Working Paper

Financial Well-being and Inclusion of Justice Involved Populations: Evidence from the SHED

Abstract: This study examines financial challenges faced by justice-involved individuals using 2023-2024 Survey of Household Economics and Decisionmaking data. Individuals with justice system contact experience substantially worse financial outcomes than those without criminal records, with disparities widening by severity of involvement. Compared to individuals with no prior records, those arrested but not convicted are 4 percentage points less likely to report doing at least okay financially, while formerly convicted as well as incarcerated adults are 15 percentage points less likely. Formerly incarcerated individuals are also 21 percentage points less likely to have credit scores above 660 and 13 percentage points less likely to have credit cards. These disparities mirror patterns observed across education levels, where adults with lower educational attainment experience lower financial well-being and inclusion. Our findings document substantial barriers to financial stability among justice-involved populations and may inform policies promoting financial inclusion and improving economic outcomes for this group.

JEL Classification: K42; G50; I31;

https://doi.org/10.17016/FEDS.2026.024

Bibliographic Information

Provider: Board of Governors of the Federal Reserve System (U.S.)

Part of Series: Finance and Economics Discussion Series

Publication Date: 2026-05-01

Number: 2026-024