The Financial Empowerment of Urban Youth Research Study

Promoting Financial Capability and Equality

_______________________________

The Wealth Factory 0

ABOUT THE STUDY

Benchmark Study

The Wealth Factory’s benchmark study, The Financial Empowerment of Urban Youth was developed to help showcase the need for equal access to quality financial education, technology and innovation in Urban America.

The study tracked students at three DC charter high schools from October 1-December 20, 2014.

Survey Respondents – Sample Profile

All charts represent the urban youth.

Gender

Grade

Learning Disability

Research Goals

• Understand how to leverage community leaders to financially empower cities

• Assess the challenges urban youth face in gaining and paying for higher education

• Discover best practices for integrating financial literacy edtech in urban schools

• Evaluate the effectiveness of WealthyLife financial literacy edtech games to impact attitudes, perspectives and behavior

• Identify legislative policy recommendations to support financial literacy standards and assessments

GPA

Family Structure

63%37% Male

Female

63%37% Senior

Junior

11%

11%

41%

32%

5%3.6 - 4.0

3.1 - 3.5

2.6- 3.0

2.1 - 2.5

2.0 or below

58%

37%

5%Single Parent

Two Parents

Grandparentsor guardian

21%

79%

Yes

No

ANALYTIICAL FRAMEWORK

Methodology

• In partnership with the Charter School Development Corporation and Building Hope, the WealthyLife program was implemented and tested at three DC Charter High Schools.

• The WealthyLife education technology was designed by The Wealth Factory’s talented team of in-house technologists based on usability and feasibility feedback from over 2,000 customer discovery interviews.

• Design was altered six times based on feedback from University of Maryland education technology professors and the Art Institute of Washington game professors.

• The study included 150 high school students of mixed grades, sexes, ages and learning needs/disadvantages. This sample is referred to as the “students” in the study.

• Quantitative analysis was conducted via a 10 min online survey distributed to the students. 11% response rate received.

• Qualitative analysis was conducted among 30 key opinion leaders, principals and teachers.

• To ensure our ability to identify any meaningful differences among learning needs while utilizing our WealthyLife education technology, we selected three schools with different qualifications – one with regular edstudents, one with special needs students, and one that was mixed.

• In this study, the term “urban youth” refers to young people who are between the ages of 10 and 24,and who are undergoing key life transitions with respect to learning, work, starting a family, health, and citizenship

• This study was conducted from October 1, 2014 – March 15, 2015.

Friendship

• Principal: Mrs. Peggy Jones

• Teacher: Mr. Tashik Faruq

• Class: Two Principles of Finance classes

• Time: Every Monday morning

• Grades: Juniors and Seniors

• Requirement: Required fin lit elective

• Resource: in-class Chromebooks

• Learning Needs: Regular and Special Ed

WMST

• Principal: Mrs. Diagne

• Teacher: Mr. Willie Ingram

• Class: After school mixed group

• Time: Every Thursday afternoon

• Grades: Juniors and Seniors

• Requirement: Extracurricular activity

• Resource: Computer lab

• Learning Needs: Regular ed

Options

• Director: Mrs. Shannon Hodge

• Teacher: Ms. Mauwena DeSouza

• Class: Advisory period

• Time: Every Mid-day Wednesday

• Grades: Freshmen thru Seniors

• Requirement: Optional advisory elective

• Resource: Computer lab

EDTECH DEVELOPMENT AND IMPLEMENTATION BEST PRACTICES

Participatory Design

Based on learning sciences research, we suspected that engaging in the participatory design process might also influence participants’ learning and engagement with financial literacy topics. Learning sciences research has found design to be a powerful tool for promoting learning.

We wanted learners to find WealthyLife useful for learning about life-relevant topics, and we wanted to help them learn in a way that promotes their practical application of financial topics in everyday life situations.

Engaging youth in the design process certainly increased their financial aptitude as they felt it was important to understand the financial principles that influenced the game in order to help improve it.

