City of Rochester
News Release
(Thursday,
July 27, 2023) – Mayor Malik D. Evans today announced
that the City’s Office of Financial Empowerment received a $244,000 grant from
ESL to design and pilot a city-wide Children’s Savings Account (CSA) program. The
program’s goal is to provide better economic opportunities to Rochester’s children
and their families by offering earlier access to banking services.
The
grant will enable the City will contract with Prosperity Now – the leading
national institution in Children’s Savings Account design and implementation – to
convene a local, cross-sector task force that will determine initial deposit
amounts and financial incentives, help select a financial institution partner, and
help develop a family engagement strategy. The grant funding will also support team
training and development, and the City’s creation of a Financial Empowerment
Initiatives Coordinator whose primary responsibility will be to manage the
planning of the program.
“Helping
children and families establish children’s savings accounts empowers kids and puts
them on a path to success,” said Mayor Evans. “This savings program is about
equity and will teach our young people the skills and benefits of saving and
budgeting. I am thankful to ESL for the generous gift that will enable our
Office of Financial Empowerment team to prepare our children and their families
for economic mobility and a hope-filled future.”
“It is critical to start healthy financial habits at
a young age if we are to prepare our children to be financially healthy when
they grow up,” said Ajamu Kitwana, vice president/director, community impact,
ESL Federal Credit Union. “ESL is committed to the financial wellness and
well-being of all our community’s residents. We support the planning and
implementation of this pilot program for Children’s Savings Accounts form the
City of Rochester’s Office Financial Empowerment because the findings and
learnings from the pilot can guide future decisions that could help set
Rochester’s children up for financial success.”
The
Children’s Savings Account pilot should launch in 12 months, with the city-wide
effort rolling out within two years. The planning and implementation process
will involve community engagement from residents, community organizations, and
intergovernmental partners.
“We believe every child should have the
chance at a healthy financial future, not just the few who have been born into
wealth. Children’s Savings Accounts are instrumental in helping families create
the nest egg children need to set them up for success,” said Cherie Collins
Sims, PhD, interim president & CEO of Prosperity Now. “That’s why we are
proud to partner with the City of Rochester to design a successful CSA program
that will help the next generation build assets and resources to support a more
secure and prosperous future.”
Children’s
Savings Account programs provide positive benefits for both children and their parents.
Research shows that children with a savings account are more likely to enroll
in and graduate from college with a degree, have positive connections to
financial institutions, and improve social-emotional development, which leads
to academic achievement. Programs help increase a parent’s expectations of
their child and provide a sense of security that they have a savings designated
for college or vocation.
“Kids need to learn the right way to go about
handling money,” said Deshanah Barnes, whose son opened a checking and savings
account last year as part of the City’s Summer of Opportunity Program. “It
relieves the parent so that they don’t have to do everything themselves,
especially being a single parent. I think it’s a good idea; it teaches them
financial literacy at an early age.”
The Office of Financial Empowerment focuses on supporting
Rochester residents and families gain financial security and achieve economic
mobility. To learn more, visit https://www.cityofrochester.gov/ofe.
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The Administration of Mayor Malik D. Evans strives to create a
safe, equitable and prosperous Rochester by inspiring hope and delivering
opportunity for everyone. Guided by the Administration’s Mission, Vision and Values and the principles of the “Rochester 2034”
comprehensive plan, City employees are committed
to providing exceptional customer service, transparent stewardship, and
collaborative leadership to foster a vibrant community that empowers personal,
professional and generational growth for all who live, work or play in the city
of Rochester.