1 / 13

Adding Banking Access and Financial Education to Youth Employment Programs

Learn why having a bank account is crucial for youth in employment programs, and how integrating banking access and financial education can benefit them. Discover the negative consequences of not having a bank account and the importance of timing in account opening.

rangela
Download Presentation

Adding Banking Access and Financial Education to Youth Employment Programs

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Adding Banking Access and Financial Education to Youth Employment Programs

  2. Who are we? I-Hsing Sun Chief Program Officer, Cities for Financial Empowerment Fund Marsha Armstrong SYEP Manager, Newark Youth One-Stop Career Center Julia Breitman Senior Director Youth Employment, New York City Department of Youth and Community Development Margaret Libby Executive Director, MyPath

  3. Integrate banking and financial empowerment seamlessly into jobs Summer Youth Employment Banking Access Summer Jobs Connect

  4. Why does banking matter?

  5. Having a bank (or CU) account  good things People with mainstream bank accounts vs. those without keep more of their earnings fare better against financial shocks Are 8x more likely to save more Source: Pew Health Group. 2010. Designed by Freepik and distributed by Flaticon

  6. Having a bank (or CU) account  good things Accounts allow people to get direct deposit and automated savings, which have behavioral economics benefits reduces decision making encourages good choices reduces ‘friction’ for savings

  7. Having a bank (or CU) account  good things Relationship with a mainstream financial institution increases sense of connection and competence for youth increases access to credit

  8. Not having an account  bad things Average annual cost of not having a bank account: $196.50 to use a prepaid debit card with direct deposit $198.83 for check cashing and money order services (no prepaid card) $497.33 to use a prepaid card without direct deposit Payday loans: Median amount = $350; Median interest rate = 300% $40,000 over a lifetime Source:Nerdwallet

  9. Not having an account  bad things Cashless future? Growing global risk of “creating islands, where the unbanked transact [only] with each other” Designed by Freepik and distributed by Flaticon Source:The Guardian

  10. Not having an account  bad things

  11. Timing of account opening is key People need to walk into a job with an account to actually use direct deposit Getting an account later is not productive Set people up with account before they start their jobs

  12. I-Hsing Sunisun@cfefund.org

More Related