Cooperative Inquiry

Cooperative inquiry is a participatory design approach to engage users as design partners. We used this iterative design approach to refine the courseware.

Once we gathered information on financial capability and technology needs for the product, we leveraged those findings to conduct additional research on optimizing the learning tool for implementation into the classroom.

Think Aloud

Think aloud studies were the most effective method for discovering and optimizing improvements.

During the pilot study, we set aside 10-20 minutes of each class period to allow students to think out-loud. This means they were able to present any questions or comments that they had on their mind while readying, listening, participating in an activity or playing the game.

Surveys

Students participated in pre-post quantitative research studies. At the beginning and end of the program the students completed 10 min online surveys comprised of 20 core financial literacy and demographic questions.

This data assessed the financial decisions, attitudes, perspectives and behaviors of students pre-post participating in the WealthyLife program.

Surveys were programmed, disseminated and analyzed using Qualtrics market research software. Responses were analyzed with cross tabulations for gender and family structure.

Interviews

Thought leadership interviews were conducted with over 30 key opinion leaders on education, technology, innovation, gamification, financial literacy, urban development, and economic stability.

SUMMARY

Summary

The Wealth Factory’s benchmark study, The Financial Empowerment of Urban Youth, reveals some important information about best practices for teaching urban youth financial literacy in challenging environments, with unique learning needs and by leveraging education technology.

The study takes a look their financial attitudes, decisions, perspectives and behaviors of urban youth in general as well as those that have completed the WealthyLife financial literacy program.

Key Highlights

WealthyLife games make learning finance fun and easy

WealthyLife teaches students financial literacy and workforce development through education technology games. The program walks participants from birth to retirement in 12 interactive financial simulation modules to help students exceed the Common Core Personal Finance Standards and receive real-world workforce development.

WealthyLife has huge impact on financial decisions

Students feel they are at least 42% more likely to make wise financial decisions and understand their financial choices after playing WealthyLife games. Astoundingly, they also feel 85% more likely to graduate high school.

High measures for satisfaction and convenience

Students are highly satisfied with WealthyLife financial literacy games, finding them a pleasure to use and convenient. Majority feel the program impacted financial attitudes, perspectives, decisions and behaviors.

Opportunity starts with financial literacy and credit

Good credit management is the foundation of financial stability. It’s important to develop financial plans with urban youth to help connect long term goals with their current status.

Investment management motivates responsibility

Teaching urban youth how to make wise investments is one of the most empowering financial lessons they can receive. Many find it exciting to learn about stocks and enjoy honing the skill.

Stock market exposure raises financial comfort

Hands on interactions with financial principles and institutions eases urban youth’s tension towards learning finance. At the same time, it raises their interest to understand that they can purchase loved companies and brands for financial security.

SUMMARY

Higher education is the catalyst for financial independence

Higher education is unquestionably the best method for elevating urban youth’s financial attitudes, behaviors and self-sufficiency. Helping them to associate education with wealth building is key.

Students must strategically prepare for higher education

Concrete higher education action plans should be developed early in scholastic tenure to sufficiently prepare urban youth for post-secondary attendance and costs. Completing a FAFSA and college application is a great first step towards introducing students to the process.

WealthyLife increases likelihood to start a business

Students find learning the steps to develop a startup to be exhilarating with WealthyLife, increasing their likelihood to start a business. Understanding the lean methodology process and how to build a successful business model at younger ages can help breed stronger entrepreneurs for the next generation.

Financial education technology demand exceeds supply

Traditional financial literacy programs lack engagement and product evaluations. Teachers desire an easy to use product that is fun, comprehensive, tracks performance metrics and provides custom learning. Better partnerships are needed to help connect education technology companies with local schools to pilot and evaluate programs.

Financial navigation is a prerequisite for development

Holistic learning helps shape students autonomy. Students with learning disabilities are typically financially neglected and require additional care.

