Building blocks to help youth ach

financial capability

Sunaena K. Lehil, Office of Financial Education 

This presentation is being made by a Consumer Financial Protection Bureau behalf of the Bureau. It does not constitute legal interpretation, guidance or This document was used in support of a live discussion. As such, it does not entirety of that discussion nor the relative emphasis of topics therein.
About the research 

 The developmental model was created through thre

of investigation:

 Analysis of consumer interview transcripts fro

well-being research to understand experiences in youcontribute to financial identities and values

 Extensive review of published academic resea

uncover what is known and not yet understood

 Consultation with national experts from a varie

disciplines to gain insights not yet reflected in publishliterature
What are the financial capability building b

Executive 

function

Financial habits 

and norms

Finan

knowle

decision-

ski

What it is Self-control, working 

memory, problemsolving

Healthy money habits, norms, rules of thumb

Factual research analysis 

What it supports in adulthood

Future orientation, perseverance, planning and goal setting, general cognitive flexibility

Decision shortcuts for navigating dayto-day financial life and effective routine money management

Deliberadecisionstrategiefinanciaresearchintention

Examples of financial application

Saving, setting financial goals, developing and executing budgets

Having a system to pay bills on time

Effective comparishoppin






Development is a continuous process
Recommendations

For implementing the developmental building blocks
Four strategies that support youth financial capa

1. For children in early childhood, focus developing executive function2. Help parents and caregivers to more ashape their child’s financial socialization3. Provide children and youth with expelearning opportunities4. Teach youth financial research skills
Early childhood: focus on executive functio

 Executive function refers to mental processes that e

to plan, focus attention, remember instructions, and multiple tasks successfully

 It is critical to achieving financial well-being  Executive function training in financial contexts inc

imaginary play and play-based learning activities whset goals and manage resources (e.g. grocery list and food)
Middle childhood: Help parents/caregivers supp

child’s financial socialization Financial socialization is an ongoing process by whi

children and youth develop the financial attitudes, hand norms that guide their financial behaviors

 Children develop values, norms, and habits through 

observation of peers and adults 

 This is a good window of opportunity for parents to 

teach and model healthy financial values and behav

 For example: involving children in routine financial 

activities such as setting a budget and helping them small spending decisions 
Provide experiential learning opportunities thro

childhood and youth Experiential learning opportunities support financia

capability by encouraging children and youth to takinitiative, make decisions, experience the results of choices in a safe environment, and learn through re

 Explicit instruction in personal finance should be 

complemented with experiential learning opportuni

 Children and youth in all stages of development ben

experiential learning
Teach youth financial research skills

 Most major financial decisions that adults make 

them to gather information through research, uinformation to consider trade-offs, and act on thinformation in a way that serves their life goals 

 Youth with financial research skills are more fle

and adaptable consumers who are able to navigchanging financial markets and situations over course

 Financial research skills can be taught in middl

childhood, adolescence, and young adulthood
Bringing it all together

 This new research provides evidence-based insights 

promising strategies 

 Defines what children need to learn and when Children and youth need a broader set of developme

building blocks that can be acquired and honed in thschools, out of school programs, and in the workpla

 Thus, schools, parents, youth programs, policymake

financial institutions all have an important role
How we’re putting this research into practi

 Money as you grow Money as you grow book club Youth personal finance pedagogywww.consumerfinance.gov/youth-financial-educationwww.consumerfinance.gov/money-as-you-grow
Contact information

Sunaena K. LehilSenior Policy and Innovation AnalystSunaena.lehil@cfpb.govwww.consumerfinance.gov/youth-financial-educatio
Youth Savings Pilot 

Luke W. Reynolds

Chief, Outreach & Program Development, D
FEDERAL DEPOSIT 

Goals

 Give K-12 educators resources th

can use to feel prepared and conf

 Encourage parents and caregiver

have conversations and do activitwith their kids

 Promote hands-on learning, with 

particular focus on financial eductied to savings accounts
FEDERAL DEPOSIT 

Money Smart for Young P

 Money Smart for Young People series

 Grades Pre-K-2  Grades 3-5 Grades 6-8 Grades 9-12

 Components for:

 Teachers Students Parents/Caregivers

 Alliance
FEDERAL DEPOSIT 

FDIC Youth Savings Pilot

 Goal: highlight promising ways to 

combine financial education & saaccounts for school-aged children

 Two Phases – 21 participating ban

 I: 2014-2016 Academic Year (existing progr II: 2015-2016 Academic Year (new or expan

programs)

