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City Platform Section II, Step 17:
"Support or sponsor financial literacy courses or personal financial counseling to help families develop savings plans, repair credit, avoid predatory lenders, and plan for homeownership."
While access to a good job and needed work supports are critical to provide a steady flow of income and services to local families, many working families are still vulnerable to any disruptions to that income or unexpected expenses. To help families build a more secure future, city officials can provide information and needed supports so they can avoid high-cost lenders, repair credit, and save for investments in their future, such as education, buying a home, or starting a business.
City Examples
Phoenix, Ariz.
In Phoenix, the Department of Human Services operates and funds a financial education program for the city, which includes classes for adults, teens, and children ages 4-12. There are classes on basic subjects such as utilizing bank services, understanding credit and credit scores, simple budgeting, and homeownership preparation.
Younger children attending classes learn the concept of money and the importance of saving. While the program is open to all Phoenix residents, the city specifically strives to serve low- and moderate-income families. Many of the these families receive free tax preparation services through the city's Earned Income Tax Credit (EITC) outreach program and can use their EITC refunds to save for the future through no-fee savings accounts.
A comprehensive system of partnerships with several non-profit community organizations, faith-based groups, Arizona Saves, the governor's office, banks, and other city agencies contributes to Phoenix's success.
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Charlotte, N.C.
Not only did Charlotte Mayor Pro Tem Susan Burgess want to ensure that local families received the full tax credits they were due, but she also wanted to make sure they had the necessary information and support to use those credits to get out of debt and build financial assets. To do this, the city worked with fifty partner organizations to create the Family Financial Literacy Coalition, with a mission of building knowledge and building wealth among local families.
The city designated a "Free Tax Preparation Day" and helped publicize efforts throughout the community to help resident claim the Earned Income Tax Credit. In addition, the Coalition is trying to help residents avoid predatory lenders and build up a strong credit history for a more secure financial future.
One result of these efforts is a website to help link residents to financial literacy supports available in the community, such as consumer credit counseling, budgeting and money management assistance, homebuyer education, and low-fee savings accounts with one-to-one savings counseling.
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Resources
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