On Oct. 29, 2024, the U.S. Department of the Treasury published its National Strategy for Financial Inclusion.

This government-led initiative is designed to promote access to affordable and appropriate financial services for all people, and particularly underserved or marginalized communities.

The NSFI encourages innovation in digital banking, enhances financial literacy, supports the development of microfinance institutions and seeks to create a regulatory environment that fosters competition and safeguards consumers.

Its ultimate goal is to empower people economically, reduce poverty and contribute to sustainable national growth by integrating everyone into the financial ecosystem.

Here’s everything you need to know about the financial inclusion strategy and how it could affect your finances.

Treasury financial inclusion strategy at a glance

In essence, the Treasury’s financial inclusion strategy aims to improve financial literacy, while making key products like credit, investing and banking more accessible to the average American.

The strategy consists of five objectives designed to support the goal of making financial services and products accessible to a greater number of Americans:

Objective 1: Promote access to transaction accounts that meet consumer needs

The first objective outlined by the Treasury is to improve access to consumer bank accounts used to store and spend money. It specifically cited the persistent issue of unbanked households, asserting that the government should encourage the opening of transaction accounts for these Americans.

This objective also addresses the private sector, calling for financial institutions to expand the availability of affordable accounts and products tailored to underserved communities.

That would require addressing common barriers of entry for low-income populations, including high fees, overdraft charges or minimum balance requirements.

Objective 2: Increase access to safe and affordable credit

In its second objective, the Treasury encouraged lenders to support consumers dealing with financial hardship with more flexible credit products, like forbearance, Laura Adams, personal finance author and expert, said in an email.

This includes improvements such as more comprehensive credit score calculations, which could incorporate data like bank account transaction history or utility payments, and not just payments toward credit cards and loans, to improve credit for those with limited credit history.

Objective 3: Expand equitable access to savings and investments

Adequate emergency and retirement savings are crucial for financial health, but they are goals that many lower-income Americans may struggle with.

The third objective of the Treasury financial inclusion strategy addressed this problem, encouraging employers and the government to provide incentives for retirement savings as well as tools to manage short-term emergency funds.

The Treasury claimed financial literacy plays a role in many Americans’ lack of retirement preparedness and calls for evidence-based financial wellness programs and financial-planning services to mitigate knowledge gaps.

Objective 4: Improve the inclusivity of financial products and services provided or backed by the government

Objective four of the financial inclusion strategy discussed government-backed financial products and services.

According to the Treasury, “Government financial products and services, such as income support programs, Direct File and the payment channels used to disburse public payments, should be designed and delivered to enhance inclusion.”

Many people currently files their taxes using third-party software, which in the past has charged a fee for those who should be able to prep their returns for free, according to ProPublica.

Objective 5: Foster trust in the financial system by protecting consumers from illegal and predatory practices

The final objective in the Treasury inclusion strategy condemns predatory practices, calling for more rigorous consumer protections and fair lending laws.

This could include protections like the CFPB’s recent attempt to cap credit card late fees, and other policies that support more transparent and fair financial products.

Will the new administration affect financial inclusion strategies?

The recent election results will likely have an affect on financial inclusion objectives. While some of the goals outlined by the Treasury can be implemented by employers and financial institutions, others will require policy changes on a national level. So, it remains to be seen whether we’ll see any substantive changes in the financial system related to these recommendations via new policies.

Only time will tell what President Trump and the new Republican-majority Congress will prioritize implementing.

How will the financial inclusion strategy affect average Americans?

The financial inclusion strategy will serve as a guideline for employers, financial institutions, government agencies and other agents with roles in shaping financial wellness. But how exactly these objectives will translate into concrete results remains to be seen. For now, experts can only speculate the changes to come.

For instance, according to Josh Katz, certified public accountant and founder of Universal Tax Professionals in Chagrin Falls, Ohio, increased access to credit and banking services could take many forms.

“This could mean more options for low- or no-fee checking accounts, which would help reduce dependence on expensive alternatives like check-cashing services,” he said in an email.

Government-backed products in particular could improve access to financial tools for underserved communities, Katz added. "This could involve streamlining access to benefits and making public financial programs more accessible for non-English speakers."

Financial literacy will also play a key role in changes being practically worked into Americans’ lives.

"Together, these objectives are expected to enhance financial literacy, promote fair lending practices and facilitate partnerships between government and financial institutions, ultimately creating a safer, more inclusive financial landscape that supports the financial well-being of all Americans,” Katz said.

Using the financial inclusion strategy as a blueprint for personal financial goals

The Treasury’s financial inclusion strategy is largely targeted at reducing predatory practices and improving consumer access to financial products on a broad scale.

Still, Americans can use the objectives outlined to help develop goals for their personal financial lives. Follow these tips for a healthier strategy:

• Know your interest rates and fees and avoid high interest debt: High interest rates on products like credit cards and payday loans can have a significant negative impact on your finances if you carry debt. Additionally, late fees and overdraft fees can add to your debt. Be sure to read the full terms and conditions on your credit cards, loans and bank accounts so you know how to avoid unnecessary fees. Whenever possible, avoid high interest rates.
• Prioritize emergency savings: The financial inclusion strategy reaffirms the importance of emergency savings for financial security. Prioritize your emergency fund, even if you can only set aside a bit of money each month.
• Get started investing: Retirement savings may not be top of mind for many Americans, but it is important. If you don’t have access to an employer-sponsored retirement account, consider opening an IRA to start setting aside money for retirement on your own.
• Do your research when choosing financial products: Before you sign up for any bank account, loan or other financial product, make sure you do your research, parsing the terms and conditions for any penalties and comparing against competitor offerings to ensure fairness.