National League of Cities’ Institute for Youth, Education, and Families National League of Cities Abby Hughes Holsclaw

National League of Cities’ Institute for Youth, Education, and Families The National League of Cities (NLC) is the country’s oldest and largest national organization representing the interests of cities. In a September 1999, NLC announced the creation of the Institute for Youth, Education, and Families (YEF Institute). The Institute focuses on several issue areas related to strengthening families. One area is Family Economic Success.

Asset Building and Financial Education Asset building is a key anti-poverty strategy that not only can help low- and moderate-income families become more financially stable but can also provide an economic cushion for future generations. Financial Education is a key component of any asset- building strategy because it provides families with the tools they need to manage their money, avoid financial traps, and make informed financial decisions.

NLC Work on Asset Building: Cities Helping Families Build Assets Phase I: The goal of the Cities Helping Families Build Assets Project (Assets Project) is to build municipal leaders’ capacity to take action toward helping families increase their economic stability. Launch of Phase II: Recently, the YEF Institute launched Phase II of the Assets Project, which will provide in-depth technical assistance to six cities. These cities are: Burlington, VT; Itta Bena, MS; Louisville, KY; Orlando, FL; Savannah, GA; and Seattle, WA. Upcoming Action Kit: The YEF Institute is currently preparing an Asset Building Action Kit, which will be a nuts and bolts guide of ways municipal leaders can promote asset building in their communities.

Why Building Assets Matters Today, many low-income families struggle to make ends meet and have no financial reserves upon which to draw in the event of job loss, serious accident or illness, or other personal crises. The ability to build even modest financial assets can provide a critical buffer against such events and thereby enhance the economic security of low-income families. A broad range of positive benefits is associated with assets, including:  household economic and marital stability,  decreased intergenerational poverty transmission,  decreased homelessness, and  increased local civic involvement.

Financial Education Campaigns Cities have sponsored local financial education campaigns to:  Spread the word about the importance of financial education  Inform residents of financial education programs  Provide resources and educational materials  Offer incentives Cities are also partnering with national campaigns to take advantage of developed curriculums and existing resources. Many cities are also working to connect existing financial educators within the community. In 2005, 25 – 56 million adults were unbanked. As of 2004, consumer debt was equal to 110 percent of disposable income. Only a minority of adults feel well informed about managing household finances.

National Education Campaigns More than 400 different financial education curricula have been produced, many high quality and available for free or at a low cost. Choose To Save Money Smart Credit Smart Jump$tart Saving Matters MyMoney

Partners National campaigns Local government Financial institutions Local employers Community-based organizations Funders Insurance companies Community colleges or local universities Faith-based institutions Ethnic organizations Credit counseling Agencies Neighborhood associations

City Example: Phoenix, AZ The Financial Education Program Created as way to encourage EITC clients to use refunds to begin saving. Developed in partnership with local financial institutions and CBOs. Program includes classes for children, refreshments, multiple locations and times, and financial incentives. Participant recruitment is one of the toughest challenges in implementing financial education programs. Phoenix uses comprehensive outreach strategies to help reach low-income populations.

City Example: Indianapolis, IN Championed by Mayor Bart Peterson through “Peterson Plan II” City partners with Indy Saves and Get Checking Financial Education Network – stakeholders meet monthly to work on creating a comprehensive system to connect clients to financial services.

City Example: Miami, FL The City of Miami’s A.C.C.E.S.S. Miami initiative is a comprehensive and coordinated effort to affect low and moderate income working families and business entrepreneurs with an income building structure. ACCESS Miami offers Financial Literacy and Community Outreach Workshops in conjunction with programs such as free tax preparation that help residents access benefits and capital, while accumulating wealth and assets. The Parent Academy is a parent education initiative offered through the public school system.

Some Common Denominators Outreach through free tax preparation sites Mayor or elected official serves as a champion Strong partnerships with community-based organizations Involvement of financial institutions Links to existing resources (e.g., national campaigns)

Best Practices Offering programs for children and adults Holding classes/events at “known” locations and offering a varied schedule Providing incentives for enrollment and course completion Using a well-developed national financial education curriculum

Challenges Finding convenient times and locations to serve a targeted population Designing materials that address language and cultural barriers of residents Retaining participation Reaching target populations

Contact Information Abby Hughes Holsclaw Program Director, Early Childhood & Family Economic Success National League of Cities’ Institute for Youth, Education & Families 1301 Pennsylvania Avenue, NW Washington, DC Phone: 202/ Fax: 202/ Web: