SAN ANTONIO--(BUSINESS WIRE)--Today, JPMorgan Chase announced $1 million to support the expansion of MyPath’s youth financial capability model, MyPath Savings,1 into six cities, including San Antonio, Los Angeles, Newark, New York, San Francisco and Seattle in order to give to up to 6,000 young people the opportunity to achieve financial health.
San Antonio’s first MyPath Savings partner, Family Service Association of San Antonio, Inc., kicked off the MyPath Savings integration with 150 of its youth employment program participants this year. Today, to celebrate the launch of MyPath Savings in San Antonio, MyPath and JPMorgan Chase are hosting an event at the Federal Reserve Bank of Dallas, San Antonio Branch. As a result of this collaboration, youth and young adults aged 14 - 24 in select local youth employment and workforce programs will get access to MyPath Savings. MyPath’s tested financial health platform and web-enabled app includes youth-friendly interactive goal-setting, budgeting and saving modules, as well as access to quality, safe youth-owned savings and checking accounts that meet MyPath’s National Youth Banking Standards.
Kimberly Arispe, Manager of Workforce and Financial Stability at Family Service Association of San Antonio, Inc., shared her excitement about the new collaboration: “MyPath is helping our youth participants build a strong financial skillset, healthy banking relationships, and emergency savings, positioning them for lifelong stability and upward mobility. Our participants really enjoyed using MyPath Money, the interactive personalized budgeting and savings app; there youth set a personal savings goal.”
The MyPath Savings model is integrated into local youth employment and workforce programs, so youth learn to bank, use direct deposit to meet personal savings goals and build their financial confidence as they earn their first paycheck. MyPath provides technical assistance, training and materials to youth employment programs and credit unions to develop local partnerships and seamlessly deliver MyPath models in a sustainable manner.
“The power of this program is it reaches young people right as they begin earning their first paycheck. This helps explain why the MyPath Savings program has enjoyed such astounding results: 96% of youth enroll in savings accounts and meet their savings goals, and youth save 34% of their income on average,” said Morris Camp, market executive for JPMorgan Chase in San Antonio. “By combining financial health with early employment, MyPath Savings turns paychecks into a pathway for upward economic mobility, empowering youth with financial tools that translate into long-term financial stability.”
The JPMorgan Chase investment in the San Antonio program is $150,000.
JPMorgan Chase has a history of promoting solutions that advance the financial health of consumers and has invested over $350 million to support skill building around the globe. JPMorgan Chase’s summer youth employment programs provide teens and young adults in over a dozen U.S. cities with access to quality summer work experiences that put them on a path to greater economic mobility through financial capability programs that help create economic security.
Additionally, with a new and growing Asset Funders Network in San Antonio, it is timely to share how a comprehensive, tested youth financial capability model like MyPath Savings can be integrated with strong local champions like Family Service Association, as well as additional local youth workforce initiatives in the coming year. The Asset Funders Network is a group of San Antonio-area foundations and grantmakers focused on promoting economic opportunity and financial security for area residents.
Problem: In the U.S., there are over 20 million young people ages 16-24 years old participating in the workforce, many of whom come from low-income households where they grow up in financial deserts, or communities without ready access to quality banking and financial services. Without access to tools that can help them achieve financial health, young people too often end up on a dead end path.
Additionally, youth and young adults in youth workforce / employment programs are earning income/stipends, often for the first time as they get their first jobs. But rarely are these youth and young adults learning what to do with those first paychecks.
Solution: There is an opportunity to engage with working youth and young adults as they earn their first income so they have supports and tools embedded in their workforce settings to learn money management skills and can access quality financial products. Research shows the importance of starting early in life and reaching youth at this teachable, reachable moment of a first job, especially to prevent many costly challenges later in life such as debt, damaged credit, and a lack of a financial cushion and financial confidence. MyPath supports youth employment programs to institutionalize and build an interactive and engaging youth financial capability model into their existing system.
With 65+ youth employment partners in 12 cities across the country, MyPath has engaged 6,500 low-income working youth in banking, saving, and credit-building, generating over $2.5 million in savings and the following outcomes:
● 85% of youth open savings accounts and use direct deposit
● 80% of youth meet their savings goal, saving 30% of their income on average
● Youth gain increased confidence in carrying out financial behaviors (i.e., saving, budgeting, spending)
MyPath is now seeking additional local youth workforce and employment partners to bring its tested youth financial capability model to youth in San Antonio, Los Angeles, Newark, New York, San Francisco and Seattle. Please contact MyPath directly (Sabrina Kansara – Director of Strategic Partnerships) if you are interested in learning more – sabrina@MyPathUS.org.
MyPath is a San Francisco-based national nonprofit focused on powering youth potential and seeding economic mobility. MyPath’s vision is that every low-income youth and young adult has the chance to make their first paycheck not just about income but lasting economic security. We build strong foundations for upward economic mobility by connecting low-income working youth with opportunities to bank and build savings, credit, and financial confidence. MyPath's effectiveness is rooted in its history, strategic partnerships and a design process that incorporates youth voices, human relationships, technology and a commitment to evaluating our impact.
About JPMorgan Chase
JPMorgan Chase & Co. (NYSE:JPM) is a leading global financial services firm with assets of $2.6 trillion and operations worldwide. The Firm is a leader in investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing, and asset management. A component of the Dow Jones Industrial Average, JPMorgan Chase & Co. serves millions of consumers in the United States and many of the world's most prominent corporate, institutional and government clients under its J.P. Morgan and Chase brands. Information about JPMorgan Chase & Co. is available at www.jpmorganchase.com.
1 To learn more about the first experimental design study conducted on a youth financial capability model in the country, please see: Boosting the Power of Youth Paychecks: Integrating Financial Capability into Youth Employment Programs – Federal Reserve Bank of San Francisco (April 2016).