and managing a checking account, then progresses to more complex topics, such as investing in various asset classes and saving for long-term needs. Along the way, students review their credit records and are taught how to improve their credit scores.

 

Most of the students committed serious crimes, Glade said, but instructors do not focus on the past. The goal is to rebuild lives and financial confidence to avoid future problems.

 

“Some might think that this audience would be different than other consumers,” Glade said, “but it’s really not. All people need financial education and skills to handle their money.”

 

Regardless of the impact the courses are having on the corrections system, they have already demonstrated a number of personal victories, Glade said. “Many students are taking steps to teach their children about money. Many have opened their first bank accounts. Some have become part-time mentors. And one gentleman found out that his identity was stolen while he was in jail. Now he is able to correct that and begin rebuilding his life.”