Financial literacy is not one size fits all

Historically, economic disparities have limited urban youth from financially succeeding due to environmental challenges and resources. While financial capability is a top priority for them, circumstances often limit their aspirations. Bold, innovative education can help provide equal access to financial literacy and prosperity in urban schools.

Legislation has the power to financially emancipate youth

A strong and well leveraged financial literacy ecosystem is needed in each community to effectively financially empower all urban youth. Well balanced and structured policies for innovation can help build strong, fiscally responsible cities.

WEALTHYLIFE GAMES MAKE LEARNING FINANCE FUN AND EASY

Financial Edtech Changing the Game

WealthyLife teaches students financial literacy and workforce development through edtech games.

The program walks participants from birth to retirement in 12 interactive modules that interactive activities and financial simulation games to create highly engaging blended learning experiences. The entire program is designed to function as a game.

Each module is designed with back-end algorithms to simulate a STEM Personal Finance Common Core Standard.

Educators can choose from a variety of games, tools and materials to customize their lesson plans for individual learning needs. The system provides tailored performance tracking, real-time grading, self-paced assessments, and interactive content.

Finance Made Easy

WealthyLife’s mission is to provide equal access to quality financial literacy across the world, with a focus on K12 urban youth.

The games make financial literacy fun. The program works well with students that live in challenging, underprivileged or rural environments. Students that traditionally have problems reading, writing, adding or even focusing have been able to excel in learning better financial management.

After completing the program, most students significantly adjusted their financial perspectives and behavior with a new focus on working hard in school to build wealth.

WealthyLife Modules

• Brain Up™ –Apply cognitive thinking and systematic decision making

• Groundbreakers™ – Create academic and career plans to reach income potential

• Bear Basics™ – Organize personal finances, budgeting and cash flow

• Sam’s Market™ – Understand taxes and charitable donations

• Whack-A-Broker™ – Develop a diversified investment strategy for personal growth

• 401 King™ – Form a savings, emergency and retirement plan

• Wheel Deals™ – Use rational decision making to make auto purchases

• Adonis Path™ – Choose healthy and environmentally friendly financial options

• Startup Me™ – Learn how to start and launch a small business

• Rich Estates™ – Evaluate real estate decisions that build wealth

• Credit Stacker™ – Recognize credit reports, financing terms and predatory lending options

• Charging Wall Street™ – Use appropriate and cost-effective risk management strategies

After Playing WealthyLife Games, Increased Likelihood to…Post WealthyLife (All Respondents)% All

Graduate high school +85

Own a home +76

Open a savings account +72

Save and invest +69

Make smart financial goals +67

Manage your money effectively +66

Apply for FAFSA and college +63

Start a business +63

Use credit wisely +60

Understand your financial choices +42

WEALTHYLIFE HAS HUGE IMPACT ON FINANCIAL DECISIONS

Significantly Better Financial Goals

After playing WealthyLife games, students noted that they are at least 42% more likely to make wise financial decisions and understand their financial choices.

Best of all, they are substantially more likely to graduate from high school (+85%)!

Opening a savings account (+72%), saving and investing (+69%) as well as making smart financial goals (+67%) were other top behavioral changes revealed.

Students Recommend WealthyLife

One in two (52%) would recommend WealthyLife to other teachers for financial literacy. Males (58%) in particular are more likely to recommend than females (43%).

Home Ownership is Now Feasible

Given that many urban youth live in low-income communities that are usually rented or provided by the government, home ownership can sometimes appear like a rare, impossible feat to them.

Likelihood to own a home (+76%) was the second biggest behavioral change recognized among participants.

Teaching students the real estate process allows them to feel as if buying a home in the future is a reasonable goal they can accomplish if they have the tools to plan for it and the financial stability to pay for it.

Likelihood to Recommend WealthyLife to Other Teachers for Financial LiteracyPost WealthyLife (All Respondents)% All Male FemaleVery Likely (Top 2) 10 16 -Likely (Top 3) 52 58 43

HIGH MEASURES FOR SATISFACTION AND CONVENIENCE

Clear Impact on Financial Decisions

Nearly seven in ten (69%) feel their financial decisions, attitudes, perspectives and behaviors have been impacted by WealthyLife.

