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Youth Financial Empowerment Would you be more likely to put your money in the bank if you knew you could triple it in just a few months or years? It sounds too good to be true, but some foster youth here in New York City are finding out that saving their money can be a very rewarding experience. The Represent team was recently introduced to a great program called Youth Financial Empowerment (YFE). Deborah Brooks, a mentor at the YFE program, explained that YFE teaches teens how to handle their money and helps them save by matching their money 2-to-1. The teens who sign up take a six-week course that teaches financial literacy—things like sticking to a budget and managing bank accounts and credit cards. You learn how to open a bank account, fill out bank forms, and balance your checkbook. One of the six classes is on consumerism, Brooks said, which is “how companies market to teenagers and what teens are spending on.” Another important thing that YFE teaches is the meaning of assets. The YFE orientation says that “you cannot earn your way out of poverty; you have to have assets.” This means that even if you are the best money saver in the world, you may not have anything to show for it. Investing your money in true assets—things of lasting value like a reasonably priced home (house or apartment) or college education—will benefit you in the long run. Even emotionally, asset building helps you reach goals because you feel happier that an asset is in your possession. Having things that make our lives better reduces stress. Depending on how big and important the item is, it also may help you plan for your future and provide security. The Youth Financial Empowerment program also has paid internships in a variety of places including offices, parks, and daycare centers. Sometimes these internships turn into full-time jobs. Students are placed in internships after they complete the six classes so that they can put all their learning into practice—because managing Monopoly money isn’t going to motivate you to save the way cold, hard cash will. Free Money Then comes that reward. YFE helps you set up a special savings account called an Individual Development Account. All of the money teens manage to save (up to $1,000), YFE matches two to one. Suddenly you have $3,000! That money must be used for your apartment, college and/or vocational training, or a small business—in other words, for assets. Brooks explained that you could use the money in several installments: “You could take out $200 and get $400 from us and buy a computer for $600.” Then you could save another $800, which becomes $2,400 with the matching funds. History and Future YFE was created by educators, child welfare workers, and financial industry professionals who wanted to keep youth from aging out of care with no assets and no survival tools. The program started in 2008, and its funding came from private and public organizations. It’s been very successful, said Brooks. She said that 85% of foster youth who hear about it come to the classes, and “100% of the young people have made a huge difference in their lives with their assets.” There are other similar programs around the country that teach youth in foster care financial skills. Brooks mentioned the Jim Casey Youth Opportunity Initiative. The Casey programs are in 11 states across the U.S. Brooks said that in the YFE program, “you learn how to turn your dreams into goals.” But unfortunately, the program is now scheduled to end in December 2012, because it’s become too hard to fund in the bad economy. Now more than ever, it doesn’t make sense to allow programs like these to slip away. This is not just about saving money; it’s about gaining skills and knowledge and a financial boost that will better our lives in the long run. If we learn patience and believe that we can use our savings for something positive, then we’ve taken a big step in becoming members of society and taking control of our futures. |
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