Money is something everyone needs, wants and dreams about. Alas, it is far too often misunderstood. It can bring out the best or the worst in people, and although it facilitates some of the greatest philanthropic and humanitarian efforts we see, it is sadly also the bases for some of the most horrific acts imaginable. How can we teach fostered and vulnerable populations not only about money and financial stability, but also how to create and maintain a sustainable lifestyle circled around personal, professional and financial success? Creating the solution to this plight has become the personal mission of Diana Thompson, CEO of Student Finance League (“SFL”).
It is difficult for most adults - let alone young people - to figure out how to maximize income, pay bills, build credit, save money and avoid frauds and scams. For those most vulnerable and displaced like youth in the foster system, this can be even more challenging. Where there is a lack of money, limited earning potential and scarce opportunities, these youth are constantly living in survival mode. This state of basic survival is where these youth become vulnerable to inconceivable things, where the worst can happen. Children and young adults involved in the foster system have many more obstacles to overcome in this respect, then a child with two gainfully employed and financially stable parents whom impart their knowledge on to the next generation.
After four years and 16000 students working through Diana’s program, the research collected and case studies that were analyzed concluded that there is no shortage of financial literacy efforts, but yet there is a clear language barrier and lack of confidence. So much time, effort and tax-payer capital is continually allocated toward helping those in and aging out of the foster system, yet the stats show that the number of those who experience struggle, danger, victimization and poverty clearly suggests the model needs to be refocused and as such, parameters need to be redefined.
Student Finance League is a designated 501(c)(3) which partners with organizations, shelters, schools, law-enforcement and federal agencies to host workshops and seminars that teach money, business and life skills. The predominant focus is on business and financial language, vocabulary, conversations and confidence. By leveraging students’ strengths, goals and abilities SFL promotes equality, stability and opportunity. It all started as an after-school program for low income youth and has expanded to adult and child victims of human trafficking, along with special needs, fostered, homeless, abused, low-moderate income, at-risk, rehab/recovery, refugee, underserved, jail/juvenile, veteran and all other vulnerable members within the community. The financial services industry spends $5.5 billion annually on marketing products and services and $670 million on financial literacy, yet the poverty line has grown 2% over the last 20 years, consumer debt is at an all-time high, student debt is at an all time high. 24.5 million households are underbanked and 9 million households non-banked. This does not support a positive effect considering the money, efforts, initiatives and attempts dedicated to helping these underserved communities financially. Understanding budgeting and credit building are of utmost importance, but just like learning to speak English or Spanish, it is only meaningful if it is actually understood. Just like learning a foreign language, the basics have to come first. It does not matter how simply and slowly the teachers speak, if the basic terminology is not developed in a way that the students are able to comprehend and fully understand what they are learning, there will never be an effective long-term impact.
The SFL program is the bridge between financial professionals and the community. It serves to create more interest, better traction, understanding of finance, and is a win-win for both the user and the financial institutions. It starts a mutually beneficial dialogue that connects the two to create bankable and employable taxpayers for the institutions, while providing opportunity for the user to become financially proficient and stable. The program teaches the language and vocabulary on the topics of banking, debt, credit, loans, college/education, housing/real estate, tax, accounting, investing, retirement, marketing, sales, professionalism, business, entrepreneurship, interviewing, resumes, legal, insurance, fraud and scams, budgeting, and sustainable maintenance of all of the above. SFL is not aiming to teach students how to become experts in all industries, yet how to do research, build confidence and learn how to communicate in a professional manner.
The program is taught not just by local professionals, but by students who have completed the program and now have the ability to earn consistent and legal income. Leading by example allows these student-turned-teachers to achieve a better connection and more significant impact and traction with new like-minded students. Before trying to accomplish life milestones, there is a language - conversations and industry jargon that must be developed, understood and utilized effectively before any productive navigation of the business world can occur.
Most children and youth that have been through the program have made it very clear – their failures, procrastinations and weaknesses were not due to stupidity, laziness or inability. They simply did not understand the language and felt overwhelmed and inadequate in the conversation. Everyone can relate to this! Imagine going to China and trying to establish yourself with everyone around you speaking a different language that you don’t understand! This is exactly what is happening in America.
Money and business are a language, and professionals jump straight to the concepts and execution without ensuring the audience understands the basic language first. This disconnect has students checking out before they’ve even checked in.
Anyone who works in and around the foster system is well aware of the risks that this population is faced with, and the increased risk of falling victim to crime, including but not limited to human trafficking and violence. The participants that have gone through the SFL program, regardless of socioeconomic status, race, age, ability level or goals, all have the same thing in common: they are struggling financially. This is not because they are less intelligent, negligent or ignorant. This is because no one has taught them the language of money or has taken the time to build their confidence around the subject matter. From the research conducted, countless banks and professionals make a wonderful effort to promote financial literacy within their communities, but the glaring problem is the knowledge gap is far too wide. Not to mention the disconnect that the audience experiences when a banker with $2000 cuff links is lecturing them on budgeting! Diana Thompson, through her efforts as CEO of Student Finance League, is broadening the organization’s efforts to help not just the children and youth in or aging out of foster care, but the educators within the system as well. Student Finance League has been focused on teaching victims of human trafficking and violence (or those at risk to becoming victimized) be better informed, financially stable and independent in an effort to improve earning ability, money management skills and overall long-term sustainability. Sadly, all too often the story starts in the foster system. Many of the victims and distressed participants serviced by SFL admit to a lack of financial education, and money is the main reason for their situations. Hunting for money and love without stability or compassion is a dangerous combination.
This program can partner with any organization, shelter or group, adding the seminars and workshops to teach these crucial skills. If someone is able to learn a language, they can start learning the language of money. Personally, as a victim of domestic violence and working with many fellow victims, the most important and impactful lesson is - SUCCESS IS THE BIGGEST REWARD! In ten years from now, having a great home, secured income, retirement account and no bad debt, life will be happy, safe and stable. Being born into misfortune is not your choice, living the rest of your life content and happy IS!
Owner/Editor - Chris Chmielewski