Purposeful Outreach: How targeted programs can teach younger people financial expertise
Anneka Vayaal
The extent of the knowledge of money management of the general homeless population has been a long debated subject. Questions such as where ignorance, if at all comes from, such as from lifelong exposure to poor decision making or from human greed have been posed. For the younger generation of this population, the former is a possibility and raises another question: would providing youth in unstable housing situations curb the future number of those without a stable home? A 2005 study from the University of York showed that many public programs prioritize the elderly and those with children, which reduces financial inclusion for those who are single, mostly younger people who are just entering the economy. Financial exclusion appears to result from a lack of knowledge about programs, as well as basic concepts such as saving, budgeting and spending wisely. Many who do not understand the concept of a credit score and investment accounts rely on cash as their primary, sometimes only way of holding assets. Those who were professionally employed were more likely to seek out and trust proper financial advisors while the rest did not make any efforts to approach these advisors.1 York University had its own report concerning providing financial education for underprivileged youth which found that children were interested and excited to learn about money and the knowledge around it when given the opportunity. The best way to introduce them to these concepts was to put them in the role of employment through a paid research assistant role where they would also be educated on the topic being researched. These children were willing to learn about banking and consumption and understand the benefits and drawbacks of their own money in the economy. Through open discussions, especially in smaller group settings they were able to share their opinions and voice their own concerns about finance and financial related themes.2 It can be understood that by providing young people with the opportunity to deal with money and ask questions firsthand, there can be more understanding of finance which in turn can hopefully reduce the homeless population in the upcoming years.
1. Wallace, A., Quilgars, D. (2005) Homelessness and Financial Exclusion: A Literature Review. Centre for Housing Policy, University of York. https://www.researchgate.net/profile/Deborah-Quilgars-2/publication/260387797_Homelessness_and_Financial_Exclusion_A_Literature_Review/links/552b92900cf29b22c9c1c1ad/Homelessness-and-Financial-Exclusion-A-Literature-Review.pdf
2. Ek-Udofia, I., Visano, B. S. (2012). Engaging Marginalized Youth in Financial Literacy Programs. York University Community Finance Project, York University. https://yucfp.info.yorku.ca/files/2015/12/PEACHInterimReportJune201223Jul12.pdf