Association for Public Policy Analysis & Management

Government-facilitated Summer Youth Employment Programs (SYEPs) have experienced an uptick in implementation across the country (Ross and Kazis, 2016). The increase is perhaps in response to both high youth unemployment rates and current incentives within Workforce Innovation and Opportunity Act (WIOA) funding. In 2015, the National League of Cities partnered with the Department of Labor and the Consumer Financial Protection Bureau (CFPB) to identify and promote best practices in financial capability and access to financial services among young people between the ages of 14 and 24. This resulted in a 2017 Municipal Action Guide which includes suggestions such as ‘become a champion of financial capability for young people’ and ‘adopt payroll systems that reinforce financial capability concepts.’ This paper examines results from a community based organization that attempts to implement such strategies within Detroit’s youth employment program.

Methods:

Detroit’s summer youth employment program is called Grow Detroit’s Young Talent (GDYT). The program has grown from 5,594 youth participants in 2015 to over 8000 participants in 2016 and 2017. Although all worksites are asked to provide financial education in some form, one community-based provider (CBP) prioritized implementing its own financial capability program. This organization opted out of the city’s payroll system to partner with the Consumer Federation of America (CFA’s) America Saves for Young Workers program, which emphasizes setting a savings goal and pledge as well as direct deposit so that young people become banked and can automatically set aside a part of their paycheck toward savings. An exit survey was given to 2098 youth that participated in GDYT during the summer of 2017, including 113 youth that were part of the community-based America Saves program

Findings:

To participate fully in America Saves, the CBP opened bank accounts for participants as they enrolled in the youth employment program. It also paid youth by direct deposit and did not have to cut checks or issue pay cards. In addition, youth were offered a small match (up to $100) if they met their savings goal. The CBP youth were similar to overall average results in most areas, but there were two things that stand out. Only 5% of the CBP youth reported not having a bank account (compared to 49% among overall participants). Similarly, only 8% of the CBP youth reported not saving money on a regular basis (compared to 18% among overall participants).

Implications:

Although Detroit’s overall summer youth program does not require a specific financial capability program, one CBP decided to become a champion for financial capability. They worked with staff and youth to implement a quality program. Results show that its youth were more likely to be banked and more likely to save. The CBP has provided a model that other providers in the city can follow.