It’s not that young people don’t want to save, it’s more like they don’t know how.
Schools can help, and the Federal Deposit Insurance Corp. is launching a program to encourage banks to join the effort.
The FDIC pilot program seeks to identify and highlight “promising approaches to offering financial education tied to the opening of safe, low-cost savings accounts to school-aged children,” according to a release Monday.
The pilot program will include FDIC-insured financial institutions that “have entered, or intend to enter, working relationships with schools and/or nonprofit organizations to help children open savings accounts in conjunction with financial education programs.”
The agency will connect pilot participants together to share best practices and will also provide technical assistance.
The first phase of the pilot will focus on programs that will be in place during the 2014-2015 school year.
Through August 22, the FDIC is also soliciting interest from institutions that will have a youth savings program underway during the 2014-2015 school year. For the second phase, the FDIC will begin soliciting interest in April, 2015 for institutions that will begin new savings programs with schools in the 2015-2016 school year. Information on this pilot program can be found at www.fdic.gov/consumers/banking/youthsavingspilot/.