Financial justice refers to the effort to ensure that everyone has equitable access to financial resources and opportunities, particularly focusing on correcting systemic inequalities that disproportionately affect low-income people and communities of color. It addresses the structures and policies that create and perpetuate financial disparities.
This involves:
- Addressing Disparate Impact: Recognizing and rectifying financial systems and practices (like fines, fees, and lending practices) that negatively impact certain groups more than others. As the Financial Justice Project states, their work centers on assessing and reforming fines and fees that have an adverse disproportionate impact on low-income people and communities of color.
- Promoting Equitable Access: Working to ensure everyone has fair access to affordable financial products and services, such as banking, credit, and insurance.
- Empowering Financial Stability: Supporting programs and policies that help individuals and communities build wealth, achieve financial security, and overcome financial hardship.
- Challenging Predatory Practices: Combating predatory lending, debt collection, and other exploitative financial practices that target vulnerable populations.
- Advocating for Systemic Change: Pushing for policy changes that address the root causes of financial inequality and create a more just financial system for all.
In short, financial justice is about creating a level playing field in the financial system, so everyone has a fair chance to thrive, regardless of their background or income.