17
FEDERAL DEPOSIT 

Pilot Participants

18

 Athol Savings Bank Bank of Hawaii Beneficial Bank Caldwell Bank & Trust Capital One, NA Commercial Bank Fidelity Bank First Bank of Highland Park First Metro Bank International Bank of 

Commerce

 Montecito Bank & Trust 

 Passumpsic Savin PNC Bank, NA Reading Co-opera ServisFirst Bank Southwest Capital  The Hastings City  The Huntington Na

Bank

 Treynor State Ban Wesbanco Bank Young Americans 
FEDERAL DEPOSIT 

Pilot Methodology

 Selection process Engaging participants included:

 90 bank interviews  6 group calls with all banks 42 surveys of banks 12 surveys of school partners 1 site visit Periodic e-mail updates

19
FEDERAL DEPOSIT 

Model Approaches

 Three approaches:

1. School Branches2. In-School Banking (activities in schoo

common areas on designated days)

3. Nearby Branch Visits (with school-ba

financial education) 

 Not mutually exclusive All have interaction with local 

branches

20
FEDERAL DEPOSIT 

Frequency of Approaches

21

24%

38%

38%

In-SchoBranche

In-School Banking

Nearby Branch Visits
FEDERAL DEPOSIT 

Developing Collaboration

 Successful Strategies 

 Leveraging existing connections with 

teachers, administrators or school boa

 Working with third-party intermediaries 

have existing programs with/for school

 Identifying and supporting school cham

 On-going Challenges

 Time allocation from the school Getting parent buy-in for student banki Addressing student transitions

22
FEDERAL DEPOSIT 

Account characteristics

 More than 4,500 new savings acco Ownership structure varied

 Non-Custodial  Custodial (parent/guardian) Custodial (school, nonprofit, or other 3

 Other key features:

 Incentives Student transitions  Mobile technology

23
FEDERAL DEPOSIT 

 Delivery approaches

 Formal instruction Peer-based  Just-in-time information sharing

 Consensus on fun and interactive 

approaches

 Teacher involvement Role of bank

24

Financial Education Deliv
FEDERAL DEPOSIT 

Financial Education Deliv

cont’d

 Some banks enhanced existing 

financial education at a school; otintroduced financial education to schools

 Integration with social studies or math  Complementing savings goals

 Variety of curricula, including Mo

Smart for Young People

25
FEDERAL DEPOSIT 

Reasons Banks and Partn

Participate

 Reported benefits include:

 Staff satisfaction and community goodw CRA credit for predominantly LMI Scho Building a pipeline of future customers Developing account relationships with 

staff, students, parents, and others

 Improving financial skills, knowledge a

attitudes of students

 Enhancing general academic performa

26
FEDERAL DEPOSIT 

Program Elements

 Contributions reported by banks

 Staff time Materials Marketing Monetary incentives Account set-up

 Partner contributions

 Staff time  In-kind services (e.g., space) Account matching (e.g. college savings

27
FEDERAL DEPOSIT 

Youth Savings Guidance

• Interagency Guidance to Enc

Financial Institutions’ Youth SPrograms and Address RFrequently Asked Questions (2/24

• Opening accounts for minors• Application of Consumer Protection La• Customer Identification Program requi• CRA Consideration• When are branch applications not requ
FEDERAL DEPOSIT 

Identification of key stat

 Collaboration between FDIC and 

Conference of State Banking Supervisors (CSBS)

 Research to identify state-specific laws 

rules pertaining to youth banking

 Examples

• State laws pertaining to age for non-custo

deposit accounts

• Branch application exceptions for school b

29
FEDERAL DEPOSIT 

Luke W. Reynolds

Chief, Outreach and Program Develop

lureynolds@fdic.gov 

www.fdic.gov/educati
FLEC Meeting – November 2016

Evaluating an Experiential App

to Elementary‐School‐Based Fin

Education

A project supported by the U.S. Departmen

Treasury’s Financial Empowerment Innovat

Elizabeth Odders‐White

University of Wisconsin‐Madison
• Elementary‐school‐based programs have seve

potential advantages:

–Reach all children–Counteract misinformation received elsewhe

–Establish positive norms before bad habits ta

• Need build a body of research (rigorous evalua

E.g., earlier work supported by the Dept of the

Treasury’s AFCO Youth Pilot

Motivation: Start in Elementary Schoo
• Existing research suggests that experiential lea

may be a promising means of building positive 

attitudes, skills, and habits (“financial socializa

• Contrasts with more formal (traditional) curric

–Greater focus on behaviors

–Requires less teacher training

–Highly customizable

Motivation: Focus on Experiential Lea
• A free K‐12 classroom management tool involvi

simulated economy (myclassroomeconomy.org)

