By Dustin Tyler Joyce
June 29, 2009

Mayors discussed the importance of financial education and their desire to ramp up efforts in their cities at the Dollar Wi$e Forum on Financial Education, held in conjunction with The U.S. Conference of Mayors annual meeting in Providence, June 14.

Providence Mayor David Cicilline opened the forum by describing financial efforts in his city. These include the soon-to-be-launched Bank on Providence initiative, based on the Bank on San Francisco model. Through this program, Cicilline explained, the city partners with local financial institutions and other organizations to bring the "unbanked" — those without a checking or savings account–into the "financial mainstream." That way, residents can avoid high-cost check cashers and other costly alternative financial services.

Cicilline further explained that the key to making Bank on Providence a success is partnering with local financial institutions. The city will work with banks and credit unions to create new low- or no-cost checking and savings accounts targeted to the unbanked. They will also establish criteria for opening accounts for immigrants without standard forms of ID and those currently ineligible to open accounts because of past overdraws and other discrepancies.

Cicilline was followed by Sophia Heller, director of policy for housing and economic development in the office of Los Angeles Mayor Antonio Villaraigosa. Heller detailed the city's policy approach to its Bank on L.A. initiative which, Heller explained, will "bank the unbanked as part of a broader effort to create asset-building strategies for low-income households across the city."

"This initiative is an integral component of Mayor Villaraigosa's efforts to raise living standards and create access to quality goods and services in low-income communities," Heller told forum attendees. "City staff conducted thorough research and analysis of L.A.'s unbanked population. Our mayor then convened nonprofits, foundations, regulators, and private'sector financial institutions to bank low-income households and give them the tools to save and thrive. Together, we're working to integrate mainstream banking into long-term city programs and the work of city departments."

Antonio DaSilva, Rhode Island Consumer Market Executive at Bank of America, discussed his institution's support for programs across the country to bank the unbanked. In addition to reaching out to those outside the financial mainstream, DaSilva said, Bank of America is also committed to supporting programs that increase financial literacy among youth and that help individuals and families build assets.

"Banking that makes sense for our changing consumers is one of the many things that we strive to achieve," DaSilva commented. He went on to explain that the bank offers incentives to its employees to engage their communities in financial education. DaSilva also encouraged mayors to contact Bank of America staff in their cities on ways they can work together to increase access to financial education and affordable financial products. Bank of America is the founding sponsor of the Mayors' National Dollar Wi$e Campaign.

The Conference of Mayors new Dollar Wi$e Summer Youth Campaign was the focus of remarks by Durham (NC) Mayor William Bell. Durham is taking a multifaceted approach to incorporating financial education into the Mayor's Summer Youth Work Program. Among the city's efforts:

Bell stated that he would speak to Summer Youth Work Program participants on the importance of financial literacy at the program's orientation.

Using the theme "Save a Dollar a Day," Durham will encourage youth to save a portion of the pay for their work in the summer program.

The city is working with a local financial institution to make no-cost bank accounts available to summer work program participants.

Financial instruction will be given on "Financial Fridays," the youths' paydays.

Twenty-five youth will participate in a pilot program with MoneyU, a Web-based, interactive financial education game for young adults ages 18 to 28.

Rounding out speakers' remarks was William Porro, special projects administrator for Miami. Porro manages ACCESS Miami, a cornerstone of Miami Mayor Manny Diaz's citywide poverty alleviation and reduction initiative. Financial education is a critical element of Miami's approach to helping low-income residents improve their financial stability, standing, and sustainability.

In addition to financial education for individuals, working families, and small businesses, ACCESS Miami directly assists residents in accessing the full range of benefits and services for which they are eligible, Porro explained. These include free and low-cost tax-return preparation, nutritional assistance, vocational and skills training, and job'search assistance through its dedicated Web site ACCESSMiamiJobs.com.

While bringing community and faith-based groups together to improve financial education is important to effective community outreach, Porro said, so too is bringing together city agencies and departments to improve communication, coordination, and service delivery, which can also significantly boost effectiveness. When a resident contacts one agency for its services, that agency can also direct the resident on to other services, including financial education.

Bowling Green (KY) Mayor Elaine Walker, who chaired the forum, spoke at length on financial education efforts in her city, which have been ongoing for several years. Other mayors in attendance spoke on the importance of financial education to their cities' residents and to helping improve America's economy and expressed their desire to bolster their cities' financial education efforts and participation in the Dollar Wi$e Campaign. "I've known about the Dollar Wi$e Campaign," Pembroke Pines (FL) Mayor Frank Ortis commented. "But now, after hearing these presentations, I'm going to go home and launch a program."