Make Your Path (MY Path™) June 7, 2013 Federation Annual Meeting Delivered By: Margaret Libby, Executive Director Mission SF Community Financial Center Mission Community Financial Center MissionSF SF Community Financial Center: Overview PRESENTATION OVERVIEW 1. Mission SF Introduction 2. Make Your Path (MY Path™) Design and Results 3. MY Path Lessons and Next Steps in 2013 Purpose Mission SFMission Community SF Financial Center: Overview • Mission SF positions low-income youth to take control of their personal finances by ensuring they have: 1. Access to quality financial products; 2. A working knowledge of personal finance best practices; 3. A social support system to develop and sustain sound financial habits. • When we do this, we promote upward economic mobility and cultivate a stronger, more sustainable economy. Mission SF Core Strategies • Reach people that are not being well-served • Reach them through strategic partnerships where they are • Bundle services to maximize client outcomes • Evaluate process and impact outcomes on an ongoing basis • Keep scale in mind • Develop and share best practices and lessons with field The MY Path Opportunity Municipal youth employment programs represent a powerful channel to reach millions of youth from underbanked and unbanked households. • 34% of youth ages 16-19, and 55% of youth ages 16-24 are in the labor force (US Bureau of Labor Statistics, 2012) • 40+ million youth are ages 15-24 years (Census, 2010) • No system in place to link them to accounts, financial capability and savings structures Financial Services Access In San Francisco Presidio Divisadero d 4t h r is ar on wn To t se nd Banks & Credit Unions V U 280 4t n ya Br h h rd 280 h 5t wa Ho ya Br Check Cashers & Payday Lenders 8t h th Haight Ashbury us as s FINANCIAL SERVICES ACCESS U V V U V U South of Market nt 10 Duboce Waller ar H Guerrero n Par Fillmore Lincoln 101 Stanyan z Ke ¤ £ Oak rd 280 6t Fell t ke wa 280 h Fulton on 7t ar M Franklin Masonic Arguello ate Golden G Western Addition Turk i is s M G ough Geary t 1s Ofarrell 3r Euclid Balboa Taylor Bush Laguna Presidio Heights Ho California Baker Presidio Pacific § ¨¦ 80 16th Judah 17th 18th 7th Potrero un ¤ £ Mission Castro Lag Van Ness 20th 101 aH on da a Di am d ig h na an Vie n Mi ss io n y Ge ne va un ny ns Qu le h ll Pau l Inn Ke it Gi lm an es u Cris Hill rn Pa lo p Ho s 3rd se Man S m Ale ht Dwig al l se Jo Sa n se on Jo Sa n Pe rsi a y Miramar Excelsior e Shor Bay l on kd a Bayview r uno Silver Felton ersit tV er n Th o r n t o n Univ Grafton ra lta Pe Elk te stg a 280 Av a r B San We § ¨¦ sa an Mo un Oa ve Sil Crescent re Ev a Hunters Point orth Th e ro ld i nt ts Bos w Monterey Oce Je r Ba y He Santa Clara Cortland s Garfield Sh d on Vicente Ce r r ito 30th In g t ol an r Po Taraval To l w Cesar Chavez ore De Dolores Church Clipper ey r Spea Saving and Economic Mobility MY Path Overview • Engage youth in the financial mainstream the moment they receive their first paycheck • Build financial capability through hands-on experience budgeting and saving their first income stream • Shift youth aspirations as they set and meet personal savings goals • Spur economic mobility through establishment of savings behaviors and college savings MY Path: Behavioral Economics Make It Automatic – Program enrollment Make It Easy – Direct deposit and auto-deposit Loss Aversion – MY Path savings matches Power of the Pack – Peer influence and support Pre-set Decisions – MY Path savings contract MY Path: Data Driven Programming Three Types of Outcomes • Financial knowledge – JumpStart • Financial behaviors – budgeting, tracking expenses, savings • Youth development – future orientation, self-efficacy, control MY Path Partners, 2011-13 MY Path Participant Profile, 2011-13 • Ten Partner Sites 280 youth each year from ten community based organizations implementing the San Francisco Mayor’s Youth Employment and Education Program (MYEEP) • Income Over half (58%) were from households receiving public assistance, 26% living in public housing, and 86% with annual incomes below half of San Francisco’s median income. • Age 9th and 10th graders, average age of 15 years. • Ethnicity 41% African American, 34% Asian/Pacific Islander, 18% Latino, and 7% declining to state MY Path Impact, 2011-13 • Over 500 MYEEP participants have opened accounts. • Over $450,000 in savings, this year over $1,000 per youth! • MY Path Savings, 2012-13 • Over Half (59%) met their 6-month goal. • Youth saved $238,000 in their MY Path Restricted Accounts, an average of $500 per youth. • In “transactional” bank account, over $100,000 in additional, “passive savings,” or $500 per youth! MY Path Impact, 2011-12 Financial Practices and Behaviors 3.5 3.0 3.2 3.0 2.5 2.0 2.6 2.9 2.5 2.6 2.5 2.0 1.5 1.0 .5 .0 Track how you spend your money Use a personal budget to plan how you spend money Pre Ask yourself if it is a need or a want before making a purchase Post Save a portion of your income MY Path Lesson 1: Technology for Scale Challenge: In-person content delivery with geographically disparate sites is time and resource intensive. Solution: Develop online content delivery platform and implement a Train-the-Trainer model so that youth at each site can lead peer learning sessions. MY Path Lesson 2: Incentivize Saving and Other Financial Behaviors Challenge: Financial incentives for deposits effectively nudged participants to save, but did not promote other financial behaviors such as budgeting and tracking expenses. Solution: Expand incentive structure to reward not only savings, but also other sound financial behaviors. MY Path Lesson 3: Flexible Savings Products Challenge: Some youth participants have their own bank accounts and agencies want flexibility in financial product offerings. Solution: In close partnership with Community Trust, offer restricted MY Path savings accounts to all, and regular savings accounts with ATMs to those who want them. Typical Youth Paycheck MY Path 2013-14: Up to 600 More Youth! • 20 new San Francisco youth employment site partners. • MY Path restricted account at Community Trust for their savings, and a second account for paycheck balance • Up to $160 per youth to incentivize key financial behaviors. • Online interactive financial education platform alongside inperson engagement at program sites, facilitated by site staff and MY Path Youth Coaches. MY Path™ 2013-14 Project Design Accounts Direct Deposit Savings Default Savings Goal Rewards Online Financial Education In-person Reflection High Touch X X X X X X Low Touch X X X X X Accounts + X Savings Default X X X Hear Directly From MY Path Savers IMANI PEDRO City Hall, Supervisor Avalos Columbia Park Boys & Girls Club MY Path Goal: $480 just to save End Total with Matches: $730 Goal: $470 for college End Total with Matches : $720 Margaret Libby, Executive Director [email protected] Vishnu Sridharan, MY Path Director 415-206-0846 x18 www.mission.coop MY Path Working Paper available at the Federal Reserve Bank of San Francisco’s website: Increasing Financial Capability among Economically Vulnerable Youth: MY Path.