NLC is providing guidance to the Consumer Financial Protection Bureau and the U.S. Department of Labor on their new technical assistance opportunity to help cities include financial capability in their youth employment programs.
Each year, millions of youth in cities across the country participate in programs designed to help them secure employment. Many of these young people hail from low-income or distressed communities and do not have access to the same kind of educational and career opportunities as their more affluent peers.
Often, a lack of attachment to the labor force can lead to risk of gang activity or criminal involvement. Youth employment programs, many of which are led by municipalities, have the potential to provide crucial pathways to economic opportunity and increased social mobility for participating young jobseekers.
Being in the labor force at a young age has benefits for young people, their families and their communities. It often contributes much-needed income to families that are struggling to get by. It also encourages civic engagement and provides valuable job skills and work experience that can lead to long-term, stable employment. Moreover, when young people are employed, cities benefit from reduced crime and overall economic development.
Having a job also allows young people to be more financially independent. However, millions of young people enter the workforce without basic money management skills or knowledge about today’s complex financial systems, and these skills are not typically taught on the job. And because financial knowledge is not a core component of our education system, many young people lack the necessary awareness and skills to become financially responsible adults.
To improve the ability of young people to effectively manage their finances – from spending and saving to building credit and keeping debt manageable – NLC is working with two federal agencies to help city leaders identify ways to incorporate financial capability into youth employment programs.
As part of a broader project on financial capability and youth employment, NLC is providing guidance to the Consumer Financial Protection Bureau (CFPB) and the U.S. Department of Labor on their just-announced technical assistance opportunity for up to 25 cities. Assistance will focus on ways cities can ensure that financial capability training and access to safe and affordable financial products are available for young jobseekers and workers.
For more information on how your city can receive this technical assistance, check out CFPB’s blog post and read the criteria for submission. Letters of interest are due to the CFPB by Thursday, April 30, 2015.
About the Author: Heidi Goldberg is the Program Director for Early Childhood & Family Economic Success in NLC’s Institute for Youth, Education, and Families. Follow Heidi on Twitter at @GoldbergHeidi.