One Brooklyn
November 19, 2015
AT RELEASE OF HIS REPORT ON BROOKLYN’S CONSUMER DEBT CRISIS, BOROUGH PRESIDENT ROLLS OUT RECOMMENDATIONS TO IMPROVE FINANCIAL SECURITY OF HOUSEHOLDS ACROSS THE BOROUGH
BROOKLYN, NY, November 19, 2015: Yesterday, Brooklyn Borough President Eric L. Adams launched his partnership between financial institutions and thirteen underserved schools to bring financial education into classrooms across the borough. The announcement coincided with the release of his report, “Countering Consumer Debt in Brooklyn: Strengthening Communities by Raising Financial Literacy,” an analysis of the borough’s credit crisis that includes recommendations to improve financial security. Borough President Adams spoke to the need of educating students on the fundamentals of personal finance as part of improving the borough’s greater financial outlook.
“Debt is a weight that is drowning Brooklynites, and financial education is the lifesaver that leads to more secure futures,” said Borough President Adams. “It may not be sexy to talk about FICO scores and savings accounts, but learning basics of money management is essential if we are going to get serious about Brooklyn’s consumer debt crisis. We need to change the culture around money in our borough, and our partnership between financial institutions and underserved schools aims to begin that shift in the formative years. A child that overspends on video games is an adult that may be unable to balance their checkbook tomorrow. We must build the foundation for healthy financial outcomes throughout Brooklyn.”
Borough President Adams made the announcement of his partnership alongside financial professionals, principals, and students outside PS 184 Newport, a Title I school in Brownsville that has been linked with the Financial Literacy for YOU(th) program of Sparks Fly, a Brooklyn-based financial consultancy. Santander Bank has committed to the most schools to date, partnering with Bedford Academy High School and the Brooklyn Academy of Global Finance in Bedford-Stuyvesant, PS 150 Christopher in Brownsville, and Millennium Brooklyn High School in Park Slope. Additionally, People’s Alliance Federal Credit Union is teaming up with IS 392 The School for the Gifted and Talented in Brownsville, while non-profit organization Operation HOPE is connecting with Academy of Urban Planning in Bushwick. Interested schools that will be partnered with financial institutions in the near future include: Brooklyn Community High School for Communication, Arts and Media in Bedford-Stuyvesant; Mott Hall Bridges Academy, PS 156 Waverly School of the Arts, and PS 165 Ida Posner in Brownsville; Benjamin Banneker Academy in Clinton Hill; and Science Skills Center High School for Science, Technology and Creative Arts in Downtown Brooklyn.
“Operation HOPE stands steadfast behind Borough President Adams’s commitment to heighten the financial literacy awareness of all Brooklynites,” said Pedro L. Barry, small business program coordinator for HOPE Inside at Operation HOPE. “We support his efforts by providing youth and adult empowerment programs, including entrepreneurship training, credit and money management, as well as homeownership and foreclosure prevention, free of charge in Brooklyn.”
“For over a decade, Borough President Adams has demonstrated his devotion to financial education for all Brooklynites,” said Candi Sparks, CEO of Sparks Fly. “As a community partner sharing that mission, Sparks Fly is honored to participate in this pilot program. In our experience, young people are very interested in money and are ready for the financial education this pilot will bring them. We’ll make sure it’s fun, interactive and aligned to the State’s Common Core standards and to STEM education. We are thankful co-laborers in Borough President Adams’s mission of creating a financially stable Brooklyn for one and all.”
“At Santander Bank, we believe that good financial skills and habits are essential for middle school and high school students,” said Vladimir Lik, district executive for Brooklyn South at Santander Bank. “Whether young people are applying for a credit card or financing their higher education, it’s important they are introduced to financial education and sound money management skills at an early age. Our partnership with Brooklyn acknowledges our shared commitment to ensuring the borough’s students grow up to become financially savvy young adults.”
Borough President Adams’s report on consumer debt and financial literacy builds on his issuing of the “Four in Four” challenge at the launch of his second annual Brooklyn Financial Education Empowerment Month in April, a goal for reducing the borough’s credit card delinquency by four percent in four years, bringing that metric just below the national average; he based this call on data from the Federal Reserve Bank of New York which has shown, for example, that the level of overall debt that Brooklyn is carrying past due 90 days or more is greater than twice that of the entire nation. In recent months, Borough President Adams has held a public hearing and conducted surveys to get feedback from financial institutions and local residents on the state of the borough’s financial literacy. His report identifies four major areas as causes of Brooklyn’s poor credit: a lack of economic opportunity in certain communities; a lack of basic financial education, including topics like budgeting and saving; residents living beyond their available means and practicing poor money management habits; and a lack of family communication.
“Restoring the good credit of Brooklynites and ensuring that we are all financially literate will not take place overnight,” wrote Borough President Adams in his report. “However, we can achieve my ‘Four in Four’ goal if we act strategically to promote financial education at the various policy levels, encourage financial institutions to act responsibly and be good members of our communities, as well as make certain that individuals are proactive in ensuring that their household budgets are sound.”
