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
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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.