The FDIC has released a report outlining effective strategies for promoting savings among young people, based on the experiences of 21 banks that participated in a two-year Youth Savings Pilot program. Combining traditional, classroom-based financial education instruction with the experience of opening a savings account, the pilot program reached 4,500 young people in mostly low- and moderate-income areas.
The report highlighted lessons learned by participating banks as they built their programs, which followed one of three specific models. It provided successful strategies for designing a youth savings program, initiating partnerships with schools and nonprofits, choosing account types to offer, delivering effective financial education, engaging parents and guardians and measuring the program’s effectiveness.
Included in the report was a framework for other banks to follow as they design their own youth savings programs. The FDIC said it also plans to launch a Youth Banking Network, which will support banks’ efforts through periodic conference calls and the ongoing development of information resources.