Personal finance education can be a significant way to empower people that have been incarcerated and a helpful factor in reforming criminals to help them succeed upon release back to society. Successful education programs can help rehabilitate, reduce recidivism rates and help prisoners integrate in the world.
💡Fun Facts:
| 1)After incarceration, the average released prisoner earns just under $20,000 annually |
| 2) The average incarcerated person loses $500,000 in lifetime earnings |
| 3) Within the first year of release, 60% of formerly incarcerated individuals are jobless |
Not having financial knowledge can significantly affect people in prison. Most prisoners do not have adequate money management skills to succeed in life. Upon release, this can lead to many challenges and issues such as finding a job and housing, and properly managing daily finances. This can lead to a cycle of poverty which increases the chances of committing crimes.
Topics that are helpful to cover include budgeting, banking services, credit building, financial planning, navigating loans and debts, investing and saving. Systematic programs that teach these skills will empower people and build their confidence and self-esteem. To maximize the ability to re-enter society, reformed prisoners need stable employment, safe housing, financial stability and social support systems. To effectively implement such programs, there needs to be a partnership between the correctional and education institutions along with community organizations. Prisons could work with financial literacy organizations, community organizations and financial institutions to build custom education programs that serve the specific needs of those that are incarcerated. Correctional staff should be trained on delivering these education programs to prisoners.
Some education tools that can be utilized include simulating banking and investments apps and software, traditional lecture/discussion classes, speakers from banks and financial institutions, mentoring from former prisoners and job training. It is important that prisoners be trained on “real world” topics that they will be able to use immediately upon release. They will be better equipped to deal with the challenges they will face when trying to adjust back to non-prison life.
Transition programs should be developed and implemented to provide ongoing support once a person re-enters society. Services such as financial counseling, job placement, access to banks and financial institutions, and housing assistance should be available. Nonprofits and other community groups can also provide support and mentoring to help ex-offenders manage their financial situation.
The investment in these types of programs can benefit society as a whole. By helping to reduce the rates of repeat offensives, it reduces the burden on the criminal justice system, including incarceration costs. When ex-offenders become contributing members of society, it can impact local economies and communities in positive ways. This can also help build stronger families and a more prosperous society.
While financial education can greatly help the criminal population, there are other factors that are important such as general education, job training, mental health services, substance abuse treatment, life skills and more. By providing a comprehensive approach to rehabilitation, the release success rate will greatly increase. Financial education can play a significant role in this process.
OPINION
Many people feel the goal of prison should be rehabilitation, not punishment. With that in mind, teaching convicts the skills and tools to manage their finances can greatly help them succeed when they return to to life outside the prison walls. Everyone can benefit from financial education and smarts, especially those who have none. Former prisoners are much more likely to remain crime free if they have a sound financial plan and goals.
