City Investments in Financial Capability are Paying Off
This post was co-written by Alysha Davis. President Obama issued a proclamation declaring April 2015 to be National Financial Capability Month. It’s described as a to time to “renew our efforts to support the informed financial decisions that will open doors into the middle class and help ensure economic security for all.”
In his proclamation, the president calls upon “all Americans to observe this month with programs and activities to improve their understanding of financial principles and practices.”
As April comes to a close, we wanted to highlight some of the innovative ways that cities are stepping up and delivering financial capability opportunities to their residents at the local level. The National League of Cities Institute for Youth, Education and Families (YEF Institute) is supporting these efforts in a number of ways.
Mayors and city council members recognize the importance of helping residents become more financially secure and gain access to financial services, not just to enhance the economic stability of families but also to boost local economic development. More and more cities, often in partnership with community-based organizations and financial institutions, are offering financial education and counseling, homeownership assistance, expanded access to safe and affordable financial services and debt reduction strategies, to call out just a few of the activities taking place at the local level.
To learn more about these and other financial inclusion programs, stay tuned for a forthcoming report from the YEF Institute on how municipal leaders from across the country are stepping up to address the financial struggles of their residents. The report will document the findings of NLC’s City Scan of Local Financial Inclusion Efforts, which included a survey of 118 city leaders, follow-up telephone interviews and a roundtable with city officials and community partners focused on municipal financial inclusion efforts.
The NLC YEF Institute has a history of assisting city leaders to implement programs to build residents’ economic stability. Over the last two years, we have been working with five cities (Savannah, Ga.; Newark, N.J.; Louisville, Ky.; St. Petersburg, Fla. and Houston) to implement the Local Interventions for Financial Empowerment Through Utility Payments (LIFT-UP) program, an innovative pilot project to help low-income families pay their utility bills and achieve financial stability.
As part of LIFT-UP, we are providing technical assistance to help cities connect families who are in debt to city-owned utilities and with options such as a restructured payment plan, payment incentives and a variety of financial empowerment services, including financial counseling.
We also recently launched a project to identify best practices for local leaders to incorporate financial capability strategies into municipal youth employment programs. The aim is to improve the ability of young people (ages 14 – 24) to effectively manage their finances – from saving to building credit and keeping debt manageable. We are looking at the roles that city leaders, banks, credit unions and other partners can and do play in ensuring that young jobseekers have access to financial knowledge and services.
As part of this project, we will be providing guidance to the Consumer Financial Protection Bureau and the U.S. Department of Labor on their new technical assistance opportunity to help cities include financial capability in their youth employment programs.
About the Authors:
Heidi Goldberg is the Director for Economic Opportunity and Financial Empowerment in the NLC Institute for Youth, Education, and Families. Follow Heidi on Twitter at @GoldbergHeidi.
Alysha Davis is the Associate for Research and Communications in the NLC Institute for Youth, Education, and Families.