Interestingly, males were impacted more than females (42% v. 14% impacted much).

WealthyLife is a Pleasure to Use

More than eight in ten pilot participants find WealthyLife to be highly satisfying (83%) and convenient (83%).

Three-fourths feel that it performs well (78%) and is efficient (77%) making it easy to play, intuitive and highly productive.

Ratings for WealthyLife GamesPost WealthyLife (All Respondents)% Top 2 Top 3

Satisfaction –highly engaging, pleasure to use without pain, and excited to play

83 89

Convenience –easy to learn in a large class at my own pace

83 89

Performance –growth in knowledge and can easily learn while playing

78 84

Efficiency –easy to play, intuitive and highly productive

77 88

Memorability –easy to remember how to play and doesn’t require repeat instruction

72 89

Learnability -easy to learn when playing

72 78

Impact on Financial Decisions, Attitudes, Perspectives and BehaviorsPost WealthyLife (All Respondents)% All Male FemaleImpacted Much (Top 2) 32 42 14Impacted (Top 3) 69 67 71

OPPORTUNITY STARTS WITH FINANCIAL LITERACY AND CREDIT

Credit History Determines Future

Having a credit card is usually one of the first interactions youth have with the financial system. Successfully managing the payment history with that first brush of credit can alter the financial attitude and stability of a young person’s life.

It is absolutely critical to the financial security of the next generation to instill the practices of making timely payments on credit items and budgeting for a safe-debt load.

Youth Desire a Clear Path to Success

If you put most people in a car and tell them to drive, they will most likely ask – where? Urban youth are not any different. They want to know exactly where they are driving towards, why and how much of their opinion matters in the final destination.

Understandably so, urban youth have been trained to be skeptical of financial promises. Why would they believe financial prosperity is possible when there are not an abundance of success stories within their reach?

It is critical to connect their long-term financial and career goals with classroom assignments. This simple practice can significantly increase an urban youth’s interest in wanting to grow financially.

• “As few as ten hours of classroom instruction can be enough to persuade students to improve their spending and saving habits.” (National Endowment for Financial Education)

WEALTHYLIFE IN PRACTICE :

Credit Stacker

Common Core: Credit Management

Learn how to recognize wise credit decisions, credit reports, financing terms and predatory lending

Lessons:

• Completed credit card application

• Learned the importance of credit worthiness, debt-income ratio, timely bill payments and favorable loan terms

• Calculated payment with interest for auto, home and student loans

Hands On Activity:

Played Credit Stacker edtech game at the end of each class. It teaches students how to manage various types of credit, interpret a credit report, achieve good credit and avoid risks associated with debt. The game combines a variation of match-three games, digital credit score reporting, data analytics, and a learner management system. Players make financial decisions based on credit opportunities that reflect their credit rating and behavior. Play at getwealthylife.com.

Outcomes:

• Comprehensive understanding of credit reporting, scoring and predatory lending

• Strong appreciation for using credit wisely

• Renewed love of learning, engagement and performance with edtech game

INVESTMENT MANAGEMENT MOTIVATES RESPONSIBILITY

Having a Purpose to Save is Essential

While most urban youth understand how to save money, they are unsure about what they are saving for or why it’s important. Being raised in socio-economically disadvantaged communities, they are surrounded by debt trotted people everyday.

Its commonly misunderstood that low-income people do not know how to save money when they are in fact experts at budgeting. They simply can’t afford to save. At home it can be a struggle for them to pay bills, buy clothes or even eat. So why should they save for tomorrow when they are hungry now? It makes no sense to them.

At the same time, many urban Americans will spend up to $40 per day on lottery tickets. To the average person this might seem imbalanced. But in actuality, they are simply trying to make an investment into a possible future that they may not know how or have the means to obtain.

Shift Paradigm to Investments

Urban youth emulate the behavior of their surroundings. Shifting their paradigm to investing in the stock market instead is paramount.

