Why Poor People Make Expensive Financial Decisions
Often, the banking options available for low-income Americans are all fundamentally flawed.
Banks haven’t always been the giant, impersonal corporations Americans today are familiar with. For much of the twentieth century, they were more commonly small, community institutions that helped local residents manage their money and provided quick, small loans in times of financial upheaval. Banking in those days was rooted in personal relationships. That might sound idyllic, but it fostered a variety of problems, including widespread discrimination, says Lisa Servon a professor of urban policy at the New School in New York City. But the system that has arisen in its place, in which banking is faceless and algorithmic presents different
