From Underbanked To Financially Empowered: Your Path To Building Generational Wealth Starts Here

You know the saying, “money doesn’t grow on trees”? It’s true. Under the right circumstances, though, money does grow.

As it turns out, for 18.7 million Americans, that growth is slowed due to being underbanked. A mixture of expensive alternatives to traditional banking and a lack of financial education can block the way to success, leaving people without the tools they need to build a strong financial foundation.

Wells Fargo’s Banking Inclusion Initiative, a 10-year commitment dedicated to empowering unbanked and underbanked communities (and their money) reach their full financial potential is here to help.

What Does It Mean To Be “Underbanked”?

You can be unbanked, and you can be underbanked. If you’re unbanked, you lack a checking or savings account with an FDIC insured institution. If you’re underbanked, you may have a bank account, but you might not be utilizing all the services a bank provides to help establish a solid financial foundation. In either scenario, you might find yourself stuck using high-cost alternatives like check cashing services or payday loans.

Why Does This Matter?

Besides having greater control over your money, establishing accounts with a trusted bank is a crucial first step on the road to building generational wealth. Savings accounts are a great place to grow your emergency fund, and banks can help you establish a credit history and manage your budget so you can work toward bigger, more impactful financial milestones like purchasing a home.

With a strong financial institution like Wells Fargo, you can reach new financial heights not only for yourself, but also for those who come after you. Financial freedom and building generational wealth is truly the gift that keeps on giving. And opening a bank account is the very first step in this process.

Empowerment, En Masse

Research shows that, of the previously mentioned 18.7 million underbanked households in the U.S., a disproportionate amount are Black, Hispanic, or Native American. The reasons for this vary, but the results are the same across the board: people wind up losing out on money that they otherwise could be saving and passing along to future generations. And the amounts are not insubstantial. In fact, it’s estimated that being underbanked can lead to the loss of an estimated $40,000 in lifetime fees — a possible $360,000 in wealth over time.

So, how do we tackle this issue? By making mainstream accounts more affordable, financial education more accessible, and services more supportive of the unique needs of underbanked households. With Wells Fargo’s Clear Access Banking, for example, there are no overdraft fees, which is important for those who may have irregular payment schedules.

People can also look forward to talking to members of their own communities, as the initiative collaborates with a number of minority-led organizations, including Operation HOPE. This means that free financial education and financial coaching are available at HOPE Inside centers within select Wells Fargo branches, so you’re getting advice from someone who knows what you’re going through and has qualified experience to guide you. And the best part is, you don’t even have to be a Wells Fargo customer to take advantage of the free coaching services.

Your Road To Financial Empowerment

To see just how much a little financial planning can do, look no further than Sonya Verdine, who worked side-by-side with Wells Fargo HOPE Inside coach, Dr. Joaquin Wallace. Eager to improve her financial situation, Sonya had initial goals of raising her FICO® credit score and learning how to budget. When she walked in, Sonya admits that “...it was hard for me to figure out what I needed to do to get my spending and saving issues resolved.”

Over the course of 90 days, Sonya and Dr. Wallace worked together and started reviewing bank statements, going over expenses, and setting up a new way for her to budget. In the end, after several productive sessions with Dr. Wallace, Sonya enjoyed a 33-point jump in her credit score, and a 36-point drop in her debt-to-credit limit ratio, from 69% to 33%.

Sonya’s story just goes to show that, with a little collaboration and the right support, financial stability can be within anyone’s reach.

Wallace meets daily with clients who are eager to improve their financial health but are intimidated or overwhelmed by their own financial situations and don’t know where to start to turn things around. The HOPE Inside program is a way to provide an easily accessible, affordable option to help clients break through that overwhelming feeling and tackle their goals, which can range from improving their credit scores to reducing debt and even increasing savings. The sessions are often transformative, with individuals leaving feeling empowered to take ownership of their own personal growth and committed to implementing the strategies that will help them take control of their financial futures.

Get Started Easily.

A good place to start is a low-cost bank account like Wells Fargo’s Clear Access Banking. You can also read about other ways to jumpstart your financial future by checking out more on the Banking Inclusion Initiative.