By focusing on investments, students can become savvy investors by adulthood, build untouched assets and feel like they are spending money on something that will provide a better future. Without a certain level of financial stability, most urban youth will not save at high levels.

WEALTHYLIFE IN PRACTICE :

Whack-A-Broker

Common Core: Savings and Investments

Learn how to implement a diversified investment strategy that is compatible with personal growth

Lessons:

• Created a personal budget

• Determined investment risk profiles

• Researched the stock market, stocks and the financial components of stocks

Hands On Activity:

Played stock basketball where two students were assigned as brokers and the rest of the class represented stocks. The two brokers competed to see who could make the most/best stock investments by shooting balls into the stock buckets. At the same time, the stock reps had to see who would attract the most investments by gathering the most balls.

Outcomes:

• Profound heightened interest in investing in the stock market

• Learned how to identify investment risks and balance an investment portfolio

• Developed financial goals based on lifestyle expectations and investments

STOCK MARKET EXPOSURE RAISES FINANCIAL COMFORT

Investment Knowledge Expanded

WealthyLife students increased their ability to make investments very well by 27% after completing our program. This approach also enabled them to be able to manage their money better (+12%).

Legislative Recommendation:

Focus on Investing, then Saving

• Urban schools should focus on teaching wise investment decision making instead of heavily emphasizing savings.

• Banks should market checking accounts and mutual funds for youth to make investments and relax emphasis on maintaining a minimum for savings.

• Banks should create a variable annuity for youth under 25 that allows them to make withdraws at 30, has no min balance to start, accepts payments at birth, and matches 4% of deposits.

• Banks should join WealthyLife’s platform to holistically educate youth on financial investments,, products and services.

WEALTHYLIFE IN PRACTICE :

Charging Wall Street

Common Core: Risk Management

Learn how to use appropriate and cost-effective risk management strategies

Lessons:

• Learned how to recognize wise investment choices, market volatility, potential market swings and risky stocks

• Analyzed the importance of insurance

• Discovered key financial services leaders

Hands On Activity:

WealthyLife took students on a field trip to Wall Street where they visited various historic financial locations and Times Square.

Outcomes:

• First time leaving DC for many students

• Direct exposure to key financial markets

• Enlarged interest in financial management and investment broker careers

• Boosted desire to achieve financial success to travel to distant locations

• Lifted belief in the possibility of financial prosperity through higher ed

• Deeper commitment to learning financial literacy and achieving financial goals

Ability to Manage MoneyPre-Post WealthyLife (All Respondents)

Before After DifferenceVery Well 44 56 +12

Well 69 78 +9

Ability to Make InvestmentsPre-Post WealthyLife (All Respondents)

Before After DifferenceVery Well 6 33 +27

Well 37 50 +13

HIGHER ED IS THE CATALYST FOR FINANCIAL INDEPENDENCE

Youth Want to Dream Big

Most urban youth desire financial independence and have big dreams. As like any young American, they want to live well, have a nice house and drive a fancy car. Nevertheless, despite their high aspirations, many lack awareness or access to resources to help them obtain that success.

While students at higher income schools may receive frequent, natural exposure to universities, financial institutions, and people of influence, for students in urban schools it can sometimes be just a dream.

This perpetual lack of relativity to their personal lives creates a cognitive dissonance when faced with their home environment and seemingly detached lessons in their government provided textbooks – ballooned further when the subject is finance.

Start Higher Ed Planning Early

Bridging the gap between higher education and elevating their financial status is the key to motivating urban youth to apply for college. This motivation becomes amplified when they understand the financial reward for graduating, costs for attending, financial aid resources, application process and what career field best interest them.

Schools can’t tackle this massive challenge alone. It takes a larger community of effort of wraparound services and people connecting with schools to address health, housing, parenting, sex, crime, recreation, and workforce development of urban youth.

