Banking/Savings in Schools Initiative

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Goal: To create partnerships that will lead to incorporating a savings bank program into the schools we serve, facilitating an opportunity for students to apply their knowledge of saving and investing, and can experience the benefits of long-term savings.

Although the lack of proper financial literacy is usually related to adults, the youth are an equally, if not more, important population to target. Because children are inclined to imitate observed both positive and negative behaviors, negligible financial practices in the household have a strong likelihood of being replicated. 14.3% of Philadelphia households report being unbanked, or not having a checking or savings account (FDIC, 2009). 23.5% go under banked, so while they may have an account, it is severely underused due to continually relying on unsecured services, such as check-cashing, payday loans, and pawn shops (FDIC, 2009).

These statistics reflect a deficiency of proper banking knowledge and familiarity among our residents. Even among high school graduates, 33.5% are reported at risk for being unbanked or under banked (FDIC, 2009). Our youth, as well as the Philadelphia school system, can benefit from providing supervised opportunities to put learning into practice and form profitable habits during early education, so that they can have an enjoyable experience with money before adult responsibilities are introduced.

Change 4a Dollar wants not only for our community to develop their knowledge of financial literacy, but also that this new knowledge be put into good use. One problem that we have identified is that students often do not have a feasible outlet in which to invest and save their hard earned money. To combat this issue, Change 4a Dollar works to create partnerships that will lead to incorporating a savings bank program into schools. By offering banking and savings in our schools, students can easily and safely save money, while having the convenience of it being connected to a familiar and trusted institution.

Through the Banking/Savings in Schools Initiative, students can apply their knowledge of saving and investing, and can experience how impactful long term saving can be.