• Students learn through repeated practice:

–Earning classroom currency for performing job

–Managing expenses (e.g., renting/buying their 

–Earning bonuses or incurring fines

–Making spending decisions at classroom auctio

My Classroom Economy
• Partnership with School District of Palm Beach 

• Roughly 2000 students in 115 classrooms at 2

primarily in grades 4 and 5 (ages 8 to 11)

• Schools randomly assigned to treatment or co

–Treatment group began My Classroom Econo

at the beginning of the 2015‐16 school year.

–Control group began MCE in the second trime

Evaluation Implementation
Evaluation Implementation (continued

• 3‐hour training sessions for teachers

• Materials and funding for classroom stores pr

• Student surveys

–Administered at the beginning and end of the 

trimester (August and November)

–Examine changes in a set of outcomes related 

financial capability

• Teacher and parent surveys administered in N
Six Categories of Outcome Measures

• Financial knowledge (13‐item quiz)

• Budgeting behavior (5‐item scale)

• Planning behavior (4‐item scale)

• Self‐control (5‐item scale)

• Financial socialization (2‐item scale)

• Financial experiences (5‐item scale)

Note: All based on prior work.
Sample questions (all multiple choice or T/F)

• A plan for spending money is called a ______.

• Jill had $50 in her checking account. She made 

withdrawal of $10 and a deposit of $20. What 

balance in her checking account?

Findings (controlling for race, gender, age, nume

• Somewhat modest but statistically significant 

• Notable given no “lessons”

Financial Knowledge
Sample questions (5‐point scales or Y/N)

• How good are you at keeping track of what you spe

money on? (Budgeting)

• How often do you talk to your family about financi

(Financial socialization)

• Do you currently have a bank account in your own 

(Experiences)

Findings: Statistically significant gains

• Larger effect sizes for budgeting and experiences

Budgeting, Fin Socialization, & Experie
Sample questions (5‐point scale)

• How often do you set goals for yourself? (Prop

to plan)

• How hard is it for you to avoid spending any m

you have right away? (Self‐control)

Findings: No statistically significant gains

• May involve broader issues (less financially foc

• Could require longer exposureSelf‐Control and Planning
• Also examine MCE’s incremental effects based 

–Student’s gender

–Student’s numeracy (math score from 2014 t

–School SES (fraction free or reduced lunch)

–Parent/guardian English as second language

• No statistically significant variation except for

socialization: Girl (+) and SES (‐)

Variation by Sub‐Groups
• Statistically significant gains in financial knowle

budgeting, financial socialization, and experienonly 10 weeks of an experiential financial ed pr

• Knowledge gains similar to more traditional fin

education program

• High marks from teachers; relatively low barrie

implementation; aids classroom management

• Promising component of a comprehensive effo

Summary
FINANCIAL 

CAPABILITYPILOTSupported by the Treasury DepartmFinancial EmpoweInnovation Fund
COMPONENTS

 Hands-on Curriculum Web/Mobile Game Teacher Training In-School Accounts

PARTIES INVOLVED

• MindBlown Labs• Cincinnati Police Federal Credit Union• Economics Center at the University of C

o Education Divisiono Research Division

• Filene Research Institute
PILOT DESIGN

• 2 high schools in Northwest Local Sch

District

• Cincinnati, OH• 800+ juniors and seniors

• Required government course• 3 weeks

• May 2016
 Pre/Post Survey Data

 Gameplay Data Account Data (Savings & Checkin

DATA SOURCES
 8 Pre-pilots

 490 Students States: CA, TX, MN, KY

PRE-PILOTS
 70% of students develop po

savings behaviors

 90% of students develop mo

positive attitudes around mo

RESULTS OF PRE-PILOTS
OFFICIAL PILO

(CINCINNATI)

* Findings that follow are based on a 

preliminary data analysis
PRELIMINARY FINDINGS*

• Students who played Thrive ‘n’ Shine experienced t

results:

• Positive increases in the majority of financial ca

knowledge indicators measured

• Large increases with respect to confidence in th

manage money and their ability to manage debt

• Substantial increases in their understanding of: 

interest trade-off; compound interest; insuranceincome taxes

• Analysis of real-life savings behaviors in progress*based on small sample size
KEY TAKEAWAYS