Legislative Recommendation:

Mandate Annual Plans for Higher Ed

• Urban schools should help youth outline a SMART plan to gain financial stability through higher education. They would be able to draw a direction connection between their current status and future.

• Urban schools should start higher edplanning in the 4th grade and revisit the plans annually.

• Urban schools should align the students’ plans with high schools and universities.

• Universities should extend open summer programs to various ages to develop earlier relationships, provide exposure and help cultivate their plans.

• Government should provide tax benefits to the universities and parents of students who enroll in the programs.

Expand Community Schools

• Urban schools should focus on financial literacy as the cornerstone of their community efforts.

• Urban schools should partner with edtechcompanies and other innovative organizations to help educators mitigate issues stemming from poverty.

• Government should expand tax benefits to institutions that help sponsor for-profit and non-profit programs in schools.

STUDENTS MUST STRATEGIALLY PREPARE FOR HIGHER ED

WealthyLife in Practice:

Brain Up

Common Core: Higher Education

Learn how to apply reliable information and systematic decision making to personal financial decisions and academic goals.

Lessons:

• Completed FAFSA and college applications

• Selected a potential major and university

• Calculated tuition expenses and fin aid

Hands On Activity:

Students played musical chairs to see who would graduate from undergrad and graduate school making the most money. The fist person out of the game starts at a certain salary and each person out from there makes $5,000 more annually. The person that wins by staying in school the longest makes the most money.

Outcomes:

• Instant heightened appreciation for graduating from high school, college and graduate school with a deeper understanding for financial potential

• Increased interest in attending college and selecting career fields

• More familiarity with universities that offer programs of their specific interest.

• Better understanding of tuition costs, financial aid and student loans

WealthyLife in Practice:

Groundbreakers

Common Core: Workforce Development

Learn how to use a career plan to develop personal income potential.

Lessons:

• Created resumes and career objectives

• Researched job opportunities in their field and salary requirements

• Completed a job application

• Participated in peer-to-peer mock interviews and job offer negotiations

Hands On Activity:

WealthyLife hosted an internship fair with Morgan Stanley, Dept. of Labor and Dept. of Employee Services to offer summer employment opportunities to the students. Students presented their resumes and spent the day with company representatives.

Outcomes:

• Tailored career plans and academic needs outlined with each student

• Amplified awareness and interest in internships

• Larger amount seeking part-time jobs

• Greater comfort with applying and interviewing for employment, most notably in areas like business, law, technology and healthcare.

WEALTHYLIFE INCREASES LIKELIHOOD TO START A BUSINESS

Small Business is the Growth Engine

Many urban youth face environmental difficulties that force them to quickly learn various entrepreneurial skills for survival. Oftentimes, these skills are misplaced due to lack of guidance.

Teaching students how to start a business is one of the most powerful ways to transform urban youth. They grow immensely knowing that they can think of a startup idea and actually know the steps to proceed with validating, pricing, developing and pitching that idea.

Business Planning Grows More Active

Participants are 10% more likely to start a business after completing WealthyLife.

Females (86%) are 20% more likely than males (66%) to start a business.

WEALTHYLIFE IN PRACTICE :

Startup Me

Common Core: Entrepreneurship

Describe, design, challenge, and invent new businesses

Lessons:

• Identified problems and solutions

• Created a business model canvass

• Planned and priced a new business

• Pitched a startup concept to judges

Hands On Activity:

WealthyLife hosted a Play on Wealth Startup Competition for the students. Each class, in groups of four, identified, developed and refined business models over the semester.

Each team pitched their startup to judges and the finalists from each school competed against each other in a competition at St. Elizabeth East. The winning team, One Ball, WMST won tablets with a unique edtechidea to combat urban violence.

Outcomes:

• Extreme confidence in knowledge and empowerment to start a business

• Learned how to create innovative solutions to solve real world problems

• Raised involvement in designing and inventing new innovations

Planning to Start a BusinessPost WealthyLife (All Respondents)

All Male FemaleVery Likely 37 33 43

Likely 74 66 86

Planning Start a BusinessPre-Post WealthyLife (All Respondents)

Before After DifferenceVery Likely 29 37 +8

Likely 64 74 +10

FINANCIAL EDUCATION TECHNOLOGY DEMAND EXCEEDS SUPPLY

Current Courses Don’t Work

The majority of financial literacy programs for school age youth focus on the general population, instead of addressing the chronic, obvious need to build a sustainable, comprehensive financial planning tool that is easy for urban youth to use and understand.

The JumpStart Coalition for Personal Financial Literacy national survey found that “while slight improvements have been shown in financial literacy in recent years, none of them can be attributed to the high school courses in personal finance.” In fact, students who took a financial literacy course did worse than those who didn’t.

There are very little financial literacy programs that include instruction and training on financial independence, money management and an understanding of asset development strategies. (Dept. of Labor)

Product Evaluations are Critical

Unfortunately, rigorous evaluation and reporting are not part of many financial literacy programs currently offered in a school setting.

• “The Consumers Bankers Association review of bank‐sponsored K‐12 financial education programs suggest that only 56% of bank sponsors actually evaluate the programs they fund. Among them, only 21% use any rigor (pre‐and‐post and/or control group designs) in evaluating them and only 35% of the programs were deemed effective based on the number of students completing the program.” (Dept of Labor)

Legislative Recommendation:

Accelerate Edtech Companies

• Urban schools should have an established process for piloting edtech companies on a rolling basis.

• Government should provide pilot funding for edtech companies that help reduce poverty and have established an agreement with an urban school.

• Government should have a standardized evaluation to assess the ability of edtechcompanies to impact and reduce poverty.

• Government should accelerate permanent funding for edtech companies per pilot’s success, help scale to other states and support future product developments.

Custom Learning is the Best Practice

Utilizing financial literacy education technology that enables lessons to be tailored to each student is the best approach.

It allows teachers to address a classroom of various learning styles simultaneously while also offering a custom experience that is unique to each student’s financial, academic and career goals.

This approach significantly increases urban youth’s likelihood to learn, enjoy and practice financial literacy.

Providing timely information can be critical as financial markets, tuition rates and wage requirements rapidly change.

FINANCIAL NAVIGATION IS A PREREQUISITE FOR DEVELOPMENT

Holistic Learning Shapes Autonomy

Youth that are exposed to areas outside of their community or city will be more likely to comprehend financial experiences. Being able to comprehend background knowledge plays a strong role in impacting their ability to trust, understand and want to learn more.

Utilizing out-of-class experiences as a reward also inadvertently addresses participation and chronic absenteeism as students will usually positively alter their behavior to attend these field trips.

Changes in behavior will likely sustain after the filed trips as students gain deeper interest with each financial experience.

Don’t Charge for Financial Exposure

It’s also worth noting that the experiences should be free for urban youth. Sadly, many of them often miss out on enrichment activities because they lack even nominal means to attend.

• “Between birth and age 6, children from high-income families now spend an average of 1,300 more hours in "novel" places outside their homes, schools, and day-care centers than children from poor families.” (Education Week, 2012)

Extra Care for Learning Disabilities

Not only must youth with disabilities learn how to navigate through life with unique circumstances that come with personal limitations but they must also increasingly prepare to join the complex world of employment and money management.

The development of knowledge and skills with regards to financial independence, money management and an understanding of asset development strategies are some the most pressing issues for youth with disabilities.

Youth with disabilities often live in poverty and face barriers to stable employment opportunities.

Government programs sometimes present confusing eligibility criteria, making access to needed support services extremely difficult. This small defeat can quickly turn into a lifetime of financial dependence on the government as it leads to many disabled youth never successfully transitioning from school to post-secondary education, employment and independent living.

Disabled are Financially Neglected

It is critical to establish customized financial literacy programs to meet the needs of youth with disabilities.

There are little to none readily available financial literacy programs on the market that has been customized or is adaptable to youth with disabilities in a classroom.

