Also of great importance to a healthy economy is a steady rate of new business formations. These new firms are created by entrepreneurs using their own savings, investments or home equity. Without good personal financial skills, these funding sources are not available. In addition, many lenders find that personal financial habits carry over into business finance practices and use the owner's personal financial history as the basis for decisions about lending to the business. Poor credit history may even affect an individual's ability to find employment.
Some companies use consumer credit reports in making hiring decisions.
Therefore, an individual's ability to get a good job may also rest on having a good credit history. Since high employment rates are important to both communities and the economy as a whole, an individual's personal financial skills have wide repercussions. For all individuals to participate fully in the economy, opportunities to own a home or start a business should be accessible to everyone. For people of limited means or those with past credit problems, strong money management skills are critical to take advantage of these opportunities. Personal financial education teaches individuals with limited incomes how to save to meet future goals and helps those with blemished credit records re-establish a strong financial foundation.