*

• Students respond very positively to a game-

approach

• Games can naturally account for students le

different paces

• Any game-based approach must account for 

levels of technological access

• Training for teachers is important• Curriculum must be very flexible

* Based on pre-pilots, official Cincinnati pilot, and resear
THANK YOU

Jason Young

jason

@mindblownlabs.co

510-575-9063
Boosting the Power of Youth Paychecks

Integrating Banking, Saving & Credit-building into Youth Employment Programs
 1971 Mission Area Federal Credit 

Union established

 2007 Credit Union Board hires ED 

to launch non-profit affiliate

 2011 MyPath spins off as independent nonprofit with a youth focus 2013 SF Fed publishes groundbreaking White Paper on MyPath Sa 2014 MyPath begins first rigorous study of a youth financial capabili 2015 MyPath builds key scaling infrastructure and new Credit mode 2016 MyPath initiatives in 8 cities, serving 4,500 low-income workin

MyPath – History
MyPath Vision

Every low-income working youth has the chance to make thepaycheck not just about income, but about lasting economic Income alone isn’t enough to disrupt poverty20 million youth ages 16-24 participating in the workforceMany low-income working youth growing up in “financial deserts”Many barriers to youth banking, particularly for minors Research demonstrates the power of starting early 
From Financial Education to Financial Capabili

MyPath’sFinancial Capability Approach

1. MyPath Engineers Effective Models
2. MyPath Shares What Works
3. MyPath Advances Policy Change

 Created MyPath National Youth Banking Standards Support a team of youth that lead youth financial inclusion c Engage with regulators and policymakers to advance youth 

inclusion and integration into youth employment system
MyPath Tool Box

Technical Assistance Services 

 For city agencies and youth employment nonprofits For financial institutions to adopt MyPath’s Nationa

Banking Standards and support off-site enrollment

Planning Tools & Support for Local PartnershipsTrain-the-Trainer for Line Staff & Youth LeadersMyPath Money to Support Delivery
MyPath – Using Technology to Scale 

MyPath Money
MyPath Footprint: Current

City Partners: Ferguson (MO), Las Vegas (NV), Reno 

(NV), Seattle (WA), Los Angeles (CA), Oakland (CA), Sa(CA) and San Jose (CA)

85

50+

Credit Union PartnersYouth Employment Program partnersLow-income working youth are now 4,500 banking, saving and building credit 
MyPath Savings Study: Treatment Groups

MyPath Standard  1 hour in-person 

workshop

 Supported 

enrollment into two accounts

 Direct deposit Support setting a 

personal savings goal

 Three online, 

interactive financial education modules

MyPath StandaCoaches 1 hour in-pers

workshop

 Supported en

into two acco

 Direct deposi Support settin

personal savi

 Three online, 

interactive fineducation mo

 2 hours of P

Group Coac

Comparison Group 1 hour 

workshop on fringe financial products
MyPath Savings Two-Year Study Results

$66,500 

TOTAL YOUTH SAVINGS
MyPath Savings Two-Year Study Results

$66,500 

TOTAL YOUTH SAVINGS
Key Lessons from the Study

• Timing is key, building around first paychecks works• Blended in-person and online delivery offers an 

effective mix of scalability and impact, and peers boost ou

• Young people will bank and save when provided with the 

supports, including youth-friendly accounts and facilitated 

• Integrating these supports into their employment program

powerful hands-on experience

• Combining income with banking, saving and peers chang

mindsets for the better
Key Challenges to Scale 

• Limited access to youth-friendly financial products. • Limited resources to support cities and nonprofits to integ

financial capability into their youth employment programs. 

• Lack of comfort and familiarity with banking, youth bankin• Need for policies and guidance to promote youth financial 

and capability for youth workforce and employment agencfinancial institutions.
Promising Developments

• Growing use of Youth Banking Standards and interest from 

in youth financial inclusion.

• Growing investment from philanthropy and government, fo

the Consumer Financial Protection Bureau’s YES! initiativ

• Growing demand from cities and nonprofits for training an

assistance around youth financial inclusion and capability 

• The Department of Labor’s new WIOA requirement for fin

literacy and FLEC’s new Guide to Youth Banking are key 
MyPath Contact Information 

Sabrina Kansara 

Director of Strategic Partnerships

Sabrina@mypathus.org

(415) 206-0846 

MyPathUS.org