Building Financial Capability in Youth Employment Programs
Developing strong financial skills is important to young people, especially to disadvantaged youth who may have limited resources and access to financial education and services. One promising opportunity for teaching young people about financial capability occurs when they are participating in programs that provide youth training and employment.
In recognition of this, the Consumer Financial Protection Bureau (CFPB) and the Administration for Children and Families (ACF) partnered to produce Building Financial Capability in Youth Employment Programs. This report provides an overview of the valuable lessons drawn from a 2013 roundtable of national and local leaders from promising programs convened to discuss current efforts to help youth build financial capability through employment programs. The CFPB organized this roundtable in collaboration with other federal agencies on the Financial Literacy and Education Commission (FLEC).
The roundtable brought together leaders from promising programs that included three important components: integrating financial education into youth employment programs, establishing partnerships with employers, and identifying effective strategies to collaborate with financial institutions. As detailed in the report, the key takeaways from the roundtable were:
- Lesson 1: Partnerships with the private sector, nonprofit organizations, government agencies, financial institutions, and youth are necessary for successful program implementation.
- Lesson 2: Financial education should be tailored to the needs of youth, employers, and financial education providers.
- Lesson 3: Financial products offered to youth should be carefully selected by weighing the costs and risks of various options.
- Lesson 4: Organizations should develop explicit strategies for engaging youth in the short and long term. Efforts to engage youth are important both during and after the employment program.