At 18, Curtis Binns, a high school graduate, had never taken a class on money management. In early July, he and other foster youth living in the Transitional Independent Living program at Hathaway-Sycamores Child and Family Services in Pasadena, arrived for the first in a series of classes called Financial Firsts, to help prepare them for the transition to living independently when they age out of the foster care system. Hathaway-Sycamores had partnered with by ByDesign Financial Solutions to offer the Financial Firsts program to a group of their clients.
Binns learned that he was the 1,000th foster youth to register for the course. "At first, Curtis seemed a bit surprised," said Cynthia Rojas-Azali, ByDesign's presenter for this class. "He had no idea he would be part of such a milestone. Curtis is a great student--I think he can really see how the skills he has picked up here can be applied to his everyday life in ways that will benefit him."
At the conclusion of the program, Binns says he has already started budgeting by putting a pair of boots he's eyeing on layaway and making monthly payments rather than tying up all his cash. A convert, he now says, "...if you don't budget your income, you won't have a future. You have to think ahead, not just think of now." He believes the information he learned about credit and his credit score is the most essential and sees unexpected expenses and getting health insurance as the biggest dangers to maintaining his financial stability.
In 2006, ByDesign Financial Solutions launched Financial Firsts, targeted at youth ages 15-22, to empower participants to maximize the benefits of their first independent financial and employment decisions through a series of five, two-hour interactive workshops and an accompanying workbook. Financial Firsts combines a youth-appropriate curriculum with individualized instruction from trained personal finance educators in small classroom settings. The program covers: first checking account: establishing a relationship with a financial institution, writing checks, and balancing a checkbook; first job: creating a resume, presenting well in an interview, and budgeting income; first car purchase: preparing a budget for purchasing a car, understanding the impact of a credit score on the cost of a car loan, and developing rules for passengers in the car; first credit card account: obtaining and properly handling a credit card account and understanding the impact of credit management on credit scores; and first home away from home: preparing a budget for renting an apartment; understanding the pros and cons of having a roommate and using a move-in checklist.
Financial Firsts workshops are filled with fun, interactive activities to maintain participant interest and help the participants practice what they learn with real-world applications. For example, students practice balancing a checkbook in teams, use a dice game to illustrate the relationship between credit scores and the cost of financing a vehicle, and students review an actual credit report to identify and explain the various components of a credit report
In the past year an a half, ByDesign has raised $220,000 in funds to support the delivery of the program through community-based organizations serving foster youth in greater Los Angeles, Sacramento, Stockton and Fresno. To date, the majority of the funding for the program has been provided by the Walter S. Johnson Foundation, the Richard Myles Johnson Foundation, State Farm, Citibank, Toyota Corporate, First Federal Bank of California, California Credit Union, SAFE Credit Union, Raley's, Heritage Community Credit Union, Quest and Golden 1 Credit Union. Further donations have been made by individuals and small businesses.
In addition to seeking financial support for the program, ByDesign has developed relationships with approximately 40 non-profit organizations across the state serving at-risk youth, many of those being Independent Living Programs associated with various county school systems.
Last year, ByDesign earned the Richard Myles Johnson Foundation's Beacon Award Organizational Award for Financial Literacy Programming for Financial Firsts. And, this April, Laura McGrew, ByDesign's head of education and the creator of Financial Firsts, also received California Jump$tart's award for "Personal Financial Literacy Leadership." The California Jump$tart Coalition works to improve the personal financial literacy of the state's youth and in 2005 the Foundation placed an emphasis on youth financial literacy.
With 189 years of combined experience and a comprehensive continuum of services, Hathaway-Sycamores Child and Family Services (HSCFS) offers the highest quality of care for children, adults and families. Hathaway-Sycamores has brought an increased range of programs and services across a broader geographic scope in order to enhance service, advance care and promote the healthy development of children and families. Each year Hathaway-Sycamores Child and Family Services helps nurture, educate, and care for more than 10,000 children and their families.
ByDesign Financial Solutions is dedicated to helping individuals and families learn how to prevent and solve financial difficulties. As a member of the National Foundation for Credit Counseling (NFCC), and established more than 40 years ago, the organization offers personal finance education, confidential individual debt and budget counseling, housing counseling, the implementation of debt reduction plans, bankruptcy counseling and education, and identity theft services in offices located in Sacramento, Stockton, Los Angeles and Fresno. For more information about ByDesign, please call 800-750-2227 or visit us on the web at www.bydesignsolutions.org.