Borough President Adams outlined a number of recommendations in his report to help strengthen credit and reduce debt for Brooklynites, including the partnership between financial institutions and underserved schools. Other efforts that he has laid out for his administration to tackle include: developing tailored community profiles and financial educations strategies for each of the borough’s neighborhoods; expanding the availability of financial education workshops at Brooklyn Borough Hall; developing public service announcements on consumer debt; and partnering with local, state, and federal regulators to help eliminate predatory lending practices like payday loans. Asks that Borough President Adams is making of local and state policymakers include: passing statewide legislation to require financial literacy be taught to all high school juniors and seniors as well as to allow social service districts to provide financial education to those receiving Temporary Assistance for Needy Families (TANF) benefits; establishing a peer-to-peer financial literacy program through the New York City Department of Youth and Community Development (DYCD); and institutionalizing financial planning into community planning and development through the New York City Department of Consumer Affairs (DCA).
“Allowing local social service districts to offer courses on financial literacy provides individuals who are receiving public assistance with invaluable knowledge and the power to make sound decisions when dealing with their personal finances,” said Senator David Carlucci. “My bill, which has repeatedly passed the State Senate, provides individuals with a beneficial resource at their disposal to make changes that will lead to greater financial security. I want to thank Borough President Adams for supporting this bill and for highlighting the need for increased access to financial literacy courses in our community. I urge my colleagues in the Assembly to pass this bill during the next legislative session.”
“Financial literacy is a crucial tool for every individual and family in managing day-to-day budgets,” said State Senator Jeff Klein. “I applaud Borough President Adams for creating a bridge between banks and public schools so that parents can learn these valuable, life-changing skills. We also want every student to learn money management tools in the classroom, which is why I carry a bill in the State Senate to require financial literacy instruction to high school juniors and seniors. This knowledge will help the next generation learn how to maintain checking and savings accounts, obtain short and long term credit, secure credit for homes, obtain and use credit cards, invest and save money and prepare for retirement. With so many of our young people drowning in an average $45,000 in debt by the time they’re in their 20’s, and 35 percent of teenagers indicating they are ill-prepared to use a credit card, these skills are critical to their financial well-being.”
“New York has always been a leader in education, but when it comes to financial literacy, we have fallen behind,” said State Senator Diane Savino. “While New York is one of only seven states that do not require a personal finance course as part of our statewide curriculum, our young adults are starting their lives burdened by ever-growing student debt. That is why it is critical to support S.2899, sponsored by State Senator Klein, and S.2150, sponsored by State Senator Carlucci, in order to ensure that we are providing our high school students with a strong foundation in financial literacy, while educating people currently enrolled in public assistance employment programs. I want to thank Borough President Adams for his leadership in building this partnership with schools, in order to provide an opportunity to learn these essential skills. Together, we can make sure that all generations are well prepared for a strong, healthy financial future.”
“The financial decisions we make at a young age have lasting impacts and serious ramifications later in life,” said Council Member Mark Treyger. “Yet, the graduating class of 2014 is the most indebted class ever, as was the class before them, and the class of 2015 will likely surpass it. Meanwhile, banks and credit companies continue to aggressively market to young adults, with the percentage of college students with credit card debt approaching 90 percent, and more than half holding more than four credit cards. Young adults today are being bombarded with credit card offers before they are even out of school, and incurring debt that sets them back for years financially. As a former educator, I believe that the need for better financial outreach and education in our city and our schools is glaring, as more and more students find themselves in debt before even having the chance to obtain a college degree. We need to empower those of us most vulnerable to financial mismanagement – our young people – with the skills and knowledge to avoid already being in debt by the time they get out of school.”
Borough President Adams’s recommendations also advise financial institutions to encourage additional saving by offering cash deposits for maintaining a certain savings balance for over 30 days, as well as to create “challenge grant” programs where financial institutions join up with registered non-profit organizations to incentivize college savings for low-income students. Additionally, he is calling on Brooklynites to enroll in financial education programs, research their individual credit scores, create personal or family budgets, track 30 days of their personal spending, and pay their bills on time and in full whenever possible.
“A sound financial situation is always built on personal understanding, and finance is understandable by anyone when those who already know just share that knowledge with those who need to know,” said Patrick T. Gilbride of Edward Jones. “We all need to know. Children especially have great potential for understanding when they are introduced to good information early and often.”
A copy of Borough President Adams’s report on consumer debt and financial literacy can be found on his website by visiting brooklyn-usa.org/wp-content/uploads/2015/11/11-17-financial-lit-final.pdf.
PHOTOS
Brooklyn Borough President Eric L. Adams released his report, “Countering Consumer Debt in Brooklyn: Strengthening Communities by Raising Financial Literacy,” an analysis of the borough’s credit crisis that includes recommendations to improve financial security, as he launched his partnership between financial institutions and underserved schools to bring financial education into classrooms across the borough; he is joined by financial professionals, principals, and students outside PS 184 Newport in Brownsville.
Photo Credit: Stefan Ringel/Brooklyn BP’s Office
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