YouthBuild and MyPath Partnership Helps Young People Build Financial Skills and Savings - The Annie E. Casey Foundation

YouthBuild and MyPath Partnership Helps Young People Build Financial Skills and Savings

Posted November 9, 2022
By the Annie E. Casey Foundation
young office workers engaged in a discussion while looking at a monitor

Two Annie E. Casey Foun­da­tion grantees have teamed up to help young peo­ple save, use cred­it and man­age their mon­ey – all key skills for sup­port­ing life­long finan­cial well-being.

Youth­Build USA — which spans 220 pro­grams nation­wide — offers job train­ing and edu­ca­tion­al oppor­tu­ni­ties to young peo­ple who are unem­ployed, not in school and between the ages of 16 and 24. MyPath is a San Fran­cis­co-based non­prof­it that equips young peo­ple with the finan­cial tools and knowl­edge need­ed to build wealth and eco­nom­ic mobil­i­ty. These orga­ni­za­tions have joined forces to fos­ter finan­cial capa­bil­i­ty in work­ing youth and young adults since 2018.

Under­stand­ing the Eco­nom­ic Bar­ri­ers Young Peo­ple Face

Over the past four years, nine Youth­Build sites across the Unit­ed States have imple­ment­ed MyPath’s finan­cial capa­bil­i­ty mod­el. The move has helped more than 420 young peo­ple build the skills nec­es­sary to bol­ster their cred­it and savings.

The need for such edu­ca­tion is real, with four out of five low-income young adults fac­ing cred­it bar­ri­ers, accord­ing to MyPath.

After par­tic­i­pat­ing in MyPath’s sav­ings and cred­it-readi­ness work­shops, Youth­Build par­tic­i­pants com­mit­ted to sav­ing, on aver­age, 32% of their earn­ings, with their top sav­ings goals being trans­porta­tion, hous­ing and tech­nol­o­gy,” says Andrea Giese, MyPath’s direc­tor of devel­op­ment and com­mu­ni­ca­tions. Of par­tic­i­pants sur­veyed, 81% report­ed an increase in con­fi­dence when using cred­it for auto loans, cred­it cards or mortgages.” 

Finan­cial edu­ca­tion and safe bank­ing mat­ters, says Giese. Young peo­ple who have access to these resources learn how to bet­ter iden­ti­fy and avoid preda­to­ry loans, under­stand their rights as con­sumers, pre­pare for finan­cial emer­gen­cies and devel­op finan­cial security.

To suc­ceed as adults, young peo­ple need to under­stand how to man­age their finances,” says Bead­sie Woo, direc­tor of fam­i­ly and youth finan­cial sta­bil­i­ty with the Casey Foun­da­tion. Work­ing hand in hand, Youth­Build and MyPath are pro­vid­ing incred­i­bly valu­able finan­cial men­tor­ship to the next gen­er­a­tion of workers.”

Finan­cial Lit­er­a­cy Lessons for Youth From the Field

Accord­ing to Giese, MyPath and Youth­Build USA have iden­ti­fied sev­er­al lessons from their part­ner­ship that will inform future finan­cial capa­bil­i­ty pro­grams. These are: 

  1. Ensure part­ner­ships have buy-in from all lev­els. Sites should con­sis­tent­ly engage lead­er­ship and finance team mem­bers and invite them to attend reg­u­lar meet­ings and train­ing workshops.
  2. Adapt to fit each site’s unique needs. MyPath staff con­sid­er the country’s exist­ing finan­cial land­scape and work­ing to bet­ter under­stand local needs, resources and policies.
  3. Rec­og­nize that guid­ance and finan­cial men­tor­ing is an ongo­ing process. Youth­Build par­tic­i­pants con­tin­ue to need assis­tance as they advance toward their finan­cial goals — and as they enter into young adult­hood. Accord­ing­ly, MyPath is work­ing toward imple­ment­ing its finan­cial men­tor­ing mod­el at all Youth­Build part­ner sites.

MyPath Looks Toward the Future

In 2021, MyPath devel­oped a near peer-to-peer” pilot mod­el that trained Youth­Build pro­gram alum­ni to act as facil­i­ta­tors. The ini­tia­tive was suc­cess­ful, prompt­ing MyPath to imple­ment the approach at all Youth­Build part­ner sites across the country.

In 2023, MyPath plans to launch a finan­cial tech­nol­o­gy plat­form called MyPath NEXT. Designed using feed­back from Youth­Build par­tic­i­pants, the new plat­form con­nects young peo­ple to finan­cial edu­ca­tion, men­tors and youth-friend­ly prod­ucts and ser­vices as well as tools for track­ing spend­ing, sav­ing and cred­it scores.

Learn more about build­ing finan­cial lit­er­a­cy in young people

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