We know that our children and youth are far less likely to learn and grow up to be healthy and productive citizens if their families lack the financial means to meet their basic needs. Municipal leaders are uniquely positioned to mount community-wide efforts that empower families and bolster their chances of achieving long-term economic success. Asset-building strategies, outreach and public education campaigns, and workforce development programs all represent valuable approaches to assist struggling parents and their families.

City-led initiatives to ensure that low-income families receive the federal Earned Income Tax Credit and other key public benefits can boost their incomes while bringing more federal and state funds into local economies. Mayors and other city leaders can also help families avoid foreclosure and predatory lenders, become more savvy consumers of financial services, and gain access to low-cost bank accounts and mainstream financial services.  Finally, cities can develop and support transitional jobs, housing, and shelter programs and other creative strategies to help hard-to-employ residents enter or regain their footing in the labor market.

Key areas for action include:

• EITC and other benefit outreach campaigns targeting low-income working families
• Efforts to open low-cost checking or savings accounts for “unbanked” residents
• Financial literacy, education, and coaching programs
• Measures to curb predatory lending and avoid foreclosures
• Homeownership incentives and counseling
• Transitional employment initiatives for parents facing barriers to work
• Other strategies to help families build financial assets.

Examples of local targets to consider:

• Number of eligible families claiming the Earned Income Tax Credit and other federal or state benefits
• Proportion or number of families with access to mainstream financial services
• Poverty rates
• Foreclosure rates
• Number of check-cashing operations and predatory lenders in low-income neighborhoods
• Number of transitional jobs available to hard-to-employ residents

For Further Information and Resources

EITC and Multi-Benefit Outreach:

» NLC Institute for Youth, Education, and Families

» National Community Tax Coalition

» Center on Budget and Policy Priorities

» Food Research and Action Center

» Internal Revenue Service

Access to Mainstream Financial Services:

» NLC Institute for Youth, Education, and Families

» New America Foundation

» Pew Safe Banking Opportunities Project

» Center for Financial Services Innovation

» Bank On San Francisco

Financial Education, Savings, and Protection Against Predatory Lending:

» Center for Responsible Lending

» CFED

» Consumer Federation of America

» U.S. Department of the Treasury

Homeownership Counseling and Foreclosure Prevention:

» National League of Cities

» NeighborWorks

» National Community Reinvestment Coalition

Transitional Jobs:

» NLC Institute for Youth, Education, and Families

» National Transitional Jobs Network