FINANCIAL LITERACY IS NOT ONE SIZE FITS ALL

Financial Capability is the Top Priority

One of the core problems with financial literacy is greed. Too often, financial services organizations do not place the financial capability of youth as a top priority when it should be the priority. Many are more concerned about sales, marketing and bottom line figures than actually helping youth make become financially responsible adults.

This systemic situation has prevented urban youth for over one hundred years to gain true financial understanding and security. It forces them to rely on knowledge handed down from their family to advance.

The problem becomes exasperated when it’s taken into consideration that urban families usually do not have much financial knowledge to pass down because they received their financial education from the same uninformed source.

And the cycle repeats – forcing urban youth to grapple for crumbs of financial literacy, gaining little to no understanding.

Family Income Alters Potential

People often want to believe that urban students perform unsatisfactory because of poorly run schools. When in fact, it stems from the distribution of family income.

Over the past 30 years, the gap between the educational resources provided to wealthy and low-income families has dramatically widened. In terms of achievement alone, the gap has grown by 40% since 1960. (National Education Longitudinal Study)

Inequality Breeds in Urban Schools

Along with household income, other key factors related to socioeconomic resources are the biggest predictors of students’ educational fulfillment.

The ability to coordinate instruction among teachers is a prime characteristic of an effective school. Many urban schools lack this feature due to high turnover rates of teachers who desire more pay and safety.

Urban youth are far more likely to have classmates with low achievement and behavior problems, which have a negative effect on their own learning.

They’re also more likely to attend schools with high turnover rates. Research shows that students learn less in schools with high turnover.

Economic Disparity is Not Justice

While many young Americans may have difficulties transitioning into a financially independent adulthood, urban youth in particular struggle with heightened economic disparities on a normal basis. These concurrent disadvantages include gaining employment, home ownership, education and sometimes even health.

Financial literacy is the best method for overcoming these injustices that have traditionally stifled Urban America.

LEGISLATION HAS POWER TO FINANCIALLY EMANCIPATE YOUTH

Financial Literacy Ecosystem Needed

The President’s Financial Capability Advisory Council has done a great job of gathering key organizations with similar goals to uplift the financial literacy of young Americans. It is now time to leverage this group of leaders to build a financial literacy ecosystem that is streamlined, efficient, sustainable, adaptable and collaborative.

Supporting a unified platform for all of these organizations to benefit from would be the ideal way to proceed with approaching the financial empowerment of urban youth.

In order to truly emancipate urban youth from financial slavery all organizations must agree on the method, reason and approach to move forward. While some efforts have been made, there has not been a cohesive approach as a whole.

Community Commitment is Valued

An ecosystem needs more than just financial players – it needs the community. Organizations like churches, schools, recreation centers, dance studios, and even meet-up groups can play a strong role it making their city more financially sound.

Cities are led by communities and communities are led by leaders. Each community has a group of leaders that they respect and trust. It would be in the council’s best interest to identify and partner with those key leaders from a holistic perspective – meaning conversations should be an open two-way street.

Legislative Recommendation:

Identify Advisory Council City Reps

The council should establish a board of city representatives where each lead a group of community representatives, providing a community-council liaison that is easily accessible in each community. This would make recommendations and initiatives supremely more streamlined.

Each community liaison should be responsible for enlisting their community’s organizations into the overall structure.

Organizations should be provided tracking numbers to be held responsible and rewarded with tax incentives for enlisting members into proposed financial literacy programs. This system would enable anyone, anywhere in America to feel directly and equally connected to the financial literacy ecosystem of America.

WEALTHYLIFE IN PRACTICE:

Public-Private Partnerships

• WealthyLife has current partnerships with the Charter School Development Corporation, Building Hope, DC Chamber of Commerce and three charter schools.

• WealthyLife aims to be the primary financial literacy source for all K12 charter, DOE, religious, special needs, private and home schools.

• WealthyLife aims to partner with all members of the advisory council with one macro strategy that is carried out through specific tactical efforts.